USD 242.9 billion
Managed Services Market Size, Share, Growth Analysis, By Service Type(Security Services, Network Services, Data Center & IT Infra Services, Communication & Collaboration Services), By Industry Vertical(Telecom, IT, BFSI, Consumer Goods & Retail), By Deployment Type(Cloud and On-premise), By Region - Industry Forecast 2024-2031
Report ID:
SQMIG45C2069 |
Region:
Global |
Published Date: August, 2024
Pages:
165
|Tables:
97
|Figures:
76
Managed Services Market Insights
Managed Services Market size was valued at USD 242.9 Billion in 2022 poised to grow from USD 262 Billion in 2023 to USD 519.57 Billion by 2031, growing at a CAGR of 7.9% in the forecast period (2024-2031).
The need for managed services is increasing due to the complicated nature of IT infrastructure. In the course of their expansion and evolution, they frequently encounter the demand to take care of a larger volume of IT tools as well as systems that are hard-to-control and should be handled by an organization. Managed services providers (MSPs), who offer a range of services, can help businesses manage and maintain their IT infrastructure more effectively. Network administration, security, data backup and recovery, and application management are just a few of the areas in which MSPs can provide expertise. Outsourcing maintenance of their technology structure to specialists allows enterprises to concentrate on the competencies they are best suited for.
For managed services, experts in networking, cloud computing, cybersecurity, and other areas are required. The strong demand and limited supply for these specialists may limit the potential growth of the market. Since there is intense competition for competent people, companies often have to pay a premium to recruit and keep exceptional personnel. Over the course of the forecast period, these issues are expected to impede the growth of revenue in the market. Additional security measures are often provided by Managed Services Providers (MSPs) in order to safeguard their customers’ data and systems. Firewalls, Intrusion Detection and Prevention InfoSec stuff, antivirus programs and other anti malware solutions as well as recovery options for your information when it goes missing are just some of the security measures.
Market Snapshot - 2024-2031
Global Market Size
Largest Segment
Non-Voice Service,
Fastest Growth
Non-Voice Service,
Growth Rate
7.9% CAGR
Global Managed Services Market ($ Bn)
Country Share by North America (%)
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Managed Services Market Segmental Analysis
The global managed services market is segmented based on Service Type, Industry Vertical and Deployment Type. In terms of Service Type, the market is segmented into Security Services, Managed Network Services, Data Center & IT Infra Services, Communication & Collaboration Services, Mobility Services and Information Services. Based on the Industry Vertical, the market is grouped into Telecom, IT, BFSI, Consumer Goods & Retail, Manufacturing, Healthcare, Education, Energy & Utilities, Media & Entertainment and Others. In terms of Deployment Type, the market is divided into Cloud and On-premise. Based on Region, the market is segmented into North America, Europe, Asia Pacific, Central & South America and Middle East & Africa.
Analysis by Service Type
As per categorization by service type, the market is classified as security services, network services, data center & IT infra services, communication & collaboration services, mobility services and information services. Among these, the network services earned the largest share and continue to dominate the market. The rising need for dependable, expandable and safe link alternatives is driving quick improvements in system capabilities that are happening within the global supervised administrations sector. As they are critical to ensuring seamless functioning, assisting digitized advancement and releasing businesses to focus on their primary functions while outsourcing complex information technologies supervision duties; thus networking services have turned out being the norm of the trade.
This global managed services market forecast is projected to increase at an impressive pace over the next years particularly in relation to data centers and IT infrastructure services because of the rising demand for cloud computing, storage of data and digital transformation. One of the key drivers of this growth has been companies that are ever outsourcing infrastructure management with the aim of achieving better scalability, reducing costs as well as focusing on innovation.
Analysis by Industry Vertical
Driven by improvements in cybersecurity, cloud services, and regulatory compliance, the BFSI sector dominates the global managed services market. For managed services, financial institutions rely on smoothen digital transformation and maintain a competitive edge by improving security, operating system suitability and conforming to the changing regulatory frameworks.
Due to the increased demand for 5G deployment, network optimization, and improved connectivity, the telecom segment of the global managed services market is expected to grow at the quickest rate. More often telecom companies are looking for help from abroad in network management so they can improve their services, save on operational costs, and meet the increasing storage needs of a digitally minded society.
