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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 Research 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 42.9 Billion in 2025 to USD 91.25 Billion by 2035, exhibiting a compound annual growth rate (CAGR) of 7.76% during the forecast period (2025 - 2035).

Key Market Trends & Highlights

The US managed network services market is experiencing robust growth driven by technological advancements and evolving business needs.

  • The market is witnessing an increased focus on cybersecurity, particularly within the network security segment, which remains the largest.
  • Adoption of cloud-based solutions continues to dominate, while hybrid solutions are emerging as the fastest-growing segment.
  • Integration of AI and automation is reshaping service delivery, enhancing efficiency and responsiveness.
  • Key market drivers include the growing demand for network reliability and increased investment in digital transformation.

Market Size & Forecast

2024 Market Size 40.1 (USD Billion)
2035 Market Size 91.25 (USD Billion)
CAGR (2025 - 2035) 7.76%

Major Players

AT&T (US), Verizon (US), Cisco Systems (US), IBM (US), Hewlett Packard Enterprise (US), Comcast (US), CenturyLink (US), T-Mobile (US), Windstream (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 providers, which allows them to focus on core business activities. This shift is largely influenced by the growing complexity of network infrastructures and the need for enhanced cybersecurity measures. As businesses strive to remain competitive, the adoption of managed services is becoming a strategic imperative, enabling them to leverage advanced technologies and expertise without the burden of maintaining in-house capabilities. Moreover, the landscape of the US managed network services market is evolving with the integration of artificial intelligence and automation. These technologies are enhancing service delivery, improving operational efficiency, and enabling proactive network management. Companies are increasingly seeking solutions that not only address current challenges but also anticipate future needs. This trend indicates a broader movement towards more agile and responsive network management strategies, which are essential in today’s fast-paced digital environment. As the market continues to mature, it is likely that service providers will further innovate their offerings to meet the diverse requirements of their clients, ensuring sustained growth and relevance in the industry.

Increased Focus on Cybersecurity

The US managed network services market is witnessing a heightened emphasis on cybersecurity solutions. As cyber threats become more sophisticated, organizations are prioritizing the protection of their network infrastructures. Managed service providers are responding by offering comprehensive security measures, including threat detection, incident response, and compliance management, to safeguard sensitive data and maintain operational integrity.

Adoption of Cloud-Based Solutions

There is a notable trend towards the adoption of cloud-based managed network services within the US market. Businesses are increasingly migrating their operations to the cloud, seeking flexibility and scalability. This shift allows organizations to optimize their network performance while reducing costs associated with traditional on-premises infrastructure.

Integration of AI and Automation

The integration of artificial intelligence and automation technologies is reshaping the US managed network services market. Service providers are leveraging these advancements to enhance service delivery, streamline operations, and improve network management. This trend not only increases efficiency but also enables proactive monitoring and maintenance, ultimately leading to better service outcomes.

Market Segment Insights

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

In the US managed network services market, Network Security holds the largest market share, significantly leading over other service types such as Network Monitoring, Network Optimization, and Cloud Services. As organizations increasingly prioritize cybersecurity, the demand for comprehensive security solutions is driving this segment's dominance. Meanwhile, Network Optimization is experiencing rapid growth due to the rising need for efficient bandwidth management and improved network performance.

Network Security: Dominant vs. Network Optimization: Emerging

Network Security is established as the dominant force in the managed network services landscape, characterized by robust offerings in threat detection, response, and prevention. This segment appeals to enterprises keen on safeguarding sensitive data against evolving cyber threats. Conversely, Network Optimization emerges as a rapidly growing segment, catering to businesses seeking to enhance their network's performance and minimize latency. This service focuses on optimizing existing resources and ensuring seamless connectivity, making it increasingly important in today's data-driven environment. The juxtaposition of these two segments illustrates the balance between preventive measures and performance enhancement in managed network solutions.

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

In the US managed network services market, the deployment type segment showcases distinct dynamics among On-Premises, Cloud-Based, and Hybrid solutions. Cloud-Based deployment holds the largest market share, driven by its scalability, flexibility, and remote accessibility, which appeals to a broad range of organizations. Meanwhile, Hybrid deployment is gaining traction, primarily due to businesses seeking to optimize resources and balance their operations across on-premises and cloud infrastructures.

