Snapshot img

Managed Network Services Market Size 2024-2028

The managed network services market size is valued to increase USD 16.6 billion, at a CAGR of 4.38% from 2023 to 2028. Increased adoption of IoT solutions will drive the managed network services market.

Major Market Trends & Insights

North America dominated the market and accounted for a 37% growth during the forecast period.
By End-user - BFSI segment was valued at USD 19.50 billion in 2022
By Deployment - Cloud segment accounted for the largest market revenue share in 2022

Market Size & Forecast

Market Opportunities: USD 40.23 billion
Market Future Opportunities: USD 16.60 billion
CAGR : 4.38%
North America: Largest market in 2022

Market Summary

The market represents a dynamic and ever-evolving landscape, underpinned by advancements in core technologies and applications. With the increasing adoption of Internet of Things (IoT) solutions and automation in managed network services, businesses are reaping the benefits of enhanced connectivity and streamlined operations. However, this digital transformation comes with its challenges, including data privacy and security risks. According to a recent study, the market is expected to account for over 30% of the total IT services market by 2025. This growth is driven by the rising demand for reliable and secure network infrastructure, as well as the need for businesses to adapt to the evolving threat landscape and regulatory requirements. Despite these opportunities, market players must navigate complex regulatory environments and stay abreast of emerging technologies to remain competitive.

What will be the Size of the Managed Network Services Market during the forecast period?

Get Key Insights on Market Forecast (PDF) Request Free Sample

How is the Managed Network Services Market Segmented and what are the key trends of market segmentation?

The managed network services industry research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in 'USD billion' for the period 2024-2028, as well as historical data from 2018-2022 for the following segments. End-userBFSIRetail and e-commerceIT and telecomHealthcareOthersDeploymentCloudOn-premisesGeographyNorth AmericaUSEuropeGermanyUKAPACChinaJapanRest of World (ROW)

By End-user Insights

The bfsi segment is estimated to witness significant growth during the forecast period.

The market is experiencing significant growth, with financial and banking sectors leading the charge. This trend is driven by the increasing adoption of m-commerce and e-commerce in North America, Europe, and developing economies in APAC. Financial and banking data, which includes customer financials, account information, cardholder data, and transaction and personal information, is highly regulated by regulatory bodies such as the EU's General Data Protection Regulation (GDPR). Network security solutions, including remote network access, network virtualization, intrusion detection systems, network function virtualization, network automation, firewall management, zero trust security, software-defined networking, network performance metrics, SD-WAN deployment, hybrid cloud networking, network monitoring tools, virtual private cloud, multi-factor authentication, network orchestration, QOS optimization, cloud network integration, network forensics, data loss prevention, network segmentation, SLA management, incident response planning, network security audits, application performance monitoring, VPN connectivity, access control lists, infrastructure as code, bandwidth management, network traffic analysis, and network capacity planning, are essential for safeguarding this sensitive data. According to recent reports, the network security market is expected to grow by 14.5% in 2022, with the banking and financial services sector accounting for a significant portion of this expansion. Furthermore, the network security market is projected to reach a value of USD151.4 billion by 2026, representing a growth of 12.4% annually during this period. These trends reflect the ongoing need for robust security solutions to address the evolving threat landscape and ensure regulatory compliance in the financial sector. By implementing advanced network security technologies, businesses can protect their valuable data, maintain customer trust, and stay competitive in today's digital economy.

Request Free Sample

The BFSI segment was valued at USD 19.50 billion in 2018 and showed a gradual increase during the forecast period.

Request Free Sample

Regional Analysis

North America is estimated to contribute 37% to the growth of the global market during the forecast period.Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.

See How Managed Network Ser

Europe Managed Network Services Market is projected to grow around USD 18.7 billion in 2025 to USD 41.2 billion by 2031, registering a CAGR of 14.5% during the forecast period.

