Managed Mpls Market - Growth, Trends, Covid-19 Impact, and Forecasts (2023 - 2028)

Managed Mpls Market - Growth, Trends, Covid-19 Impact, and Forecasts (2023 - 2028)

The Managed MPLS Market was valued at USD 52.16 billion in 2020 and is expected to reach USD 76.16 billion by 2026, at a CAGR of 6.5% over the forecast period 2021 - 2026. With the rapidly growing global expansion of enterprises, there is an increased demand for secure connectivity among multiple business units and effective means for data management, which is one of the significant factors boosting MPLS networks' adoption.

• Several enterprises rely on virtual private cloud services on MPLS VPNs to achieve high performance and critical communication, as they provide the benefits of a private network with the economics of a public network. This is because VPC services create logical 'private' partitions within a public cloud environment, providing the benefits of a dedicated private cloud, but on a more cost-effective and flexible basis.
• The emergence of SD-WAN is expected to significantly impact the networking market due to its speed and simplicity in networking. However, SD-WAN cannot compete with security and reliability, thus pushing companies to implement conjunction of the two. This is expected to create greater opportunities for the MPLS market.
• The market studied is also expected to improve business intelligence and security surveillance applications by offering real-time video information. Additionally, the need for minimal investments to integrate analytics software with the existing surveillance infrastructure has been a major factor that has prompted enterprises, irrespective of size, to invest in this technology and attain a significant return on investment (ROI).
• Other prominent trends that are projected to augment the global managed MPLS market's growth include increasing BYOD policies, growing adoption of cloud services (like computing and analytics), and increasing smartphone penetration. Owing to the increased adoption of BYOD policies, Cisco Systems stated that companies favoring BYOD make an annual saving of USD 350 per year, per employee.
• Due to the outbreak of COVID-19, the demand for remote work solutions has seen a surge due to organizations transitioning from their conventional workplace methods to work from home scenarios. These impacts have to be carefully concerned in the context of the organization's cybersecurity as more and more personal unsecured devices start accessing the organization network; the risk of compromising network security goes up.
• According to Centrify, over two thirds (70%) of the United Kingdom businesses are using MFA and a virtual private network (VPN) to manage the security risks posed by the increase in remote working environments due to the COVID-19 outbreak.

• An increasing number of privacy breaches have alerted the banks to gain control over their network and routing. To address these security concerns, the IT department of these BFSI institutes has started to prefer layer 2 VPN and 3 VPN MPLS services.
• With the increasing number of multiple locations and the specific requirements of networking for individual locations, the design development and implementation of unique network models become significantly complex. Thus, BFSI institutes have opted to outsource their networking, aiding the managed MPLS market's growth.
• The growing demand for the high quality of service for video conferencing and VoIP has also emerged as one of the key application areas for MPLS since it offers sustainable bandwidth between the user's equipment and the service provider's network, which helps to suffice VoIP's requirements.
• Owing to the increased digitalization of BFSI operations and growing volumes of client data, the BFSI sector has witnessed many advantages through the adoption of cloud services to cater to these requirements. However, this adoption has also increased the sector's vulnerability to data breaches and attacks, thus, driving institutes to opt for networks that allow the smooth functioning of cloud services while ensuring security. These factors have increased the penetration of MPLS networks in the BFSI sector.

• United States is expected to hold a significant share in the market studied. With the surge of cloud computing, there has been an increase in the demand for secure networking among enterprises, which, in turn, is expected to drive the demand for the managed MPLS market.
• According to Cisco Systems, cloud traffic in North America in 2017 increased to 2,771 exabytes from 1,891 exabytes in 2016, which is forecast to reach 6,844 exabytes in 2021. This is anticipated to contribute positively to the growth of the market studied.
• Moreover, companies in the region, such as Cognizant, deliver a full range of application outsourcing, system integration services, and business process consulting. By increasing its global reach through business diversification, the company realized the need for transcontinental connectivity and efficient security mechanisms.
• As of May 2020, 64% of employees in United States are working from home, according to SHRM's Covid-19 Business Index. In addition to this, more enterprises are shifting toward a remote working model to maintain business continuity without compromising the security of their workforce. Hence the market is likely to grow in the region.

The managed MPLS market is moderately competitive and consists of several major players. In terms of market share, a few of the major players currently dominate the market. The major players focus on expanding their product portfolio and customer base across foreign countries. These companies are leveraging strategic collaborative initiatives to increase their market shares and increase their profitability. Some of the recent developments in the market are:

• July 2020 - CenturyLink Inc. announced its expansion of its global cloud alliance with Dell Technologies, Inc. and VMware, Inc. This expansion offers a hybrid cloud solution designed to help digital businesses in the Asia-Pacific successfully modernize their application workloads and manage their cloud journey.
• August 2019 - The Kansas State increased its state-wide emergency response efficiency with AT&T and RapidDeploy. The new solution includes RapidDeploy’s Nimbus platform. With the usage of AT&T VPN, Kansas 911 centers have been able to access the solution through AT&T NetBond for Cloud, which enables a highly secure connection to transfer data between the call routing platform and RapidDeploy.

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support