Managed Services Market

Managed Services Market Outlook (2024 to 2034)

Worldwide revenue from managed services is estimated at US$ 302.11 billion in 2024. The global managed services market is forecasted to expand at 7.3% CAGR and climb to a size of US$ 611.17 billion by the end of 2034.

Increasing adoption of big data technology, cloud computing, and other advanced tools is driving managed service providers to elevate their offerings. Continuously upgrading managed services to ensure a smooth user experience is becoming increasingly crucial.

By leveraging these advanced technologies, providers are not only reducing operational costs but also enhancing their return on investment significantly. Companies are picking up advanced tech solutions through flexible managed services and scalable infrastructure setups. All these new trends are helping in the managed services market growth. The increasing demand for securing IT infrastructure against cyber threats is driving organizations to adopt managed security services (MSSs) in their businesses.

Key Market Growth Drivers

• Need for managed services is increasing, driven by the need for privacy protection, data security, and improved operational efficiency while reducing costs.
• Companies are increasingly outsourcing their IT management to focus on core business operations and strategic goals.
• Adoption of technologies like cloud computing, IoT, machine learning, and AI is contributing to the complexity of IT infrastructure, further boosting the demand for managed services.
• Managed services help organizations control expenses by reducing reliance on internal IT staff and offering predictable, scalable pricing models.
• Managed service providers are assisting organizations in data protection and regulatory compliance, crucial in today's digital landscape.
• Continuous market growth is fueled by providers ensuring access to the latest updates and technologies, keeping companies competitive.
• A key managed services market trend is the need for efficient and secure IT infrastructure to support distributed workforces and global expansion.
• Managed services also facilitate robust business continuity and disaster recovery solutions, ensuring minimal downtime and swift recovery from disruptions to maintain operations and client trust.

Report Attributes	Details
Managed Services Market Size (2024E)	US$ 302.11 Billion
Forecasted Market Value (2034F)	US$ 611.17 Billion
Global Market Growth Rate (2024 to 2034)	7.3% CAGR
North America Market Value (2024E)	US$ 99.7 Billion
East Asia Market Growth Rate (2024 to 2034)	8.4% CAGR
Cloud-Based Segment Value (2034F)	US$ 397.26 Billion
Managed Data Center & IT Infrastructure Services Segment Value (2034F)	US$ 244.47 Billion
Key Companies Profiled	IBM; Fujitsu; Accenture; Atos; Cisco Systems, Inc.; Lenovo; BMC Software, Inc.; Atera Networks Ltd.; DXC Technology Company; HCL Technologies Limited; Cloud5 Communications; Wipro Limited

Why is Need for Managed Services Increasing Rapidly in Enterprises?

“Swiftly Increasing Complexity of IT Infrastructure”

IT systems that are used in various businesses are becoming more complex day by day as they start to use advanced technologies such as cloud computing, the Internet of Things (IoT), and artificial intelligence (AI). For such technologies to provide seamless integration, excellent performance and security, specialist knowledge, and continuous management are needed, which is driving managed switches market growth.

Providers of managed service are enabling businesses to concentrate on their core competencies while guaranteeing the seamless and secure functioning of their technology systems. MSPs provide the knowledge and resources required to manage complex IT infrastructures.

Which Factors are Denting Managed Services Market Growth?

“Security Concerns Holding Several Businesses Back from Using Managed Services”

Security worries are holding various companies from using managed services. Companies get concerned about giving control of sensitive data and key IT tasks to outside providers. They fear data leaks, privacy issues, and breaking rules.

The chance of exposing secret info to hackers or unauthorized people is a key factor stopping businesses from outsourcing their IT work. Also, ensuring service providers follow strict data protection and legal standards adds risk and complicates things. This leads some companies to think twice before jumping into managed services. All these components are impeding the expansion of the managed services market size.

Country-wise Insights

North America is projected to hold a leading position with a 33% managed services market share in 2024. Key reason for the top leading of the region is the rapid adoption of advanced technologies and the presence of some key IT companies.

What is the Market Scenario for Managed Services in the United States?

“Increasing Incidents of Cyber Threats and Data Breaches”

Attribute	United States
Market Value (2024E)	US$ 44.36 Billion
Growth Rate (2024 to 2034)	7.1% CAGR
Projected Value (2034F)	US$ 87.79 Billion

Companies across the United States are increasingly focusing on strong security measures amidst growing concerns over cybersecurity. With cyber threats and data breaches becoming more frequent and sophisticated, managed service providers (MSPs) are stepping up with specialized security solutions. These MSPs deploy advanced methods to detect threats, maintain continuous monitoring, and respond promptly to incidents.

Organizations are turning to MSPs for assistance in adhering to regulatory standards such as HIPAA, GDPR, and PCI-DSS. Managed service providers play a crucial role in safeguarding businesses, preserving customer trust in today's digital environment, and driving market growth nationwide.

Why is Use of Managed Service Increasing at a Notable Rate in Japan?

“Cost Efficiency of Managed Services Making Them Popular among SMEs”

Attribute	Japan
Market Value (2024E)	US$ 20.52 Billion
Growth Rate (2024 to 2034)	8.6% CAGR
Projected Value (2034F)	US$ 46.72 Billion

In Japan, managed services are becoming more popular among small and medium enterprises (SMEs) as a way to get around the problems of scarce resources and low IT infrastructure management experience.

