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US Managed Network Services Market

ID: MRFR/ICT/14497-HCR
100 Pages
Garvit Vyas
October 2025

US Managed Network Services Market Size, Share and Trends Analysis Report By Service Type (Managed LAN/ WPN Networks, Managed Wi-Fi, Managed IP/ VPN, Managed Network Monitoring, Managed WAN, Managed Network Security, Other Services), By Organization Size (Small and Medium Enterprises, Large Enterprises), By Deployment Mode (On-Cloud, On-Premises) and By Vertical (BFSI, IT & Telecommunications, Retail & E-Commerce, Manufacturing, Government, Healthcare) - Forecast to 2035

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US Managed Network Services Market Summary

As per analysis, the US Managed Network Services Market is projected to grow from USD 40.1 Billion in 2024 to USD 85.31 Billion by 2035, exhibiting a compound annual growth rate (CAGR) of 7.1% during the forecast period (2025 - 2035).

Key Market Trends & Highlights

The US Managed Network Services Market is poised for robust growth driven by technological advancements and evolving customer needs.

  • The Network Security segment remains the largest, reflecting heightened awareness of cybersecurity threats.
  • Cloud Services is the fastest-growing segment, indicating a shift towards flexible and scalable solutions.
  • Cloud-Based services dominate the market, while On-Premises solutions are experiencing rapid growth.
  • Key market drivers include the growing demand for network scalability and rising cybersecurity concerns.

Market Size & Forecast

2024 Market Size 40.1 (USD Billion)
2035 Market Size 85.31 (USD Billion)
CAGR (2025 - 2035) 7.1%

Major Players

AT&T (US), Verizon (US), Cisco Systems (US), IBM (US), Hewlett Packard Enterprise (US), Lumen Technologies (US), Nokia (US), Juniper Networks (US), T-Mobile (US)

US Managed Network Services Market Trends

The US Managed Network Services Market is currently experiencing a transformative phase, driven by the increasing demand for efficient and secure network management solutions. Organizations across various sectors are recognizing the necessity of outsourcing their network operations to specialized service providers. This shift is largely influenced by the growing complexity of network infrastructures and the need for enhanced cybersecurity measures. As businesses strive to maintain competitive advantages, they are increasingly turning to managed services to optimize performance and reduce operational costs. Furthermore, the integration of advanced technologies such as artificial intelligence and machine learning into managed services is reshaping the landscape, enabling providers to offer more proactive and predictive solutions. In addition, the regulatory environment in the United States is evolving, prompting organizations to seek compliance with various standards and regulations. This has led to a heightened focus on managed services that can ensure adherence to these requirements while also providing robust security features. The US Managed Network Services Market appears poised for continued growth, as businesses increasingly recognize the value of leveraging external expertise to navigate the complexities of modern networking. As the market matures, it is likely that service providers will continue to innovate, offering tailored solutions that address the unique challenges faced by different industries, thereby enhancing overall service delivery and customer satisfaction.

Increased Adoption of Cloud Services

The trend towards cloud computing is significantly influencing the US Managed Network Services Market. Organizations are increasingly migrating their operations to cloud-based platforms, necessitating managed services that can seamlessly integrate and manage these environments. This shift not only enhances flexibility but also allows for scalable solutions that can adapt to changing business needs.

Focus on Cybersecurity Solutions

As cyber threats become more sophisticated, there is a growing emphasis on cybersecurity within the US Managed Network Services Market. Companies are seeking managed services that provide comprehensive security measures, including threat detection and response capabilities. This trend reflects a broader recognition of the importance of safeguarding sensitive data and maintaining trust with customers.

Regulatory Compliance and Risk Management

The evolving regulatory landscape in the United States is driving demand for managed services that assist organizations in achieving compliance. Businesses are increasingly aware of the risks associated with non-compliance, prompting them to seek out managed network services that can help navigate these complexities while ensuring operational integrity.

