Telecom Managed Services Market Size
| Study Period | 2021 - 2029 |
| Market Size (2024) | USD 25.87 Billion |
| Market Size (2029) | USD 43.96 Billion |
| CAGR (2024 - 2029) | 11.19 % |
| Fastest Growing Market | Asia Pacific |
| Largest Market | North America |
| Market Concentration | High |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Telecom Managed Services Market Analysis
The Telecom Managed Services Market size is estimated at USD 25.87 billion in 2024, and is expected to reach USD 43.96 billion by 2029, growing at a CAGR of 11.19% during the forecast period (2024-2029).
The telecom sector is a significant market for managed services due to the high rate of various technological adoptions, increased frequency of confirmation of the BYOD policy (to make business operations much more comfortable and controllable), and the increased need for high-end security due to the rapidly increasing data among the organizations.
- The telecom industry observed extensive growth during the past few years. Telecommunication companies are constantly pressured to deliver innovative services at lower costs to retain their customers in the competitive market. The factors, such as the constant requirement for network optimizations and the significant level of network performance, advancements in technologies, such as SDN, 5G, and NFV, growing smartphone usage and BYOD trends, and the growing number of cyber-attacks, will further encourage the growth of the telecom managed services market during the forecast period.
- Since telecom businesses are increasing rapidly, enterprises frequently rely on MSPs (Managed Service Providers). An MSP helps enterprises achieve excellent business outcomes by providing a significant level of service. The companies mostly face several challenges in terms of revenue, business transformation, cost implementation, and heightened competition in the marketplace in the telecom sector, due to which they depend on MNOs and CSPs. Moreover, various SD-WAN-managed service providers distinguish themselves with a broad range of security offerings. For instance, Cato Networks gives a cloud-native platform that includes NGFW, Advanced Threat Prevention, CloudSecure Web Gateway, Mobile Access Protection, and Managed Threat Detection and Response service.
- Telecom companies are also acquiring managed service providers to gain a more significant market share. For instance, recently this year, Networking systems, services, and software provider Ciena Corporation revealed that it had signed a binding agreement to buy privately held Tibit Communications, Inc. with headquarters in Petaluma, California, as well as privately held Benu Networks, Inc. with offices in Burlington, Massachusetts. Tibit and Benu mainly focus on simplifying broadband access networks with enhanced subscriber management and next-generation PON technologies.
- Determinants, such as security concerns related to the confidentiality of data of businesses that are outsourcing the business and assuring the optimum business functionality of the clients, are expected to restrict the market growth during the forecast period.
- However, due to the COVID-19 outbreak, operational services, like telecom managed services and support services, were affected globally. Moreover, due to this pandemic, a broad range of firms has significantly undergone a long-term work-from-home culture. Hence, most organizations are turning to service providers for their ability to minimize various security-related risks with the value-added service they offer, which drives the market exponentially.
Telecom Managed Services Market Trends
This section covers the major market trends shaping the Telecom Managed Services Market according to our research experts:
Rise in the Usage of Cloud Computing is Expected to Drive the Market Growth Significantly
- The telecom sectors have been significantly impacted by cloud computing. For the past five years, cloud computing has experienced tremendous growth in popularity. It greatly affects the business, technology, and information technology sectors. This has caused a rise in global spending on cloud computing. Overall, it decreased operational and administrative costs in the telecom sector while preserving unified communication and teamwork with an extensive Content Delivery Network. Cloud service providers let the telecom industry concentrate on core business functions rather than IT, server updates, or upkeep concerns.
- The primary drivers of the market's growth are the increasing adoption of cloud computing technologies, especially by small and medium-sized businesses, and the rapid advancement of technology, including mobility and big data services, to improve operational efficiency. Cloud Computing offers a broad range of opportunities in the telecom industry. It could help companies improve their business and use technology more efficiently, so it has significantly increased the reach of telecommunications worldwide using advanced technologies. Some of its benefits include Cloud Delivery Model, Communication Services, Network Services, Highly scalable and flexible infrastructure, Efficient and flexible resource allocation and management, etc. Moreover, using cloud computing, service providers can provide software at lower rates with the help of virtualization and provisioning software, allocating efficient computing resources and thus reducing hardware costs as well.
