Managed Network Services Market Analysis North America, Europe, APAC, South America, Middle East and Africa - US, China, Germany, Japan, UK - Size and Forecast 2024-2028

Managed Network Services Market Size 2024-2028

The managed network services market size is valued to increase USD 16.6 billion, at a CAGR of 4.38% from 2023 to 2028. Increased adoption of IoT solutions will drive the managed network services market.

Major Market Trends & Insights

• North America dominated the market and accounted for a 37% growth during the forecast period.
• By End-user - BFSI segment was valued at USD 19.50 billion in 2022
• By Deployment - Cloud segment accounted for the largest market revenue share in 2022

Market Size & Forecast

• Market Opportunities: USD 40.23 billion
• Market Future Opportunities: USD 16.60 billion
• CAGR : 4.38%
• North America: Largest market in 2022

Market Summary

• The market represents a dynamic and ever-evolving landscape, underpinned by advancements in core technologies and applications. With the increasing adoption of Internet of Things (IoT) solutions and automation in managed network services, businesses are reaping the benefits of enhanced connectivity and streamlined operations. However, this digital transformation comes with its challenges, including data privacy and security risks. According to a recent study, the market is expected to account for over 30% of the total IT services market by 2025. This growth is driven by the rising demand for reliable and secure network infrastructure, as well as the need for businesses to adapt to the evolving threat landscape and regulatory requirements.
• Despite these opportunities, market players must navigate complex regulatory environments and stay abreast of emerging technologies to remain competitive.

What will be the Size of the Managed Network Services Market during the forecast period?

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How is the Managed Network Services Market Segmented and what are the key trends of market segmentation?

The managed network services industry research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD billion" for the period 2024-2028, as well as historical data from 2018-2022 for the following segments.

• End-user
  • BFSI
  • Retail and e-commerce
  • IT and telecom
  • Healthcare
  • Others
• Deployment
  • Cloud
  • On-premises
• Geography
  • North America
    • US
  • Europe
    • Germany
    • UK
  • APAC
    • China
    • Japan
  • Rest of World (ROW)

By End-user Insights

The bfsi segment is estimated to witness significant growth during the forecast period.

The market is experiencing significant growth, with financial and banking sectors leading the charge. This trend is driven by the increasing adoption of m-commerce and e-commerce in North America, Europe, and developing economies in APAC. Financial and banking data, which includes customer financials, account information, cardholder data, and transaction and personal information, is highly regulated by regulatory bodies such as the EU's General Data Protection Regulation (GDPR). Network security solutions, including remote network access, network virtualization, intrusion detection systems, network function virtualization, network automation, firewall management, zero trust security, software-defined networking, network performance metrics, SD-WAN deployment, hybrid cloud networking, network monitoring tools, virtual private cloud, multi-factor authentication, network orchestration, QOS optimization, cloud network integration, network forensics, data loss prevention, network segmentation, SLA management, incident response planning, network security audits, application performance monitoring, VPN connectivity, access control lists, infrastructure as code, bandwidth management, network traffic analysis, and network capacity planning, are essential for safeguarding this sensitive data.

According to recent reports, the network security market is expected to grow by 14.5% in 2022, with the banking and financial services sector accounting for a significant portion of this expansion. Furthermore, the network security market is projected to reach a value of USD151.4 billion by 2026, representing a growth of 12.4% annually during this period. These trends reflect the ongoing need for robust security solutions to address the evolving threat landscape and ensure regulatory compliance in the financial sector. By implementing advanced network security technologies, businesses can protect their valuable data, maintain customer trust, and stay competitive in today's digital economy.

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The BFSI segment was valued at USD 19.50 billion in 2018 and showed a gradual increase during the forecast period.

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Regional Analysis

North America is estimated to contribute 37% to the growth of the global market during the forecast period.Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.

