Managed MPLS Market Outlook

According to the report by Expert Market Research (EMR), the global managed MPLS market size reached approximately USD 65.31 billion in 2023. Aided by the growing need for enhanced network performance and reliability, the market is projected to grow at a CAGR of 6.1% between 2024 and 2032, reaching a value of around USD 111.56 billion by 2032.

Managed multiprotocol label switching (MPLS) is a service provided by telecommunications companies to manage the MPLS networks of businesses, ensuring high performance, security, and efficiency in data transfer across various locations. MPLS is a technique used to enhance the speed and control of network traffic by directing data along predetermined paths, based on short path labels rather than long network addresses.

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The global managed MPLS market is witnessing substantial growth, driven by increasing demand for efficient and secure network management solutions, the rise of cloud computing, and the proliferation of connected devices. MPLS, a technique designed to improve the speed and control of network traffic, has become a cornerstone for businesses seeking reliable and scalable network infrastructure. The market, which involves third-party providers overseeing and optimising these networks, is benefiting from several key trends that are shaping its future trajectory.

One of the most significant managed MPLS market trends is the growing need for enhanced network performance and reliability. As businesses expand and become more distributed, the importance of robust and efficient network connections becomes paramount. MPLS technology offers superior performance by directing data along predetermined paths, reducing latency and packet loss. Managed MPLS services provide businesses with the expertise and resources needed to maintain optimal network performance, ensuring seamless connectivity across multiple locations. This reliability is particularly crucial for industries such as finance, healthcare, and retail, where uninterrupted network services are essential for operations.

The rise of cloud computing is another critical driver of the managed MPLS market growth. As organisations increasingly migrate their applications and data to the cloud, the demand for secure and high-performance connectivity solutions has surged. MPLS provides a secure and reliable connection to cloud services, ensuring that data is transmitted efficiently and securely. Managed MPLS services enable businesses to leverage this technology without the complexity and cost of managing it in-house. By outsourcing network management to specialised providers, companies can focus on their core competencies while benefiting from improved network performance and security.

The proliferation of connected devices and the Internet of Things (IoT) is also significantly impacting the managed MPLS market expansion. With the number of connected devices expected to reach tens of billions in the coming years, the need for scalable and efficient network solutions has never been greater. MPLS technology is well-suited to handle the increased network traffic generated by IoT devices, providing the necessary bandwidth and quality of service (QoS) to ensure reliable communication. Managed MPLS services help businesses manage this complexity by optimising network performance and ensuring that IoT devices can communicate effectively.

Security concerns are a major factor driving the managed MPLS market development. Cybersecurity threats are becoming increasingly sophisticated, and businesses must ensure that their networks are protected from potential attacks. MPLS networks inherently offer enhanced security features, such as traffic segregation and encryption, which help safeguard sensitive data. Managed service providers (MSPs) add an additional layer of security by continuously monitoring and managing the network, identifying potential vulnerabilities, and implementing necessary security measures. This proactive approach to network security is a significant advantage for businesses looking to protect their data and maintain compliance with industry regulations.

Cost efficiency is another key trend influencing the managed MPLS market growth. While setting up and maintaining an MPLS network can be costly and resource-intensive, managed services offer a cost-effective alternative. By outsourcing network management, businesses can reduce capital expenditures and operational costs associated with hiring and training specialised IT staff. Managed MPLS providers leverage economies of scale and expertise to deliver high-quality services at a lower cost. This cost-efficiency makes managed MPLS an attractive option for small and medium-sized enterprises (SMEs) that require robust network solutions without the financial burden of in-house management.

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The shift towards hybrid and multi-cloud environments is further driving the global managed MPLS market development. Many businesses are adopting hybrid cloud strategies, combining private and public cloud resources to achieve greater flexibility and scalability. MPLS technology facilitates seamless integration between on-premises infrastructure and cloud environments, ensuring consistent network performance and security. Managed MPLS services provide the necessary expertise to design and manage these complex network architectures, enabling businesses to leverage the full potential of their hybrid and multi-cloud deployments.

Geographically, the managed MPLS market is experiencing growth across all major regions, with North America and Europe leading the way. The presence of established enterprises, advanced technological infrastructure, and high adoption rates of cloud services in these regions contribute to the strong demand for managed MPLS solutions. However, the Asia Pacific region is emerging as a significant market for managed MPLS services, driven by rapid economic growth, increasing digitalisation, and expanding IT infrastructure in countries, such as China, India, and Japan. The growing emphasis on digital transformation and the need for reliable network connectivity in these regions are creating lucrative opportunities for managed MPLS providers.

Market Segmentation

The global managed MPLS market can be divided based on service, end use, and region.

Market Breakup by Service

• Layer 2 VPN
• Layer 3 VPN

Market Breakup by End Use

• Healthcare
• Banking, Financial Services and Insurance
• Retail
• Manufacturing
• Government
• IT and Telecommunication
• Others

Market Breakup by Region

• North America
• Europe
• Asia Pacific
• Latin America
• Middle East and Africa

Competitive Landscape

The EMR report looks into the market shares, plant turnarounds, capacities, investments, and mergers and acquisitions, among other major developments, of the leading companies operating in the global managed MPLS market. Some of the major players explored in the report by Expert Market Research are as follows:

• AT&T Inc.
• BT Group PLC

• Cisco Systems Inc

• Lumen Technologies Inc.
• Vodafone Group plc
• NTT Global Networks Incorporated
• Syringa Networks, LLC
• Orange S.A.
• Verizon Communications Inc.
• Tata Communications Ltd.
• China Telecom Corp Ltd
• Others

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