Global Managed Services Market By Service Type (%)
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Managed Services Market Regional Insights
Owing to its sophisticated technological infrastructure, early adoption of cloud computing, and strong presence of major IT service providers, North America leads the global managed services market. The presence of numerous high demands for network services, database administration and cyber security in the region is what shoots this leadership amid the fast digital transformation of telecoms, BFSI as well as health care industries among others. Apart from this outsourcing, it is also one of the key priorities of north American companies allowing them to focus on their main business activities along with innovations which ultimately brings in more income. The governance regulations in North America, like strict data protection acts, form part of the market dominance that intensifies the companies' need for considering managed services.
Owing to the country's strong legal frameworks, accelerated digital transformation projects, and rising use of cloud services, Europe is the region with the fastest rate of growth in the global managed services market. Due to the European Union’s emphasis on data protection and cybersecurity especially with implementation of GDPR, organizations are forced to outsource IT management for compliance and security. Moreover, implementation of managed services is also supported by increasing demand for advanced technologies such as artificial intelligence (AI), Internet of Things (IoT) and 5G in various sectors, including banking, manufacturing and health care. The global managed services market in Europe is expanding quickly as a result of companies there placing a greater emphasis on innovation and operational efficiency.
Global Managed Services Market By Geography
- Largest
- Fastest
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Managed Services Market Dynamics
Drivers
Growing Use of Cloud-managed Services by Various Providers:
- The global managed services market will expand significantly as cloud-managed services become more widely used. As businesses continue to advance their IT infrastructure into such platforms there is an increasing difficulty in effectively managing and optimising cloud-based systems. The increasing popularity of cloud services is an excellent opportunity for managed service providers (MSPs) to step in with their expertise.
Workplaces are Evolving:
- As remote work and diverse groups of employees become more commonplace in companies, they require IT solutions that are both agile and scalable. This gap is filled by managed service providers (MSPs) who provide secure remote access options, cloud-based services, and communication tools. With the technical know-how from MSPs, organisations can quickly adapt to hybrid work methods through customized assistance in managing various IT systems.
Restraints
Lack of Experts in IT Security could Impede Market Expansion:
- The global managed services market's expansion is severely limited by the shortage of IT security specialists. As a result of the growing digital world and increasing complexities in cyber threats, organizations are becoming increasingly concerned about safeguarding their vital data and systems. However, this incompetency makes it challenging for firms to effectively manage and protect their infrastructure since there is an acute shortage of trained IT security personnel.
Competition may Put Pressure on Prices:
- A lot of problems confront the managed services sector owing to rising rivalry. The growing number of suppliers may lead to price pressure and necessitate their differentiation, but at the same time, it also stimulates creativeness and enhancement of services provided. Hence, in order to differentiate themselves in an overcrowded marketplace, service providers are compelled to develop unique solutions aimed at certain industries while improving client satisfaction throughout.
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Managed Services Market Competitive Landscape
Key competitors in the fiercely competitive global managed services market are concentrating on service expansion, innovation, and strategic alliances. There are several leading international companies with advanced IT solutions including Atos, Cisco Systems, IBM, and Accenture. These companies compete against one another through offering new age services for various sectors especially in areas such as cloud management, cyber security and information technology infrastructures. The rivalry in the market can be attributed to ever expanding demand for efficient ICT management globally as well as ongoing digital change processes.
Top Player’s Company Profiles
- IBM (US)
- Fujitsu (Japan)
- Accenture (Ireland)
- Atos (France)
- Cisco (US)
- DXC (US)
- TCS (India)
- Rackspace (US)
- AT&T (US)
- Verizon (US)
- Dimension Data (South Africa)
- Infosys (India)
- HCL (India)
- Ericsson (Sweden)
- GTT Communications (US)
Recent Developments
- In March 2024, IBM introduced a new managed cybersecurity service powered by AI aimed at enhancing threat detection and response for corporations. This service enables enterprises to proactively identify and address cyber threats thereby strengthening even more the market position of IBM in the area of managed services. It does this by integrating real-time analytics with sophisticated machine learning algorithms.
- In May 2024, In order to strengthen its position in cloud migration and management, Accenture announced the acquisition of a managed services provider with a focus on the cloud. With its significant standing in the global arena of cloud infrastructure and services, Accenture has been better equipped to provide holistic solutions that are consistent with the emerging needs of its customers.
- In February 2024, As its latest offering in the field of managed services to clients, Cisco Systems has designed a novel and unique network management system. With this platform, Cisco's position as a major player in managed network services is further cemented as it addresses the growing complexity of enterprise networks by optimising network performance and minimising downtime through the use of automation and artificial intelligence.