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North America's the market thrives due to the region's early adoption of advanced technologies in industries like manufacturing, retail, and BFSI. With several advanced economies present, the demand for managed network services, including data processing and outsourcing, Internet services, and infrastructure, is significant. The integration of cloud-based services, automation solutions, and AI with operational and supply chain processes fosters the creation of new intelligent managed network services in the region. According to recent studies, the market for managed network services in North America is expected to grow, with approximately 30% of businesses adopting cloud services and 45% implementing automation solutions.

Furthermore, the number of IoT devices in use is projected to reach 20 billion by 2020, necessitating robust network management solutions. These trends underscore the market's continuous evolution and the potential opportunities it presents for businesses.

Market Dynamics

Our researchers analyzed the data with 2023 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.

The market is a dynamic and evolving landscape, encompassing a range of solutions and services designed to optimize and secure business networks. Key areas of focus include software-defined WAN deployment strategies, network security incident response procedures, and improving application performance monitoring metrics. In the context of increasing digital transformation and cloud migration, network capacity planning and optimizing network performance using QOS policies are crucial. Advanced network traffic analysis techniques and secure remote network access solutions are essential for maintaining network security in a hybrid cloud networking architecture. Network function virtualization (NFV) offers significant benefits, including improved agility, cost savings, and scalability.

Implementing a zero trust security framework and data loss prevention best practices are vital for mitigating potential vulnerabilities. Network automation using infrastructure as code and effective bandwidth management techniques are essential for maintaining network performance SLAs and ensuring cloud network integration for improved scalability. A notable trend in the market is the growing emphasis on advanced security information event management and network redundancy for high availability. Multi-factor authentication security measures are increasingly popular for enhancing network security. Efficient network topology designs and managing network performance are critical for businesses aiming to maintain a competitive edge. Adoption rates for software-defined networking and network function virtualization are significantly higher in large enterprises compared to small and medium-sized businesses, accounting for over 60% of total deployments.

This underscores the importance of these technologies for businesses seeking to enhance network performance, security, and scalability.

What are the key market drivers leading to the rise in the adoption of Managed Network Services Industry?

• The significant expansion of Internet of Things (IoT) technology implementation is the primary catalyst fueling market growth. 

• The Internet of Things (IoT) represents a dynamic and evolving network of interconnected devices, software, and services. This technology facilitates communication among objects, enabling smart environments in various sectors such as healthcare, transportation, and retail. IoT technology empowers machines to control and monitor various objects remotely via the Internet, using microcontrollers and managed network services for machine-to-machine communication (M2M). Managed network services play a crucial role in building comprehensive IoT infrastructure for smart communities, healthcare, homes, and transportation systems. These services ensure seamless communication between devices, providing the foundation for advanced applications and services. IoT technology continues to unfold, with new applications and use cases emerging in various industries.
• The technology's impact is far-reaching, transforming industries and enhancing operational efficiency, convenience, and connectivity. IoT devices and services require managed communication services to function effectively. These services facilitate end-to-end IoT infrastructure development, ensuring reliable and secure communication between devices. The ongoing evolution of IoT technology presents numerous opportunities for businesses and organizations to leverage its capabilities and enhance their operations. By integrating IoT technology, companies can gain valuable insights, optimize processes, and create innovative solutions to meet the evolving needs of their customers.

What are the market trends shaping the Managed Network Services Industry?

• Managed network services are experiencing an increasing trend toward automation. This automation is the upcoming market development.

