SecurityWorldMarket

03/11/2021

Managed network security market sees impressive growth

Rockville, Md

A recently published market intelligence report from Fact MR predicts that demand for managed network services will surpass $60bn by 2021, and accelerate impressively, registering a CAGR of 8% to reach US$ 130 Bn by the end of the forecast period 2021-2031. Need to establish a robust online security apparatus to streamline workflows and prevent data breaches is spurring sales, according to the research.

Historical estimates suggest that the industry has been flourishing impressively, with a documented CAGR of a staggering 10% from 2016 to 2020. Prospects have further heightened since the Covid-19 pandemic. With nearly every organisation switching over to remote working, the need for advanced data protection solutions during the pandemic has majorly inclined.

A survey conducted by NTT Ltd. reveals that 45% of corporate entities globally are likely to outsource their operations over the next 18 months. Amongst all services, cloud-based infrastructure is set to increase to 77%. Most of these outsourced services are related to security management. Moreover, the advent of quantum computing will also open renewed growth frontiers for managed network services in the future.

The analysts found that the managed VPN services alone could be valued at nearly US$ 50 Bn by 2031, and it is the healthcare providers sector which is aniticipated to be fastest growing area in the managed network services market during the forecast period, registering at 7.5% CAGR.

In terms of geography, the high telehealth dependence is expected to widen MNS deployment in the U.S, capturing 31% of the revenue, whilst China is predicted to emerge as the largest MNS market, accounting for half of global sales.

“Growing workflow complexities arising as a result of diversifying operations is heightening security concerns, prompting them to avail managed network security services, heightening expansion prospects,” says one Senior Research Analyst at Fact MR.

Competitive landscape

Key managed network services providers are leveraging strategies such as partnerships with government authorities or regional service providers, introduction of new management services and acquiring existing small and medium-scale service providers.  For example, in April 2021, South Korea, Asia's fourth-largest economy, and Cisco announced the launch of a collaborative framework under Cisco's Country Digital Acceleration (CDA) programme in April 2021 to accelerate digitisation across the country and power an inclusive recovery from the Covid-19 pandemic.

Also, in October 2021, AT&T Inc. announced that the U.S Air Force has selected the company’s Firstnet high-speed broadband communications platform to deliver reliable and on-priority communications to its public safety personnel and first responders across 15 bases


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