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Managed Network Services Market set to achieve $103.9 billion by 2030
Managed Network Services Market
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The report forecasts that the managed network services market is poised to reach an impressive valuation of $103.9 billion by 2030, showcasing a robust Compound Annual Growth Rate (CAGR) of 8.1% from 2023 to 2030. This growth trajectory is fueled by the widespread adoption of modern campus networks, escalating demand for managed SD-WAN services, and the imperative for enhanced productivity through managed network solutions. However, the market faces challenges stemming from security and compliance concerns, alongside obstacles in marketing and sales efforts for service providers.
The burgeoning demand for managed network services among Small and Medium-sized Enterprises (SMEs) and the exponential rise in global IP and cloud traffic present lucrative opportunities for stakeholders. Furthermore, automation of network monitoring tools and the emergence of cloud-managed network services emerge as prominent trends shaping the market landscape.
Key Market Segments and Projections
The managed network services market is segmented based on service type, organization size, deployment mode, industry vertical, and geography. In 2023, the managed network security services segment is anticipated to dominate the market, driven by heightened demand for intrusion detection and prevention systems and unified threat management solutions.
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Large enterprises are expected to lead in market share, owing to their substantial demand for managed network services, particularly in areas such as managed SD-WAN and managed VPN services. Conversely, the small and medium-sized enterprises segment is forecasted to witness a higher CAGR during the forecast period, propelled by the need for agile and secure work environments.
Cloud-based deployment is poised for rapid growth, fueled by the need for managing complex network requirements and enhancing service experience. Geographically, North America is anticipated to hold the largest market share, driven by established economies and advanced IT infrastructure. However, Asia-Pacific is projected to register the highest CAGR, underpinned by significant growth potential and the increasing adoption of cloud-based services.
Key Players
Prominent players operating in the managed network services market include IBM Corporation, Cisco Systems Inc., Microsoft Corporation, Telefonaktiebolaget LM Ericsson, and Verizon Communications Inc., among others.
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The Small & Medium-sized Enterprises Segment to Witness Rapid Growth During the Forecast Period
Based on organization size, the small & medium-sized enterprises segment is expected to register the higher CAGR during the forecast period. The growth of this segment is driven by factors such as the rising need to create an agile, secure, and efficient work environment and the growing demand for SD-WAN & managed LAN services among SMEs operating in the education, retail, healthcare, and manufacturing industries. Small and medium-sized enterprises often collaborate with managed service providers as they have limited in-house IT capabilities and staff. Managed network services offer a way for organizations to access IT & networking expertise without hiring more staff.
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