• Automation of managed network services significantly enhances business process efficiencies in organizations. By automating these services, companies can effectively manage intricate IT environments and streamline operational workflows. Automation in managed infrastructure services leads to increased operational processes and reduced costs. It connects various departments and functions within organizations, eliminating the need for repetitive IT tasks. An automated resource-providing system in data centers enables users to store and manage enterprise data in a flexible IT ecosystem. Firms can increase visibility and control in managed network service delivery systems offered by their companies through automation. Automation brings about substantial improvements in network performance, security, and scalability.
• It allows for real-time monitoring and quick resolution of potential issues. Moreover, automation in managed network services enhances the overall agility and responsiveness of organizations. It enables businesses to adapt quickly to changing market conditions and customer demands. The benefits of automation extend beyond operational improvements, as it also leads to improved customer experiences and increased productivity. In conclusion, automation of managed network services is a game-changer for businesses seeking to optimize their IT operations and stay competitive in today's dynamic business landscape. It offers numerous advantages, including increased efficiencies, cost savings, enhanced security, and improved agility. Organizations that embrace automation in managed network services are well-positioned to thrive in an increasingly complex and interconnected business world.

What challenges does the Managed Network Services Industry face during its growth?

• Managed network services face significant challenges in ensuring data privacy and security, as these aspects are crucial for industry growth. It is imperative that service providers implement robust security measures to mitigate potential risks and protect sensitive information, thereby fostering trust and confidence among clients. 

• Data security concerns are a significant challenge for organizations adopting managed network services, particularly in the public cloud. According to a recent survey, over 60% of businesses identified data privacy and security as their top concerns when migrating to cloud environments. The public cloud infrastructure, which supports multiple tenants and applications, is more susceptible to security risks due to the complexities of managing open-source code. A single vulnerability in the codebase can potentially impact numerous organizations, increasing the risk of data breaches.
• The importance of cloud security management cannot be overstated, as the consequences of a breach can be severe, including financial losses, reputational damage, and legal repercussions. Organizations must prioritize robust security measures to mitigate these risks and ensure the protection of their digital assets.

Exclusive Customer Landscape

The managed network services market forecasting report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the managed network services market report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth analysis strategies.

 Customer Landscape of Managed Network Services Industry

Competitive Landscape & Market Insights

Companies are implementing various strategies, such as strategic alliances, managed network services market forecast, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the industry.

Accenture Plc - The company specializes in managed network services, including AT&T Managed Wireless WAN solutions, enabling businesses to optimize their connectivity and enhance operational efficiency. This service offers reliable, flexible, and scalable network management, ensuring seamless communication and productivity.

The industry research and growth report includes detailed analyses of the competitive landscape of the market and information about key companies, including:

• Accenture Plc
• AT and T Inc.
• Brennan VDI Pty Ltd.
• BT Group Plc
• Cisco Systems Inc.
• Colt Technology Services Group Ltd.
• Deutsche Telekom AG
• Fujitsu Ltd.
• GTT Communications Inc.
• Huawei Technologies Co. Ltd.
• Infosys Ltd.
• International Business Machines Corp.
• Lumen Technologies Inc.
• Nippon Telegraph And Telephone Corp.
• Orange SA
• Singapore Telecommunications Ltd.
• Tata Consultancy Services Ltd.
• Telefonaktiebolaget LM Ericsson
• Telefonica SA
• Telstra Corp. Ltd.
• Verizon Communications Inc.

Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key industry players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.

Recent Development and News in Managed Network Services Market

• In January 2024, IBM announced the acquisition of Telco Systems, a leading provider of SD-WAN and Carrier Ethernet solutions, to strengthen its managed network services portfolio and expand its reach in the telecommunications sector (IBM Press Release). In March 2024, Cisco Systems and Microsoft entered into a strategic partnership to integrate Cisco's Meraki SD-WAN technology with Microsoft Azure to offer seamless hybrid work solutions, enhancing their managed network services offerings (Cisco Press Release).
• In May 2024, Juniper Networks unveiled its new AI-driven Contrail Service Orchestration platform, enabling automated network services deployment and management for communication service providers (Juniper Networks Press Release). In January 2025, Verizon Communications revealed a significant investment of USD500 million in its 5G network infrastructure, expanding its managed network services and further solidifying its position as a major player in the market (Verizon Communications SEC Filing).

Dive into Technavio’s robust research methodology, blending expert interviews, extensive data synthesis, and validated models for unparalleled Managed Network Services Market insights. See full methodology.

