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Managed Multiprotocol Label Switching (MPLS) - Global Strategic Business Report

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    Report

  • 289 Pages
  • June 2025
  • Region: Global
  • Global Industry Analysts, Inc
  • ID: 5997920
The global market for Managed Multiprotocol Label Switching (MPLS) was estimated at US$21.5 Billion in 2024 and is projected to reach US$27.7 Billion by 2030, growing at a CAGR of 4.3% from 2024 to 2030. This comprehensive report provides an in-depth analysis of market trends, drivers, and forecasts, helping you make informed business decisions. The report includes the most recent global tariff developments and how they impact the Managed Multiprotocol Label Switching (MPLS) market.

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.

Key Insights:

  • Market Growth: Understand the significant growth trajectory of the Level 2 VPN Service segment, which is expected to reach US$17.5 Billion by 2030 with a CAGR of a 4.6%. The Level 3 VPN Service segment is also set to grow at 3.9% CAGR over the analysis period.
  • Regional Analysis: Gain insights into the U.S. market, valued at $5.8 Billion in 2024, and China, forecasted to grow at an impressive 7.2% CAGR to reach $5.7 Billion by 2030. Discover growth trends in other key regions, including Japan, Canada, Germany, and the Asia-Pacific.

Why You Should Buy This Report:

  • Detailed Market Analysis: Access a thorough analysis of the Global Managed Multiprotocol Label Switching (MPLS) Market, covering all major geographic regions and market segments.
  • Competitive Insights: Get an overview of the competitive landscape, including the market presence of major players across different geographies.
  • Future Trends and Drivers: Understand the key trends and drivers shaping the future of the Global Managed Multiprotocol Label Switching (MPLS) Market.
  • Actionable Insights: Benefit from actionable insights that can help you identify new revenue opportunities and make strategic business decisions.

Key Questions Answered:

  • How is the Global Managed Multiprotocol Label Switching (MPLS) Market expected to evolve by 2030?
  • What are the main drivers and restraints affecting the market?
  • Which market segments will grow the most over the forecast period?
  • How will market shares for different regions and segments change by 2030?
  • Who are the leading players in the market, and what are their prospects?

Report Features:

  • Comprehensive Market Data: Independent analysis of annual sales and market forecasts in US$ Million from 2024 to 2030.
  • In-Depth Regional Analysis: Detailed insights into key markets, including the U.S., China, Japan, Canada, Europe, Asia-Pacific, Latin America, Middle East, and Africa.
  • Company Profiles: Coverage of players such as AT&T Enterprise Business, Bharat Sanchar Nigam Ltd., Bharti Airtel Ltd., BT Business, Cisco Systems, Inc. and more.
  • Complimentary Updates: Receive free report updates for one year to keep you informed of the latest market developments.

Some of the 49 companies featured in this Managed Multiprotocol Label Switching (MPLS) market report include:

  • 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

This edition integrates the latest global trade and economic shifts as of June 2025 into comprehensive market analysis. Key updates include:

  • Tariff and Trade Impact: Insights into global tariff negotiations across 180+ countries, with analysis of supply chain turbulence, sourcing disruptions, and geographic realignment. Special focus on 2025 as a pivotal year for trade tensions, including updated perspectives on the Trump-era tariffs.
  • Adjusted Forecasts and Analytics: Revised global and regional market forecasts through 2030, incorporating tariff effects, economic uncertainty, and structural changes in globalization. Includes segmentation by product, technology, type, material, distribution channel, application, and end-use, with historical analysis since 2015.
  • Strategic Market Dynamics: Evaluation of revised market prospects, regional outlooks, and key economic indicators such as population and urbanization trends.
  • Innovation & Technology Trends: Latest developments in product and process innovation, emerging technologies, and key industry drivers shaping the competitive landscape.
  • Competitive Intelligence: Updated global market share estimates for 2025, competitive positioning of major players (Strong/Active/Niche/Trivial), and refined focus on leading global brands and core players.
  • Expert Insight & Commentary: Strategic analysis from economists, trade experts, and domain specialists to contextualize market shifts and identify emerging opportunities.
  • Complimentary Update: Buyers receive a free July 2025 update with finalized tariff impacts, new trade agreement effects, revised projections, and expanded country-level coverage.

