Managed Network Services Market Size (2024 - 2029)

Network Managed Services Market Analysis

The managed network services market was valued at USD 79.69 billion in the previous year, and it is expected to record a CAGR of 12.19%, reaching USD 149.28 billion over the forecast period. Increasing business process efficiency by cost optimization and high penetration of mobility, cloud computing, and big data technology are some of the major factors driving the market growth.

• Managed network services give SMEs much space to grow and achieve their goals. IT spending among SMEs is anticipated to rise, demonstrating that SMEs constantly focus on expanding through implementing new and extended IT services. The demand for managed network services is increasing as SMEs increasingly adopt cloud computing, automate services, and experiment with advanced digital technologies.
• The growing digital transformation propels the demand for managed network services as they provide expertise, scalability, security, and operational efficiency in managing complex and critical networks that underpin modern businesses. According to a Global Network survey by NTT Group, about 93% of organizations recognize the significance of the network as the backbone of digital transformation.
• With a modern hyper-distributed workforce, customers' networking and security requirements are evolving as more employees use the network from various places and devices. Organizations are searching for solutions and services to handle these difficulties to serve the new and highly scattered workforce, providing opportunities for the managed network service providers.
• The alarming growth in cybercrimes has worried organizations about the potential risks associated with outsourcing network management, including exposing confidential information to third parties. High-profile data breaches or security incidents involving managed service providers can exacerbate these concerns and lead some businesses to hesitate in adopting the managed network service market.
• The COVID-19 crisis created an unprecedented situation for MSPs on a global level. As businesses adjusted to rapidly changing work environments, the quality of collaboration and communication profoundly impacted both productivity and employee output. This resulted in increased demand for managed network services from businesses so that employees had seamless access to their workplace apps on the device they used, whether personal or company-owned.

Network Managed Services Industry Segmentation

Managed network services (MNS) are a class of managed services that facilitate businesses to outsource the management of their customer premise equipment (CPE) and networks, such as switches, routers, access points, and firewalls. In most cases, managed service providers (MSP) promote multi-vendor environments, giving customers the flexibility to choose their favored vendors for network devices.

The managed network services market is segmented by Type (Managed LAN, Managed WAN, Managed Wi-Fi, Managed Network Security), Organization Size (Small & Medium Enterprises (SMEs), Large Enterprises), End Users (BFSI, IT & Telecom, Healthcare & Pharmaceutical, Manufacturing, Retail, Education), and Geography (North America, Europe, Asia-Pacific, Middle East and Africa, Latin America). The market sizes and forecasts are provided in terms of value (USD) for all the above segments.