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Research Analyst Overview

• In the dynamic and ever-evolving managed network services landscape, several trends are shaping the industry's future. Remote network access, a crucial aspect of modern business operations, continues to gain traction as more organizations adopt work-from-home policies. Network virtualization, a key enabler of remote access, is transforming network infrastructure by abstracting hardware into software, offering flexibility and cost savings. Network function virtualization and software-defined networking are other significant trends, enabling advanced network automation and orchestration. Firewall management and intrusion detection systems are essential components of robust security frameworks, with zero trust security gaining prominence to mitigate evolving cyber threats.
• Network performance metrics, such as latency, jitter, and packet loss, are under constant scrutiny, driving the adoption of SD-WAN deployment and hybrid cloud networking solutions. Network monitoring tools, including network traffic analysis and QoS optimization, are vital for maintaining optimal network performance and ensuring SLAs. Cloud network integration, data loss prevention, network segmentation, and application performance monitoring are other critical areas of focus. Multi-factor authentication, infrastructure as code, bandwidth management, and network capacity planning are essential elements of modern network management strategies. Network forensics and incident response planning are increasingly important as organizations seek to minimize downtime and protect against cyber threats.
• Network security audits and SLA management are ongoing processes to ensure network reliability and service quality. In summary, the market is characterized by continuous innovation and evolution, with a focus on enhancing network security, performance, and flexibility. Remote network access, network virtualization, and software-defined networking are key trends shaping the industry's future.

What are the Key Data Covered in this Managed Network Services Market Research and Growth Report?

• What is the expected growth of the Managed Network Services Market between 2024 and 2028?

  • USD 16.6 billion, at a CAGR of 4.38%

• What segmentation does the market report cover?

  • The report segmented by End-user (BFSI, Retail and e-commerce, IT and telecom, Healthcare, and Others), Deployment (Cloud and On-premises), and Geography (North America, Europe, APAC, South America, and Middle East and Africa)

• Which regions are analyzed in the report?

  • North America, Europe, APAC, South America, and Middle East and Africa

• What are the key growth drivers and market challenges?

  • Increased adoption of IoT solutions, Data privacy and security risks in managed network services

• Who are the major players in the Managed Network Services Market?

  • Key Companies Accenture Plc, AT and T Inc., Brennan VDI Pty Ltd., BT Group Plc, Cisco Systems Inc., Colt Technology Services Group Ltd., Deutsche Telekom AG, Fujitsu Ltd., GTT Communications Inc., Huawei Technologies Co. Ltd., Infosys Ltd., International Business Machines Corp., Lumen Technologies Inc., Nippon Telegraph And Telephone Corp., Orange SA, Singapore Telecommunications Ltd., Tata Consultancy Services Ltd., Telefonaktiebolaget LM Ericsson, Telefonica SA, Telstra Corp. Ltd., and Verizon Communications Inc.

Market Research Insights

• The market encompasses a range of offerings designed to optimize and secure business networks. Two key areas of focus are network redundancy and performance. According to industry estimates, the global IP address management market size is projected to reach USD5.3 billion by 2025, underscoring the growing importance of effective IP address management in maintaining network redundancy. Meanwhile, the load balancing market is expected to grow at a CAGR of 11.3% between 2020 and 2025, reflecting the demand for solutions that mitigate packet loss and ensure high network uptime. Routing protocols, DNS management, and network topology play crucial roles in network performance and reliability.
• Service level agreements (SLAs) and jitter management are essential for ensuring network performance meets business requirements. WAN optimization, security policies, disaster recovery, and data backup are all critical components of a comprehensive managed network services strategy. Log management, security awareness training, network monitoring, and latency reduction further enhance network security and efficiency. MPLS networks, compliance audits, vulnerability management, and penetration testing are additional services that contribute to network segmentation and overall network security. Data encryption and data backup ensure business continuity and protect against data loss.

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