Managed Network Services Market Report Scope & Overview:

The Managed Network Services Market size was valued at USD 67.90 billion in 2023 and is expected to grow to USD 113.22 billion by 2031 and grow at a CAGR of 6.6% over the forecast period of 2024-2031.

The growth of the managed network services market is likely to be stimulated by an increasing demand from different cloud infrastructure services and enterprises for Digital Transformation. In order to support business initiatives and gain competitive advantage, businesses are rapidly adopting significant network technologies. A significant contributor to the robust IT infrastructure is network service management. A key driver of demand for products is a growing emphasis by organisations on the creation of an ICT workplace with minimum network interruptions. In addition, the growth of the market for network service management will be accelerated by developments in artificial intelligence technology as well as increasing mobility. If the cost is a significant factor for SMEs and it is hard to set up and run their networks, as software-defined networking (SDN) specialised network services are an excellent alternative to costly but time-consuming business of in-house network management.

Managed Network Services Market Revenue Analysis

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Market Dynamics

Key Drivers:  

  • An increasing trend of Digital Transformation

 To provide unprecedented customer experience, digitalisation is changing industries and requires networks with extraordinary adaptability. Global enterprises, recognizing this critical need, are embarking on ambitious digital journeys which embrace cutting edge technology to transform their operations and interactions with customers. However, there is a need for experienced resources and international reach that are frequently more extensive than internal ones in these transformations.

  • Prevent problems and provide real time network maintenance


  • Strict government requirements and regulations make it difficult to comply.

The stringent compliance laws and increasing demand for improved data security in regulated industries like financial services, legal services, and healthcare are taking advantage of the knowledge and skilled-professionals of managed service providers (MSPs) to establish and control compliant IT environments. The rules for the handling of classified information have been tightened by the government and various agencies.


  • High demand for managed network services is being experienced by SMEs

With the help of managed network services, the opportunities for small and medium sized enterprises to achieve their business objectives are increasing. As the pressure of expanding their business continues to increase, small and medium sized enterprises are increasingly adopting advanced IT services. Therefore, it is expected that in the coming years SMEs will be largely investing in IT services. In addition, the use of automated services is increasing among SMEs.


  • Concerns over data privacy and security

The risk of exposing critical business data is one of the major obstacles to outsourcing network functions management. The primary criteria for selecting managed network services are data protection and security. Enterprises believe that managed network services may disclose their sensitive information, which may lead them to lose control of their infrastructure. Data storage control is partially or entirely under the vendors’ control, and they may get access to customer’s data.

Impact of Economic Slowdown:

Due to the ongoing worldwide slowdown, the market for managed network services is undergoing a major shift. Various factors, such as technology developments, the need for cost efficient solutions and shifts in business priorities, have an impact on these changes. Significant losses have been recorded for the world's largest technology companies, as they lost trillions of dollars from their market value during 2022. A number of factors, including the disruption caused by the Covid19 pandemic, Russia's invasion of Ukraine, and rising inflation leading to higher interest rates, caused investor concern.

As countries develop and become more advanced in their online ecosystem, the impact of a partial Internet shutdown is growing. The average daily impact of a temporarily shut down of the Internet and all its services would be $23.6 million for 10 million inhabitants in a highly interconnected country, according to estimates. In the medium and low range, the average estimated GDP impact is $6.6 million and $0.6 million per 10 million population with a lower level of Internet connectivity economies.

Impact of Russia Ukraine war:

The Russian Ukraine crisis has had a significant impact on global markets and supply chains, with implications for the managed network services market. Although specific information on managed network services is not explicitly provided, the broader market disruption provides a basis for potential impacts in this sector.

In Ukraine, the technology industry contributed more than 4% of GDP before the war and is one of the most rapidly growing global markets. In 2022, Ukraine's IT development sector exports $6.9billion in information technology services. With an increase of 36.1% from the previous year. Around one-fifth of Fortune 500 companies use Ukrainian IT services drawn in by the country’s lenient and supportive governance model, favourable tax policies, and the growing technology sector. The crisis has disrupted global supply chains, increased geopolitical tensions, and has led to an increase in commodity prices, which could affect the costs and operational efficiency of managed network services. Due to the conflict, prices of key commodities and materials such as palladium used in electronics or neon which is used for chip making have increased.

Market Segmentation:

By Type

  • Managed LAN

  • Managed Wi-Fi

  • Managed VPN

  • Managed WAN

  • Network Monitoring

  • Managed NFV

  • Managed Network Security

By Network Security

  • Managed Firewall

  • Managed IDS/IPS

  • Other Managed Network Security

By Verticals

  • Banking, Financial Services and Insurance

  • Retail and Ecommerce

  • IT and Telecom

  • Manufacturing

  • Government

  • Education

  • Healthcare

  • Media and Entertainment

  • Other Verticals


In 2023, North America accounted for over 33.1% of the global market. The demand for North American managed services is expected to increase from 2024 to 2031 as the number of technology start-ups and continued adoption of enterprise resource planning, customer relationship management or cloud services increases in North America.

