Global Managed Network Services Market: Worldwide Market

Managed network services are outsourcing networking solutions in which Managed Service Providers (MSPs) provide a wide range of secured, cost-effective, and proactive services to the end user, managed service providers are responsible for delivery and management of network-based applications and services for different end users such as, enterprises, residences and other service providers. These services are undertaken by companies to discover and fix networking problems before they affect the network in any harmful manner leading to downtime, managed network services can be deployed in various models, supplemental or as a complete replacement of an organization’s in-house entity. Managed network services include a comprehensive array of solutions such as Internet Protocol (IP)/Virtual Private Network (VPN) services, Local Area Network (LAN)/Wide Area Network (WAN) services, WLAN services Ethernet links, Internet Protocol (IP) telephony services, video conferencing, and unified communications. As a professional service, managed network services extend from primary operational support to the entire lifecycle management of a network. Enterprises cannot limit these services only to in-house expertise. Therefore, they outsource managed network services to manage their IT networks and reduce the work pressure on the existing staff. This increases the workforce capability of the workers and helps the organizations to concentrate on their core business functions and also provides a competitive edge in the business world.

The report provides a comprehensive examination of market drivers, restraints, and opportunities and challenges. The drivers include reduction in operational costs, economical access to enterprise-grade support, improvement in core businesses, minimize downtime, enhanced workforce skill, and financial benefits managed services cost less than the traditional break-fix services especially when considering the losses incurred during network downtime. The restraints cover doubts in efficacy in managed services model and concerns over privacy and security. The opportunities include new business proposition and greater networking opportunities.

This report on managed network services majorly focuses on types of services, components, organizational size, verticals, and regions of the global managed network services market. This report also covers the latest upcoming products and integration of various technologies, which are a part of the managed network services ecosystem, for example cloud-based managed network services.

The managed services market is broadly segmented by

Type of services:

• Managed network design services
• Managed network implementation services
• Managed network monitoring services
• Support & maintenance services

Component:

• Managed LAN/WAN networks
• Managed IP telephony
• Managed IP/VPN
• Managed Ethernet links
• Managed video conferencing/telepresence

Organization size:

• Small businesses
• Medium businesses
• Large enterprises

Verticals:

• Banking
• Financial Services
• Insurance (BFSI)
• Retail
• Healthcare & life sciences
• Telecommunication & IT
• Energy & resources
• Public sector
• Media & business services
• Transport & logistics
• Manufacturing industries

Regions:

• North America (NA)
• Asia-Pacific (APAC)
• Europe
• Latin America (LA)
• Middle East and Africa (MEA)

The notable market players in this domain include Alcatel Lucent, IBM, Ericsson, Accenture, and AT&T. The report on managed network services also provides in-depth analysis of the key players in technology and service ecosystems with their profiles, recent developments, key issues, global adoption trends, opportunities in market, and future growth potential.

Managed Network Services (MNS) enable the organizations to outsource their network infrastructure and operations, entirely or partially, to focus on their key business goals. Organizations are facing stiff competition due to scarcity of time, resources, capital funding, and lack of expert systems. MNS helps the companies to reduce the cost incurred on network and IT spending by eliminating capital expenditures and operational expenditures, more than a cost control tool as it helps the organizations to avail a competitive advantage by improving efficiency and providing business differentiation. The demand of new enterprise’s networking objectives is highly complex and requires better expertise to withstand in this vibrant business environment; MNS uses skilled resources and provides the flexibility to companies for expansion and diversification.

The MNS market majorly involves telecom operators due to their strong existing network infrastructure and IT service providers to provide various network architecture services such as design, implementation and monitoring services.

The market is pooled with various big players such as Ericsson, Alcatel-Lucent, Accenture, Nokia Siemens, Huawei, Cisco, and IBM. These companies cater across all business verticals such as telecommunication, retail, transport and logistics, manufacturing, public sector, defense, and education and also serves small and medium business to reduce the cost and enjoy global benefits. Considering its diverse applications and the companies’ need to reduce the operational expenses, MNS seems to be an attractive alternative and expected to grow in a steady pace in the next 5 years.

In this report, the MNS market has been segmented to understand and estimate the market opportunity for components, services, vertical, various sizes of organizations and its market sizes across different business verticals. In managed network components, Internet Protocol-Virtual Private Network (IP-VPN) captures the major share followed by Local Area Network (LAN) and Wireless LAN segment from 2014 to 2019. However, the Year-Over-Year (Y-O-Y) growth in the IP telephony and video conferencing and telepresence market are growing with a fast pace. Europe, the first mover in the MNS market, is expected to be the major contributor by 2019 as well; Asia-Pacific (APAC) and Middle East and Africa (MEA) is expected to surpass its growth with a steady increase in the Y-O-Y growth due to huge growth potential in countries such as China and India. Medium business segment is growing as an attractive segment among mature and emerging markets and telecommunication and public sector verticals occupy a major share in terms of revenue contribution. The MNS market is expected to grow from $30.67 billion in 2014 to $50.83 billion by 2019. This represents a Compound Annual Growth Rate (CAGR) of 10.6% from 2014 to 2019.

The table given below highlights the market trend of MNS market.

MNS Market Size, By Sub segment, 2012–2019 ($Billions)

Source: MarketsandMarkets Analysis