Global Telecom Managed Services Market Size Insights Forecasts to 2032

• The Telecom Managed Services Market Size was valued at USD 22.35 Billion in 2022.
• The Market is Growing at a CAGR of 12.5% from 2023 to 2032
• The Worldwide Telecom Managed Services Market is expected to reach USD 72.58 Billion by 2032
• Asia-Pacific is expected to Grow significant during the forecast period

 

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The Global Telecom Managed Services Market Size is expected to reach USD 72.58 Billion by 2032, at a CAGR of 12.5% during the forecast period 2023 to 2032.

 

Market Overview

Telecom Managed Services refer to comprehensive outsourcing solutions offered by specialized providers to telecommunications companies. These services encompass the end-to-end management and maintenance of a telecom operator's network infrastructure, IT systems, and customer support operations. Telecom Managed Services providers assume responsibility for tasks such as network design, installation, monitoring, and optimization, ensuring network reliability and performance. They also handle IT functions like data center management, security, and cloud services, enabling telecom companies to focus on their core business activities and innovation. Additionally, customer support services, including call center operations and technical support, are often part of the package, enhancing the overall customer experience. Telecom Managed Services offer cost efficiencies, scalability, and expertise, making them a valuable resource for telecom operators striving to stay competitive and agile in an ever-evolving industry.

 

Report Coverage

This research report categorizes the market for telecom managed services market based on various segments and regions and forecasts revenue Growth and analyzes trends in each submarket. The report analyses the key Growth drivers, opportunities, and challenges influencing the telecom managed services market. Recent market developments and competitive strategies such as expansion, product launch, and development, partnership, merger, and acquisition have been included to draw the competitive landscape in the market. The report strategically identifies and profiles the key market players and analyses their core competencies in each sub-segments of the telecom managed services market.

 

 

Driving Factors

The telecom managed services market is being propelled by several key drivers that are reshaping the telecommunications industry and compelling telecom operators to seek outsourced solutions to stay competitive and agile, the ever-increasing complexity of telecom networks and technologies, including the deployment of 5G, Internet of Things (IoT), and virtualization, has created a demand for specialized expertise. Managed service providers offer the necessary skills and knowledge to design, deploy, and maintain these intricate networks efficiently. Cost optimization is a significant driver. Telecom operators face the challenge of reducing operational costs while maintaining high-quality services. Outsourcing network management and IT functions can lead to significant cost savings, as managed service providers can leverage economies of scale and advanced tools to manage networks more efficiently. The need for rapid innovation is pushing telecom operators to focus on their core competencies, such as developing new services and products. Telecom managed services allow them to offload routine operational tasks to experts, freeing up resources for innovation and staying competitive in a fast-paced industry. The Growing importance of customer experience is a driver. Telecom operators recognize that superior customer service is a key differentiator. Managed service providers can enhance customer support operations, ensuring quick problem resolution, better service quality, and improved overall customer satisfaction. The global trend toward digital transformation is prompting telecom operators to adopt new technologies and embrace digital solutions. Managed service providers can help telecom companies navigate this transformation, from migrating to the cloud to implementing advanced analytics and security solutions. The need for scalability and flexibility is crucial in today's dynamic telecom landscape. Managed services allow operators to scale their network operations up or down as needed, adapting to changing market conditions and customer demands efficiently.

 

 

Restraining Factors

The telecom managed services market faces several constraints, including concerns related to data security and privacy as outsourcing involves sharing sensitive customer information with service providers. Additionally, regulatory and compliance challenges in different regions can hinder market Growth. Furthermore, the potential loss of in-house control and visibility over network operations may be a deterrent for some telecom operators. Cost considerations can also be a restraint, as upfront investment in managed services can be significant. The risk of service provider dependence and the need for thorough vendor selection processes pose challenges in ensuring long-term reliability and partnership sustainability, making operators cautious about fully embracing telecom-managed services.

 

 

Market Segmentation

• In 2022, the managed data center services segment accounted for around 30.4% market share

On the basis of the service type, the global telecom managed services market is segmented into managed data center services, managed security services, managed network services, managed mobility services, and others. The dominance of the managed data center services segment in the market can be attributed to as businesses increasingly rely on digital operations and cloud-based solutions, the demand for secure and efficiently managed data centers has surged. Managed data center services provide companies with expert support in areas such as server management, virtualization, storage, and disaster recovery, ensuring high availability and optimal performance. Additionally, the complexity of data center operations and the need for 24/7 monitoring and support make outsourcing to specialized providers an attractive option. This has propelled the managed data center services segment to the forefront of the market.

