The telecom managed service market size was projected to be USD 22.9 billion in 2023. By the end of 2024, the industry is likely to reach a valuation of USD 25.5 billion. During the forecast period, the global market for telecom managed service is expected to garner a 12.90% CAGR and reach a size of USD 85.5 billion by 2034.
Key industry Trends and Highlights
| Attributes | Details |
|---|---|
| Estimated Market Value in 2023 | USD 22.9 billion |
| Expected Market Value in 2024 | USD 25.5 billion |
| Expected Market Value in 2034 | USD 85.5 billion |
| Value based CAGR from 2024 to 2034 | 12.90% |
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| Report Attributes | Details |
|---|---|
| Market value in 2019 | USD 15.3 billion |
| Market value in 2023 | USD 22.9 billion |
| CAGR from 2019 to 2023 | 10.60% |
Telecom managed service providers have an opportunity as Internet of Things (IoT) devices become more widely used. To assist the connectivity, administration, and security of the increasing number of IoT devices across several industries, companies may provide specialized services.
Companies can tackle specific difficulties and requirements by customizing managed services for industry verticals like manufacturing, transportation, or healthcare. Customized solutions improve industry-specific knowledge and strengthen value offerings.
The table below lists the top five nations expected to forecast prominent growth during the forecast period. Japan and Australia are predicted to have the maximum development among these nations.
Key Market Statistics
Forecast CAGRs from 2024 to 2034
| Countries | CAGR from 2024 to 2034 |
|---|---|
| The United States | 10.70% |
| Japan | 12.30% |
| Germany | 14.10% |
| China | 13.40% |
| Australia | 16.40 % |
Below listed are some of the prominent factors in each of the countries that are boosting the regional growth for the telecom managed service market.
The United States telecom managed services market is seeing an increase in cybersecurity risks, which is driving up demand for managed services. Companies are looking for strong managed solutions to improve network security, reduce risks, and guarantee adherence to strict data protection laws, which is indicative of the increased focus on protecting sensitive data in the region.
One major motivator is the continuous rollout of 5G networks, as American telecom companies substantially allocate resources to managed services in order to effectively construct, modernize, and maintain their infrastructure. The complexity and technological nuances involved in the broad adoption of sophisticated 5G technologies have increased demand for telecom managed services.
The emphasis of Japan on disaster resilience has a distinct effect on the regional need for telecom managed services. In order to provide reliable and resilient communication networks that facilitate prompt reaction and recovery in the event of an earthquake, natural catastrophe, or other emergency, telecom providers make use of managed services.
The aging population in Japan is driving the use of managed services to provide innovative medical and smart city solutions. Telecom services are designed to support smart healthcare device connection and help create technologically sophisticated, age-appropriate urban settings.
Industry 4.0 efforts are driving the usage of telecom managed services in Germany. Leading the way in industrial automation, companies use managed services to improve overall operational efficiency across manufacturing and related industries, maximize connectivity, and ease IoT integration.
The need for telecom managed services is influenced by the regional dedication to renewable energy sources. Telecom operators need scalable and effective solutions to handle complex communication networks in the infrastructure of renewable energy as the nation moves toward greener energy, which is driving the market expansion.
The Digital Silk Road plan in China has an impact on the telecom managed services business in the country. One of the main goals of the Belt and Road Initiative is to promote global digital connectivity.
Telecom managed services are essential to helping Chinese companies expand internationally and improving the connectivity infrastructure of the Digital Silk Road.
Australia has a particular need for telecom managed services to provide uninterrupted connectivity in remote places owing to its large and isolated geographical area.
Telecom operators serve distant communities, mining, and agriculture by using managed services. This is to help them overcome the difficulties of maintaining dependable and effective communication networks in sparsely inhabited areas.
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Based on deployment, the market has been segmented into on premise and cloud. A significant market share is likely to be generated by the cloud segment in 2024 with an expected 55% share.
