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Managed Network Services Market

Managed Network Services Market

Managed Network Services Sales are Driven by Increased Demand for Optimized Operational Workflows & Virtual Security during 2021-2031

Managed Network Services Market
FACT1586MR
  • Oct-2021
  • List of Tables : 132
  • List of Figures : 106
  • 170 Pages
  • Technology

Market Snapshot

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

Know More Details About the Report

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.  

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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.

Managed network services market forecast analysis by Fact.MR

An Adaptive Approach to Modern-day Research Needs

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

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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

Managed Network Services Market- Scope of Report

A recent study by Fact.MR on the managed network services market offers a 10-year forecast for 2021 to 2031. The study analyzes crucial trends that are currently determining the growth of the market. This report explicates on vital dynamics, such as the drivers, restraints, and opportunities for key market players along with key stakeholders as well as emerging players associated with offering managed network services.

The study also provides the dynamics responsible for influencing the future status of the managed network services market over the forecast period. A detailed assessment of value chain analysis, business execution, and supply chain analysis across regional markets has been covered in the report. A list of prominent companies operating in the managed network services market, along with their product portfolios, enhances the reliability of this comprehensive research study.

Report Summary

The study offers comprehensive analysis on diverse features, including production capacities, demand, product developments, revenue generation, and sales of managed network services across the globe.

A comprehensive estimate on the market has been provided through an optimistic as well as a conservative scenario, taking into account the sales of managed network services during the forecast period. Price point comparison by region with global average price is also considered in the study.

Key Questions Answered in Report

  • Which are the most lucrative managed network services markets?
  • How will changing trends impact the strategies of market players?
  • How can market players capture the low-hanging opportunities across regions?
  • Which companies are leading the managed network services industry?
  • What are the winning strategies of stakeholders in the market?

Analysis on Market Size Evaluation

The market has been analyzed for each segment in terms of value (US$ Mn).

Estimates at global and regional levels for managed network services are available in terms of “US$ Mn” for value. A Y-o-Y growth contrast on prominent market segments, along with market attractiveness evaluation, has been incorporated in the report. Furthermore, absolute dollar opportunity analysis of all the segments adds prominence to the report.

Absolute dollar opportunity plays a crucial role in assessing the level of opportunity that a manufacturer/distributor can look to achieve, along with identifying potential resources, considering the sales and distribution perspective in the global managed network services market.

Inspected Assessment on Regional Segments

Key sections have been elaborated in the report, which have helped deliver projections on regional markets. These chapters include regional macros (political, economic, and business environment outlook), which are expected to have a momentous influence on the growth of the managed network services industry during the forecast period.

Country-specific valuation on demand for managed network services has been offered for each region, along with market scope estimates and forecasts, price index, and impact analysis of the dynamics of prominence in regions and countries. For all regional markets, Y-o-Y growth estimates have also been incorporated in the report.

Detailed breakup in terms of value for emerging countries has also been included in the report.

In-depth Analysis on Competition Analysis

The report sheds light on leading providers of managed network services, along with their detailed profiles. Essential and up-to-date data related to market performers who are principally engaged in offering managed network services has been brought with the help of a detailed dashboard view. Market share analysis and comparison of prominent players provided in the report permits report readers to take preemptive steps in advancing their businesses.

Company profiles have been included in the report, which include essentials such as product portfolios and key strategies, along with all-inclusive SWOT analysis on each player. Company presence is mapped and presented through a matrix for all the prominent players, thus providing readers with actionable insights, which helps in thoughtfully presenting the market status, and predicting the competition level in the managed network services domain. 

Research Methodology

In Fact.MR’s study, a unique research methodology is utilized to conduct extensive research on the growth of the managed network services industry, and reach conclusions on the future growth parameters. This research methodology is a combination of primary and secondary research, which helps analysts ensure the accuracy and reliability of the drawn conclusions.

Secondary resources referred to by analysts during the preparation of the market study include statistics from governmental organizations, trade journals, white papers, and internal and external proprietary databases. Analysts have interviewed senior managers, product portfolio managers, CEOs, VPs, marketing/product managers, and market intelligence managers, all of whom have contributed to the development of the research report as a primary resource.

- FAQs -

The managed network services market will likely surpass US$ 60 Bn by 2021

From 2016 to 2020, demand for managed network services surged at a CAGR of 10%

By 2031, managed network services value is poised to reach US$ 130 Bn

From 2021-2031, Fact.MR expects managed network services demand to rise at a CAGR of 8%

Managed network services sales are largely driven by requirements to optimize organizational workflow to mitigate security risks

Rising popularity of quantum computing is expected to influence future managed network services uptake

The U.S will account for 31% of the global managed network services demand

Capturing nearly 50% revenue share, China will be the dominant MNS market, spurred by rising internet penetration

Healthcare is expected to be the fastest growing segment, clocking a CAGR of 7.5%

Managed security network services will rule, registering an impressive 8% CAGR

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Is the market research conducted by Fact.MR?

Yes, the report has been compiled by expert analysts of Fact.MR, through a combination of primary and secondary research. To know more about how the research was conducted, you can speak to a research analyst.

What research methodology is followed by Fact.MR?

Fact.MR follows a methodology that encompasses the demand-side assessment of the market, and triangulates the same through a supply-side analysis. This methodology is based on the use of standard market structure, methods, and definitions.

What are the sources of secondary research?

Fact.MR conducts extensive secondary research through proprietary databases, paid databases, and information available in the public domain. We refer to industry associations, company press releases, annual reports, investor presentations, and research papers. More information about desk research is available upon request.

Who are the respondents for primary research?

Fact.MR speaks to stakeholders across the spectrum, including C-level executives, distributors, product manufacturers, and industry experts. For a full list of primary respondents, please reach out to us.

Is a sample of this report available for evaluation?

Yes, you can request a sample, and it will be sent to you through an email.