US Managed Network Services Market Drivers

Rising Cybersecurity Concerns

In the current landscape, the US Managed Network Services Market is increasingly shaped by rising cybersecurity concerns. Organizations are becoming more aware of the potential threats posed by cyberattacks, leading to a heightened focus on securing their network infrastructures. Managed network service providers are responding to this demand by offering comprehensive cybersecurity solutions that include threat detection, incident response, and compliance management. According to industry reports, nearly 60% of businesses in the US have experienced a cyber incident in the past year, underscoring the urgency for robust security measures. As a result, the integration of cybersecurity services into managed network offerings is not only a competitive differentiator but also a necessity for businesses aiming to protect sensitive data and maintain customer trust.

Shift Towards Remote Work Solutions

The shift towards remote work has profoundly impacted the US Managed Network Services Market. As organizations adapt to flexible work arrangements, there is an increasing need for reliable and secure network solutions that support remote access. Managed network service providers are capitalizing on this trend by offering services that ensure seamless connectivity for remote employees. This includes the implementation of virtual private networks (VPNs), secure access service edge (SASE) solutions, and cloud-based collaboration tools. The demand for these services is expected to grow, with estimates suggesting that remote work could remain a permanent fixture for many organizations. Consequently, managed network services that facilitate remote work are likely to see substantial growth, contributing to the overall expansion of the market.

Integration of Advanced Technologies

The integration of advanced technologies such as artificial intelligence (AI) and machine learning (ML) is significantly influencing the US Managed Network Services Market. These technologies enable service providers to offer enhanced network management solutions that improve performance and reliability. For instance, AI-driven analytics can predict network failures before they occur, allowing for proactive maintenance and minimizing downtime. The adoption of these technologies is expected to increase as organizations recognize the value of data-driven decision-making. Furthermore, the market is anticipated to witness a surge in demand for automated network management solutions, which can streamline operations and reduce the need for manual intervention. This trend is likely to contribute to the overall growth of the managed network services sector, with projections indicating a market size exceeding $50 billion by 2028.

Growing Demand for Network Scalability

The US Managed Network Services Market is experiencing a notable increase in demand for scalable network solutions. As businesses expand, they require flexible network infrastructures that can adapt to changing needs. This trend is particularly evident among small to medium-sized enterprises (SMEs) that seek to optimize their operational efficiency without incurring substantial capital expenditures. According to recent data, the market for managed network services is projected to grow at a compound annual growth rate (CAGR) of approximately 10% over the next five years. This growth is driven by the necessity for organizations to enhance their network capabilities while maintaining cost-effectiveness. Consequently, service providers are increasingly offering tailored solutions that allow businesses to scale their network resources in alignment with their growth trajectories.

Focus on Cost Efficiency and Resource Optimization

Cost efficiency remains a critical driver in the US Managed Network Services Market. Organizations are increasingly seeking ways to optimize their IT budgets while ensuring high-quality network performance. Managed network services offer a viable solution by allowing businesses to outsource their network management, thereby reducing the need for in-house IT resources. This approach not only lowers operational costs but also enables organizations to focus on their core competencies. Recent studies indicate that companies utilizing managed services can achieve cost savings of up to 30% compared to traditional network management methods. As businesses continue to prioritize cost-effective solutions, the demand for managed network services is expected to rise, further propelling the growth of the industry.

Market Segment Insights

By Service Type: Network Security (Largest) vs. Cloud Services (Fastest-Growing)

The US Managed Network Services Market is primarily characterized by its robust offerings in various service types, with Network Security emerging as the dominant segment. This segment captures the largest share of the market due to the rising need for robust protection against cyber threats. Following closely is Network Monitoring, which plays a critical role in maintaining network health and performance, while Network Optimization, Cloud Services, and Data Backup also contribute significantly to the overall market landscape, serving niche requirements.

Service Type: Network Security (Dominant) vs. Cloud Services (Emerging)

Network Security stands as the cornerstone of the US Managed Network Services Market, addressing the essential demand for heightened cybersecurity amidst growing threats. Its established market presence stems from the proliferation of sophisticated cyberattacks, prompting organizations to prioritize protection strategies. In contrast, Cloud Services represent an emerging segment, rapidly gaining traction among enterprises seeking flexibility and scalability. As businesses increasingly pivot to cloud-based solutions, they benefit from enhanced resource management and cost efficiency. While Network Security ensures safety, Cloud Services redefine operational dynamics, fostering a complementary relationship between these two critical segments.

