USD 340.0 billion
Report ID:
SQMIG45D2157 |
Region:
Global |
Published Date: July, 2025
Pages:
199
|Tables:
97
|Figures:
76
Global Managed Services Market size was valued at USD 340.0 Billion in 2023 and is poised to grow from USD 364.14 Billion in 2024 to USD 630.35 Billion by 2032, growing at a CAGR of 7.1% during the forecast period (2025-2032).
As more people become aware of the benefits of cloud computing, the use of cloud-managed services is increasing. By partnering with specialized service providers to manage and maintain their cloud platforms, apps, and infrastructure, businesses can focus on their core competencies. This tactic leverages the expertise of managed service providers to optimize their cloud systems' cost, scalability, and performance. As companies update their IT infrastructure and implement digital transformation initiatives, there is an increasing demand for cloud-managed services. The global managed services market growth is driven because of this trend, which highlights the strategic value of outsourcing cloud management to boost operational effectiveness and encourage innovation.
The demand for managed services is rising significantly due to globalization and remote work trends, necessitating robust IT support for distributed teams. As businesses expand globally, the need for efficient IT infrastructure management and seamless cross-border communication drives the demand for managed services. Reliable network management, cloud computing, and cybersecurity systems are essential for effectively supporting distributed workforces, as the trend toward remote work highlights. No matter where they are located, managed service providers offer flexible and scalable solutions that support businesses in maintaining stability, boosting output, and swiftly adjusting to shifting work conditions.
How is AI Enhancing Low-Power Edge Computing Through Neuromorphic Design?
AI in the managed services industry is growing quickly as more companies use it to improve cybersecurity, automate time-consuming tasks, and streamline IT operations. With predictive maintenance and automated problem-solving, IBM's AI-powered "Proactive Incident Resolution" service, which was introduced in 2024, allows users to cut system downtime by 35%. In order to enhance service delivery and operational efficacy, managed service providers are incorporating AI solutions for automated ticketing, anomaly detection, and real-time monitoring. Infosys and a major American retailer were able to cut IT support expenses by 28% in 2025 by putting AI-powered infrastructure management into place. AI is converting managed services into more proactive, data-driven, and outcome-focused models in response to the growing demand for intelligent, scalable solutions.
Market snapshot - 2025-2032
Global Market Size
USD 340.0 billion
Largest Segment
Hosted
Fastest Growth
On-Premise
Growth Rate
7.1% CAGR
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The global managed services market is segmented into solution, managed information service (MIS), deployment, end use, and region. By solution, the market is divided into managed data center, managed networks, managed mobility, managed infrastructure, managed backup & recovery, managed communication, managed information, and managed security. Depending on managed information service (MIS), it is classified into business process outsourcing (BPO), business support systems, and project & portfolio management. According to deployment, the market is bifurcated into hosted and on-premise. As per end use, it is categorized into BFSI, government, healthcare, it & Telecom, manufacturing, media & entertainment, and retail. Regionally, it is analyzed across North America, Europe, Asia-Pacific, Latin America, and the Middle East and Africa.
What Role Do Managed Data Centers Play in the Growth of Managed Services?
As per the 2024 global managed services market analysis, the managed data center segment led the market with a revenue share of over 16.0%. The rapid shift to multi-cloud and hybrid environments is driving segment growth. Many companies are using hybrid models, which combine on-premises infrastructure with private and public cloud services. Managed data centers are crucial to this ecosystem because they act as centralized hubs that make it easier to exchange data, deploy applications, and manage workloads across multiple platforms. They also help companies optimize cloud resources, manage vendor relationships, and ensure consistent security and performance across the IT stack.
The managed security segment is expected to grow at a notable compound annual growth rate during the forecast period. As continuous monitoring and prompt incident response are essential, organizations are shifting to managed security. To prevent breaches or lessen damage, cyber threats must be continuously monitored due to their increasing complexity. Managed security services provide round-the-clock operations through security operations centers (SOCs) that use AI-driven analytics, threat intelligence feeds, and automated response protocols to detect and eliminate threats in real time. This constant vigilance is crucial because the time it takes to detect and fix a breach often determines the extent of the damage.
How did Hosted Services Gain a Competitive Edge in the Market?
Based on the 2024 global managed services market forecast, due to the growing need for affordable, scalable IT infrastructure, the hosted sector dominated the market. Many companies resorted to hosted services such as cloud migration because of their smooth integration and minimal maintenance requirements. For example, in an effort to cut expenses and increase efficiency, Siemens moved a sizable percentage of its internal systems to a hosted Azure environment in April 2024. It is anticipated that this trend will continue to be strong until 2025.
