Managed Network Services

Managed Network Services

Global Managed Network Services Market to Reach US$123.1 Billion by 2030

The global market for Managed Network Services estimated at US$81.5 Billion in the year 2023, is expected to reach US$123.1 Billion by 2030, growing at a CAGR of 6.1% over the analysis period 2023-2030. Managed LAN, one of the segments analyzed in the report, is expected to record a 5.8% CAGR and reach US$34.9 Billion by the end of the analysis period. Growth in the Managed VPN segment is estimated at 6.4% CAGR over the analysis period.

The U.S. Market is Estimated at US$22.2 Billion While China is Forecast to Grow at 5.7% CAGR

The Managed Network Services market in the U.S. is estimated at US$22.2 Billion in the year 2023. China, the world`s second largest economy, is forecast to reach a projected market size of US$19.2 Billion by the year 2030 trailing a CAGR of 5.7% over the analysis period 2023-2030. Among the other noteworthy geographic markets are Japan and Canada, each forecast to grow at a CAGR of 5.7% and 4.9% respectively over the analysis period. Within Europe, Germany is forecast to grow at approximately 5.1% CAGR.

Global Managed Network Services Market - Key Trends & Drivers Summarized

What Are Managed Network Services and How Do They Support IT Infrastructure?

Managed Network Services (MNS) involve the outsourcing of an organization’s network management to third-party providers, who handle tasks such as network monitoring, security, performance optimization, and troubleshooting. These services are critical for businesses that need to maintain a stable, secure, and high-performing IT infrastructure without dedicating significant internal resources. MNS providers leverage their expertise and technology to monitor and manage networks in real-time, ensuring uptime, minimizing disruptions, and maintaining network security. With the growing complexity of IT environments and the rise of cloud computing, managed network services have become essential for organizations looking to maintain a competitive edge while reducing operational risks.

How Is Technology Transforming Managed Network Services?

Technological advancements are dramatically transforming Managed Network Services by introducing greater automation, enhanced security, and better visibility into network performance. Software-defined networking (SDN) and network function virtualization (NFV) are enabling service providers to deliver more flexible, scalable, and cost-effective solutions. These technologies allow for centralized network control, reducing the need for physical infrastructure and enabling faster adjustments to network configurations. Additionally, the integration of AI and machine learning is improving network management by automating routine tasks, predicting network failures, and enhancing threat detection capabilities. Managed Network Services are also increasingly incorporating edge computing solutions, allowing businesses to process data closer to its source, improving speed and reducing latency in critical applications.

What Challenges Do Businesses Face with Managed Network Services?

Despite the benefits of Managed Network Services, businesses face several challenges when implementing these solutions. One of the primary challenges is ensuring the seamless integration of managed services with existing networks and legacy systems. This can require substantial customization and coordination between the business and the service provider. Another significant challenge is maintaining network security in an environment where threats are becoming more sophisticated. While managed services providers typically offer robust security solutions, businesses must ensure that these services meet their specific compliance and regulatory needs. Additionally, as businesses expand and adopt new technologies such as IoT, ensuring that Managed Network Services can scale effectively without compromising performance is a critical concern.

The Growth in the Managed Network Services Market Is Driven by Several Factors

The growth in the Managed Network Services market is driven by several factors, including the increasing complexity of IT environments, the rising demand for cloud-based solutions, and the growing need for robust network security. As organizations expand their digital operations and adopt hybrid IT environments, the demand for managed services that provide continuous monitoring, management, and optimization of networks has surged. Technological innovations such as SDN, NFV, and edge computing are enabling more dynamic and cost-effective network management solutions. Additionally, the growing sophistication of cyber threats is driving the need for managed services that offer comprehensive security solutions. These factors, along with the pressure to reduce IT costs while improving network performance, are fueling the rapid growth of the Managed Network Services market.

Select Competitors (Total 53 Featured) -

• Acasia Communications Sdn Bhd
• Accenture Plc
• Airespring, Inc.
• Alcatel-Lucent Enterprise
• Allied Telecom Group
• AT TOKYO Corporation
• AT&T, Inc.
• Boring Business Systems
• British Telecommunications Plc
• BT Global Services PLC

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