Emphasis on Service Type (Managed Communications Services, Managed Data Center, Managed Data and Information Services, Managed Security Services, Managed Mobility Services, Managed Network Services, and Others), Organization Size (Large Enterprises, Small and Medium-sized Enterprises (SMEs), Region/Country.
The Telecom Managed Services Market was valued at USD 25.8 Billion in 2023 and is expected to grow at a strong CAGR of around 15.5% during the forecast period (2024-2032). This growth is majorly due to the explosion of data and rising demand for improved customer experience. The telecommunications industry generates vast data from network operations, customer interactions, and device usage. The proliferation of smartphones, IoT devices, and high-speed networks has led to an explosion of data, creating opportunities for telecom companies to leverage managed services to extract actionable insights.
The telecom managed services market refers to the outsourcing of telecom network management functions to specialized third-party providers. These services typically include network monitoring, maintenance, security, and support, allowing telecom operators to focus on core business activities while leveraging external expertise for efficient operations.
The Telecom Managed Services market is segmented into Managed Communications Services, Managed Data Center, Managed Data and Information Services, Managed Security Services, Managed Mobility Services, Managed Network Services, and Others, based on Service Type. In 2023, the Managed Data Center segment held the largest market share, driven by the increasing demand for efficient data storage and management solutions in the digital era.
By Organization Size, the Telecom Managed Services market is segmented into large enterprises and SMEs. Large enterprises dominated the market in 2023, primarily due to their substantial investments in advanced technology infrastructure. For instance, Verizon and AT&T invest heavily in network infrastructure and managed services to support their extensive customer bases and complex operations.
North America held a dominant share of the market in 2023
North America’s dominant market share is fueled by several factors, including the region’s advanced telecom infrastructure, tech-savvy consumer base, and supportive regulatory environment. For example, Verizon’s extensive network coverage and partnerships with technology providers like Cisco and Ericsson reinforce its leadership in managed services offerings.
The Telecom Managed Services Market is competitive and fragmented, with several global and international market players. The key players are adopting different growth strategies to enhance their market presence, such as partnerships, agreements, collaborations, new product launches, geographical expansions, and mergers and acquisitions. The major players operating in the market are Amdocs, CenturyLink, Cisco Systems, Inc., Comarch SA, Huawei Technologies Co., Ltd., International Business Machines Corporation (IBM), NTT DATA Inc., Sprint Group Holdings Limited, Telefonaktiebolaget LM Ericsson, and Verizon Communications Inc.
In December 2022, Endeavor Managed Services, a leader in managed services platforms for digital transformation, announced its acquisition of SOVA Inc. This strategic move integrates global transformation capabilities, advanced 5G connectivity, and digital transformation expertise.
In November 2022, Wipro Limited, a prominent technology services and consultancy provider, partnered with Verizon Business to launch a global Network-as-a-Service (NaaS) alliance. This alliance aims to accelerate business network modernization and cloud transition by transitioning customers from manual hardware and software deployments to a self-healing, highly secure network service environment.
The Global Telecom Managed Services Market can further be customized as per the requirement or any other market segment. Besides this, UMI understands that you may have your own business needs, hence feel free to connect with us to get a report that completely suits your requirements.
Analyzing the historical market, estimating the current market, and forecasting the future market of the Global Telecom Managed Services Market were the three major steps undertaken to create and analyze the adoption of Telecom Managed Services in major regions globally. Exhaustive secondary research was conducted to collect the historical market numbers and estimate the current market size. Secondly, to validate these insights, numerous findings and assumptions were taken into consideration. Moreover, exhaustive primary interviews were also conducted, with industry experts across the value chain of the Global Telecom Managed Services Market. Post assumption and validation of market numbers through primary interviews, we employed a top-down/bottom-up approach to forecasting the complete market size. Thereafter, market breakdown and data triangulation methods were adopted to estimate and analyze the market size of segments and sub-segments of the industry pertains to. Detailed methodology is explained below:
Step 1: In-Depth Study of Secondary Sources:
Detail secondary study was conducted to obtain the historical market size of the Telecom Managed Services Market through company internal sources such as annual reports & financial statements, performance presentations, press releases, etc., and external sources including journals, news & articles, government publications, competitor publications, sector reports, third-party database, and other credible publications.
Step 2: Market Segmentation:
After obtaining the historical market size of the Telecom Managed Services Market, we conducted a detailed secondary analysis to gather historical market insights and share for different segments & sub-segments for major regions. Major segments are included in the report as Service Type and Organization Size. Further country-level analyses were conducted to evaluate the overall adoption.
Step 3: Factor Analysis:
After acquiring the historical market size of different segments and sub-segments, we conducted a detailed factor analysis to estimate the current market size of the Telecom Managed Services Market. Further, we conducted factor analysis using dependent and independent variables such as Service Type and Organization Size of the Telecom Managed Services Market. A thorough analysis was conducted for demand and supply-side scenarios considering top partnerships, mergers and acquisitions, business expansion, and product launches in the Telecom Managed Services Market sector across the globe.
Current Market Sizing: Based on actionable insights from the above 3 steps, we arrived at the current market size, key players in the Global Telecom Managed Services Market, and market shares of the segments. All the required percentage shares split, and market breakdowns were determined using the above-mentioned secondary approach and were verified through primary interviews. Estimation & Forecasting: For market estimation and forecast, weights were assigned to different factors including drivers & trends, restraints, and opportunities available for the stakeholders. After analyzing these factors, relevant forecasting techniques i.e., the top-down/bottom-up approach were applied to arrive at the market forecast for 2032 for different segments and sub-segments across the major markets globally.
The research methodology adopted to estimate the market size encompasses:
Primary Research: In-depth interviews were conducted with the Key Opinion Leaders (KOLs) including Top Level Executives (CXO/VPs, Sales Head, Marketing Head, Operational Head, Regional Head, Country Head, etc.) across major regions. Primary research findings were then summarized, and statistical analysis was performed to prove the stated hypothesis. Inputs from primary research were consolidated with secondary findings, hence turning information into actionable insights.
Market Engineering
The data triangulation technique was employed to complete the overall market estimation and to arrive at precise statistical numbers for each segment and sub-segment of the Global Telecom Managed Services Market. Data was split into several segments and sub-segments after studying various parameters and trends in the areas of Service Type and Organization Size in the Global Telecom Managed Services Market.
The current & future market trends of the Global Telecom Managed Services Market were pinpointed in the study. Investors can gain strategic insights to base their discretion for investments on the qualitative and quantitative analysis performed in the study. Current and future market trends determined the overall attractiveness of the market at a regional level, providing a platform for the industrial participant to exploit the untapped market to benefit from a first-mover advantage. Other quantitative goals of the studies include:
Q1: What is the current market size and growth potential of the Telecom Managed Services Market?
Q2: What are the driving factors for the growth of the Telecom Managed Services Market?
Q3: Which segment has the largest share of the Telecom Managed Services Market by Service Type?
Q4: What are the emerging technologies and trends in the Telecom Managed Services Market?
Q5: Which region will dominate the Telecom Managed Services Market?
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