Managed Network Services Market

Managed Network Services Market Outlook

The global market for managed security services is anticipated to witness robust growth, reaching US$ 130 Bn in value by the end of the 2021-2031 assessment period. By 2021-end, a valuation of US$ 60.4 Bn is projected for the industry. The market is poised to surge more than 2x in the forthcoming decade, with demand for managed security services to be most prominent.

Key Points Covered in Managed Network Services Industry Analysis

• Market estimates and forecast 2016-2031
• Key drivers and restraints impacting market growth
• Segment-wise, Country-wise, and Region-wise Analysis
• Competition Mapping and Benchmarking
• Brand share and Market Share Analysis
• Key Product Innovations and Regulatory Conditions
• COVID-19 Impact on Managed Network Services and How to Navigate
• Recommendation on Key Winning Strategies

2016-2020 Managed Network Services Revenue Analysis Vs 2021-2031 Forecast

According to Fact.MR- a market research and competitive intelligence provider- the scope for managed network services significantly broadened, reflecting a CAGR worth 10% across the 2016-2020 historical period. Increased demand to streamline operational workflows and enhanced requirements for virtual security perimeters has largely elevated demand.

Prospects further inclined during COVID-19. According to an IDG report commissioned by NTT Ltd., 55% of organizations have turned towards advanced service providers to mitigate security risks since the pandemic's outbreak, as employees work remotely and business partners and customers rely entirely on electronic communication.

Businesses are finding it easier to respond to technological advances because of scalable infrastructure and flexible managed services models. Over the forecast period, all of these factors are expected to propel the market forward. From 2021 to 2031, the market is expected to incline at a CAGR of 8%.

Workflow Streamlining Augmenting Demand for Managed Network Services?

The desire for more agility in networks that support businesses in delivering improved customer experiences is being driven by digital transformation. As businesses continue to invest in digital transformation, every company has enlisted the help of a managed network services provider.

According to managed services provider Marco, 59% of IT services have transitioned from the traditional break-fix model to a managed service contract model. Furthermore, 45% of organizations intend to collaborate with a managed security service provider in upcoming years. All of this is done to effectively streamline daily operational workflow across businesses.

Given the highly intricate and sensitive nature of business workflows, they are increasingly becoming targets for malicious entities. As per a publication released by the U.S Government, over 4,000 ransomware attacks have occurred since January 2016. Hence, protecting this information has prompted increased adoption of managed security services.  

How is Quantum Computing Increasing Demand for MNS?

Quantum computing technology uses less electricity and can conduct a variety of calculations that are both faster and more accurate than existing supercomputers. This has prompted businesses such as aerospace and defense, information technology and telecommunications, transportation, and financial services to use quantum computing technologies to manage data.

Prolific developments are anticipated in the telecom sector, with quantum radio access networks (RAN) to become a reality by the end of the forthcoming decade. As technology matures and quantum-chips become available in more compact form-factors, they could be deployed closer to user premises. Processors would be cloud-enabled to target acceleration of virtualized RAN functions.

Numerous service providers are expected to pepper the global market for managed network services in forthcoming years. Prominent network services provider Accenture Plc, for instance, is offering a Masters Course in Quantum Computing Technology in collaboration with the University of Madrid to acquaint individuals with network security and equip them to manage complex workflows.

Country-wise Analysis

How did Telehealth Reliance during COVID-19 Enhance MNS Uptake in the U.S?

With a market share of more than 31%, the U.S dominated the global market for managed network services. Given the highly contagious nature of the COVID-19 pandemic, various healthcare practitioners switched over to telehealth service provision during the height of the crisis.

According to the Centers for Disease Control and Prevention, during Q1 2020, the number of telehealth visits increased by 50%, compared with the same period in 2019. By week 13 of 2020, there was a 154% increase in visits. COVID-19 related consultations significantly increased from 5.5% to 16.2% during weeks 11-13.

In the post-COVID world, there is an even greater need to upscale digital connectivity. Hence, prominent service providers have set in motion a series of collaborative agreements across the country. For instance, Microsoft Corporation signed five definitive agreements in 2020 to acquire Metaswitch Networks, helping the former capitalize on its offering of ultra-high performance, cloud-native communications software for the telecommunications industry.

How is Deepening Internet Penetration Widening Prospects across China?

According to the China Internet Network Information Center, by the end of 2020, China had 989 million internet users, representing an increase of 85.4 million compared to March 2020. The overt growth driver in this case is the increasing number of hours people spent online during the height of the COVID-19 pandemic.

As per a report published by the Chinese government, when the worst was over, over 72 million people continued shopping online, predominantly through mobile phones, while remote working population surged by 147 million from June to 346 million by December.

