The managed network services market was valued at USD 54.48 billion in 2020 and expected to reach USD 95.6 billion by 2026 and grow at a CAGR of 9.86% over the forecast period (2021 - 2026).
- Managed Network Services (MNS) encourages businesses to move away from CAPEX models and pursue predictable operating expense (OPEX) models. A major benefit of MNS is that customers avoid bearing the cost of purchasing their own applications that provide specific monitoring capabilities, along with the expertise required to manage the tools and processes required.
- There has been an increase in capital expenditure for cloud and managed services by small and medium enterprises, which is expected to drive the market over the next five years.
- Network infrastructure has evolved as increasingly complex, putting stress on many businesses’ budgets and IT resources. Improving the authenticity of network and IT operations is becoming difficult or near impossible for companies which are unable to keep up with the pressure new services put on their network, accompanied by growing compliance and security demands.
- The most important feature of Managed Network Services is proactive monitoring and alarming, which allows the MSP and customer to be informed of thresholds crossed that could result in service impacting issues.
Key Market Trends
IT & Telecommunication Sector is Expected to Occupy Significant Market Share
- The increasing smartphone penetration and the growing number of devices connected to the internet have placed immense pressure on the current telecom network. Thus, network operators are faced with the challenges of insufficient bandwidth, network congestion leading to call drops and unreliable network functions.
- Further, the widespread investments in cloud services owing to the greater advantages of SaaS, IaaS and PaaS has required it providers to maintain their delivery through their network with the growing consumer base. All these factors have contributed in driving the adoption of MPLS technologies.
- Growth in cloud-based services for mobile users and the roll-out of 4G LTE services around the world have increased the investment into networks by carriers. Automation has become an integral part in shaping the carriers’ ability to offer their “on-demand” services effectively with balanced operational costs.
- MPLS networks have been in use for telecommunications providers for over 15 years and have proved their worth there. Most of the service on telecom has moved to MPLS L3 which has become the default technology in contemporary times, as it helps to create IP services that are more efficient and secure than the previous generation technologies.
North America Holds a Dominant Position in Managed Network Services Market
- United States is expected to hold a significant share in the market studied. With the surge of cloud computing, there has been an increase in demand for secure networking among the enterprises, which, in turn, is expected to drive the demand for the managed MPLS market.
- For instance, according to Cisco Systems, in North America, cloud traffic in 2017 increased to 2,771 exabyte from 1891 exabyte in 2016, and is forecast to reach 6,844 exabyte in 2021. This is anticipated to contribute positively to the growth of the market studied
- Providers of managed network services are experiencing increased demand from customers that need the support of their on-premises and cloud-based resources. Through this increased demand, service providers are finding an increased price and profit stability that is expected to fuel the development the Managed Network Service Market over the forecast period.
- Among providers of managed services, network security, network management, MDM, and backup services lead the top sellers. Conversely, the services declining in growth are network management and remote management of on-premises servers and storage. Also, the continued evolution and adoption of cloud services is putting pressure on traditional services based on remote management of customer-owned equipment.
The managed network services market is dominated by major players that offer superior technology and foster their growth through their existing distribution channels. These technology leaders are investing in innovation and merger and acquisition activities to maintain competitive edge in the market.
- May 2019 - ALE, operating under the brand Alcatel-Lucent Enterprise, has teamed up with BMW to become the official Connectivity Partner for the BMW International Open, the longest-running European Tour event in Germany since 1989. This year it is the 4th year in a row Alcatel-Lucent Enterprise will be responsible for implementing the entire network and communication infrastructure for this tour event, which runs from June 19 to 23 at Golfclub München Eichenried near Munich.
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1.1 Study Deliverables
1.2 Study Assumptions
1.3 Scope of the Study
2 RESEARCH METHODOLOGY
3 EXECUTIVE SUMMARY
4 MARKET INSIGHTS
5 MARKET DYNAMICS
5.1 Market Overview
5.2 Introduction to Market Drivers and Restraints
5.3 Market Drivers
5.3.1 Increasing Business Process Efficiency by Cost Optimization
5.3.2 High Penetration of Mobility, Cloud Computing, and Big Data Technology
5.4 Market Restraints
5.4.1 Lack of Skilled and Dedicated Personnel
5.5 Industry Attractiveness - Porter's Five Force Analysis
5.5.1 Threat of New Entrants
5.5.2 Bargaining Power of Buyers/Consumers
5.5.3 Bargaining Power of Suppliers
5.5.4 Threat of Substitute Products
5.5.5 Intensity of Competitive Rivalry
6 TECHNOLOGY OVERVIEW
7 MARKET SEGMENTATION
7.1 By Deployment Type
7.2 By End-user Industry
7.2.2 IT & Telecommunication
7.2.3 Government and Public Sector
7.2.4 Healthcare and Life Sciences
7.2.6 Retail & Consumer Goods
7.2.7 Transportation & Logistics
7.2.8 Other End-user Industry
7.3 By Organization Size
7.3.1 Small & Medium Enterprises(SMEs)
7.3.2 Large Enterprises
7.4.1 North America
7.4.3 Asia Pacific
7.4.4 South America
7.4.5 Middle East & Africa
8 COMPETITIVE LANDSCAPE
8.1 Company Profiles
8.1.1 Fujitsu Ltd.
8.1.2 Cisco Systems, Inc.
8.1.3 Dell EMC (EMC Corporation)
8.1.4 IBM Corporation
8.1.6 AT&T Inc.
8.1.7 HP Development Company, LP
8.1.8 Microsoft Corporation
8.1.9 Verizon Communications Inc.
8.1.10 Dell Inc.
8.1.11 Rackspace Inc.
8.1.12 TCS Limited
8.1.13 Deutsche Telekom AG
9 INVESTMENT ANALYSIS
10 MARKET OPPORTUNITIES AND FUTURE TRENDS
Secondary Research Information is collected from a number of publicly available as well as paid databases. Public sources involve publications by different associations and governments, annual reports and statements of companies, white papers and research publications by recognized industry experts and renowned academia etc. Paid data sources include third party authentic industry databases.
Once data collection is done through secondary research, primary interviews are conducted with different stakeholders across the value chain like manufacturers, distributors, ingredient/input suppliers, end customers and other key opinion leaders of the industry. Primary research is used both to validate the data points obtained from secondary research and to fill in the data gaps after secondary research.
The market engineering phase involves analyzing the data collected, market breakdown and forecasting. Macroeconomic indicators and bottom-up and top-down approaches are used to arrive at a complete set of data points that give way to valuable qualitative and quantitative insights. Each data point is verified by the process of data triangulation to validate the numbers and arrive at close estimates.
The market engineered data is verified and validated by a number of experts, both in-house and external.
REPORT WRITING/ PRESENTATION
After the data is curated by the mentioned highly sophisticated process, the analysts begin to write the report. Garnering insights from data and forecasts, insights are drawn to visualize the entire ecosystem in a single report.