The European Managed SD-WAN Services market is booming, projected to hit $1.12 billion in 2025 with a 24.70% CAGR. Discover key trends, drivers, restraints, and leading companies shaping this dynamic sector. Learn about market segmentation by organization size and end-user, with regional breakdowns focusing on key European markets. Recent developments include: June 2024: Haier Europe, in its push to transform into a data-centric enterprise, partnered with Orange Business to implement a dynamic SD-WAN solution. Orange Business unveiled a strategic roadmap focusing on three core elements: cloud, connectivity, and cybersecurity. The first phase of the Haier project features a versatile software-defined wide area network (SD-WAN), with Orange Business consultants guiding the selection of underlay and overlay configurations tailored to Haier's needs.. Key drivers for this market are: Lack of In-house Expertise Driving Organizations to Opt for Managed Network Services, Benefit of Extensive Focus on Core Operations and Cost-efficiency; Rapidly Growing Digital Transformation and Network Traffic in Various Industries. Potential restraints include: Lack of In-house Expertise Driving Organizations to Opt for Managed Network Services, Benefit of Extensive Focus on Core Operations and Cost-efficiency; Rapidly Growing Digital Transformation and Network Traffic in Various Industries. Notable trends are: Increased Adoption of Cloud Services to Drive the Market.

From 2024 to 2029, the European managed network service market is expected to grow by over USD 11 billion, fueled by ongoing digital transformation efforts.

Managed Network Services Market Outlook

According to our latest research, the global Managed Network Services market size stood at USD 68.3 billion in 2024, reflecting robust adoption across diverse industry verticals. The market is projected to expand at a CAGR of 8.2% from 2025 to 2033, reaching an estimated USD 129.2 billion by 2033. This growth is primarily driven by the increasing complexity of enterprise networks, the rising prevalence of cloud-based applications, and the urgent need for enhanced network security and operational efficiency in a digitally connected world.

One of the most significant growth factors for the Managed Network Services market is the ongoing digital transformation initiatives undertaken by organizations across the globe. As businesses migrate toward hybrid and multi-cloud environments, the complexity of managing distributed IT infrastructures has increased exponentially. Enterprises are increasingly outsourcing their network management to specialized service providers to ensure seamless connectivity, optimized performance, and robust cybersecurity. The proliferation of IoT devices, remote working trends, and the surge in data traffic have further accelerated the demand for managed network solutions that can provide real-time monitoring, proactive maintenance, and rapid issue resolution. This shift not only helps organizations focus on their core competencies but also enables them to achieve greater agility and scalability in their operations.

Another crucial driver propelling the Managed Network Services market is the heightened focus on cybersecurity and data privacy. With cyber threats becoming more sophisticated and frequent, enterprises are under immense pressure to safeguard their networks against potential breaches, ransomware attacks, and unauthorized access. Managed network security services, including advanced firewalls, intrusion detection and prevention systems, and continuous vulnerability assessments, have become indispensable for organizations seeking to protect their digital assets. Service providers are investing heavily in AI and machine learning-powered security solutions to offer real-time threat intelligence and automated incident response, thereby enhancing the overall resilience of enterprise networks. The integration of compliance management and regulatory frameworks within managed network services is also gaining prominence, especially in highly regulated sectors such as BFSI and healthcare.

Additionally, the rapid adoption of cloud-based managed network services is reshaping the market landscape. Cloud deployment models offer unparalleled flexibility, scalability, and cost-efficiency, enabling organizations to quickly adapt to changing business requirements. Managed service providers are leveraging cloud-native technologies to deliver seamless network management, centralized control, and unified visibility across geographically dispersed locations. This trend is particularly evident among small and medium enterprises (SMEs), which often lack the in-house expertise and resources to manage complex network infrastructures. By partnering with managed network service providers, SMEs can benefit from enterprise-grade solutions without incurring significant capital expenditures, thereby leveling the playing field with larger competitors.

From a regional perspective, North America continues to dominate the Managed Network Services market, accounting for the largest share in 2024, followed closely by Europe and Asia Pacific. The region's leadership is attributed to the presence of major technology vendors, early adoption of advanced networking solutions, and a highly mature IT infrastructure. However, Asia Pacific is emerging as the fastest-growing market, fueled by rapid digitalization, expanding internet penetration, and the proliferation of connected devices in countries such as China, India, and Japan. Latin America and the Middle East & Africa are also witnessing steady growth, driven by increasing investments in digital infrastructure and the rising demand for managed services among enterprises seeking to enhance operational efficiency and competitiveness in a dynamic business environment.