From 2024 to 2031, the Asia Pacific managed services market is expected to grow at a fastest compound annual growth rate of 14.8%. In the Asia Pacific region, a number of companies are expected to significantly contribute to market growth over the forecast period by developing cloud solutions and increasing investment in data protection.

From 2024 to 2031, the managed services market in Europe is expected to grow significantly at a compound annual growth rate of 13.3%. In Europe, managed services are used by Software as a Service providers to comply with the European Data Protection Directive 1995 and the General Data Protection Regulation in order to deploy their solutions on cloud platforms. With the development of cloud computing, there has been an increase in the business need for secure networking, which is projected to fuel demand for the managed MPLS market.

Managed Network Services Market By Regional

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North America

  • US

  • Canada

  • Mexico


  • Eastern Europe

    • Poland

    • Romania

    • Hungary

    • Turkey

    • Rest of Eastern Europe

  • Western Europe

    • Germany

    • France

    • UK

    • Italy

    • Spain

    • Netherlands

    • Switzerland

    • Austria

    • Rest of Western Europe

Asia Pacific

  • China

  • India

  • Japan

  • South Korea

  • Vietnam

  • Singapore

  • Australia

  • Rest of Asia Pacific

Middle East & Africa

  • Middle East

    • UAE

    • Egypt

    • Saudi Arabia

    • Qatar

    • Rest of Middle East

  • Africa

    • Nigeria

    • South Africa

    • Rest of Africa

Latin America

  • Brazil

  • Argentina

  • Colombia

  • Rest of Latin America


The major key players are Fujitsu, IBM, Ericsson, Cisco, Comarch SA, Verizon, BT Group, Huawei, Alcatel-Lucent, Dell EMC (EMC Corporation) & Other Players

Alcatel-Lucent-Company Financial Analysis

Company Landscape Analysis

Recent Developments:

  • Logicalis launched an Intelligent connectivity suite, including solutions like SASE, SSE, SDWAN and 5G operated by Cisco Systems, Inc., on October 23, 2023. This will allow Logicalis customers to use digital managed services developed with Cisco technology, which is backed by the Logicalis Digital Fabric Platform.

  • Cloud5 Communications, a provider of communications and technology solutions, opened up its new managed services division on September 23, 2023. The division is aimed at supporting the needs and challenges related to information technology in a variety of markets, e.g. hospitality, student accommodation or elderly care. This division shall assist consumers to effectively manage their IT systems, technology infrastructures and security.

  • The acquisition of MSP Corp, a Canadian managed IT services provider, by Alfar Capital and Walter Capital Partners took place in May 2023. The MSP Corporation is merging with Groupe Access, a managed service provider in IT and cyber security. The acquisition would give the company a leg up in providing cutting edge solutions and strengthen its position in Canada.

Managed Network Services Market Report Scope:
Report Attributes Details
Market Size in 2023  US$  67.90 Billion
Market Size by 2031  US$ 113.22 Billion
CAGR  CAGR 6.6% From 2024 to 2031
Base Year  2023
Forecast Period  2024-2031
Historical Data  2020-2022
Report Scope & Coverage Market Size, Segments Analysis, Competitive  Landscape, Regional Analysis, DROC & SWOT Analysis, Forecast Outlook
Key Segments • By Type (Managed LAN, Managed Wi-Fi, Managed VPN, Managed WAN, Network Monitoring, Managed NFV, Managed Network Security)
• By Network Security (Managed Firewall, Managed IDS/IPS, Other Managed Network Security)
• By Verticals (Banking, Financial Services and Insurance, Retail and Ecommerce, IT and Telecom, Manufacturing, Government, Education, Healthcare, Media and Entertainment, Other Verticals)
Regional Analysis/Coverage North America (US, Canada, Mexico), Europe (Eastern Europe [Poland, Romania, Hungary, Turkey, Rest of Eastern Europe] Western Europe] Germany, France, UK, Italy, Spain, Netherlands, Switzerland, Austria, Rest of Western Europe]), Asia Pacific (China, India, Japan, South Korea, Vietnam, Singapore, Australia, Rest of Asia Pacific), Middle East & Africa (Middle East [UAE, Egypt, Saudi Arabia, Qatar, Rest of Middle East], Africa [Nigeria, South Africa, Rest of Africa], Latin America (Brazil, Argentina, Colombia, Rest of Latin America)
Company Profiles Fujitsu, IBM, Ericsson, Cisco, Comarch SA, Verizon, BT Group, Huawei, Alcatel-Lucent, and Dell EMC (EMC Corporation)
Key Drivers • It is necessary to relieve the IT employees of their load.
• New connection requirements complicate the IT environment.
Market Restraints • Data privacy and security concerns.
• Regulations and compliances are becoming more stringent.

Frequently Asked Questions

Ans: The Managed Network Services Market was valued at USD 67.90 billion in 2023.

Ans: - It is necessary to relieve the IT employees of their load and new connection requirements complicate the IT environment.

Ans: - North America dominates the managed network services market and will maintain its dominance throughout the projected period.

 Ans: - The major key players are Fujitsu, IBM, Ericsson, Cisco, Comarch SA, Verizon, BT Group, Huawei, Alcatel-Lucent, and Dell EMC (EMC Corporation).  