Managed Services Key Market Trends
- Rise of Automation and AI-Powered Efficiency: The noteworthy improvements that have been witnessed in the managed services business recently are a reflection of both the dynamic character of the technological landscape and the evolving expectations of organisations. This documents an important trend into which more managed cloud services are being used. The rising use of online operations by businesses has created a demand for complementary managed services that enhance these platforms.
- Managed Services are Transforming Business Efficiency: Automation and AI-powered solutions are being used by businesses to streamline operations, increase productivity, and reduce manual labour. This not only saves money but also enables MSPs to deliver faster and more reliable services. AI is making its way into many aspects of managed services, from proactive problem solving with predictive analytics to chatbots for customer support.
Managed Services Market SkyQuest Analysis
SkyQuest’s ABIRAW (Advanced Business Intelligence, Research & Analysis Wing) is our Business Information Services team that Collects, Collates, Correlates, and Analyses the Data collected by means of Primary Exploratory Research backed by robust Secondary Desk research.
As per SkyQuest analysis, in conclusion, the necessity for specific expertise and the increasing intricacy of IT are behind the considerable growth in the global managed services market. Companies are progressively resorting to managed services providers (MSPs) to carry out network management, protection against cybercrimes and data administration so that they concentrate on other key business operations which require more time thus freeing up their time.
Innovations such as AI and automation are being used to enhance service efficiency, proactive responses and improved reliability. However, challenges like shortage of IT security professionals in the industry and intense competition may hinder growth. This fast-growing market’s dynamism is evident from the remarkable progress being experienced in regions like North America and Europe where industries such as telecommunications and banks were leading demand.
| Report Metric | Details |
|---|---|
| Market size value in 2022 | USD 242.9 Billion |
| Market size value in 2031 | USD 519.57 Billion |
| Growth Rate | 7.9% |
| Base year | 2023 |
| Forecast period | 2024-2031 |
| Forecast Unit (Value) | USD Billion |
| Segments covered |
|
| Regions covered | North America (US, Canada), Europe (Germany, France, United Kingdom, Italy, Spain, Rest of Europe), Asia Pacific (China, India, Japan, Rest of Asia-Pacific), Latin America (Brazil, Rest of Latin America), Middle East & Africa (South Africa, GCC Countries, Rest of MEA) |
| Companies covered |
|
| Customization scope | Free report customization with purchase. Customization includes:-
|
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Table Of Content
Executive Summary
Market overview
- Exhibit: Executive Summary – Chart on Market Overview
- Exhibit: Executive Summary – Data Table on Market Overview
- Exhibit: Executive Summary – Chart on Managed Services Market Characteristics
- Exhibit: Executive Summary – Chart on Market by Geography
- Exhibit: Executive Summary – Chart on Market Segmentation
- Exhibit: Executive Summary – Chart on Incremental Growth
- Exhibit: Executive Summary – Data Table on Incremental Growth
- Exhibit: Executive Summary – Chart on Vendor Market Positioning
Parent Market Analysis
Market overview
Market size
- Market Dynamics
- Exhibit: Impact analysis of DROC, 2021
- Drivers
- Opportunities
- Restraints
- Challenges
- Exhibit: Impact analysis of DROC, 2021
- SWOT Analysis
KEY MARKET INSIGHTS
- Technology Analysis
- (Exhibit: Data Table: Name of technology and details)
- Pricing Analysis
- (Exhibit: Data Table: Name of technology and pricing details)
- Supply Chain Analysis
- (Exhibit: Detailed Supply Chain Presentation)
- Value Chain Analysis
- (Exhibit: Detailed Value Chain Presentation)
- Ecosystem Of the Market
- Exhibit: Parent Market Ecosystem Market Analysis
- Exhibit: Market Characteristics of Parent Market
- IP Analysis
- (Exhibit: Data Table: Name of product/technology, patents filed, inventor/company name, acquiring firm)
- Trade Analysis
- (Exhibit: Data Table: Import and Export data details)
- Startup Analysis
- (Exhibit: Data Table: Emerging startups details)
- Raw Material Analysis
- (Exhibit: Data Table: Mapping of key raw materials)
- Innovation Matrix
- (Exhibit: Positioning Matrix: Mapping of new and existing technologies)
- Pipeline product Analysis
- (Exhibit: Data Table: Name of companies and pipeline products, regional mapping)
- Macroeconomic Indicators
COVID IMPACT
- Introduction
- Impact On Economy—scenario Assessment
- Exhibit: Data on GDP - Year-over-year growth 2016-2022 (%)
- Revised Market Size
- Exhibit: Data Table on Managed Services Market size and forecast 2021-2027 ($ million)
- Impact Of COVID On Key Segments
- Exhibit: Data Table on Segment Market size and forecast 2021-2027 ($ million)
- COVID Strategies By Company
- Exhibit: Analysis on key strategies adopted by companies
MARKET DYNAMICS & OUTLOOK
- Market Dynamics
- Exhibit: Impact analysis of DROC, 2021
- Drivers
- Opportunities
- Restraints
- Challenges
- Exhibit: Impact analysis of DROC, 2021
- Regulatory Landscape
- Exhibit: Data Table on regulation from different region
- SWOT Analysis