Table of Contents

I. METHODOLOGYII. EXECUTIVE SUMMARY
1. MARKET OVERVIEW
Influencer Market Insights
Tariff Impact on Global Supply Chain Patterns
Global Economic Update
Managed Multiprotocol Label Switching (MPLS) - Global Key Competitors Percentage Market Share in 2025 (E)
Competitive Market Presence - Strong/Active/Niche/Trivial for Players Worldwide in 2025 (E)
2. FOCUS ON SELECT PLAYERS
3. MARKET TRENDS & DRIVERS
Increasing Demand for Secure and Reliable Network Solutions Propels MPLS Market Growth
Advances in Network Virtualization and SD-WAN Drive the Evolution of MPLS
Growing Adoption of Cloud-Based Services Expands Addressable Market for MPLS
Rising Demand for High-Performance Connectivity Solutions Strengthens MPLS Business Case
Integration of MPLS with Next-Generation Network Architectures Spurs Market Expansion
Increasing Focus on Data Privacy and Security Drives MPLS Adoption
Growth of Remote Work and Distributed Enterprises Generates Demand for MPLS
Technological Innovations in Network Management Tools Enhance MPLS Offerings
Expansion of Global Enterprise Networks Propels Market Growth
Growing Importance of Latency-Sensitive Applications Spurs MPLS Adoption
Adoption of Hybrid Networking Models Combines MPLS with SD-WAN for Enhanced Performance
Demand for Scalable and Flexible Network Solutions Sustains MPLS Market Growth
4. GLOBAL MARKET PERSPECTIVE
TABLE 1: World Managed Multiprotocol Label Switching (MPLS) Market Analysis of Annual Sales in US$ Million for Years 2015 through 2030
TABLE 2: World Recent Past, Current & Future Analysis for Managed Multiprotocol Label Switching (MPLS) by Geographic Region - USA, Canada, Japan, China, Europe, Asia-Pacific, Latin America, Middle East and Africa Markets - Independent Analysis of Annual Sales in US$ Million for Years 2024 through 2030 and % CAGR
TABLE 3: World Historic Review for Managed Multiprotocol Label Switching (MPLS) by Geographic Region - USA, Canada, Japan, China, Europe, Asia-Pacific, Latin America, Middle East and Africa Markets - Independent Analysis of Annual Sales in US$ Million for Years 2015 through 2023 and % CAGR
TABLE 4: World 15-Year Perspective for Managed Multiprotocol Label Switching (MPLS) by Geographic Region - Percentage Breakdown of Value Sales for USA, Canada, Japan, China, Europe, Asia-Pacific, Latin America, Middle East and Africa Markets for Years 2015, 2025 & 2030
TABLE 5: World Recent Past, Current & Future Analysis for Level 2 VPN Service by Geographic Region - USA, Canada, Japan, China, Europe, Asia-Pacific, Latin America, Middle East and Africa Markets - Independent Analysis of Annual Sales in US$ Million for Years 2024 through 2030 and % CAGR
TABLE 6: World Historic Review for Level 2 VPN Service by Geographic Region - USA, Canada, Japan, China, Europe, Asia-Pacific, Latin America, Middle East and Africa Markets - Independent Analysis of Annual Sales in US$ Million for Years 2015 through 2023 and % CAGR
TABLE 7: World 15-Year Perspective for Level 2 VPN Service by Geographic Region - Percentage Breakdown of Value Sales for USA, Canada, Japan, China, Europe, Asia-Pacific, Latin America, Middle East and Africa for Years 2015, 2025 & 2030
TABLE 8: World Recent Past, Current & Future Analysis for Level 3 VPN Service by Geographic Region - USA, Canada, Japan, China, Europe, Asia-Pacific, Latin America, Middle East and Africa Markets - Independent Analysis of Annual Sales in US$ Million for Years 2024 through 2030 and % CAGR
