The managed network services market is projected to reach US$ 112,441.87 million by 2028 from US$ 60358.48 million in 2022; it is expected to grow at a CAGR of 10.9% during 2022-2028.
Businesses rapidly embrace significant network technologies to support business initiatives and gain a competitive advantage. Several macroeconomic factors globally created a severely hostile environment for businesses. The COVID-19 pandemic caused severe disruptions, which led to huge losses for several industry verticals. Political factors in Europe, the Middle East, and South America negatively affected different industry verticals in different ways. Severe economic downturns in several countries decreased consumer spending on discretionary or optional goods. With respect to such factors, enterprises are adopting different measures to remain competitive by reducing capital expenditure. Hence, enterprises prefer economical and flexible expenses while focusing on core business. Availing managed network services can aid organizations in reducing costs while maintaining a competitive edge. Reportedly, 46% of enterprises saved nearly 25% of their IT spending by availing of managed network services. Thus, companies can save on operational costs while increasing productivity. MSPs can increase productivity through the replacement of inefficient IT systems and the reduction of downtime. Such advantages are expected to boost the managed network services market growth during the forecast period.
China accounts for the largest share in the managed network services market in Asia Pacific, followed by Japan and India. The managed network services market in China is growing at one of the fastest globally. Chinese firms have been one of the keenest adopters of technology in the APAC region as they seek to gain a competitive edge through digitalization and innovation. Additionally, MSPs have been strongly aiding these enterprises in shifting workloads to the public cloud. Such factors promote the revenue generation of managed network services market players, operating in the country.
The managed network services market revenue was predominantly generated through large enterprises. However, that scenario is changing fast. Due to the various advantages, SMEs increasingly rely on managed network service providers. While it aids the SMEs in decreasing capital expenditure, it allows them to focus on core competencies better. Reportedly, the IT spending by SMEs has been increasing year on year. With smaller businesses moving towards the cloud, managing the move often becomes tedious for such companies. This provides growth opportunities for managed network services market. Additionally, SMEs are more vulnerable to security breaches, and adopting digital transformation can increase security threats. With the disruptions due to the COVID-19 pandemic, the increasing trend of work from anywhere (WFA) was pushing the limits for SMEs. They were required to update their IT infrastructure to accommodate WFA trends. Maintaining competitiveness became the utmost priority; hence, the adoption rate of managed network services witnessed strong growth rates to adapt to the changing circumstances. Such developments are expected to boost the managed network services market growth.
Accenture PLC; Cisco Systems, Inc.; Cognizant Technology Solutions Corporation; Fujitsu, Ltd.; HCL Technologies Ltd.; Huawei Technologies Co., Ltd.; Kyndryl Holdings Inc.; NTT Ltd.; Tata Consultancy Services; and Verizon Communications, Inc. are a few key managed network services market players.
The overall managed network services market size has been derived using both primary and secondary sources. To begin the research process, exhaustive secondary research has been conducted using internal and external sources to obtain qualitative and quantitative information related to the market. The process also serves the purpose of obtaining an overview and forecast of the managed network services market size with respect to all market segments. Also, multiple primary interviews have been conducted with industry participants and commentators to validate the data and gain more analytical insights . Participants of this process include VPs, business development managers, market intelligence managers, national sales managers, along with external consultants such as valuation experts, research analysts, and key opinion leaders, specializing in the managed network services market.
Businesses rapidly embrace significant network technologies to support business initiatives and gain a competitive advantage. Several macroeconomic factors globally created a severely hostile environment for businesses. The COVID-19 pandemic caused severe disruptions, which led to huge losses for several industry verticals. Political factors in Europe, the Middle East, and South America negatively affected different industry verticals in different ways. Severe economic downturns in several countries decreased consumer spending on discretionary or optional goods. With respect to such factors, enterprises are adopting different measures to remain competitive by reducing capital expenditure. Hence, enterprises prefer economical and flexible expenses while focusing on core business. Availing managed network services can aid organizations in reducing costs while maintaining a competitive edge. Reportedly, 46% of enterprises saved nearly 25% of their IT spending by availing of managed network services. Thus, companies can save on operational costs while increasing productivity. MSPs can increase productivity through the replacement of inefficient IT systems and the reduction of downtime. Such advantages are expected to boost the managed network services market growth during the forecast period.