 

• The cloud segment held the largest market with more than 50.6% revenue share in 2022

Based on the deployment, the global telecom managed services market is segmented into on-premise and cloud. The dominance of the cloud segment in the market is a result of the transformative impact of cloud computing on the telecom industry. Cloud-based services offer telecom operators the agility, scalability, and cost-efficiency needed to meet the evolving demands of modern telecommunications. Cloud solutions encompass a wide range of offerings, from Infrastructure as a Service (IaaS) to Platform as a Service (PaaS) and Software as a Service (SaaS), catering to diverse telecom needs. This versatility, coupled with the ability to rapidly deploy and manage resources in the cloud, has propelled the cloud segment to the forefront, making it the dominant force in the telecom managed services market.

 

• The large enterprises segment held the largest market with more than 65.2% revenue share in 2022

 

Based on the enterprise size, the global telecom managed services market is segmented into large enterprises and small & medium enterprises. The dominance of the large enterprises segment in the market can be attributed to the unique needs and capabilities of these organizations. Large enterprises often have extensive and complex telecommunications infrastructures, making them prime candidates for telecom managed Services. They benefit significantly from outsourcing network management, IT operations, and customer support to specialized providers. This allows them to focus on their core business activities while ensuring network reliability and scalability. Moreover, large enterprises typically have the financial resources to invest in comprehensive managed service solutions, making them a major driver in the telecom managed services market.

 

 

Regional Segment Analysis of the Telecom Managed Services Market

• North America (U.S., Canada, Mexico) 
• Europe (Germany, France, U.K., Italy, Spain, Rest of Europe)
• Asia-Pacific (China, Japan, India, Rest of APAC)
• South America (Brazil and the Rest of South America) 
• The Middle East and Africa (UAE, South Africa, Rest of MEA)

 

 

North America dominated the market with more than 34.2% revenue share in 2022.

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Based on region, North America has consistently dominated the telecom managed services market due to a highly developed telecommunications industry with a massive subscriber base, which fuels the demand for managed services. Additionally, North American businesses are early adopters of advanced technologies, leading to a greater need for expert management and support services. Furthermore, the presence of numerous established managed service providers with a global reach contributes to North America's leadership. The region's focus on network security, regulatory compliance, and a robust IT ecosystem also reinforces its dominant position in the telecom-managed services market.

 

 

Asia Pacific region is projected for significant Growth in the telecom managed services market over the forecast period. Several factors contribute to this trend, including the region's burgeoning population, increasing mobile and internet penetration, and rapid urbanization. As emerging economies in Asia Pacific continue to modernize their telecom infrastructure, telecom operators are increasingly turning to managed services to efficiently manage and scale their networks. Furthermore, the region's vast and diverse market presents ample opportunities for managed service providers to offer tailored solutions, making Asia Pacific a key Growth market in the telecom managed services sector.

 

 

Recent Developments

• In December 2022, Endeavour Managed Services, a forerunner in managed services platforms for digital transformation, has announced the purchase of SOVA Inc. The purchase combines a global transformation company's overall strengths with 5G connectivity and digital transformation skills.

 

• In March 2023, NTT Data, a telecommunications firm, has introduced Sentient Platform for Network Transformation (SPEKTRA) as the next-generation platform for NTT Managed Network solutions.

 

 

Competitive Analysis:

The report offers the appropriate analysis of the key organizations/companies involved within the global telecom managed services market along with a comparative evaluation primarily based on their product offering, business overviews, geographic presence, enterprise strategies, segment market share, and SWOT analysis. The report also provides an elaborative analysis focusing on the current news and developments of the companies, which includes product development, innovations, joint ventures, partnerships, mergers & acquisitions, strategic alliances, and others. This allows for the evaluation of the overall competition within the market.

 

 

List of Companies:

• Cisco Systems, Inc.
• Huawei Technologies Co., Ltd.
• Telefonaktiebolaget LM Ericsson
• Acuity Technologies
• Verizon Communications Inc.
• AT&T Inc.
• NTT DATA
• Comarch SA
• Nokia
• Fujitsu Ltd.

 

Key Target Audience

• Market Players
• Investors
• End-Users
• Government Authorities 
• Consulting and Research Firm
• Venture Capitalists
• Value-Added Resellers (VARs)

 

Market Segment

This study forecasts revenue at global, regional, and country levels from 2019 to 2032. Spherical Insights has segmented the global telecom managed services market based on the below-mentioned segments:

 

Telecom Managed Services Market, By Service Type

• Managed Data Center Services
• Managed Security Services
• Managed Network Services
• Managed Mobility Services
• Other

 

Telecom Managed Services Market, By Deployment

• On-premise
• Cloud

 

Telecom Managed Services Market, By Enterprise Size

• Large Enterprises
• Small & Medium Enterprises

 

Telecom Managed Services Market, Regional Analysis

• North America
  • US
  • Canada
  • Mexico
• Europe
  • Germany
  • UK
  • France
  • Italy
  • Spain
  • Russia
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Australia
  • Rest of Asia Pacific
• South America
  • Brazil
  • Argentina
  • Rest of South America
• Middle East & Africa
  • UAE
  • Saudi Arabia
  • Qatar
  • South Africa
  • Rest of Middle East & Africa