Managed Network Services Market Trends

Growth Drivers

• The widespread adoption of 5G and IoT: For instance, by 2023, China will have 2 million 5G base stations, and by 2030, there will be over 25 billion IoT devices. 5G provides high bandwidth and low latency, which will likely drive the demand for MNS's need for sophisticated network management.  The National Institute of Standards and Technology (NIST's) IoT security recommendations draw attention to potential weaknesses and also make it difficult for suppliers to guarantee scalability, driving the use of managed security solutions. For instance, in June 2023, Wipro Limited announced a partnership with Cisco for the introduction of managed private 5G Services to help enterprise customers achieve improved business outcomes.

• Increasing cybersecurity concerns: The need for managed network security services is fueled by the rise in cyberattacks.  This makes scalable and flexible MNS solutions like firewalls and intrusion prevention systems compulsory. MNS guarantees that the network conforms to data protection laws, such as GDPR or HIPAA. According to The European Union Agency for Cybersecurity (ENISA's) 2024 report threat Landscape, ransomware incidents in Europe increased by around 38%.

5G Deployment and Its Impact on the Global Managed Network Services Market

The global managed network services market is estimated to rise, driven by the growing deployment of 5G networks. Businesses use 5G for improved MNS, which is crucial for businesses. This also makes it possible for networks to be secure and flexible.  5G opens new frontiers for industrial IoT (IIoT) by enabling real-time data analytics, automation, and predictive maintenance. 5G's integration with edge computing and IoT accelerates the adoption of smart factories. For instance, in 2023, more than 40% of supply chain professionals prioritize 5G for IoT connectivity. These developments highlight how 5G will transform MNS by improving scalability and stimulating enterprise-wide innovation.

Pricing Trends and Technological Impact on MNS Market (2020–2024)

The global Managed Network Services market has witnessed substantial variations in prices over the last five years. These fluctuations are propelled by both geographical and technological developments.  For instance, the average price of MNS solutions in North America fell from around USD 98 per unit in 2020 to USD 75 per unit in 2024.

Additionally, during the same timeframe, Europe saw a reasonable price decline. Consequently, this restricted the quick deployment of cost-cutting technologies. The situation was very different in Asia, where the MNS prices increased despite technological breakthroughs.

Regional Price Trends in Managed Network Services (2020–2024)

Challenges

• Data privacy and security concerns: Managed network services present data security issues, including unauthorized access attempts, malware infections, data breaches, and denial of service. MNS often deals with sensitive information, which makes organizations vulnerable to cyberattacks. As a result, governments and industries have introduced stringent cybersecurity guidelines such as GDPR, HIPAA, and CCPA. For instance, to prevent unauthorized access, ISO 27001:2022 Annex A Control 8.21 highlights best practices for network service security.
• Lack of skilled professionals: It gets difficult to locate workers skilled in SD-WAN and cloud networking.  This affects the quality of services and possibly hampers the delivery of effective MNS. The dearth of tech expertise makes it difficult for the firms to fulfill their long-term obligations to stakeholders.