The Managed Services Market will be worth US$ 520.54 billion by 2032 up from US$ 258.24 billion in 2023 with CAGR of 8.10% from the year 2024 and 2032. The market is growing at a fast pace due to factors such as rising demand for IT outsourcing services, complex management of IT infrastructures, and the trend of business looking for improved, affordable, and efficient solutions.
There is an increasing need for managed services, which is caused by the globalization of business and the development of a remote workplace. It is important to keep IT equipment running smoothly and communications sufficiently open and available: hence the necessity for managed services. Many organizational functions move to the cloud and remote work increases the vulnerability to cyberattacks, so it is essential to ensure high-quality network protection and management for distant employees. Contract administrators are flexible and can meet clients’ needs at various capacities for a business to maintain constant functionality, enhance efficiency, and easily transform in regards to structural environment changes.
Current rapid developments of technology have impacted the banking sector in India and to address the issues organizations have started adopting the cloud computing services. The managed storage providers are investing in the integrated cloud storage solutions for the BFSI industry. In 2022, KPMG India implemented Qualys solutions to KPMG’s Managed Security service making use of the KPMG cybersecurity solutions as well as Qualys technologies to safeguard enterprises’ networks, applications, endpoints, and cloud use and compliance.
Managed Services Industry Outlook
Managed Services is a growing tendency because it implies a constant monitoring and servicing of corporations’ technology in line with overall service level agreements. These services include core operational activities that allow the clients to optimize and become less complicated through improvements in communication and information technology.There is an increasing need for managed services, which is caused by the globalization of business and the development of a remote workplace. It is important to keep IT equipment running smoothly and communications sufficiently open and available: hence the necessity for managed services. Many organizational functions move to the cloud and remote work increases the vulnerability to cyberattacks, so it is essential to ensure high-quality network protection and management for distant employees. Contract administrators are flexible and can meet clients’ needs at various capacities for a business to maintain constant functionality, enhance efficiency, and easily transform in regards to structural environment changes.
Driving Forces of the Managed Services Market
Digital transformation is a major catalyst for the managed services market
The major issue that has emerged from the efforts that different organizations across industries make in their bid to transform their business processes is how they can adopt the new technologies within their organizational infrastructure. This process normally calls for professional service that many businesses normally lack within their establishment. In this regard, Managed Service Providers (MSPs) occupy a rather important position since they provide the right knowledge and tools for implementing and supporting challenging digital solutions. Being from cloud migration, IoT integration, data analytics/BI to artificial intelligence, MSPs allow organizations to reap the benefits of most advanced technologies even when they do not have large in-house IT teams. The shift to digital sophistication continues and with it the need for MSPs to assist with and augment this digitalization promises a large growth trajectory for the managed services. For example, in May 2024, Elitery, and Indonesian cloud-solutions company was announced as Google Cloud Managed Services Provider (MSP). Being the MSP for Google Cloud in Indonesia, Elitery will increase the experience in a cloud and provide better services to customers. The company plans to use its position of an MSP to present to city governments innovative generative AI or gen AI solutions.Escalating threat landscape in cybersecurity
The necessity of powerful cybersecurity measures is rising because the threats have been enhanced. It states the need to show that cybersecurity is not an area that can be left on its own since it is dynamic and needs tools, which many organizations struggling to manage appropriately. MSSPs are suggested as the answer to all of this, as they provide detailed security analysis and cover threats, weaknesses, and compliance issues. The nature of cybersecurity and the unfavorable outcome of a cyber-attack makes outsourcing to MSSPs an attractive model to many companies. Also, the rising regulation norms for data security is expected to drive a further growth in the Cybersecurity segment for the managed services market in the near future. For example, in the April of 2024, SAS, a data and AI specialist, have broadened the managed services to Amazon Web Service so that clients can have various choices for the implementation and the management of SAS technology.The widespread adoption of cloud computing