Impact of COVID-19 Pandemic on Managed Network Services Market Growth
The limitations imposed by governments to control the spread of COVID-19 during the initial time frame of the outbreak in most countries affected the day-to-day functioning of most enterprises. Stringent restrictions and supply chain disruptions put most companies in jeopardy. Similar situations were witnessed across most countries across all regions. Hence multinational enterprises operating in different regions had to reconfigure their operations to accommodate all their employees. While travel bans were present in some countries, they were being lifted in others. Hence, despite travel bans being lifted, companies continued to operate remotely. Thus there was a sudden growth in demand for managed network service market players in most regions across the globe. Large enterprises and SMEs increased their adoption of digital transformation to accommodate the changing business environment. However, most companies lacked the infrastructure to support such a sudden and huge change. While they resorted to managed service providers (MSPs) for scalability, most small managed network service providers failed to cater to such demands in the first two quarters of 2020. Securing extra networking hardware was problematic, as was installing the same, for increasing scalability. Hence, several MSPs had to reject offers since they lacked the capability. Therefore a disparity in revenue generation was witnessed between small, medium, and large MSPs, during that period. With growing vaccination drives, businesses have started to return to their pre-COVID state, but yet they continued their associations with MSPs. This is because MSPs greatly aided the enterprises in shifting to the cloud and reducing expenditure. The outlook post COVID for the managed network services market thus seems favorable for all MSPs.China accounts for the largest share in the managed network services market in Asia Pacific, followed by Japan and India. The managed network services market in China is growing at one of the fastest globally. Chinese firms have been one of the keenest adopters of technology in the APAC region as they seek to gain a competitive edge through digitalization and innovation. Additionally, MSPs have been strongly aiding these enterprises in shifting workloads to the public cloud. Such factors promote the revenue generation of managed network services market players, operating in the country.
The managed network services market revenue was predominantly generated through large enterprises. However, that scenario is changing fast. Due to the various advantages, SMEs increasingly rely on managed network service providers. While it aids the SMEs in decreasing capital expenditure, it allows them to focus on core competencies better. Reportedly, the IT spending by SMEs has been increasing year on year. With smaller businesses moving towards the cloud, managing the move often becomes tedious for such companies. This provides growth opportunities for managed network services market. Additionally, SMEs are more vulnerable to security breaches, and adopting digital transformation can increase security threats. With the disruptions due to the COVID-19 pandemic, the increasing trend of work from anywhere (WFA) was pushing the limits for SMEs. They were required to update their IT infrastructure to accommodate WFA trends. Maintaining competitiveness became the utmost priority; hence, the adoption rate of managed network services witnessed strong growth rates to adapt to the changing circumstances. Such developments are expected to boost the managed network services market growth.
Accenture PLC; Cisco Systems, Inc.; Cognizant Technology Solutions Corporation; Fujitsu, Ltd.; HCL Technologies Ltd.; Huawei Technologies Co., Ltd.; Kyndryl Holdings Inc.; NTT Ltd.; Tata Consultancy Services; and Verizon Communications, Inc. are a few key managed network services market players.
The overall managed network services market size has been derived using both primary and secondary sources. To begin the research process, exhaustive secondary research has been conducted using internal and external sources to obtain qualitative and quantitative information related to the market. The process also serves the purpose of obtaining an overview and forecast of the managed network services market size with respect to all market segments. Also, multiple primary interviews have been conducted with industry participants and commentators to validate the data and gain more analytical insights . Participants of this process include VPs, business development managers, market intelligence managers, national sales managers, along with external consultants such as valuation experts, research analysts, and key opinion leaders, specializing in the managed network services market.
Frequently Asked Questions about the Global Managed Network Services Market
What is the estimated value of the Global Managed Network Services Market?
What is the growth rate of the Global Managed Network Services Market?
What is the forecasted size of the Global Managed Network Services Market?
Who are the key companies in the Global Managed Network Services Market?
Report Attribute | Details |
---|---|
No. of Pages | 220 |
Published | July 2022 |
Forecast Period | 2022 - 2028 |
Estimated Market Value ( USD
| USD 60358.48 million |
Forecasted Market Value ( USD
| USD 112441.87 million |
Compound Annual Growth Rate | 10.9% |
Regions Covered | Global |
Table of Contents
1. Introduction
3. Research Methodology
4. Managed Network Services Market Landscape
5. Managed Network Services Market - Key Market Dynamics
6. Managed Network Services Market - Global Analysis
7. Managed Network Services Market Analysis - By Type
8. Managed Network Services Market Analysis - By Deployment
9. Managed Network Services Market Analysis - By Organization Size
10. Managed Network Services Market Analysis - By End-Use Vertical
11. Managed Network Services Market - Geographic Analysis
12. Impact of COVID-19 Pandemic on Global Managed Network Services Market
13. Industry Landscape
14. Company Profiles
15. Appendix
Companies Mentioned
A selection of companies mentioned in this report includes:
- Accenture
- Cisco Systems, Inc.
- Cognizant
- Fujitsu Limited
- Huawei Technologies Co., Ltd.
- Kyndryl Holdings, Inc.
- NTT Limited
- Tata Consultancy Services Limited
- Verizon
- HCL Technologies