Global Managed Network Services Market By Type (Managed VPN, Managed WAN, Managed LAN, Managed Network Security, Managed WiFi and Others), By Deployment Mode (On-premise and Cloud), By Enterprise Size (Large Enterprises and Small & Medium Enterprises), By End User (BFSI, Retail & eCommerce, Media & Entertainment, Healthcare, Government, Telecom & IT and Others), By Regional Outlook, Industry Analysis Report and Forecast, 2021 - 2027

Analysis of Market Size & Trends

The Global Managed Network Services Market size is expected to reach $87.7 billion by 2027, rising at a market growth of 7.2% CAGR during the forecast period. Managed network services referred to networking functions, services, and applications offered by a third party that are remotely monitored, and maintained by managed service providers (MSPs). These services range from elementary network access & transport services such as conventional leased LAN & WAN lines to the latest virtual network services & software-defined WAN (SD-WAN) connections. Along with network access and transport services. Managed network services also comprise unified messaging, managed security firewalls, WAN optimization, virtual private networks (VPNs), and network administration.

The factors accelerating the growth of the managed network services market are the rising deployment of cloud-based solutions & services by SMEs, increasing focus towards reducing operating cost as well as time and surge in development of big data analytics technology. Moreover, another factor boosting the growth of the market is the growing demand for solutions and services that assists in addressing complications. Further, some of the catalysts for market growth are the rising requirement of reducing the capital expenditure (CAPEX) & operating expenditure (OPEX), high penetration of mobility, growing deployment of cloud-based solutions by banking financial services and insurance (BFSI) organizations. Furthermore, increasing demand for operational excellence, and escalating advancements in artificial intelligence technology are major determinants accountable to strengthening the growth of the managed network services market.

COVID-19 Impact Analysis

The outbreak of the COVID-19 pandemic had a negative impact on the global economy, where the healthcare sector was overburdened by its impact. The impact of the pandemic was witnessed over several industries like oil & gas, manufacturing, transportation & logistics, and energy. Additionally, governments of several nations imposed strict lockdown restrictions to maintain social distance which would reduce the effect of the coronavirus. Moreover, traveling was also banned in several nations which hampered the supply chain of products. Under these circumstances, several companies focused on deploying cloud services in order to sustain during the crisis.

Market Growth Factors:

Prevent issues and provide dynamic network maintenance

Managed network services set organizations free to focus on their core business and their goals. These services combine high-performance network availability with increased speed and flexibility that help in escalating the growth of the business. Additionally, managed network service providers have the infrastructure in place that assists providers in their installation and up-gradation of the services. Moreover, there is the continuous occurrence of preventive maintenance and ongoing proactive checks and improvements under the developed network setup. In addition, these services also offer access to state-of-the-art technologies, which organizations may not be able to afford directly.

SMEs are witnessing high demand for managed network services

The opportunities for business goals in small and medium enterprises are increasing with the help of managed network services. Small and medium enterprises are adopting advanced IT services as the pressure of expanding their business is constantly rising. Thus, it is estimated that SMEs will invest largely in IT services in the coming years. Moreover, SMEs are increasingly deploying automating services, the latest digital technologies, and cloud services that are anticipated to accelerate the growth of the managed network services market.

Market Restraining Factor:

Difficulty in following stringent government compliances and regulations

The stringent compliance laws and increasing demand for improved data security in regulated industries like financial services, legal services, and healthcare are taking advantage of the knowledge and skilled-professionals of managed service providers (MSPs) to establish and control compliant IT environments. The government and other agencies have tightened their rules for management of confidential data, where MSPs are playing a vital role by offering employees a legal and compliant working environment. With the rise in data breaches cases, regulatory agencies are focusing on imposing severe penalties for noncompliance and tightening security needs.

Type Outlook

Based on Type, the market is segmented into Managed VPN, Managed WAN, Managed LAN, Managed Network Security, Managed WiFi and Others. The managed network security segment would witness a prominent CAGR in managed network services market over the forecasting years. The increasing risk of data and system breaches is minimizing the productivity of the business, damaging compliance efforts, and hampering business innovation.

Deployment Mode Outlook

Based on Deployment Mode, the market is segmented into On-premise and Cloud. The managed service providers monitor and control the company’s software, hardware, applications, and servers. Moreover, these services also provide helpdesk services, keep backup of software, and store data. Further, MSPs upload and set up the system components to ensure customers are completely operational with updated software and hardware.