Snapshot img

Data Center Managed Services Market Size 2024-2028

The data center managed services market size is forecast to increase by USD 57.63 billion at a CAGR of 10.14% between 2023 and 2028.

The market is experiencing significant growth due to increasing demands for advanced computing capabilities and data storage solutions. With budgetary limits driving organizations to outsource IT infrastructure management, there is a rising need for managed services that can effectively manage computing machines, hardware equipment, IT systems, servers, data storage drives, and network equipment. The trend towards edge computing is also expanding the market, as businesses seek to process data closer to the source for faster response times. However, the integration of these services into existing data centers presents complex challenges, requiring expertise in both IT infrastructure and managed services. This market analysis report delves into these growth factors and the complexities of integrating data center-managed services, providing valuable insights for businesses looking to optimize their IT infrastructure.

What will the size of the market be during the forecast period?

Request Free Sample

The market represents a significant segment of the IT infrastructure landscape, providing businesses with essential solutions for maintaining and optimizing their IT infrastructure. This market encompasses a range of offerings, including hardware services, network services, backup maintenance, and fault tolerance solutions, among others. A reliable third-party managed service platform plays a crucial role in ensuring the upkeep and maintenance of an organization's IT infrastructure. By outsourcing these tasks, businesses can focus on their core competencies while ensuring their IT infrastructure remains reliable and efficient. Cloud infrastructure has become a norm in today's business environment, and data center managed services have evolved to meet the demands of this technology.



Furthermore, managed service providers offer expertise in managing complex IT networks, allowing businesses to leverage sophisticated technology without the need for extensive in-house IT resources. IT infrastructure is a foundational element of any growing business, and the need for reliable and efficient data center solutions is paramount. Managed services offer businesses the flexibility to scale their infrastructure as needed, without the logistical limits of managing hardware and software in-house. Network services are a critical component of data center managed services. External networks must be secure and reliable to ensure business continuity. Managed service providers offer solutions for upgrading and patching operating systems, disaster planning, and backup maintenance to mitigate potential risks and minimize downtime.

How is this market segmented and which is the largest segment?

The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in 'USD billion' for the period 2024-2028, as well as historical data from 2018-2022 for the following segments.

End-user

  Retail
  Energy
  BFSI
  Healthcare
  Others


Deployment

  Cloud
  On-premises


Geography

  North America

    US


  Europe

    Germany
    UK


  APAC

    China
    Japan


  South America



  Middle East and Africa

By End-user Insights

The retail segment is estimated to witness significant growth during the forecast period.

The market caters to the management of digital data and computing equipment for various businesses, including those that run web applications and internal applications. This market is witnessing significant growth due to the increasing demand for efficient and reliable IT infrastructure management services. Customers across multiple industries, such as human resources and accounting, are turning to managed services to streamline their operations and focus on their core competencies. Managed services providers offer a range of solutions, including monitoring, maintenance, and security, ensuring that businesses can effectively manage their IT infrastructure and mitigate potential risks.

The integration of advanced technologies, such as artificial intelligence and machine learning, further enhances the value proposition of these services. The market is expected to continue its expansion as more businesses recognize the benefits of outsourcing their IT management needs.

Get a glance at the market report of share of various segments Request Free Sample

The retail segment was valued at USD 15.59 billion in 2018 and showed a gradual increase during the forecast period.

Regional Analysis

North America is estimated to contribute 32% to the growth of the global market during the forecast period.

Technavio's analysts have elaborately explained the regional trends and drivers that shape th

The global managed services market is booming, projected to reach $284.2 billion by 2033 with an 8.8% CAGR. Learn about key drivers, trends, and market segmentation including managed security, network, and cloud services. Discover top players like IBM and Cisco and regional market analysis.

Explore the booming Managed Services Software market, forecast to reach $263.7 billion by 2025 with a 6.9% CAGR. Discover key drivers, trends, and segments like Managed Security, Network, IT Infrastructure, and Data Center Services.

