Managed Multiprotocol Label Switching (MPLS) Market Report 2026

Managed Multiprotocol Label Switching (MPLS) Market Overview

• Managed Multiprotocol Label Switching (MPLS) market size has reached to $28.77 billion in 2025 • Expected to grow to $37.57 billion in 2030 at a compound annual growth rate (CAGR) of 5.5% • Growth Driver: Rising Adoption Of Cloud-Based Applications Driving Network Modernization Due To Increasing Enterprise Demand For Scalable And Cost-Efficient Connectivity • Market Trend: Advancements In Managed Multiprotocol Label Switching (MPLS) Infrastructure Enhance Network Capacity And Speed To Market • North America was the largest region in 2025 and Asia-Pacific is the fastest growing region.

What Is Covered Under Managed Multiprotocol Label Switching (MPLS) Market?

Managed multiprotocol label switching (MPLS) is a networking technology that enables secure and reliable data transmission across wide area networks using labeled routing paths. It allows businesses to prioritize critical applications and maintain consistent performance for voice, video, and data. The service providers manage and maintain MPLS networks to ensure high availability, strong security, and simplified network operations across multiple locations. The main types of managed multiprotocol label switching (MPLS) include level two virtual private network and level three virtual private network. Level two virtual private network refers to services that provide secure and private connectivity at the data link layer, enabling organizations to connect multiple sites efficiently while ensuring data confidentiality and integrity. These solutions are deployed through on-premises and cloud models and are adopted by small and medium enterprises and large enterprises. They are used by several end users such as information technology and telecommunication, healthcare, banking, financial services and insurance, retail, manufacturing, government, and other end users.

What Is The Managed Multiprotocol Label Switching (MPLS) Market Growth Forecast?

The managed multiprotocol label switching (MPLS) market size is expected to see strong growth in the next few years. It will grow to $37.57 billion in 2030 at a compound annual growth rate (CAGR) of 5.5%. The growth in the forecast period can be attributed to increasing cloud connectivity requirements, rising adoption of AI-driven network optimization, growing demand for low-latency application performance, expansion of edge computing deployments, increasing focus on secure remote branch connectivity. Major trends in the forecast period include increasing adoption of hybrid MPLS and SD-WAN architectures, rising demand for application-aware traffic prioritization, growing focus on network performance monitoring services, expansion of managed routing and traffic engineering solutions, rising integration of quality of service management across enterprises.

Global Managed Multiprotocol Label Switching (MPLS) Market Segmentation

1) By Type: Level Two Virtual Private Network, Level Three Virtual Private Network 2) By Deployment Mode: On-Premises, Cloud 3) By Organization Size: Small And Medium Enterprises, Large Enterprises 4) By End User: Information Technology And Telecommunication, Healthcare, Banking, Financial Services And Insurance, Retail, Manufacturing, Government, Other End Users Subsegments: 1) By Level Two Virtual Private Network: Virtual Local Area Network Services, Point to Point Ethernet Services, Multipoint Ethernet Services, Carrier Ethernet Connectivity, Transparent Local Area Network Services 2) By Level Three Virtual Private Network: Internet Protocol Based Virtual Private Network Services, Multiprotocol Label Switching Internet Protocol Services, Managed Routing Services, Traffic Engineering Services, Quality of Service Management

What Is The Driver Of The Managed Multiprotocol Label Switching (MPLS) Market?

The growing adoption of cloud-based applications is expected to propel the growth of the managed multiprotocol label switching market going forward. Cloud-based applications are software solutions that run on remote servers and are accessed over the internet, enabling organizations to store data, run workloads, and deliver services without relying on local infrastructure. The growing adoption of cloud-based applications is increasing due to enterprises seeking greater operational scalability and cost efficiency by shifting workloads from on-premises infrastructure to flexible, usage-based cloud environments. The managed multiprotocol label switching supports cloud-based applications by enabling secure, low-latency, and traffic-prioritized connectivity that ensures consistent performance for cloud-hosted workloads across distributed enterprise locations. For instance, in January 2026, according to Eurostat, a Luxembourg-based statistical office of the European Union, in 2025, 66.78% of medium-sized enterprises purchased cloud computing services compared with 59.09% in 2023. Therefore, the growing adoption of cloud-based applications is driving the growth of the managed multiprotocol label switching market.

Key Players In The Global Managed Multiprotocol Label Switching (MPLS) Market

Major companies operating in the managed multiprotocol label switching (MPLS) market are Verizon Communications Inc., AT&T Inc., Deutsche Telekom AG, Reliance Industries Limited, Huawei Technologies Co. Ltd., NTT Communications Corporation, T-Mobile US Inc., International Business Machines Corporation, Cisco Systems Inc., Orange S.A., Telefonaktiebolaget LM Ericsson, Vodafone Group Plc, Nokia Corporation, Bharti Airtel Limited, ZTE Corporation, BT Group plc, Lumen Technologies Inc., Arista Networks Inc., Ciena Corporation, Extreme Networks Inc., Versa Networks Inc., Syringa Networks LLC, Education and Research Network India, and 6WIND S.A.

Global Managed Multiprotocol Label Switching (MPLS) Market Trends and Insights

Major companies operating in the managed multiprotocol label switching (MPLS) market are focusing on upgrading core network infrastructure to enhance bandwidth capacity, improve service reliability, and accelerate time to market. Upgrading core network infrastructure involves modernizing essential network systems and equipment to increase speed, expand capacity, strengthen security, and ensure dependable performance. For instance, in May 2023, Uniti Group Inc., a US-based telecommunications infrastructure company, launched a 100G+ MPLS core network to significantly enhance its network capacity and operational efficiency. The upgraded infrastructure is designed to support growing enterprise bandwidth demands, improve latency performance, and enable faster provisioning of advanced connectivity services across its service footprint, thereby strengthening its position in high-performance managed network solutions.

What Are Latest Mergers And Acquisitions In The Managed Multiprotocol Label Switching (MPLS) Market?

In August 2023, Verizon Communications Inc., a US-based provider of managed multiprotocol label switching networking services, entered into a strategic partnership with HCL Technologies Limited to deliver next-generation, scalable, and automated managed network solutions for global enterprises. The partnership aims to strengthen managed network services by combining Verizon Business’s global network infrastructure with HCLTech’s expertise in network transformation, automation, and digital service delivery to enhance operational efficiency and customer experience. HCL Technologies Limited is an India-based information technology services company that provides managed network services.

Regional Insights

North America was the largest region in the managed multiprotocol label switching (MPLS) market in 2025. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in this market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in this market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

What Defines the Managed Multiprotocol Label Switching (MPLS) Market?

The managed multiprotocol label switching (MPLS) market consists of revenues earned by entities by providing services such as network design and implementation, managed wide area network services, traffic engineering, quality of service management, network monitoring and maintenance, security management, service level agreement management, and technical support. The market value includes the value of related goods sold by the service provider or included within the service offering. The managed multiprotocol label switching (MPLS) market also includes sales of routers, switches, edge devices, network interface modules, and on-premise network appliances. Values in this market are ‘factory gate’ values, that is, the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

How is Market Value Defined and Measured?

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified). The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

What Key Data And Analysis Are Included In The Managed Multiprotocol Label Switching (MPLS) Market Report 2026?

The managed multiprotocol label switching (mpls) market research report is one of a series of new reports from The Business Research Company that provides market statistics, including industry global market size, regional shares, competitors with the market share, detailed market segments, market trends and opportunities, and any further data you may need to thrive in the managed multiprotocol label switching (mpls) industry. The market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future state of the industry.