Enterprise Size Outlook

Based on Enterprise Size, the market is segmented into Large Enterprises and Small & Medium Enterprises. Nowadays, large-size organizations are focusing on outsourcing their network operations and thus, deploying managed network services in their premises. These enterprises operate under immense pressure along with limited time to maintain their customer base and sustain their position in the competitive market. The opportunities for business goals in small and medium enterprises are increasing with the help of managed network services. Small and medium enterprises are adopting advanced IT services as the pressure of expanding their business is constantly rising. Thus, it is estimated that SMEs will invest largely in IT services in the coming years. Based on a study, regions like Europe, Africa (EMEA), and the Middle East will witness a significant surge in the investment for IT services from SMEs.

End User Outlook

Based on End User, the market is segmented into BFSI, Retail & eCommerce, Media & Entertainment, Healthcare, Government, Telecom & IT and Others. The healthcare segment is anticipated to display a promising CAGR of the managed network services market over the forecast years. Healthcare enterprises have increased their investments on technologies like IoT, cloud, and mobility to offer enhanced quality of care and minimize cost along with maintaining a competitive position in the market and adhere to regulatory compliance.

Managed Network Services Market Report Coverage

Report Attribute	Details
Market size value in 2020	USD 56.1 Billion
Market size forecast in 2027	USD 87.7 Billion
Base Year	2020
Historical Period	2017 to 2019
Forecast Period	2021 to 2027
Revenue Growth Rate	CAGR of 7.2% from 2021 to 2027
Number of Pages	322
Number of Tables	493
Report coverage	Market Trends, Revenue Estimation and Forecast, Segmentation Analysis, Regional and Country Breakdown, Competitive Landscape, Companies Strategic Developments, Company Profiling
Segments covered	Type, Deployment Mode, Enterprise Size, End User, Region
Country scope	US, Canada, Mexico, Germany, UK, France, Russia, Spain, Italy, China, Japan, India, South Korea, Singapore, Malaysia, Brazil, Argentina, UAE, Saudi Arabia, South Africa, Nigeria
Growth Drivers	Prevent issues and provide dynamic network maintenance SMEs are witnessing high demand for managed network services
Restraints	Difficulty in following stringent government compliances and regulations

Regional Outlook

Based on Regions, the market is segmented into North America, Europe, Asia Pacific, and Latin America, Middle East & Africa. The North America market dominated the Global Managed Network Services Market by Region 2020. The Europe market is experiencing a CAGR of 6.4% during (2021 - 2027). Additionally, The Asia Pacific market is estimated to grow at significant CAGR during the forecast period.

Free Valuable Insights: Global Managed Network Services Market size to reach USD 87.7 Billion by 2027

KBV Cardinal Matrix - Managed Network Services Market Competition Analysis

The major strategies followed by the market participants are Product Launches. Based on the Analysis presented in the Cardinal matrix; Verizon Communications Inc., Huawei Technologies Co., Ltd., and Cisco Systems, Inc. are the forerunners in the Managed Network Services Market. Companies such as IBM Corporation, T-Systems are some of the key innovators in the market.

The market research report covers the analysis of key stake holders of the market. Key companies profiled in the report include BT Group plc, Telefónica, S.A., T-Systems International GmbH, IBM Corporation, DXC Technology Company, Verizon Communications, Inc., NTT Data Corporation, Cisco Systems, Inc., Huawei Technologies Co., Ltd., and Ericsson AB.

Recent Strategies Deployed in Managed Network Services Market

» Partnerships, Collaborations and Agreements:

