The managed network services market is projected 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% from 2020 to 2025
The managed network services market is projected 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% from 2020 to 2025.
Managed network services offer a systematic approach to managing an organization’s network and security needs. Managed network services enable effective monitoring and reduce support time, enabling enterprises to prevent network downtime and hiccups.
The key managed network service types include managed Local Area Network (LAN), managed Wireless Fidelity (Wi-Fi), managed Virtual Private Network (VPN), managed Wide Area Network (WAN), network monitoring, and managed network security. The adoption of managed network services is gaining acceptance globally, as it offers a reduction in operational as well as capital expenditure and helps manage network and security functions, effectively. Managed network service providers address the needs and expectations of enterprises in-depth, with respect to their changing needs and requirements. Partnerships of enterprises with managed network service providers help the provider monitor and maintain the enterprise network 24*7, proactively handle fault alert notification, reduce the Total Cost of Ownership(TCO), improve productivity, and maximize the network uptime, thus giving the enterprise opportunity to grow its businesses.
• By type, the managed WAN segment accounts for the largest market size during the forecast period
By type, the managed WAN segment is expected to record at the largest market size during the forecast period. As WAN connects every part of the organization it is a mission-critical task of keeping the network operating at peak performance, which takes time, effort, and focus.
Hence, organizations outsource their network services. Managed WAN services help organizations easily collaborate with partners and suppliers, speed the delivery of high-demand products, and create better experiences for customers by seamlessly connecting them with employees and self-service systems.
The managed SD-WAN solution allows managed service providers to deliver a comprehensive, cost-effective managed SD-WAN service, which includes advanced connectivity and security functions. MSPs help enterprises distribute WAN traffic securely over carrier services, including IPVPN and broadband, enabling them to route traffic on the most efficient channel without sacrificing application performance.
• By vertical, the BFSI vertical to hold the largest market size during the forecast period
The Banking, Financial Services and Insurance (BFSI)vertical offers tremendous opportunities for the growth of the managed network services market, as the vertical faces a significant need for improved connectivity and internet access to carry out financial transactions with ease and better security.The BFSI vertical is a highly regulated vertical with a large number of compliances and regulations.
To cope with the changing regulations, BFSI institutions must evolve in terms of technology adoption to meet the regulatory needs. Managed network services enable financial institutions to increase their productivity and provide improved services to their customers.
Financial institutions outsource their network to MSPs, which provide reliable networking and infrastructure management services to remotely manage the network.
• By region, Asia Pacific to grow at the highest CAGR during the forecast period
The market of Asia Pacific (APAC) is projected to grow at the highest CAGR during the forecast period. The vast and diverse geographies and the wide adoption of smart devices and the internet are mandating the need for reliable and secure internet connectivity, thus driving the market for managed network services.
The major countries such as China, India, Australia, and Japan, would witness high growth rates in this region.APAC demonstrates a combination of high growth, developing economies, and increasing adoption of mobile and internet.
The number of internet users in this region has grown to a great extent; hence, several companies in the region have started deploying advanced communications solutions to cater to the rising communication demand for high-speed data and superior voice quality. All these reasons increase the demand for better network management, network visibility and control, and wireless communication, leading to the adoption of managed network services in the region.