Besides, the unceasing endeavor to further the country’s 5G connectivity infrastructure is also providing a major boost to managed network services demand across the East Asian giant. Fact.MR posits that the Chinese market will account for almost 50% of global demand until 2031.

Category-wise insights

Managed Network Services for Security Purposes to Remain Dominant?

With deepening technology penetration, threats concerning potential cyberattacks and data breaches have surged exponentially. Global outages experienced due to potentially dangerous malware attacks have necessitated deployment of managed virtual security services.

To protect business and personal interests from falling prey to cybercriminals, the scope for security services has surged, with Fact.MR expecting the segment to surge at an impressive 8% CAGR until 2031. Service providers such as Sophos and NTT have gained high prominence in the cybersecurity space.

Why is MNS for Healthcare Providers Acquiring High Importance?

According to Fact.MR, managed network services for healthcare providers is expected to grow rapidly, at a CAGR of 7.5% from 2021 to 2031. Healthcare facilities have lots of unique concerns when it comes to managing their networks.

For healthcare facilities, networks are as much a key component of operations as they are a prime target. Personal medical information has outgrown financial ones in value terms on the black market. Hence, competent tracking and information monitoring technologies are emerging to safeguard the same.

Competitive Landscape

Key managed network services providers are leveraging strategies such as partnerships with government authorities or regional service providers, introduction of new management services and acquiring existing small and medium-scale service providers.

• In April 2021, South Korea, Asia's fourth-largest economy, and Cisco announced the launch of a collaborative framework under Cisco's Country Digital Acceleration (CDA) program in April 2021 to accelerate digitization across the country and power an inclusive recovery from the COVID-19 pandemic.
• In October 2021, AT&T Inc. announced that the U.S Air Force has selected the company’s FirstNet® high-speed broadband communications platform to deliver reliable and on-priority communications to its public safety personnel and first responders across 15 bases

Report Scope

Attribute	Details
Market Size Value in 2021	USD 60.4 Billion
Market Value Forecast in 2031	USD 130 Billion
Growth Rate	CAGR of 8% from 2021-2031
Forecast Period	2021-2031
Historical Data Available for	2016-2020
Market Analysis	US$ Mn for Value & ‘000 Units for Volume
Key Regions Covered	North America Latin America Europe East Asia South Asia Oceania Middle East & Africa
Key Countries Covered	U.S Canada Germany U.K France Spain Italy BENELUX Nordics Russia Japan China South Korea India ASEAN Australia New Zealand Brazil Mexico Argentina Peru GCC Turkey Israel South Africa Iran
Key Segments Covered	Service Type Enterprise Type End Use Vertical Region
Key Companies Profiled	Accenture Plc Alcatel-Lucent Enterprise AT&T Inc. CenturyLink Inc. Cisco Systems Inc. Ericsson GTT Communications Inc. HCL Technologies Ltd. Hewlett Packard Enterprise Company Huawei Technologies Co. Ltd. International Business Machines (IBM) Corporation LG Networks Inc. Reliance Communications Limited (Global Cloud Xchange) TATA Communications Ltd. Wipro Limited
Pricing	Available upon Request

Key Segments Covered

• Service Type

  • Managed Voice Network Services
  • Managed VPN Services
  • Managed Network Security Services
  • Managed Network Conferencing Services
  • Managed WAN/SD WAN Services

• Enterprise Type

  • MNS for Small Enterprises
  • MNS for Medium Enterprises
  • MNS for Large Enterprises

• End Use Vertical

  • MNS for Banking & Securities
  • MNS for Insurance
    • Health Insurance (Payer)
    • Insurance (Other than Health)
  • MNS for Communication, Media & Services
    • Entertainment
    • Publishing and Advertising
    • Broadcasting and Cable
    • Telecommunications
    • Other Business, Technical and Consumer Services
    • IT Services & Software
  • MNS for Healthcare Providers
    • Physician
    • Hospitals
  • MNS for Manufacturing & Natural Resources
    • Automotive
    • Consumer Nondurable Products
    • Energy Resources & Processing
    • Heavy Industry
    • IT Hardware
    • Life Sciences and Healthcare Products
    • Natural Resources & Materials
  • MNS for Retail
    • General Retailers
    • Grocery
    • Restaurants and Hotels
    • Specialty Retailers
  • MNS for Wholesale Trade
  • MNS for Transportation
  • MNS for Transport
    • Motor Freight
    • Pipelines
    • Rail & Water
    • Warehousing, Couriers and Support Services
  • MNS for Utilities
  • MNS for Education
  • MNS for Government