- The market is witnessing several acquisitions, mergers, and investments by key players as part of its strategy to improvise business and its presence to reach customers and meet their requirements for various applications. For instance, recently, in the last quarter of this year, Colt Technology Services and IBM's cooperative relationship took a new direction when the two joined up to open a new Industry 4.0 lab in the United Kingdom where businesses can try edge cloud services. While IBM will give its Maximo Application Suite and Cloud Satellite hybrid cloud, Colt will contribute its Colt Edge computing platform and SD-WAN technology. With three critical edge use cases-visual inspection-based inferencing, supply chain telemetry, threat monitoring, and data protection-the duo initially focuses on the manufacturing industry.
- Moreover, in the Q4 of the year 2022, Amazon Web Services declared the introduction of a new cloud computing region in Switzerland. Through 2036, the corporation would add 2,500 full-time employees yearly in various sectors, including engineering, telecommunications, facility maintenance, and construction, due to the Europe AWS area. According to AWS, three availability zones make up the new cloud region in Zurich. Each availability zone's data centers have access to separate power, physical security, a cooling system, and a low-latency network connection. These availability zones should offer improved fault tolerance for high-availability applications to ensure minimal service interruption.
- As per Digital Ocean, In 2021, 74 % of enterprises indicated using cloud hosting/infrastructure services such as AWS EC2 or Azure VMs. Enterprises are also using the platform as a service (PaaS) solution, including Heroku or Azure App Service, to a great extent. Notably, traditional small and midsize businesses generally use fewer cloud services and therefore have less complex cloud setups. Hence the overall rise in the usage of cloud hosting/infrastructure services by enterprises will drive the market exponentially.
North America to Dominate the Telecom Managed Services Market
- North America held the most significant market share and is anticipated to dominate the telecom-managed services market during the forecast period. The market will experience an abrupt rise in this region. The factors encouraging the growth of the market in North America include quickly evolving technological developments, the presence of the world's largest telecom firms looking to optimize their network investments & intensify customer satisfaction, and rising network cyber-attacks in this region.
- Moreover, the rise in misconfigured servers within the region is also one of the significant reasons behind the market expansion. Various firms are experiencing misconfigured servers which lead to the prime cause of personal data being compromised. Hence, they are significantly turning to telecom-managed service providers for their overall ability to reduce security-related risks with their value-added services. Recently this year, Microsoft, a US-based company, confirmed that a misconfiguration of a Microsoft server endpoint exposed specific customer data, including emails and personal information.SOCRadar has identified that sensitive data of around 65,000 entities became public due to this misconfigured server. Hence, the rise in misconfigured servers in the region significantly drives the market's growth.
- Moreover, with the speedy acceleration of modern technology and the need for streamlined IT functions, an increasing number of businesses in the region are finding it best to keep pace with the help of Telecom MSP. Additionally, the market is witnessing various product launches and innovations by key players as part of its strategy to improve business and their presence to reach customers and meet their requirements for multiple applications.
- For instance, earlier this year, to provide fast, flexible, and secure wireless cellular access to any number of fixed sites, anywhere, AT&T offered AT&T Managed Wireless WAN, a plug-and-play system run by AT&T network professionals. Moreover, in the 2nd quarter of this year, Emersion, whose powerful business automation platform supercharges billing, provisioning, and order flow for telecom, MSP, and utility businesses, announced the acceleration of its presence in North America.
- Further, the penetration of smartphones and tablets is increasing in the United States, which in turn is driving the BYOD policy. The increasing penetration of devices and robust network connectivity across the region are expected to encourage organizations to adopt BYOD policies. Additionally, the presence of key telecom players in the region and the increasing deployment of data centers is expected to drive the market. Also, the rise in the need for improved operational efficiency and reliability in business processes is exponentially driving the market in the region.
