US Managed Network Services Market Research Report: By Service Type (Managed LAN/ WPN Networks, Managed Wi-Fi, Managed IP/ VPN, Managed Network Monitoring, Managed WAN, Managed Network Security, Other Services), By Organization Size (Small and Medium Enterprises, Large Enterprises), By Deployment Mode (On-Cloud, On-Premises) and By Vertical (BFSI, IT & Telecommunications, Retail & E-Commerce, Manufacturing, Government, Healthcare) - Forecast to 2035

US Managed Network Services Market Overview:

As per MRFR analysis, the US Managed Network Services Market Size was estimated at 12.95 (USD Billion) in 2023. The US Managed Network Services Market Industry is expected to grow from 14.5(USD Billion) in 2024 to 39.5 (USD Billion) by 2035. The US Managed Network Services Market CAGR (growth rate) is expected to be around 9.538% during the forecast period (2025 - 2035).

Key US Managed Network Services Market Trends Highlighted

The US Managed Network Services Market is experiencing significant growth driven by the increasing reliance on cloud computing and the need for enhanced network security. As businesses across various sectors prioritize digital transformation, the demand for managed network services rises, largely due to the complexities involved in managing advanced technologies and evolving cyber threats. Moreover, as remote work becomes more commonplace, organizations are looking for reliable network solutions that can ensure smooth communication and collaboration among distributed teams. There are numerous opportunities to be explored in the US market, especially as small and medium-sized enterprises seek cost-effective solutions to improve their network performance.

Managed service providers are positioned to cater to this segment by offering tailored solutions that can support businesses in optimizing their operations. Additionally, the growing emphasis on IoT devices creates avenues for service providers to enhance their offerings, facilitating better connectivity and data management for businesses leveraging these technologies. Recent trends indicate a shift towards the integration of artificial intelligence and machine learning in network management. This transformation allows businesses to proactively monitor network performance and security, ultimately leading to improved service delivery. 

Companies are also focusing on automation to streamline processes, thus reducing operational costs and increasing efficiency.The rise of 5G technology presents another pivotal trend, promising to significantly enhance network capabilities and support high-bandwidth applications, which further fuels the demand for managed network services in the US. As these trends continue to evolve, they will shape the landscape of the US Managed Network Services Market, presenting both challenges and opportunities for stakeholders.

Source: Primary Research, Secondary Research, MRFR Database and Analyst Review

US Managed Network Services Market Drivers

Increasing Demand for Cloud Services

The US Managed Network Services Market Industry is experiencing substantial growth due to the increasing demand for cloud services. According to the United States government data, cloud adoption within enterprises has surged by approximately 83% over the last five years. Major organizations such as Microsoft and Amazon Web Services (AWS) are leading this transformation by providing comprehensive cloud solutions. This shift necessitates enhanced network management services to ensure security, reduce latency and ensure scalability.

Furthermore, a report from the Cloud Industry Forum indicates that over 67% of US businesses are likely to migrate to cloud platforms, highlighting the urgent need for managed networks that can support such transitions. These statistics suggest that the growth in cloud services is a significant driver for the expansion of the US Managed Network Services Market, as organizations look for reliable and efficient network management to support their cloud infrastructure.

Rising Cybersecurity Threats

The increasing number of cybersecurity threats is a critical driver propelling the growth of the US Managed Network Services Market Industry. Reports from the Federal Bureau of Investigation indicate that cybercrime has risen dramatically, with losses exceeding 4.2 billion USD in 2020 alone. This alarming trend has prompted businesses to invest significantly in managed network services that protect against such risks. Key players such as Palo Alto Networks and Cisco are enhancing their offerings in cybersecurity solutions, which is a vital element of managed networking.As a result, organizations are increasingly turning to professional services to secure their networks, demonstrating that cybersecurity concerns are a pivotal factor driving demand for managed network services in the US.

Need for Operational Efficiency

Operational efficiency is increasingly driving the US Managed Network Services Market Industry as organizations strive to enhance productivity and reduce costs. According to a report by the United States Small Business Administration, nearly 70% of US businesses recognized that improving operational efficiency is essential for their competitive edge. By outsourcing to managed network services, companies can focus on their core operations while leaving the complex network management to experts.Companies like IBM and AT&T are well-positioned to address this market need by providing tailored managed network services that streamline operations. This trend demonstrates that the quest for operational efficiency is a prominent factor influencing the growth trajectory of the US Managed Network Services Market.

Growth of Internet of Things (IoT)

The rapid proliferation of the Internet of Things (IoT) devices is significantly influencing the US Managed Network Services Market Industry. According to the National Institute of Standards and Technology, the number of IoT devices in the US is projected to exceed 75 billion by 2025, leading to network congestion and management complexities. Leading technology firms, such as General Electric and Cisco, are developing solutions to effectively manage and secure these devices within established networks.This massive growth in connected devices requires robust and scalable managed network services to ensure seamless connectivity. Comprehensively, the growth of IoT is a major driver propelling the demand for managed network services as organizations seek ways to efficiently integrate and manage this vast array of devices.