Organizations are adopting Cloud for the ability to achieve flexibility, scalability and reduction of costs. However, managing complex cloud environments have its own issues, organizations may require more skills for the efficient utilization of their structures thus might lead to poor utilization of the infrastructure and some hidden costs. The Managed Service Providers focusing on the cloud services provide services related to cloud integration, cloud fine-tuning, multi-cloud maintenance, and compliance. Hence, executive decision-makers are seeing the need for managed services to support the more complex hybrid and multi-cloud solutions being adopted. Because emerging cloud technologies are continuing to change and mature, the pressures placed on firms to fully leverage their cloud spend guarantees that associated managed services will continue to grow at a great rate.Asia Pacific Managed Services Market
The Asia-Pacific managed services market is growing at a robust pace owing to the growing cloud solutions, the shift towards digital solutions, and growing need for outsourcing services among others. All forms of enterprises in the region are finding managed services as a way of optimizing their undertakings, cutting on expenses and discussing on their core competencies. It is supported by the tendencies towards the increased number of SMEs and the need for cybersecurity services. The major industries which are contributing towards the growth of this market are IT, telecom, BFSI and healthcare industries which are majorly expanding in India, China and Japan. China’s State Council recently published an outline for the development of a digital economy in the course of the 14th five-year plan for 2021-2025. Its goals are to raise China’s digital industrialisation to another level by 2025, increase the digital Public Services’ inclusiveness, and correct the governance structure of the digital economy.Current rapid developments of technology have impacted the banking sector in India and to address the issues organizations have started adopting the cloud computing services. The managed storage providers are investing in the integrated cloud storage solutions for the BFSI industry. In 2022, KPMG India implemented Qualys solutions to KPMG’s Managed Security service making use of the KPMG cybersecurity solutions as well as Qualys technologies to safeguard enterprises’ networks, applications, endpoints, and cloud use and compliance.
Managed Services Company Analysis
Key players in the managed services industry: Fujitsu Ltd, Cisco Systems Inc., IBM Corporation, AT&T Inc., Microsoft Corporation, Verizon Communications Inc., Dell Technologies Inc., Nokia Solutions and Networks, Rackspace Inc., and Tata Consultancy Services Limited.Managed Services Company News
- In October 2023, Logicalis introduced the Intelligent Connectivity suite powered by Cisco Systems, Inc. It includes products like SASE, SSE, SD-WAN, and Private 5G, making digitally managed services developed and supported by the Logicalis Digital Fabric Platform accessible to clients.
- In September 2023, Cloud5 Communications launched a new managed services business to assist businesses in managing IT needs in sectors like senior living, student housing, and hospitality.
- In May 2023, Alfa Capital and Walter Capital Partners acquired MSP Corp, a managed IT service provider in Canada. This acquisition aims to enhance the company's position and expand its offerings by joining forces with Groupe Access, an MSP specializing in cybersecurity and IT solutions.
- Jan 2023, Rackspace Technology has launched Rackspace Technology Modern Operations, a managed public cloud service for Azure, AWS, and GCP users. It offers 24/7 managed assistance, cloud expertise, resilience, and innovative cloud services.
Type - Market breakup in 6 viewpoints:
- Data Center
- Security
- Communications
- Network
- Infrastructure
- Mobility
Size of Enterprises-Market breakup in 2 viewpoints:
- Small & Medium Size
- Large Enterprise
End User - Market breakup in 8 viewpoints:
- BFSI
- IT and Telecommunication
- Healthcare
- Entertainment and Media
- Retail
- Manufacturing
- Government
- Others
Deployment-Market breakup in 2 viewpoints:
- On-premise
- Cloud
Country-Market breakup in 25 viewpoints:
North America
- United States
- Canada
Europe
- France
- Germany
- Italy
- Spain
- United Kingdom
- Belgium
- the Netherlands
- Turkey
Asia Pacific
- China
- Japan
- India
- Australia
- South Korea
- Thailand
- Malaysia
- Indonesia
- New Zealand
Latin America
- Brazil
- Mexico
- Argentina
Middle East & Africa
- South Africa
- Saudi Arabia
- United Arab Emirates
The key players have been covered from 5 viewpoints:
- Overview
- Key Persons
- Product Portfolio
- Recent Development
- Revenue Analysis
Key Players Analysis:
- Fujitsu Ltd
- Cisco Systems Inc.