By Deployment Type: Cloud-Based (Largest) vs. On-Premises (Fastest-Growing)

In the US Managed Network Services Market, deployment types are categorized into On-Premises, Cloud-Based, and Hybrid solutions. Among these, Cloud-Based services hold the largest market share due to their scalability, reduced operational costs, and flexibility. Many organizations are transitioning to cloud solutions to leverage their efficiency and advanced capabilities, whereas On-Premises services, though traditionally popular, are gradually being outpaced by hybrid and cloud alternatives. The growth trends indicate that On-Premises solutions are emerging as the fastest-growing segment. This recent surge can be attributed to organizations seeking enhanced control and security over their networking infrastructure, driven by regulatory compliance and data privacy concerns. Hybrid deployments are also gaining traction as they offer the best of both worlds, combining the flexibility of cloud services with the reliability of on-premises systems.

Cloud-Based (Dominant) vs. On-Premises (Emerging)

In the context of the US Managed Network Services Market, Cloud-Based solutions are recognized as the dominant deployment type, catering to a multitude of organizations that prefer agile and scalable networking options. Key characteristics of Cloud-Based services include ease of deployment, reduced costs, and the ability to adapt quickly to changing business needs. Conversely, On-Premises solutions are emerging as noteworthy contenders, appealing to businesses that prioritize data security, customization, and compliance with stringent regulations. These organizations are increasingly investing in On-Premises infrastructure to harness control over their network operations, thereby driving a notable growth trend in this segment.

By End User: Small and Medium Enterprises (Largest) vs. Large Enterprises (Fastest-Growing)

In the US Managed Network Services Market, Small and Medium Enterprises (SMEs) hold the largest share, driven by their increasing reliance on cost-effective and customized network solutions. SMEs are leveraging managed services to enhance operational efficiency, streamline communication, and support remote work frameworks. On the other hand, Large Enterprises are witnessing rapid adoption of managed network services, reflecting their need for scalability and enhanced network security as they expand operations and integrate advanced technologies.

SMEs (Dominant) vs. Large Enterprises (Emerging)

Small and Medium Enterprises (SMEs) represent the dominant segment in the US Managed Network Services Market, primarily due to their agility and the ability to swiftly adopt new technologies. They value tailored networking solutions that fit their unique requirements, favoring providers who offer flexible service plans and robust support systems. In contrast, Large Enterprises are emerging as the fastest-growing segment, driven by their complex operational networks and the increasing threats to cybersecurity. Their demand for comprehensive managed services, including advanced analytics, security protocols, and high-availability solutions, reflects a strategic shift towards more sophisticated network management.

By Industry Vertical: Healthcare (Largest) vs. Telecommunications (Fastest-Growing)

In the US Managed Network Services Market, the Healthcare sector holds a significant market share, driven by the increasing need for efficient and secure network services to manage sensitive patient data. The growth in telehealth and electronic health records has necessitated a robust network infrastructure, ensuring reliable access to information critical for patient care. Meanwhile, the Telecommunications industry is experiencing rapid growth as organizations adapt to the rising demand for bandwidth and advanced connectivity solutions. The proliferation of IoT devices and mobile applications has created an urgent need for managed services that facilitate seamless communication and data transfer. As we look towards future trends, the Healthcare sector will continue to capitalize on technological advancements, particularly in telecommunication services that enhance patient engagement and streamline operations. Conversely, Telecommunications, being the fastest-growing segment, is likely to benefit from advancements in 5G technology and the increasing adoption of cloud-based solutions, reinforcing the need for managed network services that support scalability and reliability. The dual focus on security in Healthcare and innovation in Telecommunications reflects the dynamic landscape of the managed services market, catering to evolving industry needs.