The on-premise category is anticipated to have the highest managed services market share during the forecast period. On-premises solutions' high level of data security makes it simple for end users' companies to adhere to various legal requirements. Similarly, various on-premises managed services solutions offer businesses greater control over their personal data. However, end-user businesses are focusing on implementing cloud-based managed services solutions due to their low operating costs and range of subscription plans. This is expected to restrain market expansion over the forecast period.
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Why did North America Lead the Managed Services Sector?
As per the managed services market regional analysis, North America led the market in 2024 with a revenue share of over 33.0%. The North American market is expanding because of the widespread use of cloud computing. As companies transition from on-premises infrastructure to hybrid or fully cloud-based environments, ongoing cloud management, optimization, and support are crucial. Managed cloud services are in high demand because they help businesses with workload migration, multi-cloud environment management, and performance and scalability assurance. The presence of major cloud service providers like AWS, Microsoft Azure, and Google Cloud in North America has further accelerated the trend. To provide integrated, value-added services, MSPs usually work with these titans of the industry.
Managed Services Market in the U.S.
The United States dominated the managed services sector in 2024. The need for technological innovation and specialized knowledge drives market growth in the US. To manage, integrate, and optimize emerging technologies like artificial intelligence (AI), machine learning (ML), and the Internet of Things (IoT), businesses require MSPs with a wealth of technical expertise. By offering the infrastructure and expertise required to assist companies in deploying and managing these cutting-edge technologies, MSPs give them a competitive edge in their respective markets.
Managed Services Market in Canada
Increased cybersecurity requirements, cloud platform adoption, and AI integration are some of the factors driving Canada's managed services market's steady expansion. IBM expanded its "Technology Expert Labs" in Ontario in 2024 to help companies deploy AI-powered solutions. With 59% of MSPs expecting revenue growth of 20% or more by 2025, cybersecurity and AI-driven automation will be key differentiators. Small and medium-sized businesses are increasingly outsourcing their IT so they can focus on their core skills.
How is the GDPR Shaping the European Managed Security Services Landscape?
The European managed services market is expected to grow at a 13.7% CAGR between 2025 and 2030. The market is growing because of the increased need for better cybersecurity across Europe, especially given the rise in the frequency and complexity of cyberattacks. The General Data Protection Regulation (GDPR) of the European Union has raised the importance of data protection and privacy, which has further encouraged businesses to give cybersecurity top priority. Due to the rise in ransomware attacks, phishing scams, and data breaches in sectors like banking, healthcare, and government, businesses are turning to MSPs that specialize in cybersecurity services. Managed security services, such as threat detection, incident response, and security monitoring, are essential for helping businesses comply with legal requirements and protect sensitive data. Furthermore, MSPs offer 24/7 security monitoring and proactive threat intelligence, both of which are critical considering how dynamic cyberthreats are.
Managed Services Market in UK
The UK managed services industry accounted for a sizeable amount of revenue in 2024. The increasing demand for multi-cloud and hybrid cloud environments is driving growth in the UK market. Many businesses are moving from utilizing a single cloud provider to multi-cloud or hybrid cloud strategies to enhance data redundancy, maximize performance, and prevent vendor lock-in. This change complicates managing multiple cloud platforms, ensuring seamless integration, and maintaining security in diverse contexts. Managed service providers are well-positioned to support these complex multi-cloud and hybrid cloud architectures with services that ensure cross-platform compatibility, streamline cloud integration, and maintain a high level of security.
Managed Services Market in Germany
The German managed services market is expected to expand rapidly over the course of the forecast period. Germany's growing need for digital transformation is driving the market's expansion. As the country's industries undergo a digital transformation, specially manufacturing, automotive, and healthcare, businesses are increasingly relying on advanced technologies like the Internet of Things (IoT), artificial intelligence (AI), and machine learning (ML) to stay competitive. Nevertheless, a lot of companies lack the specific expertise required for these technologies' management and integration. Managed service providers are crucial to assisting German companies in implementing and optimizing these innovative technologies. By offering a range of services like automation, AI-driven analytics, and IoT device management, MSPs allow businesses to focus on innovation while leaving the technical complexities to the experts.
Managed Services Market in France
The French managed services market is expected to grow at a notable compound annual growth rate during the forecast period. The continuous digitization and the resulting increase in demand for cloud computing and IT security services are driving the adoption of managed services. Additionally, because businesses are making aggressive investments in wireline voice services, infrastructure outsourcing services, telecommunications and IT services, it is projected that the demand for managed services will rise.
Why is Asia Pacific the Fastest-Growing Managed Services Market?
