Report : Middle East & Africa Managed Network Services Market Forecast to 2028 – COVID-19 Impact and 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 8.9% CAGR, the Middle East & Africa Managed Network Services Market is speculated to be worth US$ 4,778.78 million by 2028, says Business Market Insights
According to the Insight Partners’ research, the Middle East & Africa managed network services market was valued at US$ 2,860.99 million in 2022 and is expected to reach US$ 4,778.78 million by 2028, registering an annual growth rate of 8.9% from 2022 to 2028. Growing demand for reducing administration and maintenance expenditure and growing demand for reducing administration and rising digital transformation are the critical factors attributed to the market expansion.
Several macroeconomic factors across the region have created a severely hostile environment for businesses. The pandemic caused severe disruptions, which led to huge losses for several industry verticals. Political factors have been negatively affecting different industry verticals in different ways. Severe economic downturns in several countries have resulted in 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 are preferring economical and flexible expenses while focusing on core business. Availing managed network services can aid organizations in reducing costs while maintaining a competitive edge. Reportedly, 46% of enterprises saved nearly 25% of their IT spending by availing of managed network services. 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 service being requested, prices vary. Hence, enterprises have a clear knowledge of operations expense budget 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. With decreasing lifecycle of electronic devices and intensifying competition, companies tend to focus more on core technologies, which directly affect their business, rather than managing in-house infrastructure. Hence, partnering with an MSP for managed network service is a viable option for reducing the operational cost of a company. Furthermore, keeping IT staff on payroll can become cumbersome for most SMEs and large enterprises. Hence, through MSPs, enterprises can access highly qualified IT professionals with proper technology know-how as and when required. Such professionals are generally well-trained in business policies, and hence, they can address any queries that the service availed may be having, maintenance of upgrades as per SLAs, and provide important documentation for performing important installations. Thus, companies can save up to 70% on salary costs and the need for IT personnel while also saving on office space and equipment. Due to such advantages offered by MSPs, enterprises are increasingly adopting managed network services to reduce administration and maintenance expenditure. This, in turn, is boosting the growth of the MEA managed network services market.
On the contrary, data privacy and security concerns hurdles the growth of Middle East & Africa managed network services market.
- Based on type, the Middle East & Africa 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 25.1% market share in 2022, amassing US$ 719.94 million. It is projected to garner US$ 1,088.32 million by 2028 to expand at 7.1% CAGR during 2022–2028.
- Based on deployment, the Middle East & Africa managed network services market is bifurcated into cloud and on-premise. The on-premise segment held 65.1% market share in 2022, amassing US$ 1,863.27 million. It is projected to garner US$ 3,059.76 million by 2028 to expand at 8.6% CAGR during 2022–2028.
- Based on organization size, the Middle East & Africa managed network services market is bifurcated into large enterprises and SMEs. The large enterprises segment held 68.4%market share in 2022, amassing US$ 1,957.90 million. It is projected to garner US$ 3,182.03 million by 2028 to expand at 8.4% CAGR during 2022–2028.
- Based on end-use vertical, the Middle East & Africa managed network services market is segmented into BFSI, government, IT & telecommunication, manufacturing, media & entertainment, retail & e-commerce, and others. The IT & telecommunication segment held 20.9% market share in 2022, amassing US$ 597.71 million. It is projected to garner US$ 1,087.04 million by 2028 to expand at 10.5% CAGR during 2022–2028.
- Based on country, the Middle East & Africa managed network services market has been categorized into South Africa, Saudi Arabia, UAE, and rest of MEA. Our regional analysis states that Saudi Arabia captured 29.4%market share in 2022. It was assessed at US$ 841.99 million in 2022 and is likely to hit US$ 1,383.46 million by 2028, exhibiting a CAGR of 8.6% during the forecast period.
Key players dominating the Middle East & Africa managed network services market are Accenture PLC; CISCO Systems, Inc; Cognizant Technology Solution Corporation; Fujitsu Limited; Huawei Technologies Co., Ltd; Kyndryl Inc; NTT Limited; Tata Consultancy Services Limited; Varizon Communication Inc; and HCl Technologies, Ltd among others.
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