Deployment: Cloud-Based (Dominant) vs. Hybrid (Emerging)

Cloud-Based deployment is recognized as the dominant force in the US managed network services market, characterized by its elasticity, extensive functionality, and lower upfront costs. Organizations favor this solution for its ability to facilitate seamless collaboration and data access without the constraints of traditional infrastructure. Conversely, Hybrid deployment is emerging rapidly, appealing to businesses aiming for a blended approach that maximizes resource utilization and minimizes downtime. This segment is popular among enterprises that require the robust security of on-premises solutions alongside the agility of cloud infrastructure, positioning it as a vital option for modern IT strategies.

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

In the US managed network services market, the distribution among end users shows that Small and Medium Enterprises (SMEs) hold a significant share, representing the largest portion of the market. SMEs benefit from flexible and scalable network solutions that cater to their unique operational needs. In contrast, Large Enterprises are experiencing rapid growth as they increasingly adopt managed services to enhance their network capabilities, streamline operations, and ensure robust cybersecurity measures. Government Organizations and Educational Institutions also play crucial roles in the market but occupy smaller portions compared to SMEs and Large Enterprises. The growth trends in the managed network services market are driven by factors such as the digital transformation of businesses, the increasing need for enhanced security due to rising cyber threats, and the demand for reliable connectivity. Small and Medium Enterprises are pivoting towards managed services to leverage advanced technologies while minimizing overhead costs. On the other hand, Large Enterprises are focusing on optimizing their existing network infrastructures, which fuels their position as the fastest-growing segment. The adaptation of cloud-based services and reliance on data analytics also contribute to this growth, emphasizing the critical role of managed network services across various sectors.

Small and Medium Enterprises (Dominant) vs. Large Enterprises (Emerging)

Small and Medium Enterprises (SMEs) represent a dominant force in the US managed network services market due to their need for cost-effective and flexible networking solutions. SMEs often struggle with budget constraints, making managed services appealing as they offer tailored solutions that enhance operational efficiency without the substantial investment in infrastructure. This segment values reliability and support, leading providers to offer customized packages that cater specifically to their needs. Conversely, Large Enterprises are emerging as a vital segment in the market, characterized by their willingness to invest in cutting-edge technologies that enhance network performance. They are rapidly adopting managed network services to navigate complex network architectures and ensure seamless service delivery across their expansive operations. Large Enterprises prioritize strategic partnerships with service providers to drive innovation, focusing on scalability, advanced security features, and the integration of artificial intelligence to improve network management and performance.

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

In the US managed network services market, the Healthcare sector holds the largest share, driven by the increasing need for secure and compliant data management and patient care services. Organizations in this industry are heavily investing in network services to facilitate telehealth solutions, improve patient data accessibility, and comply with stringent regulations. On the other hand, the Telecommunications sector is witnessing rapid growth as service providers enhance their infrastructures to support increasing data traffic and advanced technologies like 5G deployment, reflecting a shift towards greater connectivity and network optimization.

Healthcare: Patient Care (Dominant) vs. Telecommunications: 5G Networks (Emerging)

The Healthcare segment is characterized by an emphasis on patient care and operational efficiency, as organizations prioritize investing in technologies that ensure reliability and security of interconnected systems. Managed network services enable healthcare facilities to support extensive data transmission and real-time communications, enhancing overall patient experience. Conversely, the Telecommunications sector, marked by its rapid transition to 5G networks, is focused on adopting advanced network solutions that provide low latency and high-speed connectivity. As more consumers rely on mobile and smart devices, the Telecommunications industry is adapting swiftly to meet the demand for enhanced network services.

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. AT&T (US) focuses on enhancing its service offerings through continuous innovation and partnerships, while Verizon (US) emphasizes its commitment to expanding its 5G capabilities, which are integral to managed network services. Cisco Systems (US) adopts a strategy centered on integrating advanced cybersecurity measures into its network solutions, thereby addressing the growing concerns around data security and privacy. Collectively, these strategies contribute to a competitive environment that is increasingly oriented towards technological advancement and customer-centric solutions.

