Managed Network Services Market size to exceed $95 Bn by 2027
Published Date: March 8, 2021 Authors: Preeti Wadhwani, Smriti Loomba
Managed Network Services Market size is set to surpass USD 95 billion by 2027, according to a new research report by Global Market Insights Inc.
Increasing infrastructure outsourcing initiatives globally is poised to fuel the managed network services industry growth. Companies across geographies are outsourcing their networking functions & applications to managed service providers to reduce operational burden. The intense business environment is driving enterprises in the market to focus on entire network management capabilities and improve their business performance by leveraging managed services.
Significant rise in infrastructure developments and government investments in the ICT sector to propel the demand
The managed network services market is expected to grow at a CAGR of over 8% during the forecast timeline due to increased investments across the ICT sector. For instance, in 2020, the Government of India increased the budget for Digital India Program by approximately 23%, which accounted for USD 539 million. The budget expansion focused on research & development, cybersecurity, and promotion of IT services. Similarly, investments to modernize the ICT infrastructure in various countries will enable the demand for managed network services.
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The rising demand to monitor & protect enterprise LAN infrastructure is a major factor augmenting the managed LAN services
The managed LAN service market held more than 20% of the revenue share in 2020 driven by increased demand to manage expansive LAN infrastructure consisting of multiple components. Managed LAN services cater to enterprise demand to manage low latency and high-bandwidth requirements. Companies are required to address volatile business requirements followed by ensuring the administration of automated network management systems. Managed LAN services help companies in expanding their enterprise wireless infrastructure and address diverse business requirements.
Browse key industry insights spread across 260 pages with 243 market data tables and 31 figures & charts from the report, “Managed Network Services Market Size By Type (Managed Local Area Network [LAN], Managed Virtual Private Network [VPN], Managed Wide Area Network [WAN], Managed Wi-Fi, Managed Security, Managed Monitoring), By Organization Size (Large Enterprises, SMEs), By Application (IT & Telecom, BFSI, Healthcare, Manufacturing, Government, Retail & Consumer Goods), Industry Analysis Report, Regional Outlook, Growth Potential, Competitive Market Share & Forecast, 2021 – 2027” in detail along with the table of contents:
Increased adoption of sophisticated networking and virtualization technologies across SMEs is supporting the managed network services market expansion
The SMEs segment is expected to account for nearly USD 35 billion in revenues by 2027 on account of extensive digitization and adoption of virtualization technologies. The availability of cost-effective and advanced managed services for specific networking applications followed by increased cybercrimes against SMEs is fueling the segment demand. Enterprises are propelling the demand for managed monitoring and networking services to ensure efficient business operations. The growing emphasis on network infrastructure and increased budget is enabling market growth.
Extensive penetration of connected devices and data generation in the healthcare industry
The healthcare application registered around USD 8 billion in revenues in 2020 and is projected to observe an exponential growth during 2021 to 2027. The managed network services market growth in healthcare sector is attributed to a rising need to administrate complex network infrastructure consisting of cloud networks and connected devices. Increasing cyberattacks and data breach incidents in the medical industry are augmenting enterprises to adopt managed network security services, which help companies to improve their response time and mitigate the risks associated with malicious attacks. The growing focus on network efficiency and optimum resource utilization are boosting healthcare enterprises to use managed network services.
The extensive digitization and technological developments in Europe are supporting the market statistics
Europe is predicted to capture around 20% of the global managed network services market share by 2027. Rising cyber incidents and extensive digitization across the region are driving enterprises to adopt managed network services. Regional enterprises are focusing on the development of integrated managed services to address the demand for corporate customers.
Focus on developing new services by key players to spur the market share
Industry participants are emphasizing on the development of next-generation managed network services to gain a competitive edge in the intense market environment. For instance, in July 2020, AT&T Inc. expanded its SD-WAN solution & service portfolio with the addition of a managed SD-WAN service based on Cisco’s secure SD-WAN technology framework. This addition helps the company to cater to diverse customer requirements.
Some of the key players operating in the managed network services market are AT&T, Inc., BT Group Plc., CenturyLink (Lumen), China Telecommunication Corporation Ltd., Cisco Systems, Inc., Colt Technology, Services Group Ltd., DXC Technology Company, Global Cloud Xchange, GTT Communications, Inc., Huawei Technologies Co., Ltd., IBM Corporation, Masergy Communications, Inc., NTT Ltd., Oracle Corporation, Orange SA, PCCW Limited, Singapore Telecommunications Limited, Tata Communications Ltd, Telefonica, S.A., Telia Company AB, Telstra Corporation Ltd., T-System, Inc., Verizon, Inc., and Vodafone Group Plc.