• Sep-2021: Telefónica signed an agreement with IBM, an American multinational technology corporation. Under this collaboration, Telefónica would utilize IBM's intelligent automation software and services to execute UNICA Next, Telefónica’s first-ever, cloud-native, 5G core network platform. Additionally, Telefónica along with UNICA Next would focus on acquiring the reliability, efficiency, and agility to continuously improve its services in the coming years.
• Sep-2021: BT Group came into a partnership with Oracle, an American multinational computer technology corporation. Under this partnership, BT Group selected Oracle Communications Cloud-Native Converged Policy Management to improve its network resources and bring new 5G offerings to market quickly.
• Sep-2021: Ericsson came into partnership with Oman Telecommunications Company, the first telecommunications company. Under the partnership, the companies aimed to introduce Service Operations Center (SOC) that would improve the network service quality. Additionally, the adoption of the SOC would support Omantel’s Strategic Transformation Goals and line up with Oman Vision 2040 to support the nation's aim in creating sustainable economic growth via development and advancement.
• Sep-2021: Telefonica joined hands with Oracle, an American multinational computer technology corporation. This collaboration would escalate the telecoms enterprise's cloud deployment and the advancement of new communication services for users and businesses. Moreover, through this collaboration, Telefonica would combine the technology infrastructure, which underpins its communications network into a shared, open-standard platform developed to support its growing digital services offerings comprising the latest services across the Internet of Things (IoT) & 5G, and services co-hosted with ISVs & network partners.
• Jul-2021: IBM teamed up with Turnium Technology Group, a leading SD-WAN vendor serving cloud. Through this collaboration, Turnium Technology Group would onboard its cloud-native SD-WAN edge solution to the IBM Cloud for Telecommunications. Additionally, this onboarding would allow Turnium to assist service providers and companies in the adoption, management, and accessibility of Edge computing applications in private and secured networks across the world by utilizing the public or private cloud, on-premises, or edge environment according to their desire.
• Jun-2021: IBM joined hands with Verizon and Red Hat. Under the collaboration, the companies would adopt and build an open hybrid cloud platform with automated operations and service orchestration as the foundation of Verizon's 5G core.
• Jun-2021: Cisco came into partnership with Vodafone Idea Limited (VIL), India's leading telecom operator. Through the partnership, Cisco aimed to automate and simplify its network to support 4G and, in the future, 5G use cases, and provide the best quality experience to its retail & enterprise customers, and users.
• Apr-2021: Cisco teamed up with the Government of South Korea, Asia’s fourth-largest economy. Under the collaboration, the entities would introduce a collaborative framework under Cisco’s Country Digital Acceleration (CDA) program to escalate digitization across South Korea and power a comprehensive recovery from the COVID-19 pandemic.
• Feb-2021: Cisco extended its partnership with Verizon Business, a division of Verizon Communications. Under this extended partnership, Verizon Business would add three new SD-WAN managed services to its portfolio. This addition would offer businesses access to new solutions & capabilities, expand their footprints across the globe, and an advanced management and policy administration model to support the intended business results.
• Feb-2021: Ericsson formed a partnership with T-Systems, a subsidiary of the Deutsche Telekom Group. Through the partnership, the companies would provide a completely integrated end-to-end solution to directly meet the site connectivity requirements of company users via seamless and high-quality service.
• Dec-2020: T-Systems expanded its collaboration with Amazon Web Services, a subsidiary of Amazon. Through this collaboration, T-Systems would manage the digital transformation of enterprises more efficiently, securely, and quickly.

» Acquisitions and Mergers:

• Jul-2021: Telefónica Tech took over Altostratus Cloud Consulting, a cloud services consulting firm. Through this acquisition, the company would strengthen its Cloud capabilities and would also add the highly qualified professionals to its team, which are part of the company, and strengthening its leadership in the sector by extending its positioning with the main hyperscalers.
• Jul-2021: Telefónica Tech, together with Cancom Group came into agreement to acquire Cancom UK. This acquisition would reinforce the capabilities of Telefónica Tech's Cloud and Cybersecurity division in Ireland and the UK.
• Jun-2021: Cisco took over Sedona Systems, a technology company. The acquisition added experience and talent to Cisco that would help the company in developing optical capabilities for the Mass-scale Infrastructure Group (MIG) and improve Cisco’s network automation Crosswork portfolio.
• Feb-2021: Verizon signed an agreement to acquire incubed IT, a creator of a software platform. Through this acquisition, the company would expand its robotic capabilities to support the future of robotic automation for company users and would further display Verizon’s commitment to flourish new and advanced businesses and use cases leveraging the power of 5G.
• Nov-2020: Ericsson came into an agreement to acquire Cradlepoint, the US-based market leader in Wireless Edge WAN 4G and 5G Enterprise solutions. Through this acquisition, Ericsson would capture a significant market share in the swiftly expanding 5G Enterprise space. Moreover, Cradlepoint would also complement Ericsson’s existing 5G Enterprise offering that comprises Dedicated Networks and a global IoT platform.
• Aug-2020: Cisco took over ThousandEyes, a network intelligence company. The acquisition would enable users to have an end-to-end view of the digital delivery of services and applications across the internet. Moreover, the company would allow users to find deficiencies and enhance application & network performance over company and cloud networks.