The booming Managed Services Market is projected to reach $4435.47 million by 2033, growing at a CAGR of 6.51%. This comprehensive analysis explores key drivers, trends, and regional insights, including a deep dive into leading companies like Microsoft, Amazon, and IBM. Discover market segmentation, competitive landscapes, and future growth predictions.

IT Infrastructure Managed Services Market Outlook

The global IT Infrastructure Managed Services market size was valued at approximately USD 230 billion in 2023 and is expected to reach USD 450 billion by 2032, growing at a CAGR of 7.2% during the forecast period. This growth is driven by the increasing need for efficient and secure IT operations across various industries, coupled with the rising complexity of IT environments.

A significant growth factor in the IT Infrastructure Managed Services market is the rapid digital transformation being undertaken by enterprises globally. Organizations across various sectors are increasingly relying on advanced IT services to enhance operational efficiency, reduce costs, and gain a competitive edge. This transformation is further accelerated by the adoption of cloud computing, IoT, and big data analytics, which necessitate robust IT infrastructure management to ensure seamless and secure operations.

Another factor contributing to the market's growth is the escalating need for cybersecurity. As cyber threats become more sophisticated and frequent, organizations are prioritizing the implementation of comprehensive security measures. Managed security services offer continuous monitoring, threat detection, and incident response, helping organizations safeguard their data and IT infrastructure. This emphasis on cybersecurity is particularly pronounced in sectors such as BFSI, healthcare, and government, where data sensitivity is paramount.

Cost optimization is also a crucial driver for the market. By outsourcing IT infrastructure management to specialized service providers, organizations can significantly reduce their IT expenditure. Managed services allow businesses to avoid the high costs associated with in-house IT teams, infrastructure, and maintenance. This financial advantage is particularly appealing to small and medium enterprises (SMEs), which often operate with limited budgets and resources. As a result, the demand for managed services is surging among SMEs, contributing to overall market growth.

Regional outlook for the IT Infrastructure Managed Services market shows strong growth across multiple geographies. North America holds a significant share of the market, driven by the presence of numerous technology giants and advanced IT infrastructure. The Asia Pacific region is witnessing rapid growth, fueled by increasing digital initiatives and the expanding IT sector in countries like China and India. Europe also presents substantial opportunities, with many organizations focusing on digital transformation and data protection regulations. Latin America and the Middle East & Africa regions are gradually adopting these services, supported by growing IT investments and economic development.

Service Type Analysis

Network Management

Network management is a critical segment within the IT Infrastructure Managed Services market. It encompasses a range of activities, including network monitoring, maintenance, and troubleshooting, essential for ensuring network reliability and performance. Organizations increasingly rely on managed network services to handle the complexities of modern network infrastructures, which include hybrid and multi-cloud environments. The demand for network management services is driven by the need for uninterrupted connectivity, which is vital for business continuity and operational efficiency.

Another key driver for the network management segment is the proliferation of IoT devices. As organizations integrate IoT into their operations, managing the resultant network traffic becomes increasingly challenging. Managed network services provide the necessary expertise and tools to handle these complexities, ensuring seamless communication between devices and systems. Additionally, the rise of remote work and the need for secure, reliable VPN connections further bolster the demand for network management services.

Security concerns also play a significant role in the growth of the network management segment. Managed service providers offer advanced security solutions, such as firewalls, intrusion detection systems, and endpoint protection, to safeguard networks against cyber threats. This comprehensive approach to network security is crucial for industries like BFSI and healthcare, where data breaches can have severe consequences. The adoption of managed network services helps organizations stay ahead of potential threats and ensures regulatory compliance.

Moreover, the increa

The global managed services market size is projected to grow from USD 393.02 billion in 2025 to USD 1037.46 billion by 2033, exhibiting a CAGR of 12.9%.
Report Scope:

The Europe Cloud Managed Networking Market size was valued at USD 839.5 USD million in 2023 and is projected to reach USD 2754.54 USD million by 2032, exhibiting a CAGR of 18.5 % during the forecast period. Key drivers for this market are: Increasing Adoption of Cloud-based Managed Services to Drive Market Growth. Potential restraints include: Complexities Associated with Network Automation to Impede the Market Growth . Notable trends are: Growing Implementation of Touch-based and Voice-based Infotainment Systems to Increase Adoption of Intelligent Cars.

