Global Managed Network Services Market - Segmented by Type of Deployment (On-premise, Cloud), Type of Component (LAN/WAN, IP/VPN, Ethernet Links), Type of Service (Managed Network Examining Services, Managed Network Execution Services, Managed Network Design Services), Size of Business (Small, Medium, Large), Applications (IT and Telecommunication, Public Sector, Retail Sector, Transportation and Logistics, BFSI, Manufacturing), and Region - Growth, Trends, and Forecast (2018 - 2023)
The global managed network services market was valued at USD 37.82 billion in 2017, and is expected to reach a value of USD 57.11 billion by 2023, at a CAGR of 7.11%, during the forecast period (2018 - 2023). The scope of the managed network services market has covers segments by deployment, on-premise and cloud, by type of component LAN/WAN, IP/VPN, Ethernet Links, type of service managed network examining services, managed network execution services, and managed network design services, by size of business large, medium and small, and is limited to applications, like IT & telecommunications, public sector, retail sector, transportation and logistics, BFSI and manufacturing. The regional landscape of the report includes North America, Europe, Asia-Pacific, Latin America, and the Middle East & Africa.
Cost Optimization is Driving the Adoption of Managed Network Services
Businesses are estimated to save 15%-25% of their costs invested on IT services with the adoption of managed network services. It is also predicted that 45% of the customers prefer other companies if they do not receive a quick response due to unexpected IT issues. This can be avoided by addressing the customers via email, phone, and live chats, thus, improving customer satisfaction by providing all time monitoring services. This proactive support reduces the downtime due to network outages, thereby enhancing productivity. The costs involved in these services is also fixed thus leading to a more stable IT budget, which is easy to plan. Overall, the managed network services are a smart alternative for businesses seeking to keep up with the competition, along with saving costs.
Service Providers are Facing Snowballing Demand for IP Services as Businesses Seek to Enhance Productivity Through Information Technology
IP/VPN offers the security and policy management of a network, constructed from leased lines, but over a shared, lower-cost environment. These services signify a perfect solution for integrating voice and data traffic to develop productivity at branch offices. The IP/VPN components are representing a tremendous opportunity for service providers to realize new and more substantive revenue streams. The service providers are gaining competitive advantage through customized and manageable IP-VPN services. The customer experiences a private network service that connects its remote sites, even though traffic flows through a shared provider infrastructure.
This service provides greater reliability for the customer and better resource utilization for the service provider. With a greater number of businesses seeking to outsource internet and managed network services, there is an increasing demand for IP/VPN technology.
Outsourcing Networked Business Functions is Growing with More Number of Small and Medium-Sized Organizations Opting for Managed Network Services to Optimize Costs
Businesses are depending on increasingly complex network technology to support internal processes and external relationships with customers. The sophisticated network infrastructure can manufacture resources that could be better devoted to business competencies. Many companies are focusing on outsourcing some or all of their network functions to service providers. Organizations are discovering that outsourcing can help achieve significant revenue benefits, increase flexibility, and agility, and provide access to networking, security, and communication. Among small and medium-sized businesses, improving operational efficiency is a very large benefit of out-tasking. Large organizations are the potential managed network services vendors. Even for large enterprises with geographically-dispersed locations, the managed network services are the best-fit or the most cost-effective solution.
IT & Telecommunication Sector Dominated the Managed Services Market Holding a Market Share
Latest technological breakthroughs have assisted the advancement of new managed network services that can make the overall processes more efficient and can significantly improve accuracy in various applications. The major driver behind the investments has been the continuous evolution and application of new technologies to unlock enormous volumes that were previously considered non-commercial. With these series of investments, the IT & telecommunication, public sector, retail, and BFSI applications are set to boom in the coming years. Initiation of next generation communication technologies, smart devices adoption, and a shift towards digitization are the factors that are expected to augment the growth of the IT & telecommunication sector enormously during the forecast period. With the rising number of opportunities, even the challenges are increasing for the operators.
North America Region Dominated the Market
North America is followed by Asia-Pacific with the huge growth potential in countries, such as China, India, and Middle East & Africa (MEA) are expected to provide high growth opportunities for the market.
Key Recent Developments