[204 Pages Report] MarketsandMarkets projects the managed network services market to grow from USD 52.7 billion in 2020 to USD 71.6 billion by 2025, at a Compound Annual Growth Rate (CAGR) of 6.3% during the forecast period. The major factors expected to drive the growth of the market are the need for lowering Capital Expenditure (CAPEX) and Operating Expenditure(OPEX), increasing trend of digital transformation across the globe, and new connectivity demands increasing the complication in the IT environment.

By organization size, large enterprises to hold a larger market size during the forecast period

Based on the organization size, the global managed network services market is segmented into SMEs and large enterprises. The large enterprises segment is expected to hold a larger market size during the forecast period. Large enterprises have their offices in geographically dispersed locations and the ability to invest in the latest technologies to run their business effectively. Large enterprises are heavily investing in the latest technologies to increase their overall productivity and efficiency. As latest technologies are transforming the way voice and data services are delivered, it is essential for these enterprises to keep up with the change and grow their businesses too. The major reason for large enterprises to adopt managed network services is consistent and reliable services with a global reach and operational cost reductions. Large enterprises these days are realizing their dedicated IT staff and outsourcing some of the network operations and taking the advantage of managed services.

North America to account for the largest market size during the forecast period.

North America is one of the prominent regions in the global managed network services market in terms of market size with large-scale implementations across industries over the last decade. Some of the top companies, such as Cisco, IBM, and Verizon, are headquartered in North America. The rapid changes in IT infrastructure, such as cloud and virtualization, have significantly increased the pressure on network administrators in this region to manage the network infrastructure. Hence, enterprises here are outsourcing network services that offer enterprises a high standard network management and lower operating costs. North America is expected to remain a leader in the market, due to the rising demand for high-speed networks, increasing competition among major players in the networking industry for providing better customer experience, and rising adoption of cloud networking.

Key Market Players

Key and emerging market players include IBM (US), Fujitsu (Japan), Cisco (US), Ericsson (Sweden), Verizon (US), Comarch SA (Poland), Huawei (China), BT Group (UK), AT&T (US), T-Systems (Germany), Orange Business Services (France), DXC Technology (US), NTT (Japan), CenturyLink (US), Global Cloud Xchange (UK), TATA Communications (India), Colt (UK), Sify (India), Telstra (Australia), Sprint (US), GTT (US), and Brennan IT (Australia). These players have adopted various strategies to grow in the managed network services market. The companies are focused on inorganic and organic growth strategies to strengthen their market position.

The partnership is the key strategy of IBM in the managed network services market. In January 2019, IBM partnered with Vodafone to create a new venture. This new venture would help offer IBM's cloud offerings to customers of Vodafone Business. IBM provided its managed services to the cloud and hosting unit of Vodafone Business. The new venture would develop new digital solutions using competencies of Vodafone in IoT, 5G, and edge computing and IBM�s industry experience. In January 2019, IBM signed managed services agreement with Nordic's Nordea Bank. This agreement helped Nordea to have continued access to the latest technology advancements, including cognitive services. This agreement turned out to be multi-year and valued around USD 540 million. The agreement helped Nordea accelerate its leadership as one of the largest financial services organizations in the Nordics and provided a solid path to bringing new efficiencies in its digital transformation. Managed network services from IBM can help improve agility, lower costs, and reduce complexity across enterprises� hybrid cloud, data center, and local and wide area networks. The company uses software-defined technologies, analytics, and automation to integrate networks across carriers and countries for enterprise hybrid cloud environments. The company�s solutions are designed to help reduce unplanned downtime, improve global agility, simplify management and provide higher network capacity at a lower cost.

Key focus areas of Orange Business Services in the managed network services market are Business VPN, Flexible SD-WAN, Managed LAN, Secure Gateway, and Network Boost. Network Boost, is a fully managed service, providing network and performance monitoring and WAN optimization features in addition to its Business VPN service. Business VPN, is a fully managed service, which allows enterprises to subscribe to a single service for any use such as intranet, voice video, extranet, and public intranet. The company�s SD-WAN service can be co-managed or fully managed that delivers reliability, predictable application performance, and improved security. To ensure a fully managed, end-to-end service, Orange Business Services operates more than 400 Point of Presence (PoPs) in 220 countries and territories worldwide. Managed LAN is an industrialized service that provides full management of the LAN and WLAN infrastructure at organizations� small branch offices as well as big campuses and data centers.