TABLE 9: World Historic Review for Level 3 VPN Service by Geographic Region - USA, Canada, Japan, China, Europe, Asia-Pacific, Latin America, Middle East and Africa Markets - Independent Analysis of Annual Sales in US$ Million for Years 2015 through 2023 and % CAGR
TABLE 10: World 15-Year Perspective for Level 3 VPN Service by Geographic Region - Percentage Breakdown of Value Sales for USA, Canada, Japan, China, Europe, Asia-Pacific, Latin America, Middle East and Africa for Years 2015, 2025 & 2030
TABLE 11: World Recent Past, Current & Future Analysis for IT & Telecom Application by Geographic Region - USA, Canada, Japan, China, Europe, Asia-Pacific, Latin America, Middle East and Africa Markets - Independent Analysis of Annual Sales in US$ Million for Years 2024 through 2030 and % CAGR
TABLE 12: World Historic Review for IT & Telecom Application by Geographic Region - USA, Canada, Japan, China, Europe, Asia-Pacific, Latin America, Middle East and Africa Markets - Independent Analysis of Annual Sales in US$ Million for Years 2015 through 2023 and % CAGR
TABLE 13: World 15-Year Perspective for IT & Telecom Application by Geographic Region - Percentage Breakdown of Value Sales for USA, Canada, Japan, China, Europe, Asia-Pacific, Latin America, Middle East and Africa for Years 2015, 2025 & 2030
TABLE 14: World Recent Past, Current & Future Analysis for Healthcare Application by Geographic Region - USA, Canada, Japan, China, Europe, Asia-Pacific, Latin America, Middle East and Africa Markets - Independent Analysis of Annual Sales in US$ Million for Years 2024 through 2030 and % CAGR
TABLE 15: World Historic Review for Healthcare Application by Geographic Region - USA, Canada, Japan, China, Europe, Asia-Pacific, Latin America, Middle East and Africa Markets - Independent Analysis of Annual Sales in US$ Million for Years 2015 through 2023 and % CAGR
TABLE 16: World 15-Year Perspective for Healthcare Application by Geographic Region - Percentage Breakdown of Value Sales for USA, Canada, Japan, China, Europe, Asia-Pacific, Latin America, Middle East and Africa for Years 2015, 2025 & 2030
TABLE 17: World Recent Past, Current & Future Analysis for BFSI Application by Geographic Region - USA, Canada, Japan, China, Europe, Asia-Pacific, Latin America, Middle East and Africa Markets - Independent Analysis of Annual Sales in US$ Million for Years 2024 through 2030 and % CAGR
TABLE 18: World Historic Review for BFSI Application by Geographic Region - USA, Canada, Japan, China, Europe, Asia-Pacific, Latin America, Middle East and Africa Markets - Independent Analysis of Annual Sales in US$ Million for Years 2015 through 2023 and % CAGR
TABLE 19: World 15-Year Perspective for BFSI Application by Geographic Region - Percentage Breakdown of Value Sales for USA, Canada, Japan, China, Europe, Asia-Pacific, Latin America, Middle East and Africa for Years 2015, 2025 & 2030
TABLE 20: World Recent Past, Current & Future Analysis for Retail Application by Geographic Region - USA, Canada, Japan, China, Europe, Asia-Pacific, Latin America, Middle East and Africa Markets - Independent Analysis of Annual Sales in US$ Million for Years 2024 through 2030 and % CAGR
TABLE 21: World Historic Review for Retail Application by Geographic Region - USA, Canada, Japan, China, Europe, Asia-Pacific, Latin America, Middle East and Africa Markets - Independent Analysis of Annual Sales in US$ Million for Years 2015 through 2023 and % CAGR
