Managed network services market to soar to $89.9Bn by 2028

CHICAGO, UNITED STATES — In a significant development for the tech industry, the Managed Network Services Market is on track to reach a staggering $89.9 billion by 2028, marking a Compound Annual Growth Rate (CAGR) of 6.5%.

Managed network services are networking applications, functions, and services that enterprises outsource to be remotely operated, monitored, and maintained by a managed service provider (MSP).

A forecast by research platform MarketsandMarkets attributed this growth to businesses increasingly turning to MSPs to navigate the complexities of network management. 

This shift allows companies to focus on their core competencies while leveraging the expertise of MSPs to stay ahead in the technology curve. The move towards managed network services is particularly beneficial for Small and Medium-sized Enterprises (SMEs), where cost considerations are paramount.

The surge in the Managed Network Services Market is also fueled by the digitalization of businesses, which require agile networks for enhanced customer experiences. 

The widespread adoption of cloud technology, mobile devices, and technological advancements further contribute to the market’s growth. 

However, concerns over data security and hesitations about outsourcing critical business functions pose challenges to the market’s expansion.

The report identifies Managed Wide Area Networks (WAN) as the segment expected to dominate the market by 2028, driven by enterprises’ need for reliable WAN networks to connect branch offices and ensure seamless connectivity. 

The Banking, Financial Services, and Insurance (BFSI) sector is projected to hold the largest market share, attributed to the critical need for security in handling sensitive commercial data.

Geographically, North America is poised to maintain the largest share of the market thanks to its robust technology adoption and digitization. The presence of leading market players such as Cisco, IBM, Verizon, and AT&T in the region further strengthens its market position.