- Porters Analysis
- Competitive rivalry
- Exhibit: Competitive rivalry Impact of key factors, 2021
- Threat of substitute products
- Exhibit: Threat of Substitute Products Impact of key factors, 2021
- Bargaining power of buyers
- Exhibit: buyers bargaining power Impact of key factors, 2021
- Threat of new entrants
- Exhibit: Threat of new entrants Impact of key factors, 2021
- Bargaining power of suppliers
- Exhibit: Threat of suppliers bargaining power Impact of key factors, 2021
- Competitive rivalry
- Skyquest special insights on future disruptions
- Political Impact
- Economic impact
- Social Impact
- Technical Impact
- Environmental Impact
- Legal Impact
Market Size by Region
- Chart on Market share by geography 2021-2027 (%)
- Data Table on Market share by geography 2021-2027(%)
- North America
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- USA
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Canada
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Europe
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- Germany
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Spain
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- France
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- UK
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of Europe
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Asia Pacific
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- China
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- India
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Japan
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- South Korea
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of Asia Pacific
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Latin America
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- Brazil
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of South America
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Middle East & Africa (MEA)
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- GCC Countries
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- South Africa
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of MEA
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
KEY COMPANY PROFILES
- Competitive Landscape
- Total number of companies covered
- Exhibit: companies covered in the report, 2021
- Top companies market positioning
- Exhibit: company positioning matrix, 2021
- Top companies market Share
- Exhibit: Pie chart analysis on company market share, 2021(%)
- Total number of companies covered
Methodology
For the Managed Services Market, our research methodology involved a mixture of primary and secondary data sources. Key steps involved in the research process are listed below:
1. Information Procurement: This stage involved the procurement of Market data or related information via primary and secondary sources. The various secondary sources used included various company websites, annual reports, trade databases, and paid databases such as Hoover's, Bloomberg Business, Factiva, and Avention. Our team did 45 primary interactions Globally which included several stakeholders such as manufacturers, customers, key opinion leaders, etc. Overall, information procurement was one of the most extensive stages in our research process.
2. Information Analysis: This step involved triangulation of data through bottom-up and top-down approaches to estimate and validate the total size and future estimate of the Managed Services Market.
3. Report Formulation: The final step entailed the placement of data points in appropriate Market spaces in an attempt to deduce viable conclusions.
4. Validation & Publishing: Validation is the most important step in the process. Validation & re-validation via an intricately designed process helped us finalize data points to be used for final calculations. The final Market estimates and forecasts were then aligned and sent to our panel of industry experts for validation of data. Once the validation was done the report was sent to our Quality Assurance team to ensure adherence to style guides, consistency & design.
Analyst Support
Customization Options
With the given market data, our dedicated team of analysts can offer you the following customization options are available for the Managed Services Market:
Product Analysis: Product matrix, which offers a detailed comparison of the product portfolio of companies.
Regional Analysis: Further analysis of the Managed Services Market for additional countries.
Competitive Analysis: Detailed analysis and profiling of additional Market players & comparative analysis of competitive products.
Go to Market Strategy: Find the high-growth channels to invest your marketing efforts and increase your customer base.
Innovation Mapping: Identify racial solutions and innovation, connected to deep ecosystems of innovators, start-ups, academics, and strategic partners.
Category Intelligence: Customized intelligence that is relevant to their supply Markets will enable them to make smarter sourcing decisions and improve their category management.
Public Company Transcript Analysis: To improve the investment performance by generating new alpha and making better-informed decisions.
Social Media Listening: To analyze the conversations and trends happening not just around your brand, but around your industry as a whole, and use those insights to make better Marketing decisions.
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