Network-managed Services Market Overview
As per MRFR analysis, the Network-managed Services Market Size was estimated at 82.72 (USD Billion) in 2022.
The Network-managed Services Market Industry is expected to grow from 93.39(USD Billion) in 2023 to 278.2 (USD Billion) by 2032. The Network-managed Services Market CAGR (growth rate) is expected to be around 12.89% during the forecast period (2024 - 2032).
Key Network-managed Services Market Trends Highlighted
As computer networks are becoming increasingly managed on a basis, several key tendencies drive its development. One of the most significant trends is the growing popularity of cloud computing, which generates demand for managed services that can assist in optimizing a business’s cloud infrastructure and applications. Furthermore, the rise of the Internet of Things (IoT) is affording managed service providers opportunities to provide services that can help businesses monitor and secure their IoT devices.
Other important industry developments in the network-managed services market include an increased need for protection against cyber threats among business enterprises through managed security services. Also, software-defined networking (SDN) and network functions virtualization (NFV) have been adopted more frequently lately, leading to new opportunities for managed services providers to automate and optimize business networks.
To take advantage of these trends, Managed Services Providers will need to build innovative offerings capable of meeting customers’ changing requirements. Additionally, they should also consider investing in strong technology vendor alliances and other ecosystem stakeholders. In this way, they can position themselves advantageously in the network-managed services market as growth opportunities arise.
Figure1: Network Managed Services Market, 2018 - 2032 (USD Billion)
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Network-managed Services Market Drivers
Rising Adoption of Cloud-Based Services
Increased use of cloud-based services is one of the key factors that drive the growth of the Network-managed Services Market Industry. Presently, there is a trend in every organization to host applications and handle data through clouds. Scalability, flexibility and lower costs make the cloud preferable. Consequently, network-managed services are solicited by customers who value off-premises flexibility and on-demand nature.
Moreover, it assists in network troubleshooting and monitoring. Broadly speaking, some additional services should be considered, such as those pertaining to security matters or legal compliance. Nonetheless, the primary factor driving this growth is the adoption of cloud-based services.
Growing Complexity of Network Infrastructures
The increasing complexity of network infrastructures is also a key driver for the growth of this industry. Nowadays, companies are developing and implementing more intricate networks to cater to their growing and ever-changing network requirements. They may contain different cloud technologies and on-premise, which can actually be tedious to manage. Thus, these providers help manage complex networks of businesses, making them operate smoothly.
Moreover, they can offer additional services such as security, optimization and compliance that will enable their customers to concentrate solely on their core business. Generally, as the network infrastructure becomes more complicated, there will also be an increase in demand for network-managed services.
Increasing Focus on Network Security
The third important driver of growth in the Network-managed Services Market Industry is the increasing focus on network security. As businesses’ networks are increasingly targeted by cyberattacks, businesses are becoming increasingly concerned about the security of their networks. Network-managed services providers can help businesses improve the security of their networks by providing a range of security services. For example, a network-managed services provider may offer intrusion detection, vulnerability assessment, and firewall management services.
In addition, they may help businesses to develop and implement security policies and procedures. As the focus on network security continues to increase, the demand for network-managed services is expected to increase.
Network-managed Services Market Segment Insights
Network-managed Services Market Network-managed Services Type Insights
The Network-managed Services Type is one of the most important segments contributing to the growth of the Network-managed Services Market. Managed Network Services held a significant market share in 2023 and is expected to dominate the market for the duration of the given forecast, driven by the increasing adoption rates of cloud-based services and the need for better management. In addition, the market research indicates that Managed Security Services might also experience a notable growth in demand, driven by the increasing number of cyberattacks and data breaches in recent years.
Besides the given segments, the market research indicates that the value of Managed Cloud Services might expand at a rather high rate for the duration of the given forecast. The increasing adoption of cloud computing, alongside the high demand for better management, is likely to drive the value of the given segment. In addition, the given market research also suggests that the demand for Managed WAN Services and Managed LAN Services will increase, driven by the requirement for better performance and optimization of organizational-wide area networks and local area networks.
Finally, the Network-managed Services Market is expected to be worth USD 124.67 billion over the given forecast, expanding at a CAGR of 13.4%.
Figure2: Network Managed Services Market, By Network Managed Services Type, 2023 & 2032 (USD billion)
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Network-managed Services Market Network Infrastructure Insights
The Network Infrastructure segment of the Network-managed Services Market is anticipated to exhibit robust growth in the coming years, driven by the increasing adoption of cloud computing, virtualization, and mobility solutions. Routers, switches, firewalls, wireless access points, and load balancers are the key components of network infrastructure that enable secure and efficient data transmission. The Network-managed Services Market revenue for Network Infrastructure is projected to reach USD 47.23 billion by 2024, expanding at a CAGR of 10.5% from 2024 to 2032.