Healthcare (Dominant) vs. Telecommunications (Emerging)

The Healthcare sector is recognized as the dominant player in the US Managed Network Services Market due to its critical reliance on managed services for enhanced data security and operational efficiency. With the increasing adoption of telehealth solutions and the digitization of patient records, healthcare organizations are prioritizing investments in network services that ensure secure and reliable communication. This segment is characterized by stringent regulatory requirements, which drive organizations to implement robust managed networking solutions that comply with HIPAA and other standards. On the other hand, the Telecommunications sector is an emerging force, rapidly evolving to meet high consumer expectations and bandwidth demands. As companies integrate cutting-edge technologies such as 5G and IoT into their operations, the demand for managed network services that facilitate real-time data processing and connectivity grows. This segment is marked by its agility and adaptability to changing technological landscapes, positioning it as a crucial player in the managed services market.

Get more detailed insights about US Managed Network Services Market

Key Players and Competitive Insights

The Managed Network Services Market in the US is characterized by a dynamic competitive landscape, driven by the increasing demand for efficient network management solutions and the rapid evolution of digital technologies. Key players such as AT&T (US), Verizon (US), and Cisco Systems (US) are strategically positioned to leverage their extensive infrastructure and technological expertise. These companies focus on innovation and partnerships to enhance service offerings, thereby shaping the competitive environment. For instance, AT&T (US) emphasizes its commitment to 5G technology and edge computing, while Verizon (US) is enhancing its managed services portfolio through strategic acquisitions and collaborations.

The market structure appears moderately fragmented, with several players vying for market share. Key business tactics include localizing service delivery and optimizing supply chains to enhance operational efficiency. The collective influence of major companies fosters a competitive atmosphere where innovation and customer-centric solutions are paramount. This competitive structure encourages firms to differentiate themselves through advanced service capabilities and tailored solutions.

In November 2025, Verizon (US) announced a strategic partnership with a leading cloud service provider to enhance its managed network services. This collaboration aims to integrate advanced cloud solutions into Verizon's offerings, thereby improving scalability and flexibility for enterprise clients. The strategic importance of this move lies in its potential to attract a broader customer base seeking comprehensive network solutions that align with their digital transformation goals.

In December 2025, Cisco Systems (US) unveiled a new suite of AI-driven network management tools designed to optimize performance and security. This initiative reflects Cisco's focus on integrating artificial intelligence into its service offerings, which could significantly enhance operational efficiency for clients. The introduction of these tools is likely to position Cisco as a leader in the market, as businesses increasingly seek intelligent solutions to manage complex network environments.

In January 2026, AT&T (US) launched a new managed security service aimed at protecting enterprise networks from evolving cyber threats. This service underscores AT&T's commitment to providing comprehensive security solutions alongside its network management offerings. The strategic importance of this launch is evident, as cybersecurity remains a critical concern for organizations, and AT&T's proactive approach may enhance its competitive edge in the market.

As of January 2026, current trends in the Managed Network Services Market include a pronounced shift towards digitalization, sustainability, and the integration of AI technologies. Strategic alliances are increasingly shaping the competitive landscape, enabling companies to pool resources and expertise to deliver enhanced solutions. Looking ahead, competitive differentiation is likely to evolve, with a greater emphasis on innovation and technology rather than solely on price. Companies that can reliably integrate advanced technologies and maintain robust supply chains will likely emerge as leaders in this rapidly changing market.

Key Companies in the US Managed Network Services Market include

Industry Developments

Recent developments in the US Managed Network Services Market have shown significant growth, with companies like Cisco and IBM investing heavily in automation and AI technologies to enhance service delivery and operational efficiency. In September 2023, TPX Communications expanded its portfolio by acquiring a regional service provider, strengthening its presence in the midmarket segment and enhancing service capabilities. Similarly, in August 2023, Zenlayer announced a partnership with NTT Ltd. to improve edge computing services across the US, responding to the increasing demand for low-latency solutions.

The market has also seen Verizon and AT and T focusing on 5G integration to provide enhanced managed services. In recent years, companies such as CenturyLink and Windstream have reported substantial growth in their service revenue, with a notable uptick in cloud-managed offerings since 2021. Regulatory support for telecommunications enhancements has spurred innovation, driving investments in infrastructure and technology. Overall, the Managed Network Services landscape is rapidly evolving with strategic collaborations and technology advancements, positioning companies like Lumen Technologies and Comcast Business to capitalize on rising digital transformation trends in the US market.

