Global Telecom Managed Services Market Gaining Momentum—Projected to Reach Worth USD 42.1 Billion in 2027

Published | 18 June 2021

A study recently conducted by the strategic consulting and market research firm, Blue Weave Consulting, revealed that the global telecom managed services market was worth USD 15.2 billion in 2020 and is further projected to reach USD 42.1 billion by 2027, at a CAGR of 14.1% during the forecast period (2021-2027). An increasing number of mobile subscribers and demand for high-speed data connectivity is the major growth factors that are likely to drive the global telecom managed services market. The market's growth is also fueled by the lowering of costs associated with managing enterprise infrastructure. Moreover, improved operational reliability, efficiency, and better focus on key areas and core business are the additional factors that are expected to drive the global telecom managed services market in the foreseeable future. Increased spending on the development of 5G infrastructures as a result of growing customer demand for next-generation technologies such as NFV, SDN, and smartphone devices will also promote market growth. Less risk associated with business operations in terms of security also fuels the growth of the global telecom managed services market.

Increasing investments in the development of recent technologies driving the growth of the telecom managed services market

Rising investment in the development of 5G infrastructure is bolstering the global telecom managed services market growth. Also, the growth of the market is being stimulated by technological advancements such as 5G, SDN, and NFV. Better data connectivity has made the transferring of large chunks of data fast and economical. The number of active mobile broadband subscriptions increases from 268 million to 5826 million from 2007 to 2020. The rise in the use of digital media platforms by consumers all across the world has resulted in the sudden escalating demand for higher bandwidths with high-speed connectivity which is expected to drive the growth of the global telecom managed services market.

Decrease in the cost of managing enterprise driving the market growth for the telecom managed services market

Because the telecom managed services market is quickly expanding, businesses are increasingly relying on minimum support prices (MSP). MSP is being used by businesses since it assists them in exploring high business opportunities and delivering fruitful outcomes. However, due to plenty of other issues in the telecommunications sector, such as cost implementation, business transformation, and greater market competitiveness, some businesses opt for CSPs (Communications Service Provider) and MNOs (Mobile Network Operators). The service provider manages the entire network infrastructure for a very low cost. It also assists them in shifting costs from CapEx to OpEx with greater efficiency. One of the primary reasons that businesses are choosing to enter the telecom managed services market is to save money. 

Global Telecom Managed Services Market–By Service Type

The telecom managed services market is classified into six major groups based on service type: managed data center, managed network services, managed data and information services, managed mobility services, managed communication services, and managed security services. Managed data and information services account for the largest share in the global telecom managed services market in 2020 because of the increasing usage of smartphones by the consumer across the world. Rising demand for high-speed broadband services for corporate and residential applications further fuels the market of managed data and information services. Additionally, the proliferation of technological devices such as the Internet of things (IoT) has expanded in numerous areas such as healthcare, the public sector, manufacturing, energy, and utilities, among others. Also, the increasing number of IoT devices will necessitate high-speed internet access in order to function and interact seamlessly. These factors make the managed data and information services the largest sub segment in the service type segment.

Impact of COVID-19

While many businesses are facing the wrath of COVID-19, the global telecom services market has reaped the benefits of the nationwide lockdowns and social distancing norms. Customers are currently shifting to remote working as a result of the complete lockdown imposed by governments around the world, which is anticipated to drive the global telecom managed services market. Moreover, because of the rising demand for network connectivity and infrastructure, the key players are increasing their investments in the development of new technologies. Additionally, the temporary closure of cinemas, multiplexes, and other outdoor venues in order to avoid social gatherings has increased the use of OTT platforms, digital media platforms, and social media, resulting in a surge in demand for higher bandwidths and high-speed connectivity, which continues to drive the telecom managed services market. Because of this high consumption of digital platforms, telecom companies are requesting OTT providers to reduce the streaming resolution of their media content to avoid congestion in the internet traffic.

The Asia Pacific Leads the Global Telecom Managed Services Market

The Asia-Pacific captured the largest share in the global telecom managed services market in 2020. Since the region has a high population density, the growth in this region is primarily supported by a large number of mobile subscribers. Also, the regional market is driven by rising e-commerce buy-in platforms which make it the largest growing region in terms of the telecom industry. China, Japan, and India have seen a surge in investment in 5G technology, which is expected to promote the growth of the global telecom managed services market. According to the International Telecommunication Union (ITU), India and China were the top two countries in terms of internet users worldwide. Rising government initiatives on digital integration by Information Communication Technologies (ICT) are also likely to fuel the telecom managed services market growth in the APAC countries.

 Competitive Landscape

Some of the key players in the global telecom managed services market are Cisco Systems, Inc, Ericsson AB, Huawei Technologies Co., Ltd, International Business Machines Corporation, Verizon Communications Inc., AT&T Inc., Centurylink, NTT Data Corporation, Comarch SA, GTT Communications, Inc., Sprint.Com, Unisys, Amdocs Inc., Tech Mahindra Limited, Deutsche Telekom AG, SoftBank Group Corp, Vodafone Group, and other prominent players. The key market players have been making every effort to introduce new technology and innovations to the industry. Additionally, strategic planning helps them achieve a competitive advantage in the market.

·         In April 2021, MTS, Russia's largest mobile provider, and Huawei have launched 5G networks at 14 of Moscow's most famous landmarks. They have also created a "5G Has Come" campaign to promote a whole new mobile experience that includes fast connections, downloads, and games. This project proves to be a big milestone in the development of 5G technology.

Don’t miss the business opportunity of the global telecom managed services market. Consult our analysis to gain crucial insights and facilitate your business growth.

The in-depth analysis of the report provides information about growth potential, upcoming trends, and statistics of the global telecom managed services market. It also highlights the factors driving forecasts of total market size. The report promises to provide recent technology trends in the global telecom managed services market, along with industry insights to help decision-makers make sound strategic decisions. Furthermore, the report also analyzes the growth drivers, challenges, and competitive dynamics of the market.

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