US Managed Network Services Market Segment Insights:

Managed Network Services Market Service Type Insights

The Service Type segment of the US Managed Network Services Market is critical in shaping the overall landscape of network solutions, addressing the diverse needs of businesses across various industries. Managed LAN/WPN Networks offer organizations reliable connectivity and efficient data transfer, allowing them to maintain seamless communication and data-housing capabilities. In parallel, Managed Wi-Fi services are increasingly becoming essential due to the growing reliance on wireless technologies in both commercial and residential spaces, facilitating enhanced productivity and user experience.

Managed IP/VPN services stand at the forefront of secure remote access, enabling businesses to connect distributed teams while ensuring robust data protection and privacy, a necessity in today's digital age marked by increasing cyber threats. The significance of Managed Network Monitoring cannot be understated, as it provides organizations with real-time visibility into network performance, enabling proactive management of potential issues before they escalate. Moreover, Managed WAN services play a vital role in optimizing geographically dispersed networks, ensuring effective connectivity across multiple locations, which is particularly crucial for companies with branch offices or remote operations.

Additionally, Managed Network Security is becoming more prominent as businesses recognize the critical need to protect their data and infrastructure from evolving cyber threats. Finally, the Other Services category encompasses a broad range of tailored solutions that support custom requirements, highlighting the sector's adaptability to specific business needs. As the demand for these various types of services continues to grow, it underlines the importance of developing reliable and innovative managed network solutions to support the dynamic requirements of the US market.The continuous advancement in technology and the increasing necessity for security and efficiency in network management present significant opportunities for growth in this segment. As organizations continue to embrace digital transformation, understanding these insights within the Service Type segment of the US Managed Network Services Market is imperative for stakeholders and businesses aiming to leverage these services for competitive advantage.

Source: Primary Research, Secondary Research, MRFR Database and Analyst Review

Managed Network Services Market Organization Size Insights

The US Managed Network Services Market has showcased robust growth across different Organization Sizes, significantly impacting how businesses operate in a competitive landscape. Small and Medium Enterprises (SMEs) form a considerable part of this market, as they increasingly adopt managed network services to enhance operational efficiency and remain agile in a dynamic environment. These services help SMEs mitigate the complexities associated with network management, enabling them to concentrate on their core business activities. On the other hand, Large Enterprises leverage managed network services to optimize their expansive, complex infrastructures, ensuring both security and reliability across multiple locations.

With increasing data security threats and the necessity to maintain high-performance networks, the importance of these services is magnified, fueling demand across both segments. The growth of digital transformations and the shift to cloud-based solutions further elevate the dependence on managed network services, demonstrating their integral role within the broader US Managed Network Services Market structure. Such segmentation underscores a diverse landscape shaped by differing needs for scalability, support, and significance in operational resilience.

Managed Network Services Market Deployment Mode Insights

The Deployment Mode segment within the US Managed Network Services Market plays a crucial role in shaping industry dynamics as organizations increasingly adopt tailored solutions to meet their networking needs. This segment encompasses key models such as On-Cloud and On-Premises, each serving unique requirements based on businesses' operational frameworks. On-Cloud solutions, for instance, are gaining traction due to their scalability and flexibility, allowing companies to adapt quickly to changing demands without heavy capital investment in infrastructure.

Conversely, On-Premises options provide greater control over data security and compliance, which is vital in sectors facing stringent regulatory standards. As businesses in the US aim to enhance their digital transformation strategies, the balancing act between these deployment methods becomes significant in influencing efficiency, cost management, and overall strategy development in the evolving Managed Network Services Market landscape. Given the rise of remote work and cloud adoption, the Deployment Mode segment remains vital for organizations looking to optimize their operations and leverage technological advancements effectively.

Managed Network Services Market Vertical Insights

The Vertical segment of the US Managed Network Services Market exhibits significant diversity and opportunity across various industries, catering to unique operational needs and challenges. The Banking, Financial Services, and Insurance (BFSI) sector is crucial, given its reliance on robust network security and availability to protect sensitive data and maintain customer trust. The IT and Telecommunications industry continues to drive innovation, requiring adaptive network solutions that facilitate seamless connectivity and scalability. In Retail and E-Commerce, the demand for efficient managed services has surged as businesses integrate online platforms, emphasizing the need for real-time data management and customer engagement capabilities.

Manufacturing leverages managed network services to enhance automation and streamline supply chains, which is vital for competitiveness in today’s market. Government agencies focus on secure, efficient networks that can support public service delivery while ensuring compliance with regulations. Lastly, the Healthcare sector stands out due to its critical need for reliable networking solutions that enable efficient patient data management and communication. The interplay of these industries illustrates the overarching importance of the US Managed Network Services Market, reflecting a landscape that not only supports operational resilience but also fosters growth and innovation across multiple verticals.

US Managed Network Services Market Key Players and Competitive Insights:

The US Managed Network Services Market has witnessed significant growth, driven by the increasing complexity of network infrastructure and the demand for reliable, scalable solutions. The landscape is characterized by a diverse array of service providers that offer comprehensive networking solutions to enterprises seeking to enhance operational efficiency while minimizing costs. These services involve not only conventional network management but also advanced features such as security, cloud integration, and data analytics. Providers in this market are continuously innovating and expanding their service offerings to meet the evolving needs of businesses, thus intensifying competition. 