Based on enterprise size, the market has been divided into large enterprises and small and medium sized enterprises. In 2024, the large enterprises segment is forecast to acquire a market share of 68%.
| Category | Market share in 2024 |
|---|---|
| Cloud | 55% |
| Large enterprises | 68% |
The cloud segment by deployment type is expected to acquire a market share of 55% in 2024. In the global telecom managed services market, cloud deployment solutions are in high demand owing to their unmatched flexibility, scalability, and affordability. Telecom companies use cloud technologies to optimize operational efficiency by dynamically adjusting resources based on demand.
The cloud makes it possible to integrate new services with upcoming technologies like 5G seamlessly and to deploy them quickly. It minimizes the chance of interruption by ensuring regional redundancy and improving network security through centralized control. The adaptability of the cloud helps telecom carriers remain competitive as the market changes by providing a future-proof infrastructure that satisfies changing industry and end-user demands.
Based on the service type, the public transportation segment is anticipated to take up a significant global market share. In 2024, the public transportation segment is likely to acquire a 59% global market share.
The need for telecom managed services is driven by large enterprises that are looking for more efficient ways to communicate. To support their extensive activities, these companies need a communication infrastructure that is both scalable and efficient. With the help of telecom managed services, large enterprises can outsource the difficulties of network maintenance, security, and administration to third-party vendors.
This allows companies to take advantage of the most recent innovations and affordable service models while concentrating on their main business operations. Telecom managed services are essential for large enterprises globally, driven by the need for improved connection, collaboration tools, and the quick uptake of new technologies like IoT and 5G.
Companies are using strategic tactics to increase profitability in the fiercely competitive telecom managed services market. Diversifying service offerings to provide end-to-end solutions, such as maintenance, network design, and security, is a crucial strategy. By offering all-inclusive solutions, companies guarantee enduring alliances with telecom providers.
Adopting cutting-edge technologies like edge computing and 5G enables service providers to take advantage of new trends and adapt to changing client demands. Streamlining processes and increasing efficiency, artificial intelligence and automation play a critical role in cost optimization. In the end, profitable businesses in the telecom managed services sector rely on innovation, diversity, and technology. Some of the prominent developments by the key companies in this domain are-
| Company | Key Developments |
|---|---|
| Cisco Systems, Inc. |
|
| Huawei Technologies Co. Ltd |
|
| Attribute | Details |
|---|---|
| Projected market value in 2024 | USD 25.5 billion |
| Projected market value in 2034 | USD 85.5 billion |
| Forecast CAGR from 2024 to 2034 | 12.90% |
| Forecast period | 2024 to 2034 |
| Historical period | 2019 to 2023 |
| Market analysis | Value in USD billion |
| Key regions covered | North America; Latin America; Western Europe; Eastern Europe; South Asia and Pacific; East Asia; The Middle East & Africa |
| Key countries profiled | The United States, Canada, Brazil, Mexico, Germany, The United Kingdom, France, Spain, Italy, Russia, Poland, Czech Republic, Romania, India, Bangladesh, Australia, New Zealand, China, Japan, South Korea, GCC countries, South Africa, Israel |
| Key market segments |
Service Type, Deployment, Enterprise Size, Deployment, Region |
| Key companies profiled | 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 |
The global telecom managed service market is expected to reach USD 25.5 billion by 2024.
The global telecom managed service market is set to expand at a CAGR of 12.90% by 2034.
The global telecom managed service market is forecast to reach USD 85.5 billion by 2034.
The cloud segment is projected to gain a 55% share in 2024.
The public transportation segment is likely to acquire a 59% share in 2024.
| Estimated Market Value (2022) | USD 1,804.5 Billion |
|---|---|
| Projected Market Value (2032) | USD 3,303.3 Billion |
| CAGR (2022 to 2032) | 6.2% |
| Market Size (2022) | USD 3.1 Billion |
|---|---|
| Market Size (2032) | USD 6.6 Billion |
| Market CAGR (2022 to 2032) | 7.9% |
| Market Value (2022) | USD 61.9 Billion |
|---|---|
| Market Anticipated Value (2032) | USD 130.9 Billion |
| Projected Growth Rate (2022 to 2032) | 7.8% |
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