This growth is attributed to the rising demand for managed services that offer proactive monitoring, maintenance, and optimization of network infrastructure. Additionally, the adoption of software-defined networking (SDN) and network function virtualization (NFV) technologies is expected to fuel the growth of the Network Infrastructure segment, as these technologies provide greater flexibility, scalability, and cost-effectiveness in managing network infrastructure.
Network-managed Services Market Service Level Agreement (SLA) Insights
The Service Level Agreement (SLA) segment is a crucial aspect of the Network-managed Services Market, influencing revenue generation and customer satisfaction. Different SLA tiers, including Gold, Silver, Bronze, Platinum, and Custom, cater to varying customer requirements. For instance, Gold SLAs offer the highest level of service, with guaranteed uptime and response times, while Bronze SLAs provide basic support with less stringent guarantees. In 2023, the Gold SLA segment held the largest market share due to its comprehensive service offerings and ability to meet the demands of mission-critical applications.
The Silver SLA segment is expected to witness significant growth over the forecast period, driven by the increasing adoption of cloud-based services and the need for cost-effective SLAs. Custom SLAs, tailored to specific customer requirements, are gaining traction as organizations seek to optimize their network performance and align it with their business objectives. This growth can be attributed to the rising adoption of cloud computing, the increasing demand for managed security services, and the need for improved network performance and efficiency.
Network-managed Services Market Application Insights
The application segment of the Network-managed Services Market is expected to grow at a significant rate in the coming years, driven by increasing adoption of advanced technologies and applications. Enterprise Resource Planning (ERP) is expected to hold the largest market share due to its widespread adoption across various industries for automating and integrating business processes. Customer Relationship Management (CRM) is another key application that helps businesses manage customer interactions and improve customer satisfaction. Business Intelligence (BI) and Supply Chain Management (SCM) are also witnessing significant growth due to their ability to improve decision-making and optimize operations.
Email and Messaging applications are essential for communication and collaboration within organizations, leading to their continued demand. Overall, the Network-managed Services Market for applications is expected to witness strong growth in the future, driven by the increasing digital transformation and adoption of advanced technologies by businesses.
Network-managed Services Market Industry Vertical Insights
The Industry Vertical segment plays a crucial role in shaping the Network-managed Services Market. Among the key verticals, Banking, Financial Services, and Insurance (BFSI) is projected to hold a significant market share in 2023, contributing 27% of the revenue. The BFSI sector relies heavily on secure and efficient network infrastructure to manage sensitive financial data and facilitate online transactions. Healthcare is another significant vertical, expected to grow at a CAGR of 14% during 2024-2032. The rising adoption of telemedicine, electronic health records, and the Internet of Medical Things (IoMT) drives the demand for robust network management solutions.
Government, Manufacturing, IT, and Telecom are other key industry verticals that contribute to the growth of the Network-managed Services Market. Each vertical presents unique network requirements and challenges, offering tailored solutions and opportunities for service providers.
Network-managed Services Market Regional Insights
The regional segmentation of the Network-managed Services Market offers valuable insights into the industry's geographic distribution and growth potential. North America dominates the market with a significant revenue share, driven by factors such as advanced infrastructure, high technology adoption, and a robust IT sector. Europe follows closely, exhibiting steady growth due to government initiatives promoting digital transformation. The APAC region is projected to witness substantial growth in the coming years, primarily attributed to the increasing adoption of cloud and managed services by businesses in emerging economies.
South America and MEA present promising opportunities for market expansion due to the rising demand for network management solutions in these regions. These regional insights help stakeholders identify key growth areas and tailor strategies to capitalize on market opportunities.
Figure3: Network Managed Services Market, By Regional, 2023 & 2032 (USD billion)
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Network-managed Services Market Key Players And Competitive Insights
Major players in the Network-managed Services Market industry are constantly striving to gain a competitive advantage by introducing innovative solutions and services. Leading Network-managed Services Market players are investing heavily in research and development to stay ahead of the curve and meet the evolving demands of customers. The Network-managed Services Market development is driven by the increasing adoption of cloud-based services, the need for improved network performance, and the growing complexity of IT environments. The Network-managed Services Market Competitive Landscape is characterized by the presence of both established and emerging players.
AT&T, a leading company in the Network-managed Services Market, offers a comprehensive suite of managed services designed to help businesses optimize their network performance and efficiency. The company's managed services portfolio includes network design, implementation, and support, as well as cloud-based services and security solutions. AT&T's extensive experience and reach make it a trusted partner for businesses looking to improve their network infrastructure and operations.
Another key player in the Network-managed Services Market is Verizon. Verizon offers a range of managed services tailored to the specific needs of businesses, including network assessment, design, and implementation, as well as ongoing monitoring and support. The company's focus on customer satisfaction and its commitment to delivering high-quality services have made it a preferred choice for businesses seeking reliable and efficient network management solutions.