The players are competing on various fronts, including service quality, technological advancements, pricing strategies, and customer service, creating a dynamic environment for both providers and customers alike.NaviSite has established a prominent presence within the US Managed Network Services Market by focusing on delivering tailored cloud and managed services that meet the diverse needs of enterprises. The company is recognized for its strength in providing reliable managed hosting and cloud solutions that are designed to support businesses at various stages of growth. With a commitment to customer satisfaction, NaviSite emphasizes agility and scalability in its service offerings, allowing clients to customize their network services according to specific requirements. Their robust technological infrastructure coupled with a strong service orientation has enabled NaviSite to build a loyal customer base in the US market, positioning itself as a trusted partner for businesses looking to optimize their IT operations.

Orange Business Services has carved out a competitive niche in the US Managed Network Services Market by delivering a wide range of services, including managed network connectivity and advanced cybersecurity solutions. The company benefits from its extensive global presence and is able to leverage its international capabilities to offer comprehensive, seamless services to US-based enterprises. Key products include managed LAN, SD-WAN solutions, and secure cloud connectivity which are central to modern business infrastructure transformation. Orange Business Services places a strong emphasis on innovation and is actively involved in strategic partnerships and acquisitions to enhance its service portfolio. This proactive approach enables them to stay ahead of industry trends and respond swiftly to customer demands, thus solidifying their position as a leading player in the highly competitive US market for managed network services.

Key Companies in the US Managed Network Services Market Include:

• NaviSite


• Orange Business Services


• TPX Communications


• Zenlayer


• Cisco


• IBM


• Windstream


• Lumen Technologies


• AT and T


• Verizon


• CenturyLink


• Comcast Business


• Dimension Data


• Hewlett Packard Enterprise


• NTT Ltd.

US Managed Network Services Market Industry Developments

Recent developments in the US Managed Network Services Market have shown significant growth, with companies like Cisco and IBM investing heavily in automation and AI technologies to enhance service delivery and operational efficiency. In September 2023, TPX Communications expanded its portfolio by acquiring a regional service provider, strengthening its presence in the midmarket segment and enhancing service capabilities. Similarly, in August 2023, Zenlayer announced a partnership with NTT Ltd. to improve edge computing services across the US, responding to the increasing demand for low-latency solutions. The market has also seen Verizon and AT and T focusing on 5G integration to provide enhanced managed services. In recent years, companies such as CenturyLink and Windstream have reported substantial growth in their service revenue, with a notable uptick in cloud-managed offerings since 2021. Regulatory support for telecommunications enhancements has spurred innovation, driving investments in infrastructure and technology. Overall, the Managed Network Services landscape is rapidly evolving with strategic collaborations and technology advancements, positioning companies like Lumen Technologies and Comcast Business to capitalize on rising digital transformation trends in the US market.

US Managed Network Services Market Segmentation Insights

Managed Network Services Market Service Type Outlook

• Managed LAN/ WPN Networks


• Managed Wi-Fi


• Managed IP/ VPN


• Managed Network Monitoring


• Managed WAN


• Managed Network Security


• Other Services

Managed Network Services Market Organization Size Outlook

• Small and Medium Enterprises


• Large Enterprises

Managed Network Services Market Deployment Mode Outlook

• On-Cloud


• On-Premises

Managed Network Services Market Vertical Outlook

• BFSI


• IT & Telecommunications


• Retail & E-Commerce


• Manufacturing


• Government


• Healthcare

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Report Attribute/Metric Source:	Details
MARKET SIZE 2018	12.95(USD Billion)
MARKET SIZE 2024	14.5(USD Billion)
MARKET SIZE 2035	39.5(USD Billion)
COMPOUND ANNUAL GROWTH RATE (CAGR)	9.538% (2025 - 2035)
REPORT COVERAGE	Revenue Forecast, Competitive Landscape, Growth Factors, and Trends
BASE YEAR	2024
MARKET FORECAST PERIOD	2025 - 2035
HISTORICAL DATA	2019 - 2024
MARKET FORECAST UNITS	USD Billion
KEY COMPANIES PROFILED	NaviSite, Orange Business Services, TPX Communications, Zenlayer, Cisco, IBM, Windstream, Lumen Technologies, AT and T, Verizon, CenturyLink, Comcast Business, Dimension Data, Hewlett Packard Enterprise, NTT Ltd.
SEGMENTS COVERED	Service Type, Organization Size, Deployment Mode, Vertical
KEY MARKET OPPORTUNITIES	Rising demand for cybersecurity solutions, Increased adoption of cloud-based services, Growth in IoT connectivity requirements, Expanding remote workforce management needs, Enhanced network automation technologies.
KEY MARKET DYNAMICS	increasing demand for cloud solutions, growing cybersecurity threats, advancements in network automation, need for cost reduction, focus on operational efficiency
COUNTRIES COVERED	US