Telecom Managed Services Market Size

Telecom Managed Services Market Analysis

The Telecom Managed Services Market size is estimated at USD 25.87 billion in 2024, and is expected to reach USD 43.96 billion by 2029, growing at a CAGR of 11.19% during the forecast period (2024-2029).

The telecom sector is a significant market for managed services due to the high rate of various technological adoptions, increased frequency of confirmation of the BYOD policy (to make business operations much more comfortable and controllable), and the increased need for high-end security due to the rapidly increasing data among the organizations.

• The telecom industry observed extensive growth during the past few years. Telecommunication companies are constantly pressured to deliver innovative services at lower costs to retain their customers in the competitive market. The factors, such as the constant requirement for network optimizations and the significant level of network performance, advancements in technologies, such as SDN, 5G, and NFV, growing smartphone usage and BYOD trends, and the growing number of cyber-attacks, will further encourage the growth of the telecom managed services market during the forecast period.
• Since telecom businesses are increasing rapidly, enterprises frequently rely on MSPs (Managed Service Providers). An MSP helps enterprises achieve excellent business outcomes by providing a significant level of service. The companies mostly face several challenges in terms of revenue, business transformation, cost implementation, and heightened competition in the marketplace in the telecom sector, due to which they depend on MNOs and CSPs. Moreover, various SD-WAN-managed service providers distinguish themselves with a broad range of security offerings. For instance, Cato Networks gives a cloud-native platform that includes NGFW, Advanced Threat Prevention, CloudSecure Web Gateway, Mobile Access Protection, and Managed Threat Detection and Response service.
• Telecom companies are also acquiring managed service providers to gain a more significant market share. For instance, recently this year, Networking systems, services, and software provider Ciena Corporation revealed that it had signed a binding agreement to buy privately held Tibit Communications, Inc. with headquarters in Petaluma, California, as well as privately held Benu Networks, Inc. with offices in Burlington, Massachusetts. Tibit and Benu mainly focus on simplifying broadband access networks with enhanced subscriber management and next-generation PON technologies.
• Determinants, such as security concerns related to the confidentiality of data of businesses that are outsourcing the business and assuring the optimum business functionality of the clients, are expected to restrict the market growth during the forecast period.
• However, due to the COVID-19 outbreak, operational services, like telecom managed services and support services, were affected globally. Moreover, due to this pandemic, a broad range of firms has significantly undergone a long-term work-from-home culture. Hence, most organizations are turning to service providers for their ability to minimize various security-related risks with the value-added service they offer, which drives the market exponentially.