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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