|Study Period:||2019- 2026|
|Fastest Growing Market:||Europe|
|Largest Market:||North America|
Need a report that reflects how COVID-19 has impacted this market and its growth?
The managed communication services market is expected to register a CAGR of 13.51% during the forecast period of 2021-2026. Managed service providers can optimize communication systems and offer enormous value at a comparatively low cost. Managed communication services are experiencing increasing demand due to the penetration of technologies, such as mobility, cloud computing, and big data across different industry verticals.
- Unified communications have emerged as a cost-effective solution for businesses across industries, such as healthcare, BFSI, and retail. The unified communications market has historically revolved around individual products. In the past, companies chose individual products to meet particular needs. For example, organizations bought email servers for messaging, team rooms for teamwork, portals for organizational information sharing, and PBX and voicemail for telephony services. Now, customers are making strategic technology decisions to deploy unified communications and collaboration environments based on the capability and integration of the collaboration stack.
- Vendors are undergoing various partnerships, proving to augment the market growth. For instance, In July 2021, Synoptek has announced the purchase of Juxto's direct real-time communications (RTC) business clients and the establishment of a Real-Time Communications Practice combining Synoptek and Juxto capabilities. Synoptek's global experience as an IT integrator, combined with Juxto's North American Carrier-Grade network purpose-built for Teams Voice delivery, provides a voice communication solution that meets and surpasses the most stringent client requirements.
- CenturyLink's new Engage portfolio will provide medium-sized organizations with cloud-based phone and communications services. CenturyLink's Engage solution enables organizations to take advantage of the benefits of cloud-based communications services by leveraging either their own or CenturyLink's connectivity or both. Business clients in all 50 states can use the service right now.
- Remote work mandates caused by COVID-19 are creating an unprecedented opportunity for service providers to promote software-based communications as a key enabler of business continuity and demonstrate the flexibility of communication services in terms of capacity adjustments and services delivery (irrespective of location). This trend is expected to support market growth. Voxbone recently published a report highlighting the virus's impact on its network. According to the study, COVID-19 has pushed a massive increase in demand for cloud communications as businesses look for ways to reduce the threats of things, such as group gatherings and the work commute.
Scope of the Report
Managed communication services cover email, unified communications, and voice over IP (VoIP). Businesses are adopting managed communication services that give them the advantage to perform in the ever-increasing competitive environment. This gives them a zero-cost advantage in the maintenance of technology infrastructure. Managed communication services comprise email, unified communications, and VoIP (voice over IP). It can be deployed on-premise and through the cloud. End-users such as BFSI, Healthcare, retail, etc., are considered in the scope of the study.
|By Deployment Model|
|Rest of the World|
Key Market Trends
VoIP occupies Significant Share
- The rapidly increasing adoption of the Bring Your Own Device (BYOD) trend and other mobility solutions is expected to drive the adoption of communication solutions, such as VoIP, even further. BYOD has emerged as a significant trend in this new era of flexibility, and network accessibility for employees working around the world for various organizations, making the workplace more productive as IT and other industries are investing in strengthening the infrastructure. According to Cisco, enterprises with a BYOD policy in place save on average USD 350 per year per employee.
- According to HubSpot, Inc., AI will continue to grow in strength as a VoIP trend for 2021. VoIP service providers will be better at identifying and assigning incoming communications depending on agent proficiency, urgency, and skill set. Some AI can even identify inauthenticity in a person's voice and prevent fraud using biometric indicators. According to Nuance, it delivers anti-fraud speech measures to 85 percent of Fortune 500 organizations as part of a larger fraud detection system, which uses a collection of known fake voices.
- However, In recent years, security breaches using VoIP have made front-page news. For example, a cyberattack targeted several high-profile WhatsApp accounts, which might install malware onto their phones — and take data — just by contacting them. They didn't even have to pick up the phone, and the calls frequently went unnoticed in the phone's record.
- VoIP services being increasingly integrated with larger sales and support stacks is one of the most prominent VoIP trends for 2021. When deciding on the finest VoIP service for your company, consider how the platform will integrate with your other products.
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Europe is Expected to Witness Significant Growth
- The major driving factor for the market growth in Europe is the increasing use cases of UC&C in the retail industry. The UK retailers are looking to attract customers to interact with them in-store so that they keep coming back. To do this, they need to provide a convenient and frictionless in-store experience, with the added advantage of knowledgeable sales staff that can explain product offerings and the number-one preference of in-store shoppers, ahead of ambiance, which is propelling the adoption of communication services.
- The United Kingdom has witnessed a potential growth in the retail industry with major players, like 8x8, a US-based company, which is one of the largest UCaaS providers comprising more than 1 million users, expanded significantly in the European market after it made two acquisitions of the UK-headquartered enterprises.
