Managed Services Market Report 2025

The managed services market size has grown strongly in recent years. It will grow from $290.89 billion in 2024 to $310.95 billion in 2025 at a compound annual growth rate (CAGR) of 6.9%. The growth in the historic period can be attributed to cost efficiency, scalability needs, focus on core competencies, complexity of it environments, globalization.

The managed services market size is expected to see rapid growth in the next few years. It will grow to $520.79 billion in 2029 at a compound annual growth rate (CAGR) of 13.8%. The growth in the forecast period can be attributed to increasing complexity of it environments, rise in cyber threats, remote workforce management, cloud adoption surge, focus on business continuity. Major trends in the forecast period include service personalization, data analytics and insights, focus on customer experience, compliance management, scalability demands.

The growing number of small and midsize businesses (SMBs) is anticipated to drive the growth of the managed services market in the future. Small businesses are defined as organizations with fewer than 100 employees, while midsize enterprises have between 100 and 999 employees. These businesses increasingly rely on managed services to effectively manage their IT infrastructure, cybersecurity, and network operations, allowing them to concentrate on their core functions without the need for in-house technical expertise. For example, in October 2022, GOV.UK, a UK-based government services and information provider, reported that there were 5.47 million small businesses and 35,900 medium-sized businesses in 2022, marking an increase from 2021. Thus, the rising number of SMBs is propelling the managed services market's growth.

The rising adoption of cloud services is projected to significantly boost the growth of the managed services market in the coming years. Cloud services encompass a variety of computing resources and applications, such as storage, processing power, software, and networking, which are delivered over the internet instead of being hosted on local servers or individual devices. These services enhance managed services by providing scalable infrastructure, facilitating remote monitoring, and improving operational efficiency through centralized data storage and accessibility. For example, in April 2024, the European Commission, a Belgium-based government agency, reported that in 2023, 42.5% of enterprises in the EU purchased cloud computing services, mainly for email, file storage, and office software. This figure marks a 4.2 percentage point increase from the proportion of enterprises utilizing cloud computing services in 2021. Consequently, the growing adoption of cloud services is driving the expansion of the managed services market.

Major companies in the managed services market are concentrating on developing managed services solutions that enable businesses to effectively manage their IT environments, allowing them to concentrate on core activities. Artificial intelligence (AI) involves creating computer systems or machines capable of performing tasks that typically require human intelligence. For example, in July 2024, Happiest Minds Technologies Ltd, a company based in India, introduced WATCH360, an AI-powered platform designed to streamline IT infrastructure management for organizations. Powered by ELLIPSE, WATCH360 leverages artificial intelligence and machine learning to deliver real-time insights and automate processes, thereby enhancing overall IT efficiency. This service provides round-the-clock management of IT infrastructure, ensuring reliability and continuous support. WATCH360 oversees a wide array of IT components, including servers, databases, network and security devices, as well as cloud-native services.

Major players in the managed services market are increasingly turning to strategic partnerships to expand their service portfolios, access specialized expertise, and provide comprehensive solutions to clients. Strategic partnerships involve companies leveraging each other's strengths and resources for mutual benefit and success. For example, in January 2022, BT Group PLC, a UK-based telecommunications company, joined forces with Rackspace Technology Inc., a US-based cloud computing company, to revolutionize cloud services for multinational customers. This partnership utilizes Rackspace's advanced solutions deployed in BT data centers to enhance cloud offerings by combining Rackspace's cloud management expertise with BT's robust network and security capabilities. The collaboration underscores a commitment to a hybrid cloud model, ensuring BT customers have access to top-tier public and private cloud services, as well as traditional hosted environments, all supported by the speed, security, and resilience of BT's global networks. This alliance is poised to elevate customer experiences and drive the evolution of BT's managed cloud services, with plans for future joint cloud initiatives already in development.

In November 2022, UiPath Inc., a software company based in the US, formed a partnership with Neostella. This collaboration allows UiPath to enhance its portfolio by integrating Neostella's expertise in delivering managed services tailored for midmarket businesses. Neostella LLC is also a US-based company specializing in managed services.

Major companies operating in the managed services market include Huawei Technologies Co Ltd., Verizon Communications Inc., AT&T Inc., Accenture plc, International Business Machines Corporation (IBM), Deloitte AG, Cisco Systems Inc., Fujitsu Global Limited, Tata Consultancy Services Limited, Ericsson AB, Nokia Corporation, BAE Systems plc, Capgemini SE, NTT DATA Corporation, Cognizant Technology Solutions Corporation, CenturyLink Inc., Infosys Limited, DXC Technology Company, Atos SE (Societe Europeenne de Services Informatiques), Wipro Limited, Rackspace Technology Inc., GTT Communications Inc., HCL Technologies Limited, Microland Limited, Secureworks Inc., Happiest Minds Technologies Limited, Alert Logic Inc., Intact Technology Inc., Business Technology Partners LLP.

North America was the largest region in the managed services market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the managed services market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the managed services market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

A managed service refers to a task handled by a third party, often in the context of business IT services. Outsourcing tasks to experts can reduce costs, improve service quality, and free up internal teams for business-specific work. Managed services are cost-effective, provide enhanced capabilities to end-users, allow teams to focus on core business functions, and enable in-house IT to concentrate on strategic IT initiatives.

In managed services, the main types of services include managed security services, managed network services, managed data center and IT infrastructure services, managed communication and collaboration services, managed mobility services, managed information services, and others. Managed security services focus on providing maintenance, audits, and security governance to enterprises. These services are available in cloud and on-premises deployment modes for organizations of varying sizes in sectors such as BFSI, IT and telecom, retail, manufacturing, government, healthcare, energy, utilities, and media.

The managed services market research report is one of a series of new reports that provides managed services market statistics, including managed services market industry global market size, regional shares, competitors with managed service market share, detailed managed services market segments, market trends and opportunities, and any further data you may need to thrive in the managed services market industry. This managed services market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The managed services market includes revenues earned by entities by providing managed services that allow the end-users to focus on using a service rather than setting up the service. Managed services are provided by managed service providers that assist businesses in IT infrastructure and tasks, communication and collaboration, regular maintenance, management, and support of IT functions and processes on regular basis. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.

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.

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