Report : Europe Managed Network Services Market Forecast to 2030 - Regional Analysis - by Type (Managed LAN, Managed Network Security, Managed Monitoring, Managed VPN, Managed WAN and Managed Wi-Fi), Deployment (Cloud and On-Premise), Organization Size (Large Enterprises and SMEs), and End-Use Vertical (BFSI, Government, IT & Telecommunication, Manufacturing, Media & Entertainment, Retail & e-Commerce, and Others)
At 11.6% CAGR, the Europe Managed Network Services Market is speculated to be worth US$ 41,210.49 million by 2030, says The Business Market Insights
According to the Business Market Insights’ research, the Europe managed network services market was valued at US$ 19,135.97 million in 2023 and is expected to reach US$ 41,210.49 million by 2030, registering a CAGR of 11.6% from 2023 to 2030. Rising digital transformation and growing demand for reducing administration and maintenance expenditure are the critical factors attributed to the Europe managed network services market expansion.
Several macroeconomic factors across the globe have created a severely hostile environment for businesses. The pandemic caused severe disruptions, which led to huge losses for several industry verticals. Political factors in Europe, the Middle East, and South America have negatively affected industry verticals. Severe economic downturns in several countries have decreased consumer spending on discretionary or optional goods.
While the definition of such goods varies depending on a family's income, it is undeniable that most industry verticals have endured or are enduring losses due to such a decrease in consumption. With respect to such factors, enterprises are adopting different measures to remain competitive by reducing capital expenditure. Hence, enterprises prefer economical and flexible expenses while focusing on core business. Availing of managed network services can aid organizations in reducing costs while maintaining a competitive edge. Thus, companies can save on operational costs while increasing productivity. MSPs can increase productivity through the replacement of inefficient IT systems and the reduction of downtime.
Additionally, expenditure on network security and cyber threat can also be minimized through such services. Generally, an annual or multi-year contract, known as a service level agreement (SLA), is signed between the MSP and enterprises for managed network services. Depending on the parameters of the service being requested, prices vary. Hence, enterprises have a clear knowledge of operations expense budgets for IT. Hence, variable expenditures under capital expenses for purchasing new equipment or maintaining old equipment are removed. Enterprises can remain unaffected by price rises or similar unforeseen circumstances with a multi-year deal.
On the contrary, data privacy and security concerns hurdles the growth of Europe managed network services market.
Based on type, the Europe managed network services market is segmented into managed LAN, managed network security, managed monitoring, managed VPN, managed WAN, and managed Wi-Fi. The managed LAN segment held 22.5% share of Europe managed network services market in 2023, amassing US$ 4,299.22 million. It is projected to garner US$ 8,091.76 million by 2030 to expand at 9.5% CAGR during 2023–2030.
Based on deployment, the Europe managed network services market is segmented into cloud and on-premise. The on-premise segment held 60.1% share of Europe managed network services market in 2023, amassing US$ 11,505.19 million. It is projected to garner US$ 24,175.11 million by 2030 to expand at 11.2% CAGR during 2023–2030.
Based on organization size, the Europe managed network services market is segmented into large enterprises and SMEs. The large enterprises segment is sub-segmented into BFSI, government, IT & telecommunication, manufacturing, media & entertainment, retail & e-commerce, and others. The IT & telecommunication segment held 21.2% share of Europe managed network services market in 2023, amassing US$ 2,522.08 million. It is projected to garner US$ 5,749.00 million by 2030 to expand at 12.5% CAGR during 2023–2030.
The SMEs segment is sub-segmented into BFSI, government, IT & telecommunication, manufacturing, media & entertainment, retail & e-commerce, and others. The IT & telecommunication segment held 19.9% share of Europe managed network services market in 2023, amassing US$ 1,436.35 million. It is projected to garner US$ 3,543.62 million by 2030 to expand at 13.8% CAGR during 2023–2030.
Based on end-use vertical, the Europe managed network services market is segmented into BFSI, government, IT & telecommunication, manufacturing, media & entertainment, retail & e-commerce, and others. The IT & telecommunication segment held 20.7% share of Europe managed network services market in 2023, amassing US$ 3,958.43 million. It is projected to garner US$ 9,292.62 million by 2030 to expand at 13.0% CAGR during 2023–2030.
Based on country, the Europe managed network services market has been categorized into the Germany, France, Italy, UK, Russia, and the Rest of Europe. Our regional analysis states that the Germany captured 23.9% share of Europe managed network services market in 2023. It was assessed at US$ 4,582.21 million in 2023 and is likely to hit US$ 9,662.94 million by 2030, exhibiting a CAGR of 11.2% during the forecast period.
Key players operating in the Europe managed network services market are Accenture Plc; Cisco Systems Inc; Cognizant Technology Solutions Corp; Fujitsu Ltd; HCL Technologies Ltd; Huawei Investment & Holding Co Ltd; Kyndryl Holdings Inc; Tata Consultancy Services Ltd; and Verizon Communications Inc, among others.
- In May 2023, Cloudflare announced its partnership with Kyndryl, to help enterprises modernize and scale their corporate networks with managed WAN-as-a-Service and Cloudflare Zero Trust. The partnership couples Kyndryl’s expert, managed end-to-end networking services with Cloudflare’s robust technology platform to enable enterprises to streamline connectivity to multiple clouds at scale.
- In Mar 2022, Vodafone and Accenture are teaming to provide managed security services to small to medium-sized enterprises (SME) in Germany. The services will help SMEs be more resilient to cyber threats, providing leading cybersecurity talent and industry expertise to organizations that do not have the capacity, time or resources to keep up with this rapidly evolving space.
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