Snapshot img

IoT Managed Services Market Size 2025-2029

The iot managed services market size is forecast to increase by USD 538.5 billion, at a CAGR of 33.1% between 2024 and 2029.

The Internet of Things (IoT) Managed Services Market is experiencing significant growth, driven by the increased adoption of IoT solutions across various industries. Companies are recognizing the potential of IoT to optimize operations, enhance productivity, and improve customer experiences. One key application area is predictive maintenance in manufacturing, where IoT data is leveraged to anticipate equipment failures and schedule maintenance proactively. However, the market also faces challenges. Despite the numerous benefits, there is a lack of awareness regarding efficient management of IoT initiatives and investments. Companies need to address this issue to ensure they maximize the value of their IoT projects. Additionally, managing the complexities of IoT deployments, including security concerns and data integration, presents significant challenges that must be addressed to ensure successful implementation and adoption. Companies seeking to capitalize on the opportunities in the market must focus on addressing these challenges and providing comprehensive, end-to-end solutions that simplify IoT management and deliver measurable business value.

What will be the Size of the IoT Managed Services Market during the forecast period?

Explore in-depth regional segment analysis with market size data - historical 2019-2023 and forecasts 2025-2029 - in the full report.
Request Free SampleThe Internet of Things (IoT) managed services market continues to evolve, driven by the increasing adoption of IoT devices and the need for efficient data management and analysis. Cloud connectivity plays a crucial role in enabling seamless integration of these devices, while data governance ensures compliance with industry regulations and standards. AI-powered analytics and machine learning algorithms are transforming the way data is processed and insights are derived, leading to improved operational efficiency and enhanced decision-making capabilities. Sensor integration and real-time tracking are essential for various sectors, including manufacturing, healthcare, and transportation. Network security and access control are paramount in safeguarding IoT systems against cyber threats. Technical documentation and support services are essential for ensuring smooth deployment and management of IoT solutions. Edge computing and big data are also gaining traction, enabling faster processing of data at the source and reducing latency. Deployment models, including public, private, and hybrid cloud, offer flexibility and scalability to businesses. IoT platforms are providing integrated solutions for device management, data analytics, and network infrastructure management. Cellular networks and wireless communication are enabling remote monitoring and management of IoT devices. Ongoing developments in IoT technologies include advancements in sensor integration, system integration, and managed services pricing models. Industry regulations continue to evolve, requiring ongoing training programs and adherence to compliance standards. Data encryption, data visualization, and deep learning are also emerging trends in the IoT landscape. In the constantly evolving IoT market, businesses must stay abreast of the latest trends and technologies to remain competitive. IoT managed services providers are offering comprehensive solutions, including network security, device management, and technical support, to help businesses navigate the complexities of IoT deployments. The integration of APIs into IoT systems is ensuring seamless data flow and enabling real-time insights, further enhancing the value of IoT solutions.

How is this IoT Managed Services Industry segmented?

The iot managed services industry research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in 'USD billion' for the period 2025-2029, as well as historical data from 2019-2023 for the following segments. TypeNetwork management servicesSecurity management servicesInfrastructure management servicesData management servicesDevice management servicesDeploymentOn-premisesCloudSectorSMEsLarge enterprisesEnd-userHealthcareManufacturingBFSIRetailOthersGeographyNorth AmericaUSCanadaEuropeFranceGermanyItalyUKAPACChinaIndiaJapanSouth KoreaRest of World (ROW)

By Type Insights

The network management services segment is estimated to witness significant growth during the forecast period.The Internet of Things (IoT) managed services market is experiencing steady growth, driven by the increasing adoption of IoT devices and the need for effective data governance, cloud connectivity, and AI-powered analytics. Compliance with industry regulations and robust training programs are essential for businesses implementing IoT solutions. Wirele

Snapshot img

Managed IT Infrastructure Services Market Size 2025-2029

The managed IT infrastructure services market size is forecast to increase by USD 84.1 billion, at a CAGR of 6.4% between 2024 and 2029.