Key Companies in the Network-managed Services Market Include
Network-managed Services Market Industry Developments
Recent advancements in cloud computing and software-defined networking (SDN) are driving the demand for network-managed services. Enterprises are increasingly adopting cloud-based solutions to reduce infrastructure costs and improve agility. SDN is also gaining traction as it enables businesses to automate and manage their networks more efficiently. As a result, the network-managed services market is expected to grow significantly over the next five years.
In 2023, the network-managed services market was valued at USD 93.39 billion. This figure is projected to reach USD 278.2 billion by 2032, exhibiting a CAGR of 12.89% during the forecast period. North America and Europe are the largest markets for network-managed services, followed by Asia Pacific. However, Asia Pacific is expected to witness the highest growth rate over the next five years.
Key players in the network-managed services market include ATT, Verizon, IBM, Cisco, and Hewlett Packard Enterprise. These companies offer a wide range of network-managed services, including network design and implementation, network monitoring and management, and network security.
Network-managed Services Market Segmentation Insights
Network-managed Services Market Network-managed Services Type Outlook
- Managed Network Services
- Managed Security Services
- Managed Cloud Services
- Managed WAN Services
- Managed LAN Services
Network-managed Services Market Network Infrastructure Outlook
- Routers
- Switches
- Firewalls
- Wireless Access Points
- Load Balancers
Network-managed Services Market Service Level Agreement (SLA) Outlook
- Gold
- Silver
- Bronze
- Platinum
- Custom
Network-managed Services Market Application Outlook
- Enterprise Resource Planning (ERP)
- Customer Relationship Management (CRM)
- Business Intelligence (BI)
- Supply Chain Management (SCM)
- Email and Messaging
Network-managed Services Market Industry Vertical Outlook
- Banking, Financial Services, and Insurance (BFSI)
- Healthcare
- Government
- Manufacturing
- IT and Telecom
Network-managed Services Market Regional Outlook
- North America
- Europe
- South America
- Asia Pacific
- Middle East and Africa
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Report Attribute/Metric
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Details
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Market Size 2022
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82.72(USD Billion)
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Market Size 2023
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93.39(USD Billion)
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Market Size 2032
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278.2(USD Billion)
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Compound Annual Growth Rate (CAGR)
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12.89% (2024 - 2032)
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Report Coverage
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Revenue Forecast, Competitive Landscape, Growth Factors, and Trends
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Base Year
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2023
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Market Forecast Period
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2024 - 2032
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Historical Data
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2019 - 2023
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Market Forecast Units
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USD Billion
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Key Companies Profiled
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Orange S, BT Group, Verizon, Nokia Corporation, IBM, Cisco Systems, Deutsche Telekom, Hewlett Packard Enterprise, Ericsson, Infosys, AT
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Segments Covered
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Network-managed Services Type, Network Infrastructure, Service Level Agreement (SLA), Application, Industry Vertical, Regional
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Key Market Opportunities
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Cloudfirst NetworkingSDWAN AdoptionManaged Security ServicesNetwork AutomationIoT Network Management
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Key Market Dynamics
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Growing demand for cloud-based servicesIncreasing adoption of network virtualizationRise in security concerns.Emergence of 5G networksNeed for improved network visibility.
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Countries Covered
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North America, Europe, APAC, South America, MEA
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Frequently Asked Questions (FAQ) :
The Network-managed Services Market size is expected to reach a valuation of USD 93.39 billion by the end of 2023 and is projected to expand at a CAGR of 12.89%, reaching USD 278.2 billion by 2032.
The network-managed services market is segmented into North America, Europe, Asia Pacific, Latin America, the Middle East, and Africa. North America is expected to hold the largest market share due to the increasing adoption of cloud and digital transformation initiatives in the region.
Network-managed Services are used in a wide range of applications, including network monitoring, network security, network optimization, and network performance management. These services are essential for businesses of all sizes to ensure the reliable and efficient operation of their networks.
The Network-managed Services market is highly competitive, with a number of major players, including ATT, Verizon, IBM, Cisco, and Hewlett Packard Enterprise. These companies offer a range of Network-managed Services to meet the needs of businesses of all sizes.
The Network-managed Services market is expected to be driven by a number of key trends in the coming years. These trends include the increasing adoption of cloud and digital transformation initiatives, the growing demand for network security services, and the need for businesses to improve their network performance.
The Network-managed Services market faces a number of challenges, including the increasing complexity of networks, the need for businesses to reduce costs, and the shortage of skilled IT professionals.
The Network-managed Services market presents a number of opportunities for growth. These opportunities include the increasing demand for cloud and digital transformation initiatives, the growing need for network security services, and the need for businesses to improve their network performance.
The Network-managed Services market is expected to grow at a CAGR of 12.89% from 2024 to 2032, reaching a valuation of USD 278.2 billion by 2032.
The key factors driving the growth of the Network-managed Services market include the increasing adoption of cloud and digital transformation initiatives, the growing demand for network security services, and the need for businesses to improve their network performance.
The challenges facing the Network-managed Services market include the increasing complexity of networks, the need for businesses to reduce costs, and the shortage of skilled IT professionals.
