Managed Multiprotocol Label Switching (MPLS)

Global Managed Multiprotocol Label Switching (MPLS) Market to Reach US$27.7 Billion by 2030

The global market for Managed Multiprotocol Label Switching (MPLS) estimated at US$21.5 Billion in the year 2024, is expected to reach US$27.7 Billion by 2030, growing at a CAGR of 4.3% over the analysis period 2024-2030. Level 2 VPN Service, one of the segments analyzed in the report, is expected to record a 4.6% CAGR and reach US$17.5 Billion by the end of the analysis period. Growth in the Level 3 VPN Service segment is estimated at 3.9% CAGR over the analysis period.

The U.S. Market is Estimated at US$5.8 Billion While China is Forecast to Grow at 7.2% CAGR

The Managed Multiprotocol Label Switching (MPLS) market in the U.S. is estimated at US$5.8 Billion in the year 2024. China, the world`s second largest economy, is forecast to reach a projected market size of US$5.7 Billion by the year 2030 trailing a CAGR of 7.2% over the analysis period 2024-2030. Among the other noteworthy geographic markets are Japan and Canada, each forecast to grow at a CAGR of 1.5% and 4.6% respectively over the analysis period. Within Europe, Germany is forecast to grow at approximately 2.5% CAGR.

Global Managed Multiprotocol Label Switching (MPLS) Market - Key Trends and Drivers Summarized

Managed Multiprotocol Label Switching (MPLS): Enhancing Network Performance

Managed Multiprotocol Label Switching (MPLS) is a highly efficient networking technology that streamlines data transmission across complex networks by using labels to route packets rather than long network addresses. This approach reduces the time needed for data processing and improves overall network performance, making it ideal for organizations with high-volume, latency-sensitive applications such as VoIP, video conferencing, and cloud computing. Managed MPLS services are particularly valuable for businesses with multiple locations, as they provide secure, reliable, and scalable connectivity across geographically dispersed sites. By outsourcing MPLS management to service providers, organizations can focus on their core operations while ensuring optimal network performance and uptime.

What Technological Trends Are Shaping the Managed MPLS Market?

The managed MPLS market is evolving with several technological trends that enhance its capabilities and appeal. The integration of software-defined networking (SDN) is a significant trend, as it allows for greater network flexibility and dynamic traffic management. SDN enables service providers to offer customized MPLS services that can be quickly adapted to meet changing business needs. The rise of hybrid networking solutions, which combine MPLS with broadband or LTE connections, is another trend, providing businesses with cost-effective and resilient network options. Additionally, advancements in network security technologies, such as end-to-end encryption and advanced firewalls, are ensuring that managed MPLS services can meet the growing demands for data protection and regulatory compliance.

What Challenges Are Faced by the Managed MPLS Market?

The managed MPLS market faces several challenges, including the increasing complexity of network environments as organizations adopt more cloud-based and IoT applications. Managing these hybrid environments while maintaining the performance and security standards of MPLS networks can be challenging. Another challenge is the cost associated with MPLS services, which can be higher than alternative networking solutions such as SD-WAN. Additionally, the emergence of new technologies like 5G and SD-WAN presents competition to traditional MPLS services, as these alternatives offer similar benefits with potentially lower costs and greater flexibility. Ensuring seamless integration with existing IT infrastructure and managing network transitions also pose significant challenges for service providers and businesses alike.

What Is Driving Growth in the Managed MPLS Market?

The growth in the managed MPLS market is driven by several factors. The increasing demand for reliable and secure network connectivity, especially among enterprises with multiple locations, is a primary driver. The rise of cloud computing, IoT, and real-time applications is also fueling the need for high-performance networking solutions like MPLS. Additionally, the trend towards digital transformation across industries is pushing organizations to adopt managed services that can ensure network efficiency and scalability. The growing complexity of IT environments and the need for specialized expertise in managing these networks are encouraging businesses to outsource MPLS management, further driving market growth. As more companies recognize the benefits of managed MPLS in improving network performance and security, the market is expected to continue its upward trajectory.

SCOPE OF STUDY:

The report analyzes the Managed Multiprotocol Label Switching (MPLS) market in terms of units by the following Segments, and Geographic Regions/Countries:

Segments:
Service Type (Level 2 VPN Service, Level 3 VPN Service); Application (IT & Telecom Application, Healthcare Application, BFSI Application, Retail Application, Other Applications)

Geographic Regions/Countries:
World; USA; Canada; Japan; China; Europe; France; Germany; Italy; UK; Spain; Russia; Rest of Europe; Asia-Pacific; Australia; India; South Korea; Rest of Asia-Pacific; Latin America; Argentina; Brazil; Mexico; Rest of Latin America; Middle East; Iran; Israel; Saudi Arabia; UAE; Rest of Middle East; Africa.

Select Competitors (Total 49 Featured) -

• AT&T Enterprise Business
• Bharat Sanchar Nigam Ltd.
• Bharti Airtel Ltd.
• BT Business
• Cisco Systems, Inc.
• CloudFlare, Inc.
• Forcepoint LLC
• Juniper Networks, Inc.
• Lumen Technologies, Inc.
• Orange Business Services

TARIFF IMPACT FACTOR

Our new release incorporates impact of tariffs on geographical markets as we predict a shift in competitiveness of companies based on HQ country, manufacturing base, exports and imports (finished goods and OEM). This intricate and multifaceted market reality will impact competitors by artificially increasing the COGS, reducing profitability, reconfiguring supply chains, amongst other micro and macro market dynamics.

We are diligently following expert opinions of leading Chief Economists (14,949), Think Tanks (62), Trade & Industry bodies (171) worldwide, as they assess impact and address new market realities for their ecosystems. Experts and economists from every major country are tracked for their opinions on tariffs and how they will impact their countries.

We expect this chaos to play out over the next 2-3 months and a new world order is established with more clarity. We are tracking these developments on a real time basis.

As we release this report, U.S. Trade Representatives are pushing their counterparts in 183 countries for an early closure to bilateral tariff negotiations. Most of the major trading partners also have initiated trade agreements with other key trading nations, outside of those in the works with the United States. We are tracking such secondary fallouts as supply chains shift.

To our valued clients, we say, we have your back. We will present a simplified market reassessment by incorporating these changes!

APRIL 2025: NEGOTIATION PHASE

Our April release addresses the impact of tariffs on the overall global market and presents market adjustments by geography. Our trajectories are based on historic data and evolving market impacting factors.

JULY 2025 FINAL TARIFF RESET

Complimentary Update: Our clients will also receive a complimentary update in July after a final reset is announced between nations. The final updated version incorporates clearly defined Tariff Impact Analyses.

Reciprocal and Bilateral Trade & Tariff Impact Analyses:

USA
CHINA
MEXICO
CANADA
EU
JAPAN
INDIA
176 OTHER COUNTRIES.

Leading Economists - Our knowledge base tracks 14,949 economists including a select group of most influential Chief Economists of nations, think tanks, trade and industry bodies, big enterprises, and domain experts who are sharing views on the fallout of this unprecedented paradigm shift in the global econometric landscape. Most of our 16,491+ reports have incorporated this two-stage release schedule based on milestones.

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