According to the Market Statsville Group (MSG), the global Managed MPLS market size is expected to grow from USD 55.6 million in 2021 to USD 97.9 million by 2030, at a CAGR of 6.4% from 2022 to 2030. MPLS connections are private networks that operate independently of the internet and connect data centers and branches. They offer high levels of reliability and performance by allowing traffic prioritization via the class of service (CoS) feature. Service providers typically outsource and manage MPLS to ensure network performance, quality, and availability. However, as the MPLS is effectively a private network with a stable and secure networking solution, it is costly. MPLS VPNs are the most common types of WAN services used by businesses that need to connect to their globally dispersed operations.
Global Managed MPLS Market Definition
MPLS connections are private networks that operate independently of the internet. They offer high levels of reliability and performance by allowing traffic prioritization via the class of service (CoS) feature. MPLS VPNs are the most common type of WAN service used by businesses that need to connect to their distribution businesses worldwide. The expansion of mobile backhaul networks is expected to boost market growth over the forecast period. MPLS networks have grown in popularity due to the need for secure connectivity among various business units and effective data management, which has accelerated their development.
COVID–19 Impact on the Global Managed MPLS Market
The novel coronavirus has rapidly spread across various countries and regions, and it is still spreading, causing havoc on people’s lives and the community overall. It emerged as a human medical problem and has now evolved into a major threat to global trade, economy, and finance. Even though governments have established restrictions to prevent the virus from spreading, all businesses and organizations are moving their operations online and transmitting data to the cloud. As a result, more enterprises are employing MPLS to boost data security on cloud storage, propelling the market’s growth.
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Global Managed MPLS Market Dynamics
Drivers: Rapid expansion of businesses and increased penetration of cloud services globally
With businesses constantly increasing, MPLS is gradually becoming the popular alternative of corporations since it delivers great quality of service to minimize packet loss and keep a business’s most vital traffic flowing. The expansion of mobile backhaul networks is likely to boost market development throughout the forecast period. The need for secure communication across diverse business units and good data management has increased the usage of MPLS networks, which has accelerated the development of MPLS networks. Around 79% of MNCs highlighted network management as a major issue for CIOs, with organizations striving to implement secure, scalable, and flexible networks to serve a wide variety of services.
Restraints: Higher costs associated with MPLS
Service providers maintain network performance, quality, and availability by outsourcing and managing MPLS. MPLS is recognized as robust and secure, but it is also expensive, as it is essentially a private network. Although MPLS is handled by carriers, which reduces the stress on network administration, maintenance still necessitates a significant amount of effort. All general maintenance work, in particular, cannot be performed immediately. An ISP must perform maintenance. This is not a straightforward process due to the ISP’s varied speed limits and technological complexity.
Opportunities: Surging demand for secure networking among enterprises
The need for secure communication across diverse business units and good data management has increased the usage of MPLS networks, which has driven MPLS network development. To save money and focus on core business strengths, businesses and MNCs chose outsourcing, including purchasing managed network and telecom services.
Scope of the Global Managed MPLS Market
The study categorizes the managed MPLS market based on type and application at the regional and global levels.
By Type Outlook (Sales, USD Million, 2017–2030)
- Level 2 VPN
- Level 3 VPN
By Application Outlook (Sales, USD Million, 2017–2030)
- IT and Telecommunication
- Other End Users
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By Region Outlook (Sales, USD Million, 2017–2030)
- North America
- The Netherlands
- Czech Republic
- Rest of Europe
- Asia Pacific
- South Korea
- Australia & New Zealand
- Rest of Asia Pacific
- South America
- Rest of South America
- The Middle East & Africa
- Saudi Arabia
- South Africa
- Northern Africa
- Rest of MEA
The IT and Telecommunication segment is projected to account for the largest market share, by Application
The worldwide Managed MPLS market is segmented by application into Healthcare, BFSI, Retail, Manufacturing, Government, IT and Telecommunication, and Other End Users. The IT & telecommunications segment is expected to account for the largest market share in 2021. The growing use of smartphones and the amount of internet-connected gadgets has put immense strain on the present telecom network. As a result, network operators face challenges such as insufficient bandwidth and network congestion, leading to call dropouts and inconsistent network services. Furthermore, significant cloud service expenditures due to the superior benefits of SaaS, IaaS, and PaaS have mandated IT suppliers to sustain their supply to a rising client base via their network. All of these factors have contributed to the broad adoption of MPLS technology.
Carriers have increased their network investment in response to the expansion of cloud-based mobile consumer services and the global rollout of 4G LTE services. Automation has become a vital component in carriers’ capacity to deliver effective ‘on-demand’ services while controlling operating costs.
North America accounts for the highest market share during the forecast period
The global Managed MPLS market has been divided into five regions: North America, Asia-Pacific, Europe, South America, and the Middle East and Africa. During the forecast period, North America is expected to have the highest market share in the worldwide Managed MPLS market. Countries in the area include the United States, Canada, and Mexico.
The United States is likely to have a sizable market share. The emergence of cloud computing has increased the business need for secure networking, which is expected to fuel demand for managed MPLS services.
In the region, Cognizant, for instance, offers a comprehensive spectrum of application outsourcing, system integration, and business process consulting services. As it extended its worldwide reach via commercial diversification, the corporation saw the need for transcontinental connection and effective security measures.
Key Market Players in the Global Managed MPLS
- Orange Business Service
- Tata Communications
- ATandT Communications Inc.
- BT Global Services Ltd
- Cisco Systems Inc.
- Sprint Nextel Corporation
- Syringa Networks LLC
- Verizon Communications Inc.