- The country’s carriers’ efforts to discontinue the integrated services digital network services are driving the carrier and customer migration to Internet protocol connectivity services. This huge shift is driving the adoption of next-generation business communication solutions, such as hosted private branch exchange (PBX) and UCaaS solutions.
- The market is also witnessing partnerships, which is helping to increase the awareness of the solutions. In July 2020, Atos transferred a portion of its unified communications and collaboration activities in Belgium, Luxembourg, Sweden, and Finland to Damovo, a leading provider of ICT-managed services and solutions. The partnership enables a faster response to the increasing demand for innovative UC solutions in the enterprise sector and is part of Atos’ global ambition to grow its market share for its UCC portfolio through indirect channel partners.
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The managed communication services market is highly competitive in nature. Product launches, high expense on research and development, partnerships and acquisitions, etc., are the prime growth strategies adopted by the companies to sustain the intense competition. Some of the recent developments are -
- October 2021, Verizon has opted to introduce Verizon Software-Defined Secure Branch with Fortinet Secure SD-WAN to its worldwide SD-WAN offering (managed services). The system is meant to give enterprises a converged networking and security solution "in-a-box" to protect and connect hybrid and remote workforces, including enterprise and business market clients.
- In February 2021, Masergy (a managed SD-WAN service provider) has added Cisco's renowned Webex video conferencing solution to its unified communications-as-a-service offerings. Masergy's existing unified communications platform and Webex are combined into a single application that interfaces with the company's SD-WAN and SASE services, which are powered by Fortinet.
Cisco Systems, Inc.
Verizon Communications Inc.
Alcatel Lucent Enterprise International
- In May 2020, Intermedia teamed up with NEC Corp. to integrate NEC's desk phones with cloud UC and contact center solutions, just in time to assist homebound companies during the COVID-19 epidemic. The corporation expects to generate over $20 billion in yearly revenue through this arrangement. For Intermedia, it's a big, game-changing opportunity.
- April 2020 - Verizon Communications announced to acquire BlueJeans Network, an enterprise-level video conferencing and event platform. The acquisition will feed into Verizon's immersive unified communications portfolio. Primarily BlueJeans' meeting platform will be integrated with Verizon's unified communications as a service business.
Table of Contents
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 Value Chain / Supply Chain Analysis
4.3 Industry Attractiveness - Porter's Five Force Analysis
4.3.1 Threat of New Entrants
4.3.2 Bargaining Power of Buyers
4.3.3 Bargaining Power of Suppliers
4.3.4 Threat of Substitute Products
4.3.5 Intensity of Competitive Rivalry
4.4 Assessment of COVID-19 Impact on the Industry
5. MARKET DYNAMICS
5.1 Market Drivers
5.1.1 Increasing demand from SME's expected to drive adoption
5.1.2 Increasing Cloud-based Managed Services
5.2 Market Restraints
5.2.1 Concerns about disclosing confidential information to MSPs
6. MARKET SEGMENTATION
6.1 By Deployment Model
6.2 By Type
6.2.1 Unified Communication
6.2.4 Other Types
6.3 By End-User
6.3.4 Public Sector
6.3.5 Other End-Users
6.4 By Geography
6.4.1 North America
6.4.3 Asia Pacific
6.4.4 Rest of the World
7. COMPETITIVE LANDSCAPE
*List Not Exhaustive
7.1 Company Profiles
7.1.1 Cisco Systems Inc.
7.1.2 Polycom Inc. (Plantronics)
7.1.3 Avaya Inc.
7.1.4 NEC Corporation
7.1.5 Ringcentral Inc.
7.1.6 8x8 Inc.
7.1.7 Vidyo Inc. (Enghouse Systems Limited)
7.1.8 Arkadin Cloud Communications (NTT)
7.1.9 Alcatel Lucent Enterprise International
7.1.10 Dialpad Inc.
7.1.11 Mitel Network Communications
7.1.12 Verizon Communications Inc.
7.1.13 AT&T Inc.
7.1.14 West Corporation
7.1.15 BT Group
7.1.16 Comcast Corporation
8. INVESTMENT ANALYSIS
9. FUTURE OF THE MARKET
Frequently Asked Questions
What is the study period of this market?
The Managed Communication Services Market market is studied from 2019 - 2026.
What is the growth rate of Managed Communication Services Market?
The Managed Communication Services Market is growing at a CAGR of 13.51% over the next 5 years.
Which region has highest growth rate in Managed Communication Services Market?
Europe is growing at the highest CAGR over 2021- 2026.
Which region has largest share in Managed Communication Services Market?
North America holds highest share in 2021.
Who are the key players in Managed Communication Services Market?
Cisco Systems, Inc., AT&T Inc., NEC Corporation, Verizon Communications Inc. , Alcatel Lucent Enterprise International are the major companies operating in Managed Communication Services Market.