Scope of the Report

Report Metrics Details Market size available for years 2018�2025 Base year considered 2019 Forecast period 2020�2025 Forecast units Billion (USD) Segments covered Managed Network Services Market By Type (Managed LAN, Managed Wi-Fi, Managed WAN, Managed VPN, Network Monitoring, and Managed Network Security [Managed Firewall and Managed UTM]), Organization Size (Large Enterprises and SMEs), Vertical (BFSI, Consumer Goods and Retail, Manufacturing, Healthcare and Life Sciences, Education, Telecom, IT, Energy and Utilities, Media and Entertainment, and Others [Transportation, Logistics, and Hospitality]), and Region - Global Forecast To 2025. Geographies covered North America, Europe, APAC, MEA, and Latin America Companies covered Key and emerging market players include IBM (US), Fujitsu (Japan), Cisco (US), Ericsson (Sweden), Verizon (US), Comarch SA (Poland), Huawei (China), BT Group (UK), AT&T (US), T-Systems (Germany), Orange Business Services (France), DXC Technology (US), NTT (Japan), CenturyLink (US), Global Cloud Xchange (UK), TATA Communications (India), Colt (UK), Sify (India), Telstra (Australia), Sprint (US), GTT (US), and Brennan IT (Australia).

The research report categorizes the managed network services market to forecast the revenues and analyze trends in each of the following subsegments:

By Type

Managed LAN

Managed Wi-Fi

Managed VPN

Managed WAN

Network Monitoring

Managed Network Security Managed Firewall Managed UTM



By Organization Size

SMEs

Large Enterprises

By Vertical

BFSI

Consumer Goods and Retail

Telecom

IT

Manufacturing

Energy and Utilities

Education

Healthcare and Life Sciences

Media and Entertainment

Others (Transportation, Logistics, and Hospitality)

By Region

North America

Europe

APAC

MEA

Latin America

Recent Developments:

In March 2020, Ericsson extended its partnership with Omani communication services provider, Omantel, for providing managed services. Ericsson�s fully managed end-to-end multivendor operations services, including nationwide network operations, as well as field support and maintenance, for Omantel's fixed-line access, 2G, 3G, 4G, and future 5G access. This partnership allowed Omantel to increase operational network efficiency and further enhance customer experiences for subscribers. The company has been an Omantel managed services partner since 2016.

In November 2019, NTT East selected Cisco Meraki to expand managed service offerings. In an agreement with NTT East, Cisco provided its Meraki MX and MS series to deliver managed SD-WAN/connectivity and LAN services. These services are offered under the SDx service portfolio of NTT East.

In March 2019, TDC partnered with Ericsson for 5G and Ericsson Operations Engine managed services. Danish service provider, TDC, selected Ericsson to roll out nationwide commercial 5G, as part of a major network overhaul, and provide managed services through the Ericsson Operations Engine. This partnership enabled TDC to drive its �Digital Denmark� ambitions. The companies had also signed a five-year managed services contract, centered on the AI- and automation-driven Ericsson Operations Engine.

In October 2019, Cisco partnered with Perch Security. As a part of this partnership, Cisco showcased an offer under Cisco Secured Managed Service Provider (MSP). This offer includes the free use of the DNS solution for MSP, endpoint detection and response, and cloud-based threat detection system.

In June 2019, KDDI Japan partnered with Ericsson to boost Japan�s network performance with AI-based optimization. The partnership helped implement an innovative, AI-based solution to optimize its LTE radio access network and improve end-user experience. This solution is part of Ericsson�s managed services offering.

Critical questions the report answers:

Where will all these developments take the industry in the long term?

What are the upcoming trends for the managed network services market?

Which segment provides the most opportunity for growth?

Who are the leading vendors operating in this market?

What are the opportunities for new market entrants?

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