- IBM Corporation
- AT&T Inc.
- Microsoft Corporation
- Verizon Communications Inc.
- Dell Technologies Inc.
- Nokia Solutions and Networks
- Rackspace Inc.
- Tata Consultancy Services Limited
Table of Contents
1. Introduction2. Research Methodology3. Executive Summary5. Global Managed Services Market
4. Market Dynamics
6. Market Share Analysis
7. Type
8. Size of Enterprise
9. End-User
10. Deployment
11 Countries
12. Porter’s Five Forces Analysis
13. SWOT Analysis
14. Key Players Analysis
Companies Mentioned
- Fujitsu Ltd
- Cisco Systems Inc.
- IBM Corporation
- AT&T Inc.
- Microsoft Corporation
- Verizon Communications Inc.
- Dell Technologies Inc.
- Nokia Solutions and Networks
- Rackspace Inc.
- Tata Consultancy Services Limited
Methodology
In this report, for analyzing the future trends for the studied market during the forecast period, the publisher has incorporated rigorous statistical and econometric methods, further scrutinized by secondary, primary sources and by in-house experts, supported through their extensive data intelligence repository. The market is studied holistically from both demand and supply-side perspectives. This is carried out to analyze both end-user and producer behavior patterns, in the review period, which affects price, demand and consumption trends. As the study demands to analyze the long-term nature of the market, the identification of factors influencing the market is based on the fundamentality of the study market.
Through secondary and primary researches, which largely include interviews with industry participants, reliable statistics, and regional intelligence, are identified and are transformed to quantitative data through data extraction, and further applied for inferential purposes. The publisher's in-house industry experts play an instrumental role in designing analytic tools and models, tailored to the requirements of a particular industry segment. These analytical tools and models sanitize the data & statistics and enhance the accuracy of their recommendations and advice.
Primary Research
The primary purpose of this phase is to extract qualitative information regarding the market from the key industry leaders. The primary research efforts include reaching out to participants through mail, tele-conversations, referrals, professional networks, and face-to-face interactions. The publisher also established professional corporate relations with various companies that allow us greater flexibility for reaching out to industry participants and commentators for interviews and discussions, fulfilling the following functions:
- Validates and improves the data quality and strengthens research proceeds
- Further develop the analyst team’s market understanding and expertise
- Supplies authentic information about market size, share, growth, and forecast
The researcher's primary research interview and discussion panels are typically composed of the most experienced industry members. These participants include, however, are not limited to:
- Chief executives and VPs of leading corporations specific to the industry
- Product and sales managers or country heads; channel partners and top level distributors; banking, investment, and valuation experts
- Key opinion leaders (KOLs)
Secondary Research
The publisher refers to a broad array of industry sources for their secondary research, which typically includes, however, is not limited to:
- Company SEC filings, annual reports, company websites, broker & financial reports, and investor presentations for competitive scenario and shape of the industry
- Patent and regulatory databases for understanding of technical & legal developments
- Scientific and technical writings for product information and related preemptions
- Regional government and statistical databases for macro analysis
- Authentic new articles, webcasts, and other related releases for market evaluation
- Internal and external proprietary databases, key market indicators, and relevant press releases for market estimates and forecasts
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Table Information
| Report Attribute | Details |
|---|---|
| No. of Pages | 230 |
| Published | August 2024 |
| Forecast Period | 2023 - 2032 |
| Estimated Market Value ( USD | $ 258.24 Billion |
| Forecasted Market Value ( USD | $ 520.54 Billion |
| Compound Annual Growth Rate | 8.1% |
| Regions Covered | Global |
| No. of Companies Mentioned | 10 |
