The major drivers for the growth of the managed network services market are the increasing demand for bandwidth and the need to reduce operational costs. Bandwidth demand is growing rapidly as businesses move to cloud-based applications and services and as the number of connected devices increases. Businesses need someone who can manage their networks effectively and ensure that they have enough bandwidth to support their needs. Managed network services providers can help businesses save money optimizing their networks and providing insights into how they can improve their network performance.
In the last few years, the global managed network services market has witnessed a significant growth in demand due to MSPs can help businesses automate their operations and improve their efficiency. They can optimize a business' networks by implementing best practices in terms of design, implementation, maintenance, and security; reducing downtime; ensuring compliance with regulations; and supporting employees as they adopt new technologies such as cloud computing or Internet of Things (IoT).
Increasing Number of Businesses Turning to Managed Network Service Providers
A managed network service provider (MSP) is the best way for organizations that are looking to outsource their network management. MSPs manage all aspects of business's networks, including security, storage, voice, and wireless communication. Moreover, they analyze network performance data to track down issues before they become problems or affect customers. If there are any performance issues with the system, the clients are notified. MSPs provide regular reporting so client can keep an eye on how things are running without having to dive into loads of details themselves.
As a result, the growth of the managed network services market is on the rise as businesses are realizing that they need to focus on their core business and leave network management to the experts. Outsourcing network management to a third party can save an organization time and money. In some cases, it's even more cost effective to outsource than to have an in-house IT staff. MSPs have the resources and expertise to keep up with the latest technology trends so businesses don't have to worry about being behind the curve. Apart from this, businesses that rely on outsourced network management can generate efficiencies, resulting in better usage of resources and reduced expenditure.
Rising Adoption of Cloud Computing to Play Key Role in Managed Network Services Market
The growth of digital technologies is creating a significant demand for managed network services. In the US, for example, research suggests that 78% of businesses have already adopted some form of cloud computing and 51% have adopted big data solutions. This is also driving a shift from companies having their own IT departments to engaging third-party service providers to manage their networks. Digitalization is changing the way businesses operate and it is also driving demand for managed network services. Businesses are increasingly adopting digital technologies, such as cloud computing, big data, and Internet of Things (IoT), to automate their operations and improve their efficiency. This is increasing the demand for managed network services, which can help businesses manage and secure their networks effectively.
As per our findings, the number of businesses utilizing managed service providers has increased by 50% since 2010 and is expected to continue growing as more companies adopt digital technologies. The market for cloud computing alone is projected to reach $950 billion in 2028, which also suggests that demand for managed network services will increase significantly during this time period. As companies become increasingly dependent on technology, they are likely to experience greater demand for managed network services. Increased adoption of digital technologies has created a significant demand for managed network services among organizations across all industries.
Security and Network Monitoring to Continue Dominating Managed Network Monitoring Market
Global managed network services market is projected to witness extreme growth in the demand for security and network monitoring services in the years to come. Wherein, the security segment is projected to hold the largest share of the market. The growth of the managed network services market is primarily driven by the increasing adoption of cloud and mobility solutions, stringent government regulations, and the growing need for secured networks. Security services offered by network managed service providers helps in mitigating various cyber-attacks and protects the networks from unauthorized access, which primarily cover firewalls, intrusion prevention systems (IPS), anti-virus software, and email security.
North America to Dominate Global Managed Network Services Market
North America is projected to hold the largest share of the market, followed by Europe. The Asia Pacific region is expected to witness high growth during the forecast period. This can be attributed to factors such as increasing awareness about cloud technology solutions, growing demand for secure and reliable networks, availability of high-speed internet connectivity, and rising need for collaboration among businesses. North America is the major contributor to the managed network service market. The large share of North America can mainly be attributed to North American countries like U.S. and Canada. These countries are witnessing a surge in the adoption of managed network services due to the increasing demand for secure and reliable networks.
However, North America managed network services market is fragmented with the presence of a large number of players. Some of the key players in the market include AT&T, CenturyLink, Verizon Communications, BT Group, and CSC. These players are increasingly adopting strategies such as mergers and acquisitions to expand their product portfolios and strengthen their foothold in the market. In December 2017, AT&T acquired AlienVault, a provider of cloud-based security solutions. This acquisition will help AT&T to offer its customers an end-to-end security solution that will protect their networks from cyber threats.
The major players in the managed network services market are AT&T (US), BT Group (UK), CenturyLink (US), Dell Technologies (US), Fujitsu (Japan), HCL Technologies (India), HPE (US), IBM (US), Infosys (India), Intel (US), Microsoft (US), and others.
Key Elements Included In The Study: Global Managed Network Services Market
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