Telecom Managed Services Industry Overview
The telecom-managed services market is consolidated, and significant players dominate it. Primary vendors across various verticals are planning for considerable investments in this market. As a result, the market is poised to grow at an extraordinary rate in the upcoming years. The principal players are embracing several organic and inorganic growth strategies, like mergers and acquisitions, collaboration and partnerships, and joint ventures, to gain a strong position in the market. Some of the critical development in the market are:
- November 2022 - Agility Communications Group, a provider in the telecommunications sector, has been acquired by BlackPoint IT Services. The key reason behind this is to provide end-to-end IT services and telecoms with even more comprehensive capabilities to assist their clientele across the United States and their branch offices in Asia and Europe.
- August 2022 - As part of its flagship retail program, Verizon and Nova Credit, the top consumer-permission credit agency in the world, have announced that they have expanded their partnership to conduct foreign credit checks for clients new to the country over the phone and in some Verizon stores. With the help of this cooperation, Verizon will be able to pull prospective customers' international credit files and convert them into credit scores that could make them eligible for financing.
Telecom Managed Services Market Leaders
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Cisco Systems, Inc.
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Huawei Technologies Co., Ltd.
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International Business Machines Corporation
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Telefonaktiebolaget LM Ericsson
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Verizon Communications Inc.
*Disclaimer: Major Players sorted in no particular order
Telecom Managed Services Market News
- December 2022 - Endeavor Managed Services, a pioneering provider of managed services platforms for digital transformation, announced the acquisition of SOVA Inc. The acquisition combines the overall strengths of a global transformation company with 5G connectivity and digital transformation capabilities.
- November 2022 - A prominent provider of technology services and consultancy, Wipro Limited and Verizon Business have launched a global Network-as-a-Service (NaaS) alliance that would hasten business network modernization and cloud transition. Through the multi-year partnership, Wipro will be able to move customers away from the manual processes of deploying hardware, software, and services towards a self-healing, highly secure network service environment.
Telecom Managed Services Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET INSIGHTS
