According to our latest study on "Managed Network Services Market Forecast to 2030 – COVID-19 Impact and Global Analysis – by Type, Deployment, Organization Size, and End Use Vertical,” the managed network services market is size is expected to reach US$ 1,43,468.71 million by 2030 from 60,936.40 million in 2022, with an estimated CAGR of 11.5% from 2023 to 2030.

Growing Demand for Reducing Administration and Maintenance Expenditure Boosts The Managed Network Services Market Growth

Several macroeconomic factors across the globe have created a severely hostile environment for businesses. The pandemic caused severe disruptions, which led to huge losses for several industry verticals. Political factors in Europe, the Middle East, and South America have negatively affected industry verticals. Severe economic downturns in several countries have decreased consumer spending on discretionary or optional goods. While the definition of such goods varies depending on a family's income, it is undeniable that most industry verticals have endured or are enduring losses due to such a decrease in consumption. 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 of 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. With decreasing lifecycle of electronic devices and intensifying competition, companies tend to focus more on core technologies, which directly affect their business, rather than managing in-house infrastructure. Hence, partnering with an MSP for managed network service is a viable option for reducing the operational cost of a company. This, in turn, is boosting the managed network services market growth.

The COVID-19 outbreak pandemic positively influenced the global managed network services market due to rise in remote work and increase in federal funding for pandemic relief. North America has the highest acceptance and development rate of emerging technologies. Employees were directed to work from home while companies scaled their IT infrastructure to accommodate such changes. While some companies could scale as per requirement, most companies relied on Managed Service Providers to efficiently manage the changing workplace scenario. MSPs also faced challenges related to the increased load of network in the first two quarters of 2020. Securing extra networking hardware and installing the same was problematic for increasing scalability. Hence, several MSPs had to reject offers since they lacked the capability. However, at the beginning of September 2020, due to the increased demand of managed network services upsurged customer base, and managed network, service providers easily nullified the negative impacts of the first two quarters. In October 2020, AirTies, a global supplier of managed WiFi solutions to service providers, announced that AirTies Cloud managed more than 25 million homes. Thus, the pandemic positively impacted the North American managed network services market size.

Key Findings of Study:

The managed network services market is segmented on the basis of type, deployment, organization size, and end use vertical. Based on type, the managed network services market is segmented into managed LAN, managed network security, managed monitoring, managed VPN, managed WAN, and managed Wi-Fi. Based on deployment, the managed network services market is bifurcated into cloud and on-premise. Based on organization size, the managed network services market is divided into large enterprise and SMEs. Based on end-use vertical, the managed network services market is categorized into BFSI, government, IT & telecommunication, manufacturing, media & entertainment, retail & e-commerce, and others. By region, the managed network services market is segmented into North America, Europe, Asia Pacific, the Middle East & Africa, and South America.

Based on type, the managed network services market is segmented into managed LAN, managed network security, managed monitoring, managed VPN, managed WAN, and managed Wi-Fi. The managed LAN segment accounted for the largest share of the managed network services market in 2022, owing to the growing demand from large enterprises. The managed WAN segment is projected to grow at the fastest pace during the forecast period, owing to the rising demand for SD-WAN. Managed LAN is a service that supports operations, controls costs, and maintains network reliability without dedicating users’ resources. It helps improve network performance, proactively monitor and address issues, allocate resources more efficiently, and futureproof the network by utilizing the latest technology. Managed LAN services also aid in monitoring and maintaining high performance for delay-sensitive applications. Various companies are taking strategic initiatives in the managed network service market, including product launches. For instance, in August 2019, Frontier Communications Corporation announced the launch of managed wireless LAN for large and medium enterprises, which combines managed and hosted technology with extensive management, one-stop-shop network installation, maintenance, and analytics. The adoption of managed LAN services is growing due to reliable support, security, compliance, backup, and recovery, which is anticipated to fuel the segment growth in the managed network services market size over the forecast period.

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