PUBLISHER: AnalystView Market Insights | PRODUCT CODE: 1477136
PUBLISHER: AnalystView Market Insights | PRODUCT CODE: 1477136
Telecom Managed Services Market size was valued at USD 22,830.21 Million in 2023, expanding at a CAGR of 12.91% from 2024 to 2032.
Managed telecom services involve delegating the management and operation of a company's telecommunications infrastructure and services to an external provider. This provider, known as the Managed Service Provider (MSP), takes charge of overseeing different elements of the telecom setup, such as voice communications, data networks, mobile devices, and associated services. These services offer centralized technical support for voice, data, colocation, and cloud services, encompassing tasks like issue resolution, routine maintenance, and inventory control to enhance operational effectiveness.
Telecom Managed Services Market- Market Dynamics
The Global Telecom Managed Services Market is principally driven by Growing Preference of Cloud Technology and Significance on Process Automation
Managed services providers are essential for telecom operators to utilize cloud resources and automation tools effectively, enabling them to achieve their business goals and remain competitive in the ever-evolving telecommunications sector. Cloud computing statistics indicate that the market is projected to reach USD947.3 billion by 2026, with 60% of business data currently being stored in the cloud. Additionally, in 2023, 48% of businesses had their critical data stored in the cloud. Moreover, opportunities for market growth can be found in Enhanced Service Quality and Focus on Core Competencies. However, Security Concerns may hinder the growth of the market.
Telecom Managed Services Market- Key Insights
As per the analysis shared by our research analyst, the global market is estimated to grow annually at a CAGR of around 12.91% over the forecast period (2024-2032)
Based on product type segmentation, Managed Data Center Services was predicted to show maximum market share in the year 2023
Based on Organization Size segmentation, Large Enterprises was the leading type in 2023
On the basis of region, North America was the leading revenue generator in 2023
The Global Telecom Managed Services Market is segmented on the basis of Product Type, Organization Size, Deployment Mode, and Region.
The market is segmented into four categories according to product type: Managed Data Center Services, Managed Security Services, Managed Network Services, Managed Data and Information Services, and Other. Managed Data Center Services holds the largest market share. Telecom companies can enhance their core business activities by outsourcing data center management to specialized providers, thus taking advantage of the expertise and cost efficiencies provided by managed services providers.
The market is segmented into two groups according to Organization Size: Large Enterprises and Small and Medium Enterprises. Large Enterprises hold a significant share in the market. Large enterprises usually possess extensive networks, covering multiple sites and frequently utilizing different technologies and suppliers.
The Telecom Managed Services market offers both on-premise and cloud deployment options, with a growing number of organizations choosing cloud-based solutions for their scalability, flexibility, and cost efficiency.
Telecom Managed Services Market- Geographical Insights
Geographically, this market spans across North America, Latin America, Europe, Asia Pacific, and the Middle East and Africa. These regions are further segmented by countries contributing to business growth. North America is projected to lead the market expansion, driven by the rising demand for data centers. The growth in data-intensive applications like streaming services, IoT devices, and big data analytics has increased the necessity for data centers. Telecom managed services play a crucial role in enhancing the performance, security, and reliability of data center networks. Data centers in the United States alone consume over 2% of all electricity. A 20% increase in efficiency could result in savings of up to USD2 billion nationwide within a few years. Europe is the second largest region for the market, attributed to Growing Adoption of 5G Services.
In the Telecom Managed Services market, companies that can offer inventive solutions and quickly adapt to emerging technologies have a distinct advantage over their competitors. Being able to cater to clients worldwide and adjust services to meet evolving requirements is a crucial competitive edge. Major providers with extensive geographical coverage, strong infrastructure, and scalable solutions are in a favorable position to effectively compete, especially when serving multinational corporations with diverse operations. The competition among service providers in this market is fierce, compelling companies to set themselves apart through technological advancements, high-quality services, competitive pricing strategies, global outreach, and customer-centric approaches.
Cisco revealed on July 21, 2022, the launch of a new Webex Wholesale Route-to-Market (RTM) specifically designed for Service Provider partners to meet the evolving needs of SMBs. This innovative sales strategy includes a unified commercial agreement with each partner and a user-friendly platform for Service Providers to offer managed services for Webex. It also enables partners to create their own co-branded offerings with improved agility, scalability, and flexibility.
Huawei's Data Communication Product Line introduced the Digital Managed Network Solution and products for carriers' B2B services. This will assist carriers in capitalizing on digital transformation opportunities and driving new growth. The solution delivers digital managed network capabilities and a diverse range of products, supporting carriers in transitioning from ISPs to MSPs.
GLOBAL TELECOM MANAGED SERVICES MARKET KEY PLAYERS- DETAILED COMPETITIVE INSIGHTS
Cisco Systems Inc.
Huawei Technologies Co. Ltd
International Business Machines Corporation
Telefonaktiebolaget LM Ericsson
Verizon Communications Inc.
AT&T Inc.
NTT Data Corporation
Unisys Corporation
Comarch SA
GTT Communications Inc.
Amdocs Inc.
ZTE Corporation
Nokia Corporation
Tech Mahindra Limited
Fujitsu Limited
Others