Managed Network Services Industry - Regional Synopsis
North America Market Forecast
The North America managed network services market is expected to account for a leading share of 30.2% by the end of 2037. Key factors supporting the growth of the industry are the growth of IoT and the need for cybersecurity. According to the Internet Society, there were over 14 billion IoT devices by 2024. Consequently, this increased the demand for MNS for scalable, secure networks. In 2023, NTIA's USD 47 billion Infrastructure Act improved broadband for over 2 million households. This significantly drove the adoption of MNS. While ISED's Connecting Communities Fund supports the expansion of rural MNS, government initiatives such as the FCC's Emergency Connectivity Fund guarantee digital equity. Moreover, these factors establish North America as a trailblazer in the MNS market.
By 2037, it is predicted that the U.S. MNS market will dominate the industry with the rapid expansion of IoT, edge computing, and zero-trust security. As per data published by NIST, more than 55% of businesses implemented edge computing in 2024. Besides this, as per CISA, over 54% of companies prioritize zero-trust security, which reduces cyber threats. The Internet Society estimates that around 11 billion IoT devices will be in use by 2023. 5G, and cybersecurity are supported by the FCC's USD 9.2 billion 2024 budget, guaranteeing the U.S. MNS's leadership in scalability and innovation.
Asia Pacific Market Forecast
Asia Pacific is poised to hold a revenue share of 32% throughout the forecast period due to the rise of AI-driven network automation and cloud-based MNS by SMEs. Moreover, an increase in spending by the government drives the demand for MNS. As per ICT, in 2023, China's MIIT invested over USD 9 billion in ICT. According to MSIT, MNS adoption is fuelled by cybersecurity requirements, as evidenced by around 74% ransomware spike in 2022.
Additionally, by 2037, China is expected to have the largest Asia Pacific MNS revenue share due to its 5G leadership and digital economy. Further, the growth in the region is fueled by increased ICT investment in 2023 and CAICT's forecast of over 1 million enterprises implementing MNS in 2023. As per the Internet Society, by encouraging open-source MNS, programs like Made in China 2025's dependency on foreign technology is reduced.
