Global Telecom Managed Services Market By Service Type (Managed Data Center, Managed Network Services, Managed Data & Information Services, Managed Mobility Services, Managed Communications Services and Managed Security Services), By Deployment Mode (Cloud vs On-Premises), By Organization Size (Small and Medium Enterprises and Large Enterprises), By Company, By Region, Forecast & Opportunities, 2021-2031F

Forecast Period	2027-2031
Market Size (2025)	USD 31.84 Billion
CAGR (2026-2031)	14.72%
Fastest Growing Segment	Managed Data Center
Largest Market	Asia Pacific
Market Size (2031)	USD 72.58 Billion

Market Overview

The Global Telecom Managed Services Market will grow from USD 31.84 Billion in 2025 to USD 72.58 Billion by 2031 at a 14.72% CAGR. The Global Telecom Managed Services Market involves operators outsourcing network infrastructure, IT operations, and service delivery to specialized third-party providers. This strategic model allows communication service providers to optimize operational costs and focus on core competencies while vendors handle complex day-to-day maintenance. The sector is driven by the escalating technical demands of 5G and the Internet of Things, alongside the need to manage massive network complexity. According to the GSMA, in 2025, mobile technologies and services will generate $6.5 trillion of economic value added, highlighting the immense scale of infrastructure that requires professional management.

However, market expansion faces a significant hurdle regarding data security and regulatory compliance. As operators entrust critical infrastructure to external partners, maintaining strict adherence to data sovereignty laws becomes challenging. The potential loss of direct oversight over sensitive subscriber information and security protocols can deter adoption, particularly in regions with rigorous privacy mandates.

Key Market Drivers

The escalating complexity of next-generation network infrastructures acts as a primary catalyst for the adoption of managed services. As communication service providers expand 5G coverage and integrate dense architectures, the volume of data traffic and the intricacy of network maintenance surge beyond the capacity of traditional in-house teams. Operators are consequently turning to managed service partners to handle the technical burden of maintaining network stability while ensuring high availability. This pressure is quantified by the exponential rise in usage; according to Ericsson, June 2024, in the 'Ericsson Mobility Report', global mobile network data traffic grew by 25% between the first quarter of 2023 and the first quarter of 2024. This surge necessitates external expertise to manage the underlying infrastructure efficiently, ensuring that connectivity remains uninterrupted despite the increasing load.

Concurrently, the integration of artificial intelligence and automation in service delivery is fundamentally reshaping the market landscape. Service providers are leveraging these technologies to move from reactive maintenance to predictive operations, thereby significantly reducing operational expenditures and minimizing downtime. By outsourcing to vendors equipped with specialized algorithmic capabilities, operators can monetize their networks more effectively and streamline complex processes. According to NVIDIA, February 2024, in the 'State of AI in Telecommunications: 2024 Survey', 57% of telecom respondents reported that adopting AI improved their customer service and support, driving the strategic value of managed partners. The scale of the infrastructure requiring such comprehensive management is evident in the financial performance of major vendors; according to Huawei, in 2024, the company reported that its ICT infrastructure business generated CNY 362 billion in revenue during the previous fiscal year. This financial magnitude underscores the critical role managed services play in sustaining the global telecommunications ecosystem.

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Key Market Challenges

The expansion of the Global Telecom Managed Services Market is severely hampered by persistent challenges related to data security and regulatory compliance. As communication service providers consider outsourcing critical network functions to third-party vendors, the requirement to share sensitive subscriber data and infrastructure access introduces significant vulnerability. This transfer of control complicates adherence to strict data sovereignty laws, as operators cannot maintain the same level of direct oversight over security protocols as they would with in-house operations. The potential for third-party breaches creates a reluctance to adopt managed services, as operators prioritize risk mitigation over the operational efficiency promised by outsourcing.

This cautious approach is substantiated by recent industry trends regarding threat prioritization. According to the ITW Global Leaders Forum, in 2024, 64% of international carriers identified fraud prevention and security as a top strategic priority, reflecting the sector's defensive stance against escalating threats. This heightened focus on internal security control directly correlates with a slower uptake of managed services, as operators fear that external partnerships may compromise their compliance posture and expose them to substantial regulatory penalties.

Key Market Trends

The Expansion of Managed Private 5G Network Solutions for Enterprises is rapidly emerging as a dominant trend, particularly within the industrial and manufacturing sectors. As organizations seek to leverage low-latency connectivity for Industry 4.0 applications like autonomous robotics and IoT sensors, they are increasingly outsourcing the complex deployment and maintenance of these private cellular networks to specialized third-party providers. This shift allows enterprises to bypass the technical hurdles of spectrum management and network slicing while ensuring carrier-grade reliability without maintaining extensive in-house telecom expertise. The scale of this adoption is significant; according to the Global mobile Suppliers Association (GSA), December 2024, in the 'Private Mobile Networks Market Update', the number of unique customer references for private mobile network deployments globally reached 1,603 in the third quarter of 2024, driven largely by the manufacturing sector’s demand for dedicated, secure infrastructure.