4.1 Market Overview
4.2 Industry Value Chain Analysis
4.3 Industry Attractiveness - Porter's Five Forces Analysis
4.3.1 Bargaining Power of Suppliers
4.3.2 Bargaining Power of Buyers
4.3.3 Threat of New Entrants
4.3.4 Threat of Substitutes
4.3.5 Intensity of Competitive Rivalry
4.4 Assessment of the Impact of COVID-19 on the Telecom Managed Services Market
5. MARKET DYNAMICS
5.1 Market Drivers
5.1.1 Demand for Enhanced Operational Efficiency, Security, and Agility in Telecom Business Process
5.1.2 Cost Minimization in Managing Enterprise Infrastructure
5.2 Market Restraints
5.2.1 Assuring the Optimum Business Functionality of the Customers
6. MARKET SEGMENTATION
6.1 By Organization Size
6.1.1 Large Enterprises
6.1.2 Small and Medium Enterprises
6.2 By Service Type
6.2.1 Managed Data Center Services
6.2.2 Managed Security Services
6.2.3 Managed Network Services
6.2.4 Managed Data and Information Services
6.2.5 Other Service Types (Managed Communication Services and Managed Mobility Services)
6.3 Geography
6.3.1 North America
6.3.2 Europe
6.3.3 Asia Pacific
6.3.4 Latin America
6.3.5 Middle-East & Africa
7. COMPETITIVE LANDSCAPE
7.1 Company Profiles*
7.1.1 Cisco Systems Inc.
7.1.2 Huawei Technologies Co. Ltd
7.1.3 International Business Machines Corporation
7.1.4 Telefonaktiebolaget LM Ericsson
7.1.5 Verizon Communications Inc.
7.1.6 AT&T Inc.
7.1.7 NTT Data Corporation
7.1.8 Unisys Corporation
7.1.9 Comarch SA
7.1.10 GTT Communications Inc.
7.1.11 Amdocs Inc.
7.1.12 ZTE Corporation
7.1.13 Nokia Corporation
7.1.14 Tech Mahindra Limited
7.1.15 Fujitsu Limited
8. INVESTMENT ANALYSIS
9. MARKET OPPORTUNITIES AND FUTURE TRENDS
Telecom Managed Services Industry Segmentation
Managed services refer to a concept where a third-party service provider manages an organization's in-house, day-to-day management functions. Telecom-managed services allow organizations to minimize their costs in business operations, focusing more on fundamental techniques and essential business exercises, cutting down dangers primarily related to business operations, and upgrading operational precision and effectiveness.
The Telecom Managed Services Market is Segmented by Organization Size (Large Enterprises, Small and Medium Enterprises), Service Type (Managed Data Center Services, Managed Security Services, Managed Network Services, Managed Data and Information Services), and Geography. The market sizes and forecasts are provided in terms of value (USD million) for all the above segments.
| By Organization Size | |
| Large Enterprises | |
| Small and Medium Enterprises |
| By Service Type | |
| Managed Data Center Services | |
| Managed Security Services | |
| Managed Network Services | |
| Managed Data and Information Services | |
| Other Service Types (Managed Communication Services and Managed Mobility Services) |
| Geography | |
| North America | |
| Europe | |
| Asia Pacific | |
| Latin America | |
| Middle-East & Africa |
Telecom Managed Services Market Research FAQs
How big is the Telecom Managed Services Market?
The Telecom Managed Services Market size is expected to reach USD 25.87 billion in 2024 and grow at a CAGR of 11.19% to reach USD 43.96 billion by 2029.
What is the current Telecom Managed Services Market size?
In 2024, the Telecom Managed Services Market size is expected to reach USD 25.87 billion.
Who are the key players in Telecom Managed Services Market?
Cisco Systems, Inc., Huawei Technologies Co., Ltd., International Business Machines Corporation, Telefonaktiebolaget LM Ericsson and Verizon Communications Inc. are the major companies operating in the Telecom Managed Services Market.
Which is the fastest growing region in Telecom Managed Services Market?
Asia Pacific is estimated to grow at the highest CAGR over the forecast period (2024-2029).
Which region has the biggest share in Telecom Managed Services Market?
In 2024, the North America accounts for the largest market share in Telecom Managed Services Market.
What years does this Telecom Managed Services Market cover, and what was the market size in 2023?
In 2023, the Telecom Managed Services Market size was estimated at USD 23.27 billion. The report covers the Telecom Managed Services Market historical market size for years: 2021, 2022 and 2023. The report also forecasts the Telecom Managed Services Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
What is driving the growth of the Telecom Managed Services Market?
The Telecom Managed Services Market is driven by: a) Need for operational efficiency b) Cost reduction c) Focus on core business activities d) Increasing complexity of telecom infrastructure
Telecom Managed Services Industry Report
The telecommunication managed services market is witnessing remarkable growth, fueled by the necessity for improved operational efficiency, security, and agility within telecom business processes. As the sector grapples with swiftly evolving technologies, heightened competition, and cost management, the adoption of managed services in telecommunications emerges as a strategic imperative. These services are pivotal in slashing the costs of managing enterprise infrastructure and empower telecom companies to concentrate on their core activities, thus mitigating operational risks. The market, diverse in service types, organization sizes, and geographical reach, spans from managed data center to security services, further propelled by the surge in cloud computing usage. This evolution is crucial for telecom sectors aiming to refine business processes and leverage technology more effectively. Amidst the technological convergence of the Internet of Things (IoT) and 5G, the demand for telecommunication-managed services is set to soar, keeping the market landscape competitive and dynamic. For detailed insights, Mordor Intelligenceā¢ Industry Reports offer a comprehensive analysis, including market share, size, revenue growth, and forecasts, available as a free report PDF download, highlighting the vibrant future of telecommunication managed services.