TABLE 22: World 15-Year Perspective for Retail Application by Geographic Region - Percentage Breakdown of Value Sales for USA, Canada, Japan, China, Europe, Asia-Pacific, Latin America, Middle East and Africa for Years 2015, 2025 & 2030
TABLE 23: World Recent Past, Current & Future Analysis for Other Applications by Geographic Region - USA, Canada, Japan, China, Europe, Asia-Pacific, Latin America, Middle East and Africa Markets - Independent Analysis of Annual Sales in US$ Million for Years 2024 through 2030 and % CAGR
TABLE 24: World Historic Review for Other Applications by Geographic Region - USA, Canada, Japan, China, Europe, Asia-Pacific, Latin America, Middle East and Africa Markets - Independent Analysis of Annual Sales in US$ Million for Years 2015 through 2023 and % CAGR
TABLE 25: World 15-Year Perspective for Other Applications by Geographic Region - Percentage Breakdown of Value Sales for USA, Canada, Japan, China, Europe, Asia-Pacific, Latin America, Middle East and Africa for Years 2015, 2025 & 2030
III. MARKET ANALYSIS
UNITED STATES
Managed Multiprotocol Label Switching (MPLS) Market Presence - Strong/Active/Niche/Trivial - Key Competitors in the United States for 2025 (E)
CANADA
JAPAN
Managed Multiprotocol Label Switching (MPLS) Market Presence - Strong/Active/Niche/Trivial - Key Competitors in Japan for 2025 (E)
CHINA
Managed Multiprotocol Label Switching (MPLS) Market Presence - Strong/Active/Niche/Trivial - Key Competitors in China for 2025 (E)
EUROPE
Managed Multiprotocol Label Switching (MPLS) Market Presence - Strong/Active/Niche/Trivial - Key Competitors in Europe for 2025 (E)
FRANCE
Managed Multiprotocol Label Switching (MPLS) Market Presence - Strong/Active/Niche/Trivial - Key Competitors in France for 2025 (E)
GERMANY
Managed Multiprotocol Label Switching (MPLS) Market Presence - Strong/Active/Niche/Trivial - Key Competitors in Germany for 2025 (E)
ITALY
UNITED KINGDOM
Managed Multiprotocol Label Switching (MPLS) Market Presence - Strong/Active/Niche/Trivial - Key Competitors in the United Kingdom for 2025 (E)
SPAIN
RUSSIA
REST OF EUROPE
ASIA-PACIFIC
Managed Multiprotocol Label Switching (MPLS) Market Presence - Strong/Active/Niche/Trivial - Key Competitors in Asia-Pacific for 2025 (E)
AUSTRALIA
Managed Multiprotocol Label Switching (MPLS) Market Presence - Strong/Active/Niche/Trivial - Key Competitors in Australia for 2025 (E)
INDIA
Managed Multiprotocol Label Switching (MPLS) Market Presence - Strong/Active/Niche/Trivial - Key Competitors in India for 2025 (E)
SOUTH KOREA
REST OF ASIA-PACIFIC
LATIN AMERICA
Managed Multiprotocol Label Switching (MPLS) Market Presence - Strong/Active/Niche/Trivial - Key Competitors in Latin America for 2025 (E)
ARGENTINA
BRAZIL
MEXICO
REST OF LATIN AMERICA
MIDDLE EAST
Managed Multiprotocol Label Switching (MPLS) Market Presence - Strong/Active/Niche/Trivial - Key Competitors in Middle East for 2025 (E)
IRAN
ISRAEL
SAUDI ARABIA
UNITED ARAB EMIRATES
REST OF MIDDLE EAST
AFRICA
Managed Multiprotocol Label Switching (MPLS) Market Presence - Strong/Active/Niche/Trivial - Key Competitors in Africa for 2025 (E)
IV. COMPETITION

Companies Mentioned (Partial List)

A selection of companies mentioned in this report includes, but is not limited to:

  • 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

Table Information