Global Managed Network Services Market Size, Share, Growth Analysis, By Type(Managed LAN (Local Area Network) and Managed WAN (Wide Area Network)), By End-User(IT and Telecom, and BFSI (Banking))- Industry Forecast 2024-2031

The global managed network services Market size was valued at USD 267.4 billion in 2022 and is poised to grow from USD 304.03 billion in 2023 to USD 849.19 billion by 2031, growing at a CAGR of 13.7% in the forecast period (2024-2031).

The global managed network services market is witnessing significant growth driven by its ability to minimize downtime and redundancy while delivering tailored value-added services like application testing, service catalog building, and expert consultancy. This expansion is fueled by the deployment of multiple monitoring tools and the management of various infrastructure layers by specialized teams. A recent example is the introduction of BMC's "BMC Helix ITSM" in April 2021, a centralized system integrating observability, AIOps, and cloud-native capabilities. This system offers comprehensive visibility into IT infrastructure, application performance, network performance, and cloud monitoring tools, complemented by personalized dashboards for individual users and teams. Managed network services entail delegating management functions to third-party providers, enabling businesses to improve operational efficiency and reduce operating costs. The increasing preference for outsourcing management functions to cloud service providers and Managed Network Service providers is propelling market growth. Moreover, organizations are harnessing advanced technologies like machine learning and augmented reality, alongside their existing IT infrastructure, to facilitate digital transformation and address diverse business needs. Managed Network Services deliver cost-effective functionalities without compromising quality, ensuring dependable and consistent service delivery for various business operations. Amid the escalating cyber threats, organizations are integrating managed security services (MSSs) into their business frameworks. In response, Managed Network Service Providers (MSPs) are developing advanced offerings capable of detecting and mitigating cyber risks. For instance, IBM launched the IBM Center for Government Cybersecurity in June 2021, tailored to meet the cybersecurity requirements of federal agencies. Despite promising growth prospects, challenges such as limited knowledge and experience in integrating new technologies and implementing Managed Network Services, alongside concerns about data security, privacy protection, and the need for skilled resources, could potentially hinder market expansion.

Top-down and bottom-up approaches were used to estimate and validate the size of the global managed network services market and to estimate the size of various other dependent submarkets. The research methodology used to estimate the market size includes the following details: The key players in the market were identified through secondary research, and their market shares in the respective regions were determined through primary and secondary research. This entire procedure includes the study of the annual and financial reports of the top market players and extensive interviews for key insights from industry leaders such as CEOs, VPs, directors, and marketing executives. All percentage shares split, and breakdowns were determined using secondary sources and verified through Primary sources. All possible parameters that affect the markets covered in this research study have been accounted for, viewed in extensive detail, verified through primary research, and analyzed to get the final quantitative and qualitative data.

Global Managed Network Services Market Segmental Analysis

The global managed network services market is segmented based on type, end-user, and region. By type, the market is segmented into managed LAN (local area network) and managed WAN (wide area network). By end-user, the market is segmented into IT and telecom and BFSI (banking, financial services, and insurance). By region, the market is segmented into North America, Europe, Asia Pacific, Middle East and Africa, and Latin America.

Drivers of the Global Managed Network Services Market

A major driver for the global managed network services market is the growing inclination among businesses to delegate their network management tasks to specialized service providers. Companies across diverse sectors are acknowledging the advantages of relying on expert providers to oversee their networks, enabling them to concentrate on core activities while benefiting from the advanced technologies and expertise provided by Managed Network Service vendors. This trend is driven by the desire to enhance operational efficiency, lower costs, and access a plethora of value-added services, all of which contribute to the market's expansion.

Restraints in the Global Managed Network Services Market

A significant obstacle in the global managed network services market is the limited knowledge and experience in integrating new technologies and deploying Managed Network Services effectively. Numerous organizations encounter difficulties in leveraging emerging technologies and aligning them with their current IT infrastructure. This challenge impedes the adoption and utilization of Managed Network Services, thereby constraining the market's growth potential. Furthermore, apprehensions regarding the effectiveness of Managed Network Service models, data security, privacy protection, and the availability of skilled resources exacerbate the restraint on market expansion.

Market Trends of the Global Managed Network Services Market

A prominent trend in the managed network services sector is the rising adoption of cloud-based solutions. Companies are embracing cloud technologies to bolster their network infrastructure, trim expenses, and enhance scalability. Cloud-based Managed Network Services provide organizations with flexible and on-demand access to network resources, enabling them to adjust their capacity according to fluctuating demands effortlessly. This trend is propelled by the escalating demand for agility, cost-effectiveness, and the capacity to swiftly respond to evolving business requirements, thereby fostering the market's expansion.