Managed MPLS Market Size (2024 - 2029)

The managed MPLS services market is experiencing growth driven by the increasing demand for secure connectivity and effective data management among expanding global enterprises. This demand is further fueled by the reliance on virtual private cloud services over MPLS VPNs, which offer a cost-effective solution for high-performance communication. The integration of SD-WAN with MPLS is creating additional opportunities due to its speed and simplicity, despite SD-WAN's limitations in security and reliability. Trends such as the adoption of BYOD policies, cloud services, and the need for remote work solutions post-COVID-19 are also contributing to the market's expansion.

Market Size of Managed MPLS Industry

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Managed MPLS Market Summary
Study Period 2019 - 2029
Market Size (2024) USD 68.87 Billion
Market Size (2029) USD 92.13 Billion
CAGR (2024 - 2029) 5.99 %
Fastest Growing Market Asia Pacific
Largest Market North America

Major Players

Managed MPLS Market Major Players

*Disclaimer: Major Players sorted in no particular order

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Managed MPLS Market Analysis

The Managed MPLS Market size is estimated at USD 68.87 billion in 2024, and is expected to reach USD 92.13 billion by 2029, growing at a CAGR of 5.99% during the forecast period (2024-2029).

With the rapidly growing global expansion of enterprises, there is an increased demand for secure connectivity among multiple business units and effective means for data management, which is one of the significant factors boosting MPLS networks' adoption.

  • Several enterprises rely on virtual private cloud services on MPLS VPNs to achieve high performance and critical communication, as they provide the benefits of a private network with the economics of a public network. This is because VPC services create logical 'private' partitions within a public cloud environment, providing the benefits of a dedicated private cloud but on a more cost-effective and flexible basis.
  • The emergence of SD-WAN is expected to significantly impact the networking market due to its speed and simplicity. However, SD-WAN cannot compete with security and reliability, thus pushing companies to implement a conjunction of the two. This is expected to create more significant opportunities for the managed MPLS market.
  • The market studied is also expected to improve business intelligence and security surveillance applications by offering real-time video information. Additionally, the need for minimal investments to integrate analytics software with the existing surveillance infrastructure has been a significant factor that has prompted enterprises, irrespective of size, to invest in this technology and attain a significant return on investment (ROI).
  • Other prominent trends projected to augment the global managed MPLS market's growth include increasing BYOD policies, growing adoption of cloud services (like computing and analytics), and rising smartphone penetration. Owing to the increased adoption of BYOD policies, Cisco Systems stated that companies favoring BYOD make an annual saving of USD 350 per year per employee.
  • Due to the outbreak of COVID-19, the demand for remote work solutions has seen a surge due to organizations transitioning from their conventional workplace methods to work-from-home scenarios. These impacts must be carefully considered in the context of the organization's cybersecurity as more and more personal unsecured devices start accessing the organization's network; the risk of compromising network security increases.
  • For instance, according to Centrify, over two-thirds (70%) of UK businesses are using MFA and a virtual private network (VPN) to manage the security risks posed by the increase in remote working environments due to the COVID-19 outbreak.

Managed MPLS Industry Segmentation

MPLS connections are private networks that work independently of the internet. They offer various benefits, such as high reliability and performance, as they enable traffic prioritization using the class of service (CoS) feature. MPLS VPNs are the most prominent types of WAN services used by enterprises that must be connected to their distributed enterprises globally.

The Managed MPLS Market is segmented by Service (Level 2 VPN, Level 3 VPN), End-user Vertical (Healthcare, BFSI, Retail, Manufacturing, Government, IT, and Telecommunication), and Geography (North America, Europe, Asia Pacific, Latin America, Middle East, and Africa).

The market sizes and forecasts are provided in terms of value (USD Billion) for all the above segments.

By Service (Qualitative Trend Analysis)
Level 2 VPN
Level 3 VPN
By End-user Vertical
Healthcare
BFSI
Retail
Manufacturing
Government
IT and Telecommunication
Other End-user Verticals
By Geography
North America
Europe
Asia-Pacific
Latin America
Middle East & Africa
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Managed MPLS Market Size Summary

The managed MPLS services market is poised for significant growth, driven by the increasing demand for secure and efficient connectivity solutions among expanding global enterprises. As businesses seek to enhance data management and ensure secure communication across multiple units, MPLS networks have become a preferred choice due to their ability to offer private network benefits with public network economics. The integration of virtual private cloud services with MPLS VPNs has further bolstered this trend, providing high performance and critical communication capabilities. Despite the emergence of SD-WAN, which offers speed and simplicity, its limitations in security and reliability have led companies to adopt a hybrid approach, combining SD-WAN with managed MPLS services. This strategic combination is expected to create substantial opportunities for market growth.

The BFSI sector, in particular, has been a significant driver of MPLS adoption, as the need for secure and efficient networking solutions has intensified due to increasing cyber threats and the digitalization of operations. The complexity of managing multiple locations and the specific networking requirements of individual sites have prompted BFSI institutions to outsource their networking needs, further fueling the demand for managed MPLS services. Additionally, the rise in cloud computing and the growing need for secure networking among businesses, especially in North America, are expected to contribute positively to market expansion. The market is moderately competitive, with major players focusing on strategic collaborations and expanding their product offerings to enhance their global presence and profitability.

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Managed MPLS Market Size - Table of Contents

  1. 1. MARKET INSIGHTS

    1. 1.1 Market Overview

    2. 1.2 Industry Attractiveness - Porter's Five Forces Analysis

      1. 1.2.1 Bargaining Power of Suppliers

      2. 1.2.2 Bargaining Power of Buyers/Consumers

      3. 1.2.3 Threat of New Entrants

      4. 1.2.4 Threat of Substitute Products

      5. 1.2.5 Intensity of Competitive Rivalry

    3. 1.3 Assessment of COVID-19 Impact on the Industry

  2. 2. MARKET SEGMENTATION

    1. 2.1 By Service (Qualitative Trend Analysis)

      1. 2.1.1 Level 2 VPN

      2. 2.1.2 Level 3 VPN

    2. 2.2 By End-user Vertical

      1. 2.2.1 Healthcare

      2. 2.2.2 BFSI

      3. 2.2.3 Retail

      4. 2.2.4 Manufacturing

      5. 2.2.5 Government

      6. 2.2.6 IT and Telecommunication

      7. 2.2.7 Other End-user Verticals

    3. 2.3 By Geography

      1. 2.3.1 North America

      2. 2.3.2 Europe

      3. 2.3.3 Asia-Pacific

      4. 2.3.4 Latin America

      5. 2.3.5 Middle East & Africa

Managed MPLS Market Size FAQs

The Managed MPLS Market size is expected to reach USD 68.87 billion in 2024 and grow at a CAGR of 5.99% to reach USD 92.13 billion by 2029.

In 2024, the Managed MPLS Market size is expected to reach USD 68.87 billion.

Managed MPLS Services Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)