In terms of business tactics, companies are increasingly localizing their operations and optimizing supply chains to enhance service delivery and responsiveness. The market structure appears moderately fragmented, with several players vying for market share, yet dominated by a few key firms that exert considerable influence. This competitive structure fosters innovation and drives companies to differentiate their offerings, thereby enhancing overall service quality and customer satisfaction.

In November 2025, AT&T (US) announced a strategic partnership with a leading cloud service provider to enhance its managed network services portfolio. This collaboration aims to integrate cloud-based solutions with AT&T's existing network infrastructure, allowing for more scalable and flexible service offerings. The strategic importance of this move lies in AT&T's ability to provide customers with comprehensive solutions that meet the demands of modern businesses, particularly those transitioning to cloud environments.

In October 2025, Verizon (US) launched a new suite of managed network services specifically designed for small and medium-sized enterprises (SMEs). This initiative reflects Verizon's recognition of the unique challenges faced by SMEs in managing their network infrastructure. By tailoring services to this segment, Verizon not only expands its customer base but also positions itself as a leader in providing accessible and effective network solutions for smaller businesses, which are often underserved in this market.

In September 2025, Cisco Systems (US) unveiled an innovative AI-driven network management platform aimed at automating network operations. This platform leverages machine learning algorithms to predict network issues before they arise, thereby minimizing downtime and enhancing operational efficiency. The introduction of such advanced technology underscores Cisco's commitment to staying at the forefront of network management solutions, catering to the increasing demand for automation and efficiency in network operations.

As of December 2025, the competitive trends in the managed network services market are heavily influenced by digitalization, sustainability, and the integration of AI technologies. Strategic alliances are becoming increasingly prevalent, as companies recognize the value of collaboration in enhancing service offerings and expanding market reach. Looking ahead, competitive differentiation is likely to evolve from traditional price-based competition towards a focus on innovation, technological advancements, and supply chain reliability. This shift indicates a growing emphasis on delivering value through enhanced service quality and customer experience, which will be crucial for companies aiming to maintain a competitive edge in this rapidly changing landscape.

Key Companies in the US Managed Network Services Market 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 poised for growth at 7.76% CAGR from 2024 to 2035, driven by increasing demand for cloud services, cybersecurity, 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 achieve robust growth, reflecting evolving technological demands.

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

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 203591.25(USD Billion)
COMPOUND ANNUAL GROWTH RATE (CAGR)7.76% (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), Comcast (US), CenturyLink (US), T-Mobile (US), Windstream (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 projected market size of the US Managed Network Services Market in 2024?

The US Managed Network Services Market is projected to be valued at 14.5 billion USD in 2024.

What will be the estimated market size of the US Managed Network Services Market by 2035?

By 2035, the US Managed Network Services Market is expected to reach approximately 39.5 billion USD.

What is the expected CAGR for the US Managed Network Services Market from 2025 to 2035?

The US Managed Network Services Market is expected to grow at a CAGR of 9.538% from 2025 to 2035.

Which service type is expected to dominate the US Managed Network Services Market by 2035?

Managed LAN/WPN Networks is expected to dominate the market, projected to reach 11.5 billion USD by 2035.

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

Key players in the market include NaviSite, Orange Business Services, TPX Communications, Zenlayer, Cisco, and IBM, among others.

What is the value of the Managed Wi-Fi segment in 2024?

The Managed Wi-Fi segment of the market is valued at 2.5 billion USD in 2024.

How much is the Managed IP/VPN segment expected to grow by 2035?

The Managed IP/VPN segment is projected to grow to 8.0 billion USD by 2035.

What is the projected value of the Managed Network Monitoring segment in 2024?

The Managed Network Monitoring segment is estimated to reach 2.0 billion USD in 2024.

How is the impact of technological advancements influencing the US Managed Network Services Market?

Technological advancements are driving the growth of the market by enhancing service efficiency and scalability.

What growth opportunities exist within the US Managed Network Services Market through 2035?

There are significant growth opportunities in innovative service offerings and expanding digital transformation initiatives.

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