Written by According to Fortune Business Insights, the Europe cloud managed networking market size was valued at USD 839.5 million in 2019 and is projected to reach USD 2,929.6 million by 2027, exhibiting a CAGR of 18.0% during the forecast period from 2020 to 2027. The market is being supported by increasing investments in cloud computing technologies, including ITaaS, PaaS, IaaS, and SaaS, along with the growing adoption of software-defined networking (SDN) solutions and rising data traffic across European enterprises.
Market Overview
The Europe cloud managed networking market encompasses hardware, software, and cloud services, with solutions deployed through public or private cloud environments. These technologies are being adopted across telecom and IT, retail, media and entertainment, educational institutions, and government-related applications.
Organizations are increasingly deploying SaaS models to reduce costs and save time while eliminating some of the hardware and resources traditionally required to host networking services. The rising use of SDN solutions is also helping enterprises manage increasingly complex data traffic more efficiently.
The COVID-19 pandemic initially created challenges for the market because of disruptions in IT spending, supply chains, and hardware demand. However, the increasing requirement for connectivity and network solutions also highlighted the importance of flexible networking infrastructure.
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Market Trends
Adoption of Edge Computing, SD-WAN, and Wi-Fi 6
The growing adoption of edge computing, SD-WAN, Wi-Fi 6, and multi-domain control represents a major market trend. These technologies are supporting enterprises and service providers in managing modern wireless and network infrastructures.
Wi-Fi 6, in particular, helps enterprises and service providers support emerging applications through wireless LAN infrastructure. The source also highlights Cisco’s OpenRoaming initiative, developed with partners to facilitate connectivity between Wi-Fi and LTE networks.
Increasing Cloud-Based Networking
The transition toward cloud-based IT services is another important trend. Businesses are increasingly using SaaS and other cloud models to simplify networking operations, reduce infrastructure requirements, and improve flexibility.
Market Drivers
Growing Adoption of SDN Solutions
The increasing adoption of software-defined networking (SDN) is a key driver of the Europe cloud managed networking market. Rising data traffic and the growing complexity of network infrastructure have created demand for flexible solutions that can streamline traffic management.
Communication service providers are investing in SDN technologies to deploy end-to-end network and service management solutions. The source also highlights increasing SD-WAN adoption among organizations as an indicator of the growing demand for software-defined networking capabilities.
Rising Investment in Cloud Computing
Investment in cloud computing technologies such as ITaaS, PaaS, IaaS, and SaaS is another significant growth factor. Organizations are deploying cloud models to save costs and reduce the time and resources needed to maintain networking infrastructure.
However, security concerns and limited awareness remain challenges. Some enterprises continue to rely on on-premises networking tools, while lower cloud adoption and internet penetration in certain areas can restrict market expansion.
Market Segmentation
The Europe cloud managed networking market is segmented by type, deployment, enterprise size, industry, and country.
By Type
The market is divided into hardware, software, and cloud services. The hardware segment is expected to hold the maximum share, supported by demand for networking equipment and accessories used in LAN and WAN connections. Meanwhile, the cloud services segment is expected to register the highest CAGR, driven by increasing SaaS adoption among large enterprises.
By Deployment
The deployment segment includes public cloud and private cloud. The public cloud segment is projected to record the highest growth rate because of increasing SaaS adoption among startups and SMEs. The private cloud segment is expected to maintain a major market share, supported by cloud services and SD-WAN adoption among large enterprises.
By Enterprise Size
The market covers small and medium enterprises (SMEs) and large enterprises. SMEs are expected to record the highest CAGR as businesses increasingly shift toward cloud-based IT solutions. Large enterprises, however, are expected to hold a major market share because of their greater adoption of cloud computing services.
By Industry
The industry segmentation includes telecom & IT, retail, media & entertainment, educational institutions, and others, including government. Telecom & IT is expected to capture a major share due to strong demand for cloud services. Retail, education, and media and entertainment are also expected to expand with the adoption of networking hardware.
Key Players
Major companies identified by Fortune Business Insights include Cisco System, Inc., Aruba (Hewlett Packard Enterprise Company), Extreme Networks, Inc., NETGEAR, Inc., Prodec Networks, APSU, Inc., Fortinet, Inc., Mindsight, Total Communications, Inc., Huawei Technologies Co., Ltd., DynTek, Inc., and CommScope, Inc.
Regional Analysis
Germany is expected to capture a major share of the Europe cloud managed networking market. The Germany market was valued at USD 148.3 million in 2019, with growth supported by enterprises’ increasing focus on developing advanced IT infrastructure enabled by cloud platforms.
France is expected to record significant growth during the forecast period, supported by rising cloud computing demand across IT and telecom, BFSI, government, and media and entertainment.
Italy and Spain are expected to benefit from smart city projects and innovations in connectivity technologies, including IoT and Wi-Fi. The source identifies Spain as the country expected to exhibit the highest growth rate during the forecast period.
Switzerland and Benelux are also important markets because of increasing demand for managed IT and networking services among startups and SMEs.
Competitive Landscape
The competitive landscape is characterized by product launches, acquisitions, partnerships, and investments in advanced networking technologies. Companies are focusing on cloud-managed services, machine learning, advanced analytics, SDN, and SD-WAN to strengthen their networking portfolios.
For example, Cisco acquired ThousandEyes in August 2020 to integrate internet and cloud intelligence capabilities into its enterprise managed networking, cloud, and application services. In June 2020, CommScope launched RUCKUS Cloud, a network management-as-a-service platform designed to help enterprises and managed service providers manage converged wired and wireless networks.
Future Outlook
The future of the Europe cloud managed networking market is closely linked to continued cloud adoption, SDN implementation, edge computing, SD-WAN deployment, and improvements in wireless connectivity. Increasing demand from SMEs is expected to create additional opportunities as businesses seek flexible and cost-efficient IT infrastructure.
The growing use of cloud services across telecom and IT, retail, education, government, and other industries is also expected to contribute to market expansion through the forecast period.
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Conclusion
The Europe cloud managed networking market is expanding as organizations modernize their network infrastructure and adopt cloud-based technologies. The market was valued at USD 839.5 million in 2019 and is projected to reach USD 2,929.6 million by 2027, at a CAGR of 18.0% from 2020 to 2027. SDN, cloud computing, SD-WAN, edge computing, and Wi-Fi 6 are expected to remain important areas shaping the development of cloud managed networking across Europe.
Latest 5 Trending FAQs
1. What is the Europe cloud managed networking market size?
According to Fortune Business Insights, the Europe cloud managed networking market was valued at USD 839.5 million in 2019 and is projected to reach USD 2,929.6 million by 2027.
2. What is the CAGR of the Europe cloud managed networking market?
The Europe cloud managed networking market is projected to grow at a CAGR of 18.0% during 2020–2027.
3. Which segment is expected to lead the Europe cloud managed networking market?
The hardware segment is expected to lead the market during the forecast period, supported by demand for networking hardware and accessories used for LAN and WAN connectivity.
4. What are the major factors driving the Europe cloud managed networking market?
Increasing investments in cloud computing technologies, adoption of software-defined networking solutions, and rising data traffic are among the major factors driving market growth.
5. Who are the major players in the Europe cloud managed networking market?
The major players identified by Fortune Business Insights include Cisco System, Inc., Aruba (Hewlett Packard Enterprise), and Extreme Networks, Inc.
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