The market is experiencing significant growth, driven by the increasing adoption of cloud-based managed security services (MSS). Businesses are recognizing the benefits of outsourcing their IT security needs to specialized service providers, leading to a rise in demand for MSS. Additionally, the increasing demand for low-cost IT infrastructure solutions is fueling market expansion. This trend is particularly prevalent in small and medium-sized enterprises (SMEs) that seek cost-effective alternatives to building and maintaining their own IT infrastructure. However, the market faces challenges as well. The lack of IT security professionals is a major obstacle, as organizations struggle to find and retain skilled personnel to manage their IT infrastructure and security needs.
This shortage of talent can lead to increased vulnerability to cyber threats and data breaches. Furthermore, the rapid pace of technological change in the IT infrastructure landscape poses challenges for service providers, requiring them to continually innovate and adapt to meet evolving customer needs. Security remains a top priority, with cloud security and risk management taking center stage. Companies seeking to capitalize on market opportunities must invest in building a strong talent pool and staying abreast of emerging technologies to effectively navigate these challenges and meet the evolving demands of their customers.

What will be the Size of the Managed IT Infrastructure Services Market during the forecast period?

Explore in-depth regional segment analysis with market size data - historical 2019-2023 and forecasts 2025-2029 - in the full report.
Request Free Sample

The market continues to evolve, with dynamic market activities unfolding across various sectors. Entities such as penetration testing, business continuity, network security, data centers, system integration, unified communications, IT audit, public cloud, collaboration tools, vulnerability management, help desk support, and others are seamlessly integrated into comprehensive offerings. The ongoing digital transformation drives the demand for managed services, with organizations seeking to optimize their IT infrastructure and improve operational efficiency. IT strategy is increasingly centered around cloud computing, with hybrid and private cloud solutions gaining traction.

Network engineering and database administration are crucial components of IT infrastructure management, ensuring optimal performance and availability. Endpoint management and incident response are essential for securing the digital workplace, while network virtualization and IT consulting offerings help organizations navigate complex IT landscapes. Agile methodology and project management are critical for successful IT infrastructure implementations. Performance monitoring, capacity planning, and server management are key components of IT infrastructure management, ensuring that systems run smoothly and efficiently.

How is this Managed IT Infrastructure Services Industry segmented?

The managed IT infrastructure services industry research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in 'USD billion' for the period 2025-2029, as well as historical data from 2019-2023 for the following segments.

End-user

  SMEs
  Large enterprise


Deployment

  Cloud-based
  On-premises


Service

  Server management
  Networking services
  Virtualization services
  Storage services


Geography

  North America

    US
    Canada


  Europe

    France
    Germany
    Italy
    UK


  APAC

    China
    India
    Japan


  South America

    Brazil


  Rest of World (ROW)

By End-user Insights

The SMEs segment is estimated to witness significant growth during the forecast period. The market is witnessing significant growth, driven by the increasing adoption of digital transformation initiatives and the need for advanced IT strategies. SMEs continue to dominate the market, accounting for the largest revenue share, as they invest heavily in upgrading and maintaining their IT infrastructure. This includes the implementation of hybrid cloud solutions, machine learning, and IT outsourcing, among other services. Security audits and risk management are also critical priorities, with businesses seeking to enhance their cloud security and network security. Managed services, including network engineering, database administration, and endpoint management, are increasingly popular as companies seek to improve performance monitoring, incident response, and capacity planning.

The adoption of agile methodologies and system administration practices is driving the demand for IT consulti

The Europe cloud managed services market is projected to add more than USD 29 billion from 2024 to 2029, fueled by factors such as the rapid digitization of businesses, increasing

The IoT Managed Services Market report segments the industry into By Application (Network Management, Device Management, Data Management, Security Management, Other Applications), By End-user (Energy and Utilities, Manufacturing, Retail, Healthcare, BFSI, IT & Telecom, Other End-users), and Geography (North America, Europe, Asia-Pacific, Latin America, Middle East and Africa).