Concurrently, there is a decisive Implementation of Zero-Trust Security Architectures in Managed Offerings as traditional perimeter-based defense models become obsolete in hybrid work environments. Managed Service Providers (MSPs) are rapidly integrating identity-centric security frameworks that verify every access request, moving beyond simple VPNs to comprehensive Secure Access Service Edge (SASE) solutions. This transition addresses the growing attack surface created by remote users and distributed cloud applications, compelling providers to embed rigorous verification protocols directly into their managed connectivity suites to mitigate liability and enhance protection. The urgency of this strategic pivot is evident in recent industry findings; according to Zscaler, January 2025, in the 'State of Zero Trust' report, 81% of surveyed organizations are now adopting zero trust as the cornerstone of their cybersecurity strategies, forcing managed service portfolios to realign around these advanced security paradigms.

Segmental Insights

The Managed Data Center segment is recognized as the fastest-growing category within the Global Telecom Managed Services Market, driven by the critical necessity for scalable infrastructure amidst a surge in digital data consumption. Telecom operators are increasingly prioritizing these services to transition from capital-intensive on-premise facilities to flexible, cost-efficient operational models. This shift is further accelerated by the requirement to navigate complex hybrid cloud environments and ensure strict adherence to evolving regulatory frameworks. Consequently, enterprises are leveraging managed data centers to enhance business continuity and security while focusing resources on core strategic innovations.

Regional Insights

Asia Pacific holds a leading position in the telecom managed services market, driven by rapid infrastructure development and the extensive deployment of next-generation networks. Telecom operators in the region increasingly rely on managed services to optimize operational costs and handle complex network environments. The surge in mobile data consumption across major economies, including China and India, necessitates robust network management solutions. Additionally, the growing adoption of cloud technologies by enterprises further accelerates the demand for professional management of telecommunications infrastructure to ensure seamless connectivity and service reliability.

Recent Developments

• In November 2024, Tech Mahindra entered into a strategic collaboration with Amazon Web Services to develop an Autonomous Networks Operations Platform for communication service providers. This initiative focused on utilizing generative artificial intelligence and machine learning to transition network operations from on-premise infrastructures to a hybrid cloud model. The new platform was designed to enhance the productivity of network operations centers and reduce the time required to repair service incidents. This partnership demonstrated the increasing integration of advanced AI technologies into managed services offerings to optimize telecom network performance and operational efficiency globally.
• In August 2024, Amdocs announced a significant managed services agreement with TELUS to migrate the communications technology company's on-premise monetization operations to the public cloud. Through this multi-year deal, the companies collaborated to leverage Amazon Web Services' infrastructure, aiming to enhance the flexibility, reliability, and scalability of the operator's core systems. The migration was designed to enable the service provider to accelerate the launch of new products and reduce operational costs while improving customer experiences. This strategic move underscored the growing trend of utilizing cloud-based managed services to support digital transformation within the global telecommunications sector.
• In July 2024, Nokia secured a contract to provide a comprehensive mobile core network and managed services to Norlys, a Danish energy and telecommunications group. Under this agreement, the technology vendor was tasked with deploying 4G and 5G packet core solutions, along with subscriber data management systems, to support voice and data connectivity. The deal also included a holistic service wrap comprising managed security, performance, and assurance services to ensure robust network operations. This collaboration highlighted the critical role of managed services in maintaining high-quality, future-proof infrastructure for telecommunications operators expanding their 5G capabilities.
• In June 2024, Telefónica Tech and IBM announced a collaboration agreement to accelerate the deployment of artificial intelligence, analytics, and data governance solutions for enterprise clients. The partnership aimed to develop an open, hybrid, and multi-cloud platform specifically designed to manage complex data environments and business initiatives. By integrating their respective expertise in managed services and AI technology, the companies sought to help organizations navigate the challenges of digital transformation. This development reflected the expanding scope of the telecom managed services market, where providers are increasingly offering sophisticated data management and AI-driven business solutions.

Key Market Players

• Cisco Systems, Inc.
• Huawei Technologies Co., Ltd.
• IBM Corporation
• Telefonaktiebolaget LM Ericsson
• Verizon Communications Inc.
• AT&T Inc.
• NTT DATA Corporation
• Nokia Corporation
• Tech Mahindra Limited
• Fujitsu Limited

By Service Type	By Deployment Mode	By Organization Size	By Region
Managed Data Center Managed Network Services Managed Data & Information Services Managed Mobility Services Managed Communications Services and Managed Security Services	Cloud vs On-Premises	Small and Medium Enterprises and Large Enterprises	North America Europe Asia Pacific South America Middle East & Africa

Report Scope:

In this report, the Global Telecom Managed Services Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

• Telecom Managed Services Market, By Service Type:

• Managed Data Center
• Managed Network Services
• Managed Data & Information Services
• Managed Mobility Services
• Managed Communications Services and Managed Security Services

• Telecom Managed Services Market, By Deployment Mode:

• Cloud vs On-Premises

• Telecom Managed Services Market, By Organization Size:

• Small and Medium Enterprises and Large Enterprises

• Telecom Managed Services Market, By Region:

• North America
• United States
• Canada
• Mexico
• Europe
• France
• United Kingdom
• Italy
• Germany
• Spain
• Asia Pacific
• China
• India
• Japan
• Australia
• South Korea
• South America
• Brazil
• Argentina
• Colombia
• Middle East & Africa
• South Africa
• Saudi Arabia
• UAE