Future Outlook

US Managed Network Services Market Future Outlook

The US Managed Network Services Market is projected to grow at a 7.1% CAGR from 2025 to 2035, driven by increasing demand for cloud services, cybersecurity needs, and IoT integration.

New opportunities lie in:

  • Expansion of AI-driven network management solutions
  • Development of tailored cybersecurity packages for SMBs
  • Integration of 5G technology into managed services offerings

By 2035, the market is expected to be robust, driven by innovation and strategic partnerships.

Market Segmentation

US Managed Network Services Market End User Outlook

  • Small and Medium Enterprises
  • Large Enterprises
  • Government Organizations
  • Educational Institutions

US Managed Network Services Market Service Type Outlook

  • Network Monitoring
  • Network Security
  • Network Optimization
  • Cloud Services
  • Data Backup

US Managed Network Services Market Deployment Type Outlook

  • On-Premises
  • Cloud-Based
  • Hybrid

US Managed Network Services Market Industry Vertical Outlook

  • Healthcare
  • Retail
  • Manufacturing
  • Telecommunications

Report Scope

MARKET SIZE 202440.1(USD Billion)
MARKET SIZE 202542.9(USD Billion)
MARKET SIZE 203585.31(USD Billion)
COMPOUND ANNUAL GROWTH RATE (CAGR)7.1% (2024 - 2035)
REPORT COVERAGERevenue Forecast, Competitive Landscape, Growth Factors, and Trends
BASE YEAR2024
Market Forecast Period2025 - 2035
Historical Data2019 - 2024
Market Forecast UnitsUSD Billion
Key Companies ProfiledAT&T (US), Verizon (US), Cisco Systems (US), IBM (US), Hewlett Packard Enterprise (US), Lumen Technologies (US), Nokia (US), Juniper Networks (US), T-Mobile (US)
Segments CoveredService Type, Deployment Type, End User, Industry Vertical
Key Market OpportunitiesIntegration of artificial intelligence in network management enhances efficiency and reduces operational costs.
Key Market DynamicsGrowing demand for cybersecurity solutions drives innovation in the US Managed Network Services Market.
Countries CoveredUS
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FAQs

What is the current valuation of the US Managed Network Services Market?

<p>As of 2024, the market valuation was 40.1 USD Billion.</p>

What is the projected market size for the US Managed Network Services Market by 2035?

<p>The market is expected to reach a valuation of 85.31 USD Billion by 2035.</p>

What is the expected CAGR for the US Managed Network Services Market during the forecast period 2025 - 2035?

<p>The market is anticipated to grow at a CAGR of 7.1% during the forecast period.</p>

Which companies are considered key players in the US Managed Network Services Market?

<p>Key players include AT&T, Verizon, Cisco Systems, IBM, Hewlett Packard Enterprise, Lumen Technologies, Nokia, Juniper Networks, and T-Mobile.</p>

What are the primary service types in the US Managed Network Services Market?

<p>The primary service types include Network Monitoring, Network Security, Network Optimization, Cloud Services, and Data Backup.</p>

How much was the market size for Network Security in 2024?

<p>In 2024, the market size for Network Security was 10.0 USD Billion.</p>

What is the projected market size for Cloud-Based services by 2035?

<p>Cloud-Based services are projected to reach 35.0 USD Billion by 2035.</p>

Which end-user segment is expected to grow the most in the US Managed Network Services Market?

<p>The Large Enterprises segment is expected to grow significantly, with a projected size of 32.0 USD Billion by 2035.</p>

What is the anticipated market size for the Telecommunications industry vertical by 2035?

<p>The Telecommunications industry vertical is expected to reach 32.3 USD Billion by 2035.</p>

What deployment type is projected to dominate the market by 2035?

<p>The Cloud-Based deployment type is projected to dominate, with an expected size of 35.0 USD Billion by 2035.</p>

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