The Asia Pacific managed services market is anticipated to grow at the fastest rate in the region, with a compound annual growth rate (CAGR) of 15.1%. Over the course of the forecast period, several Asia Pacific companies are expected to make significant contributions to the market's growth through the deployment of cloud-based solutions and increased investments in data security. Market expansion is also expected to be supported by higher spending brought on by companies deploying cutting-edge technologies, such as cloud-based technology and advanced technology for business development. Furthermore, it is projected that the growth of IT companies and the government's increased focus on digitization will support market expansion in India and ASEAN.
Managed Services Market in China
China dominated the managed services market in Asia Pacific in 2024. The Chinese government is promoting the use of IoT, cloud computing, and other innovative technologies. This is driving the nationwide rollout of cloud computing infrastructure, which in turn is driving the market's demand for managed services and the popularity of the SaaS delivery model.
Managed Services Market in India
The Indian managed services market is anticipated to expand quickly during the forecast period. The rapid growth of the Indian IT industry and the audacious investments made by leading IT companies such as Google, International Business Machines Corporation, and Microsoft Corporation in the country are expected to propel the managed services market in India.
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Managed Services Market Drivers
Increasing Enterprise Cloud Usage
Increasing Demand for Management of Cybersecurity
Managed Services Market Restraints
Privacy and Data Security Issues
Expensive for Small Businesses
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In the fiercely competitive managed services sector, companies embrace cloud partnerships, AI integration, and strategic alliances. While firms like TCS and Wipro improve their products through automation and analytics, Accenture and IBM concentrate on managed cloud platforms and digital transformation. To increase their enterprise reach, MSPs work with Google Cloud and AWS. The primary differentiators influencing market share are support for hybrid clouds, multi-cloud management, and cybersecurity expertise.
Top Player’s Company Profile
Recent Developments in Managed Services Market
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, as digital transformation becomes a more important priority across organizations, the managed services market outlook is changing quickly. The prevalence of cloud adoption, AI implementation and the seriousness of cybersecurity concerns are leading businesses to seek out external service partners for the management of more complex IT infrastructures. Mostly, data privacy issues and expenses may limit the use of MSPs among smaller organizations. However, advancing automation and industry-specific managed services are making MSPs more applicable. More remote work and global connectivity requires IT solutions that are scalable, flexible and secure, which is why managed services are an integral part of an organization’s channels.
Report Metric | Details |
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Market size value in 2023 | USD 340.0 Billion |
Market size value in 2032 | USD 630.35 Billion |
Growth Rate | 7.1% |
Base year | 2024 |
Forecast period | 2025-2032 |
Forecast Unit (Value) | USD Billion |
Segments covered |
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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 |
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Customization scope | Free report customization with purchase. Customization includes:-
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Table Of Content
Executive Summary
Market overview
Parent Market Analysis
Market overview
Market size
KEY MARKET INSIGHTS
COVID IMPACT
MARKET DYNAMICS & OUTLOOK
Market Size by Region
KEY COMPANY PROFILES
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.
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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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Global Managed Services Market size was valued at USD 340.0 Billion in 2023 and is poised to grow from USD 364.14 Billion in 2024 to USD 630.35 Billion by 2032, growing at a CAGR of 7.1% during the forecast period (2025-2032).
In the fiercely competitive managed services sector, companies embrace cloud partnerships, AI integration, and strategic alliances. While firms like TCS and Wipro improve their products through automation and analytics, Accenture and IBM concentrate on managed cloud platforms and digital transformation. To increase their enterprise reach, MSPs work with Google Cloud and AWS. The primary differentiators influencing market share are support for hybrid clouds, multi-cloud management, and cybersecurity expertise. 'Accenture plc', 'AT&T Inc', 'Cisco Systems, Inc.', 'Cognizant', 'DXC Technology', 'Fujitsu Limited', 'IBM Corporation', 'Infosys Limited', 'NTT Data Corporation', 'TCS Limited', 'HCL Technologies Limited', 'HP Development Company, L.P.', 'International Business Machines Corporation', 'Elitery'
Reliable managed services are becoming more crucial as companies depend more on cloud-based infrastructure. Managed service providers (MSPs) lessen internal IT workloads by providing cloud administration, infrastructure monitoring, and data optimization. MSPs are essential partners that help businesses guarantee data uptime and accessibility. The shift to hybrid and multi-cloud environments is also increasing demand for real-time troubleshooting, performance optimization, and seamless integration.
AI and Automation Integration: MSPs are integrating more automation and artificial intelligence (AI) into their service offerings to increase efficiency. AI machine learning, predictive maintenance, automated monitoring allow technology solutions, proactive question answers and downtime minimization. With this evolution, MSPs are now able to make better decisions, and provide faster and more tailored solutions. Clients witness lower costs enjoying greater system performance, while their provider can provide a higher level of service in a competitive environment.
Why did North America Lead the Managed Services Sector?
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