Managed Communication Services Market Size, Share, Industry Trends and Forecast to 2030

Managed Communication Services Market Size & CAGR in 2021

The global managed communication services market size in 2021 was valued at USD 45.2 billion, with a compound annual growth rate (CAGR) of 8.5% from 2021 to 2026. The market is expected to reach USD 72.6 billion by the end of 2026. The increasing adoption of managed communication services by various industries such as IT, healthcare, BFSI, and others is driving the market growth.

COVID-19 Impact on the Managed Communication Services Market

The COVID-19 pandemic has significantly impacted the managed communication services market. With the shift to remote work and virtual communication, the demand for managed communication services has surged. Companies have increasingly relied on managed service providers to ensure secure and uninterrupted communication channels for their employees. This increased demand is expected to continue even post-pandemic as businesses prioritize digital transformation and remote work capabilities.

Managed Communication Services Dynamics

The managed communication services market is driven by factors such as the increasing adoption of cloud-based communication solutions, the need for secure and reliable communication networks, and the growing trend of digital transformation across industries. Managed service providers play a crucial role in helping organizations optimize their communication infrastructure, enhance collaboration among employees, and improve overall operational efficiency.

Segments and Related Analysis

The managed communication services market can be segmented based on service type, organization size, industry vertical, and region. Commonly offered services include unified communications, VoIP, video conferencing, messaging, and collaboration tools. Small and medium-sized enterprises (SMEs) and large enterprises both benefit from managed communication services to streamline their communication processes and reduce operational costs.

By Region Analysis

The managed communication services market is geographically segmented into North America, Europe, Asia Pacific, Latin America, and the Middle East and Africa. North America currently leads the market due to the technological advancements and high adoption rates of managed services in the region. However, Asia Pacific is expected to exhibit significant growth opportunities, driven by increasing digitalization initiatives and the expanding IT sector.

Key Market Players and Competitive Landscape

Key players in the managed communication services market include Cisco Systems, Inc., Verizon Communications Inc., AT&T Inc., BT Group plc, and Orange Business Services. These companies are actively involved in product development, partnerships, and acquisitions to strengthen their market position and meet the evolving communication needs of businesses.

Recent Happenings in the Managed Communication Services Market

1. In June 2021, Cisco Systems announced the launch of new cloud-based collaboration solutions to enhance remote work experiences and boost team productivity.

2. In March 2021, Verizon Communications introduced 5G-enabled managed communication services for enterprises, enabling faster and more reliable connectivity for business operations.

3. AT&T Inc. partnered with Microsoft in December 2020 to offer integrated communication and collaboration solutions for businesses transitioning to remote work setups.

4. BT Group plc acquired an IT consulting firm in August 2020 to strengthen its managed communication services portfolio and expand its market reach in the UK and Europe.

5. Orange Business Services launched a new managed SD-WAN solution in January 2020 to provide secure and scalable networking capabilities for businesses operating in a hybrid work environment.