Market Scope & Overview
According to the SNS Insider report, the managed network services market achieved a value of USD 59.42 billion in 2022. It is projected to reach USD 112.45 billion by 2030, with an estimated compound annual growth rate (CAGR) of 8.3% during the forecast period from 2023 to 2030.
Managed Network Services (MNS) refer to the outsourcing of network management and maintenance tasks to a third-party service provider. The MSP takes on the role of handling various aspects of the network, allowing the client organization to focus on its core business activities.
Market Analysis
The managed network services market is experiencing robust growth due to the escalating demand for efficient, reliable, and secure network solutions. As businesses expand their digital footprint, the complexity and criticality of their network infrastructures have also increased. To maintain seamless operations, organizations seek managed network services that ensure high availability, reduced downtime, and enhanced performance. Additionally, the increasing adoption of cloud-based services and IoT devices has further intensified the demand for robust network management.
Impact of Recession
The managed network services market, like any other sector, is impacted by recessions. However, challenges present opportunities for growth and adaptation. During economic downturns, MSPs must showcase the cost-effectiveness of their services, emphasize efficiency and optimization, bolster their security offerings, and consider market consolidation and diversification strategies.
Segmentation Analysis
Managed LAN and Banking Segment have emerged as the powerhouses in the managed network services market, addressing the unique needs of organizations while ensuring seamless connectivity and robust security. Their dominance is a result of their ability to deliver value-added services, bolstering their reputation as reliable partners in the ever-changing digital landscape. As businesses increasingly recognize the importance of outsourcing network management, the Managed LAN and Banking Segment providers are poised to retain their dominant positions and contribute significantly to the growth and innovation of the market.
Regional Status & Analysis
North America boasts a vibrant and dynamic technological ecosystem that nurtures innovation and fosters the development of cutting-edge network solutions. The region is home to numerous tech giants, startups, and research institutions, continuously pushing the boundaries of what is possible in network management. This thriving environment enables North American providers to consistently offer state-of-the-art managed network services, giving them a competitive edge in the global managed network services market.
The market is poised for significant growth in the foreseeable future. As businesses increasingly recognize the benefits of outsourcing their network management, the demand for specialized service providers will continue to rise. To succeed in this dynamic landscape, managed service providers must remain agile, innovative, and committed to offering cutting-edge solutions that address the unique needs and challenges of their clients.
Frequently Asked Questions/ Key Reasons to Purchase this Report
Q1. What is the projected outlook for managed network services market growth?
Ans: The market for managed network services is projected to exceed USD 112.45 billion by the year 2030.
Q2. What are the major factors influencing the managed network services market?
Ans: The market is witnessing a significant shift towards the adoption of cutting-edge technologies such as artificial intelligence (AI) and machine learning (ML).
Q3. Who are the leading players in the managed network services market?
Ans: Fujitsu, IBM, Ericsson, BT Group, Huawei, Cisco, Comarch SA, Verizon, Alcatel-Lucent, and Dell EMC (EMC Corporation).