Report : North America 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 10.3% CAGR, the North America Managed Network Services Market is speculated to be worth US$ 39,455.85 million by 2028, says Business Market Insights
According to the Insight Partners’ research, the North America managed network services market was valued at US$ 21,948.36 million in 2022 and is expected to reach US$ 39,455.85 million by 2028, registering an annual growth rate of 10.3% from 2022 to 2028. Rising digital transformation and growing demand for reducing administration and maintenance expenditure are the critical factors attributed to the market expansion.
The digital transformation uses technologies to create new or modify existing business processes and customer experiences to meet the ever-changing business environment. Digital transformation has common goals, such as improving efficiency, adding value, and promoting innovation. As companies are increasingly adopting digital transformation to deliver better customer experiences and compete more effectively, there is a growing need for services that support such modernization of information technology (IT) within different enterprises. Additionally, while companies seek to adopt digital transformation, the availability of skilled personnel and the cost of retaining them become hindrances for most enterprises. Managed network service providers, often termed managed service providers (MSPs), strongly aid in overcoming such hindrances. Enterprises can easily avail of their digital transformation service without the requirement of managing or maintaining an IT department within their enterprise.The rising digital transformation is also boosting certain other factors, such as migration to the cloud and rapid growth in data generation. Companies have continually migrated their workloads to the cloud for better flexibility and workload portability. Hence, the public cloud is becoming an increasingly important asset for a company’s IT strategy. As such migrations are relatively complex, both large enterprises and small and medium enterprises (SMEs) are seeking MSPs for managed network services. By 2026, more than 85% of large enterprises are expected to seek assistance from managed network service providers for migrating applications to the cloud. Growth in data generation has paved the way for problems in managing such data. In 2021, enterprises contributed to creating, capturing, and replicating about 46 zettabytes of data. Most enterprises cannot derive valuable business insights from such huge amounts of generated data. Artificial intelligence (AI) and machine learning (ML) can be utilized for harnessing meaningful insights from such data; however, for doing so, companies first need to address certain critical aspects, including multicloud data management, data privacy, and data governance. For all such requirements, MSPs can strongly aid businesses by offering cost-effective solutions without requiring huge investments. Furthermore, while enterprises are willing to adopt digital transformation, they face a challenge in integrating their legacy systems with the technologically advanced newer technology. Either the required skill of the in-house IT team is inadequate, or integration cost becomes higher than expected. By partnering up with an MSP, all such challenges are easily transferred to the MSP without requiring additional investment in the workforce or infrastructure. Hence, the rising adoption of digital transformation is strongly aiding the North America managed network services market growth.
On the contrary,data privacy and security concerns hurdles the growth of North America managed network services market.
- Based on type, the North America 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 26.1% market share in 2022, amassing US$ 5,731.47 million. It is projected to garner US$ 9,473.98 million by 2028 to expand at 8.7% CAGR during 2022–2028.
- Based on deployment, the North America managed network services market is bifurcated into cloud and on-premise. The on-premise segment held 59.7% market share in 2022, amassing US$ 13,113.49 million. It is projected to garner US$ 22,670.00 million by 2028 to expand at 9.6% CAGR during 2022–2028.
- Based on organization size, the North America managed network services market is bifurcated into large enterprises and SMEs. The large enterprises segment held 59.6% market share in 2022, amassing US$ 13,091.65 million. It is projected to garner US$ 22,415.57 million by 2028 to expand at 9.4% CAGR during 2022–2028.
- Based on end-use vertical, the North America managed network services market is segmented into BFSI, government, IT & telecommunication, manufacturing, media & entertainment, retail & e-commerce, and others. The IT & telecommunication segment held 20.5% market share in 2022, amassing US$ 4,492.35 million. It is projected to garner US$ 8,841.08 million by 2028 to expand at 11.9% CAGR during 2022–2028.
- Based on country, the North America managed network services market has been categorised into US,Canada,and Mexico. Our regional analysis states that US captured 85.4% market share in 2022. It was assessed at US$ 18,749.93 million in 2022 and is likely to hit US$ 34,003.05 million by 2028, exhibiting a CAGR of 10.4% during the forecast period.
Key players dominating the North America 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.