Ans: - The study includes a comprehensive analysis of Managed Network Services Market trends, as well as present and future market forecasts. DROC analysis, as well as impact analysis for the projected period. Porter's five forces analysis aids in the study of buyer and supplier potential as well as the competitive landscape etc.  


1. Introduction

1.1 Market Definition

1.2 Scope

1.3 Research Assumptions

2. Industry Flowchart

3. Research Methodology

4. Market Dynamics

4.1 Drivers

4.2 Restraints

4.3 Opportunities

4.4 Challenges

5. Impact Analysis

5.1 Impact of Russia-Ukraine Crisis

5.2 Impact of Economic Slowdown on Major Countries

5.2.1 Introduction

5.2.2 United States

5.2.3 Canada

5.2.4 Germany

5.2.5 France

5.2.6 UK

5.2.7 China

5.2.8 Japan

5.2.9 South Korea

5.2.10 India

6. Value Chain Analysis

7. Porter’s 5 Forces Model

8.  Pest Analysis

9. Managed Network Services Market Segmentation, By Type

9.1 Introduction

9.2 Trend Analysis

9.3 Managed LAN

9.4 Managed Wi-Fi

9.5 Managed VPN

9.6 Managed WAN

9.7 Network Monitoring

9.8 Managed NFV

9.9 Managed Network Security

10. Managed Network Services Market Segmentation, By Network Security

10.1 Introduction

10.2 Trend Analysis

10.3 Managed Firewall

10.4 Managed IDS/IPS

10.5 Other Managed Network Security

11. Managed Network Services Market Segmentation, By Verticals

11.1 Introduction

11.2 Trend Analysis

11.3 Banking, Financial Services and Insurance

11.4 Retail and Ecommerce

11.5 IT and Telecom

11.6 Manufacturing

11.7 Government

11.8 Education

11.9 Healthcare

11.10 Media and Entertainment

11.11 Other Verticals

12. Regional Analysis

12.1 Introduction

12.2 North America

12.2.1 USA

12.2.2 Canada

12.2.3 Mexico

12.3 Europe

12.3.1 Eastern Europe Poland Romania Hungary Turkey Rest of Eastern Europe

12.3.2 Western Europe Germany France UK Italy Spain Netherlands Switzerland Austria Rest of Western Europe

12.4 Asia-Pacific

12.4.1 China

12.4.2 India

12.4.3 Japan

12.4.4 South Korea

12.4.5 Vietnam

12.4.6 Singapore

12.4.7 Australia

12.4.8 Rest of Asia Pacific

12.5 The Middle East & Africa

12.5.1 Middle East UAE Egypt Saudi Arabia Qatar Rest of the Middle East

11.5.2 Africa Nigeria South Africa Rest of Africa

12.6 Latin America

12.6.1 Brazil

12.6.2 Argentina

12.6.3 Colombia

12.6.4 Rest of Latin America

13. Company Profiles

13.1 Fujitsu

13.1.1 Company Overview

13.1.2 Financial

13.1.3 Products/ Services Offered

13.1.4 SWOT Analysis

13.1.5 The SNS View

13.2 IBM

13.2.1 Company Overview

13.2.2 Financial

13.2.3 Products/ Services Offered

13.2.4 SWOT Analysis

13.2.5 The SNS View

13.3 Ericsson

13.3.1 Company Overview

13.3.2 Financial

13.3.3 Products/ Services Offered

13.3.4 SWOT Analysis

13.3.5 The SNS View

13.4 Cisco

13.4.1 Company Overview

13.4.2 Financial

13.4.3 Products/ Services Offered

13.4.4 SWOT Analysis

13.4.5 The SNS View

13.5 Comarch SA

13.5.1 Company Overview

13.5.2 Financial

13.5.3 Products/ Services Offered

13.5.4 SWOT Analysis

13.5.5 The SNS View

13.6 Verizon

13.6.1 Company Overview

13.6.2 Financial

13.6.3 Products/ Services Offered

13.6.4 SWOT Analysis

13.6.5 The SNS View

13.7 BT Group

13.7.1 Company Overview

13.7.2 Financial

13.7.3 Products/ Services Offered

13.7.4 SWOT Analysis

13.7.5 The SNS View

13.8 Huawei

13.8.1 Company Overview

13.8.2 Financial

13.8.3 Products/ Services Offered

13.8.4 SWOT Analysis

13.8.5 The SNS View

13.9 Alcatel-Lucent

13.9.1 Company Overview

13.9.2 Financial

13.9.3 Products/ Services Offered

13.9.4 SWOT Analysis

13.9.5 The SNS View

13.10 Dell EMC (EMC Corporation)

13.10.1 Company Overview

13.10.2 Financial

13.10.3 Products/ Services Offered

13.10.4 SWOT Analysis

13.10.5 The SNS View

14. Competitive Landscape

14.1 Competitive Benchmarking

14.2 Market Share Analysis

14.3 Recent Developments

14.3.1 Industry News

14.3.2 Company News

14.3.3 Mergers & Acquisitions

15. Use Case and Best Practices

16. Conclusion

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Secondary Research

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Primary Research

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Data Bank Validation

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