Managed service providers offer small and medium-sized enterprises (SMEs) access to advanced technologies like cloud computing, cybersecurity, and data analytics without hefty upfront expenses. This allows SMEs to concentrate on their core business while entrusting IT management, maintenance, and security to specialists. By enabling SMEs to quickly adjust to market changes and technological advances, managed services foster their growth and innovation efforts.

Category-wise Insights

Based on service type, the market is segmented into managed security services, managed network services, managed data center & IT infrastructure services, managed communication & collaboration services, managed mobility services, and managed information services. The managed security services segment holds a sizable market share due to the growing need to safeguard IT systems from cyber-attacks.

Which Type of Deployment Accounts for High Revenue Generation?

“Cloud-Based Managed Services Gaining Popularity Due to Scalability and Affordability Benefits”

Attribute	Cloud-Based
Segment Value (2024E)	US$ 181.27 Billion
Growth Rate (2024 to 2034)	8.2% CAGR
Projected Value (2034F)	US$ 397.26 Billion

Demand for cloud-based managed services is higher in comparison with on-premise due to their scalability, affordability, and lower administration overhead.

Businesses widely prefer cloud services, as they can pay only for the resources they use and instantly alter resources to suit their needs. This gets rid of the significant up-front costs for hardware and continuous maintenance that come with on-premise infrastructure. Also, internal IT teams concentrate on key business goals because cloud providers take care of security, updates, and technical support.

Why are Managed Data Centers & IT Infrastructure Services Being Increasingly Adopted by Enterprises?

“Focus on Proactive Maintenance to Minimize System Downtime”

Attribute	Managed Data Centers & IT Infrastructure Services
Segment Value (2024E)	US$ 126.89 Billion
Growth Rate (2024 to 2034)	6.8% CAGR
Projected Value (2034F)	US$ 244.47 Billion

In the vertical segment, the managed data center & IT infrastructure services segment is projected to hold 42% of the global market share. The complexity of managed data centers and IT infrastructure systems is driving up demand for managed services.

Managed services are used by businesses in various regions to enhance, safeguard, and maintain their IT environments. These businesses' growing demand is also attributed to the proactive maintenance, fast problem-solving, and constant monitoring provided by managed service providers, which allow them to focus on their core business activities.

Competitive Landscape

Key players in the managed services market are focusing on expanding their service offerings by including new technologies such as IoT, AI-driven analytics, cloud computing, cybersecurity, and others to increase their presence.

• In July 2023, Managed Security Services (MSS) is a set of security solutions that Fujitsu introduced to assist businesses in defending their systems, apps, and data against online attacks. Organizations can identify and react to cyber threats instantly with the use of Fujitsu's MSS. With Fujitsu's MSS, businesses can keep an eye on their security environment around the clock.
• In September 2023, the communication and technology solutions provider Cloud5 Communications unveiled its new managed services segment. This branch strives to meet the IT requirements and difficulties of many businesses, such as senior living, student housing, and hospitality. This section will assist customers in efficiently streamlining business processes by providing support for managing technology infrastructures, security, and IT operations.
• In January 2022, Microsoft Cloud for Retail and Tata Consultancy Services (TCS) announced a collaboration.

Fact.MR provides detailed information about the price points of key providers of managed services positioned across the world, sales growth, production capacity, and speculative technological expansion, in this updated market report.

Segmentation of Managed Services Market Research

• By Service Type:

  • Managed Security Services
    • Managed Identity and Access Management (IAM)
    • Managed Antivirus/Antimalware
    • Managed Firewall
    • Managed Risk and Compliance Management
    • Managed Vulnerability Management
    • Managed Security Information and Event Management (SIEM)
    • Managed Intrusion Detection System (IDS)/ Intrusion Prevention System (IPS)
    • Managed Unified Threat Management (UTM)
    • Managed Encryption
    • Others (Distributed Denial of Service (DDoS) Mitigation and Managed Data Loss Prevention (DLP)
  • Managed Network Services
    • Managed Local Area Network
    • Managed Wireless Fidelity
    • Managed Virtual Private Network
    • Managed Wide Area Network
    • Network Monitoring
    • Managed Network Security
  • Managed Data Centre & IT Infrastructure Services
    • Storage Management
    • Server Management
    • Managed Print Services
    • Others (Application and Middleware Management, and Database Management)
  • Managed Communication & Collaboration Services
    • Managed Voice over Internet Protocol (VoIP)
    • Managed Unified Communications as a Service (UCaaS)
    • Others (Managed Email Services)
  • Managed Mobility Services
    • Device Life Cycle Management
    • Application Management
  • Managed Information Services
    • Business Process Management
    • Managed Operational Support Systems/Business Support Systems

• By Deployment:

  • Cloud
  • On-Premise

• By Organization Size:

  • SMEs
  • Large Enterprises

• By Vertical:

  • BFSI
  • IT & Telecom
  • Retail & Consumer Goods
  • Manufacturing
  • Government
  • Healthcare & Life Sciences
  • Energy & Utilities
  • Media & Entertainment

• By Region:

  • North America
  • Western Europe
  • Eastern Europe
  • Latin America
  • East Asia
  • South Asia & Pacific
  • Middle East & Africa