A new report by XploreMR studies the growth drivers, trends, restraints, and highlights of the global managed network services market. Presenting exclusive insights into the market from 2018 to 2028, the report projects that the market will witness significant growth during the forecast period. When an organization outsources functions and networking applications from a third-party service provider, such as Managed Service Providers (MSPs), these services are termed managed network services. Services such as Local Area Network (LAN), Wide Area Network (WAN), and software-defined WAN are the major services offered by managed network services. Moreover, unified communications and network consulting, and implementation services are also gaining traction among enterprises, thereby expanding revenue prospects. The growth of the market is predominantly driven by rising investments in the quantum computing field and increasing emphasis on business process centralization among medium and large-scale enterprises. Furthermore, increased spending by small and medium-scale enterprises on cloud and managed services is anticipated to complement the market growth.
Cost-effectiveness and Technical Support of Management Network Services Augments Adoption in Large-scale Enterprises
Outsourcing managed network services help in controlling expenses since specialist software and hardware are highly expensive for personalized installation. However, MSPs provide custom services and solutions on the basis of a contract with minimal initial costs. Moreover, the 'pay as you go' model followed by managed network services cuts the additional expenditure on IT support staff, since it provides additional staff and expertise on an ad-hoc basis. This saves a major chunk of operational expenses involved in training and hiring activities. On a technical front, managed network services facilitate multiple IT services on a single connection, further saving the infrastructure expenses. This centralized IT management infrastructure bestows numerous benefits such as substantial power savings, reduced carbon footprint, quicker behind-the-curtain upgrades including firewall and antivirus updates, effective monitoring, and 24x7 security features. The financial advantages which the managed network services provide are forecasted to propel the adoption. Furthermore, managed network services encourage enterprises to shift from Capital Expenditure (CAPEX) model to Operational Expenditure (OPEX) models since they can avoid bearing the cost of purchasing their own applications with specific monitoring capabilities, along with additional expertise needed to manage the tools and processes. This saves a remarkable portion of expenditure for enterprises and is expected to be a significant growth driver through the forecast period.
North America Holds Remains in Forefront of Growth
The North American region is forecasted to reign supremacy in the managed network services market, owing to the high adoption of innovative technologies in end-use industries, and a strong presence of major market players. Large-scale industries in numerous sectors, such a Telecom & IT, Retail & eCommerce, and Media & entertainment, among others, have already opted for managed network services, and adoption in small and medium-scale enterprises is poised to contribute to market growth through the forecast period.