» Product Launches and Product Expansions:

• Sep-2021: Huawei unveiled Airport Cloud-Network Solution. This solution aimed to provide an extensive variety of features like one network for all services, one-stop integrated security, one-stop access, and one cloud across multiple areas. This solution is enriched with features that empower the digital transformation of airports to enhance security assurance, improve the travel experience, and boost operational efficiency by paving the way towards smart airports.
• Sep-2021: Huawei released new innovations in numerous varied domains that offer a first look at its inclusive digital infrastructure range. These products and solutions are designed to shape digital infrastructure for the next decade.
• Sep-2021: Ericsson introduced Intelligent Deployment solution, an agile, digital, and modular suite of tools and services. This solution allows communication service providers to introduce, expand, and update networks centered on their specific requirements and those of their users.
• Aug-2021: NTT unveiled NTT’s Private 5G platform, the first globally available private LTE/5G Network-as-a-Service platform. This platform would assist Chief Information Officers and Chief Digital Officers in leveraging the benefits of private 5G to solve business issues and improve to keep pace with the future of the company.
• Jun-2021: Verizon Business introduced On-Site 5G, Verizon’s first commercially available and private 5G network solution. These networks are custom-designed and managed by Verizon that enables large enterprise and public sector users to bring Verizon’s 5G Ultra Wideband capabilities to indoor or outdoor facilities where high-capacity, low-latency, and high-speed connectivity is essential, regardless of whether the premises is within a public 5G Ultra Wideband coverage area.
• Jun-2021: NTT released Global Data Center Interconnect, an integrated global network fabric service. This service would offer secure and private connections between NTT’s global data centers and major cloud service providers with a single physical port supporting several virtual network services.
• Apr-2021: BT introduced a new managed secure SD-WAN service powered by Fortinet, a global leader in broad, integrated, and automated cybersecurity solutions. Through the launch of the latest service, both companies aimed to provide secure networking solutions, which allow digital transformation.
• Mar-2021: Cisco unveiled Cisco Plus, the company’s unique as-a-service strategy. This service would bring new flexible buying and expanding models to users. In addition, this service would also help users in securing, automating, and connecting to escalate the company's digital agility in a cloud-first world.
• Mar-2021: Huawei introduced CloudFabric 3.0 Hyper-Converged Data Center Network Solution. This solution aimed to unleash 100% of computing power and build lossless computing and storage networks based on an all-Ethernet architecture.
• Dec-2020: Verizon Business introduced On-Site LTE, a customized solution. This solution would offer users a secure, dedicated, and private on-premises wireless network platform that would run critical business operations and applications.
• Nov-2020: BT released a new generation of cloud-optimized managed network services. These services would expand multinational users' choice of software-based connectivity solutions. The first service, based on industry-leading VMware SD-WAN, is available to customers globally and is already in live deployment.
• Jul-2020: T-Systems introduced Multi-Cloud Connectivity Platform. This platform would enable its users to book data lines for cloud applications directly from T-Systems. In addition, this platform would provide connections from Deutsche Telekom and other cloud network providers to Azure, Google, and AWS that are available in a self-service portal. This would enable users to link their own data centers with the T Systems private cloud & various public clouds. Moreover, the user would be able to add or reduce bandwidth at short notice.

» Geographical Expansions:

• Jan-2021: Verizon Business expanded its geographical reach in Canada and the US by offering managed network services and network as a service (NaaS), to more than 450 HUB offices. Through these services, HUB offices would enhance capacity, flexibility, and speed that would help employees to work more seamlessly along with allowing HUB to better manage the swift growth of its business.
• Nov-2020: Ericsson expanded its geographical reach in Turkey by opening a new managed services center. This center would promote high-value engineering and design solutions based on next-generation technologies that comprise Machine Learning and Artificial Intelligence (AI). Moreover, the company would focus on scaling its workforce to support the local research and development ecosystem and reinforce its Application, Development, and Maintenance (ADM) offerings.

Scope of the Study

Market Segments Covered in the Report:

By Type

• Managed VPN
• Managed WAN
• Managed LAN
• Managed Network Security
• Managed WiFi
• Others

By Deployment Mode

• On-premise
• Cloud

By Enterprise Size

• Large Enterprises
• Small & Medium Enterprises

By End User

• BFSI
• Retail & eCommerce
• Media & Entertainment
• Healthcare
• Government
• Telecom & IT
• Others

By Geography

• North America
  • US
  • Canada
  • Mexico
  • Rest of North America
• Europe
  • Germany
  • UK
  • France
  • Russia
  • Spain
  • Italy
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Singapore
  • Malaysia
  • Rest of Asia Pacific
• LAMEA
  • Brazil
  • Argentina
  • UAE
  • Saudi Arabia
  • South Africa
  • Nigeria
  • Rest of LAMEA

Key Market Players

List of Companies Profiled in the Report:

• BT Group plc
• Telefónica, S.A.
• T-Systems International GmbH
• IBM Corporation
• DXC Technology Company
• Verizon Communications, Inc.
• NTT Data Corporation
• Cisco Systems, Inc.
• Huawei Technologies Co., Ltd.
• Ericsson AB