Managed Multiprotocol Label Switching (MPLS) Global Market Report 2026

The managed multiprotocol label switching (MPLS) market size has grown strongly in recent years. It will grow from $28.77 billion in 2025 to $30.29 billion in 2026 at a compound annual growth rate (CAGR) of 5.3%. The growth in the historic period can be attributed to growing enterprise demand for secure wide area networking, expansion of multi-location business operations, increasing need for voice and video traffic prioritization, rising outsourcing of network management services, growth of banking and telecom network infrastructure.

The managed multiprotocol label switching (MPLS) market size is expected to see strong growth in the next few years. It will grow to $37.57 billion in 2030 at a compound annual growth rate (CAGR) of 5.5%. The growth in the forecast period can be attributed to increasing cloud connectivity requirements, rising adoption of AI-driven network optimization, growing demand for low-latency application performance, expansion of edge computing deployments, increasing focus on secure remote branch connectivity. Major trends in the forecast period include increasing adoption of hybrid MPLS and SD-WAN architectures, rising demand for application-aware traffic prioritization, growing focus on network performance monitoring services, expansion of managed routing and traffic engineering solutions, rising integration of quality of service management across enterprises.

The increasing adoption of cloud-based applications is anticipated to drive the expansion of the managed multiprotocol label switching market in the coming period. Cloud-based applications are software solutions hosted on remote servers and accessed via the internet, allowing organizations to store data, execute workloads, and deliver services without depending on local infrastructure. The rising adoption of cloud-based applications is fueled by enterprises aiming for enhanced operational scalability and cost efficiency by moving workloads from on-premises systems to flexible, consumption-based cloud environments. The managed multiprotocol label switching facilitates cloud-based applications by providing secure, low-latency, and traffic-prioritized connectivity that guarantees consistent performance for cloud-hosted workloads across distributed enterprise sites. For example, in January 2026, Eurostat, a Luxembourg-based statistical office of the European Union, reported that in 2025, 66.78% of medium-sized enterprises procured cloud computing services compared with 59.09% in 2023. Consequently, the increasing adoption of cloud-based applications is propelling the growth of the managed multiprotocol label switching market.

Leading companies operating in the managed multiprotocol label switching (MPLS) market are focusing on upgrading core network infrastructure to enhance bandwidth capacity, improve service reliability, and accelerate time to market. Upgrading core network infrastructure involves modernizing essential network systems and equipment to increase speed, expand capacity, strengthen security, and ensure dependable performance. For example, in May 2023, Uniti Group Inc., a US-based telecommunications infrastructure company, launched a 100G+ MPLS core network to significantly enhance its network capacity and operational efficiency. The upgraded infrastructure is designed to support growing enterprise bandwidth demands, improve latency performance, and enable faster provisioning of advanced connectivity services across its service footprint, thereby strengthening its position in high-performance managed network solutions.

In August 2023, Verizon Communications Inc., a US-based provider of managed multiprotocol label switching networking services, entered into a strategic partnership with HCL Technologies Limited to deliver next-generation, scalable, and automated managed network solutions for global enterprises. The partnership aims to strengthen managed network services by combining Verizon Business’s global network infrastructure with HCLTech’s expertise in network transformation, automation, and digital service delivery to enhance operational efficiency and customer experience. HCL Technologies Limited is an India-based information technology services company that provides managed network services.

Major companies operating in the managed multiprotocol label switching (MPLS) market are Verizon Communications Inc., AT&T Inc., Deutsche Telekom AG, Reliance Industries Limited, Huawei Technologies Co. Ltd., NTT Communications Corporation, T-Mobile US Inc., International Business Machines Corporation, Cisco Systems Inc., Orange S.A., Telefonaktiebolaget LM Ericsson, Vodafone Group Plc, Nokia Corporation, Bharti Airtel Limited, ZTE Corporation, BT Group plc, Lumen Technologies Inc., Arista Networks Inc., Ciena Corporation, Extreme Networks Inc., Versa Networks Inc., Syringa Networks LLC, Education and Research Network India, and 6WIND S.A.

North America was the largest region in the managed multiprotocol label switching (MPLS) market in 2025. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the managed multiprotocol label switching (MPLS) market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the managed multiprotocol label switching (MPLS) market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The managed multiprotocol label switching (MPLS) market consists of revenues earned by entities by providing services such as network design and implementation, managed wide area network services, traffic engineering, quality of service management, network monitoring and maintenance, security management, service level agreement management, and technical support. The market value includes the value of related goods sold by the service provider or included within the service offering. The managed multiprotocol label switching (MPLS) market also includes sales of routers, switches, edge devices, network interface modules, and on-premise network appliances. Values in this market are ‘factory gate’ values, that is, the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

Managed multiprotocol label switching (MPLS) is a networking technology that facilitates secure and dependable data transmission across wide area networks through the use of labeled routing paths. It enables businesses to prioritize essential applications and sustain consistent performance for voice, video, and data traffic. Service providers handle the management and maintenance of MPLS networks to guarantee high availability, robust security, and streamlined network operations across various locations.

The main service types of managed low earth orbit connectivity services comprise network management, bandwidth management, security services, customer support, and other service types. Network management refers to services that monitor, optimize, and maintain the performance and reliability of satellite communication networks. These services are provided through connectivity types such as backhaul connectivity, broadband internet connectivity, mission-critical communication services, remote monitoring and internet of things connectivity, and maritime and aviation connectivity and are utilized by large enterprises and small and medium enterprises (SMEs). The various applications involved include maritime, aviation, government and defense, enterprise, oil and gas, agriculture, and other applications, while the end-users encompass commercial, residential, industrial, and other end users.

Tariffs on imported networking hardware, routers, switches, and telecom equipment are impacting the managed MPLS market by increasing infrastructure deployment and upgrade costs, particularly affecting level two and level three virtual private network segments. Regions such as North America and Europe that depend on globally sourced telecom hardware are most affected, especially large enterprises and telecom operators. Higher equipment costs may slow network expansion projects; however, tariffs are also encouraging local equipment manufacturing, diversification of supplier ecosystems, and accelerated adoption of cloud-based and software-defined networking alternatives, strengthening long-term network resilience.

The managed multiprotocol label switching (MPLS) market research report is one of a series of new reports that provides managed multiprotocol label switching (MPLS) market statistics, including managed multiprotocol label switching (MPLS) industry global market size, regional shares, competitors with a managed multiprotocol label switching (MPLS) market share, detailed managed multiprotocol label switching (MPLS) market segments, market trends and opportunities, and any further data you may need to thrive in the managed multiprotocol label switching (MPLS) industry. This managed multiprotocol label switching (MPLS) market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

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