Cloud Managed Services Global Market Report 2024

The cloud managed services market size has grown rapidly in recent years. It will grow from $88.86 billion in 2023 to $98.31 billion in 2024 at a compound annual growth rate (CAGR) of 10.6%. The growth observed in the historical period can be linked to several factors, including the ascent of cloud computing as a prevalent technology, initiatives aiming to reduce business costs, increasing emphasis on security and compliance, sector-specific demands, and the growing intricacies associated with IT operations.

The cloud managed services market size is expected to see rapid growth in the next few years. It will grow to $154.56 billion in 2028 at a compound annual growth rate (CAGR) of 12.0%. The anticipated expansion in the forecast period is expected due to a focus on enhancing customer experience and support, accelerating digital transformation initiatives, increased competition among service providers, the imperative nature of security and compliance adherence, as well as the growing adoption of hybrid and multi-cloud solutions. Significant trends expected during this period encompass specialized industry-specific solutions, support for IoT infrastructure, heightened demands for scalability and flexibility, an increased emphasis on security and compliance, and continued adoption of hybrid and multi-cloud environments.

The anticipated surge in cloud technology adoption by enterprises is poised to drive the growth of the cloud-managed services market. Cloud technology, which enables the storage and processing of data over the internet at a location separate from its end use, eliminates the necessity for physical infrastructure. Managed services in the cloud domain reduce expenses associated with establishing and maintaining physical infrastructure for data storage, providing convenient data access. Eurostat reported that in 2021, 41% of European Union enterprises utilized cloud computing, with 73% of them employing advanced cloud services for security software applications, hosting enterprise databases, and other business needs. This robust adoption of cloud technology across enterprises is a significant driver for the growth of the cloud-managed services market.

The increasing prevalence of remote work is expected to contribute to the expansion of the cloud-managed services market. Remote work, characterized by employees performing tasks from locations outside the traditional workplace, fuels a demand for flexible, scalable, and remotely accessible IT solutions. This surge in demand propels the adoption of cloud-managed services, offering essential infrastructure, security, and support for organizations navigating the evolving remote work landscape. According to a September 2022 report from the United States Census Bureau, 48.3% of the workforce in the District of Columbia engaged in remote work in 2021, marking the highest percentage among states and state equivalents. States with significant proportions of remote workers included Washington, Maryland, Colorado, and Massachusetts. The growth of remote work is a key driver for the cloud-managed services market.

Technological advancements emerge as a noteworthy trend gaining traction in the cloud-managed services market. Major players in the market are actively developing innovative technological solutions to reinforce their market standing. In April 2021, Red Hat Software, a US-based software company, introduced three new cloud services such as Red Hat OpenShift API Management, Red Hat OpenShift Streams for Apache Kafka, and Red Hat OpenShift Data Science. These services offer organizations a fully-managed and streamlined user experience in building, deploying, managing, and scaling cloud-native applications across hybrid environments. Technological innovation remains a crucial factor propelling the growth of the cloud-managed services market.

Major enterprises in the cloud-managed services market are actively engaged in developing cutting-edge products, exemplified by the creation of detection and response security services. These innovative offerings are crafted to cater to broader customer bases, drive increased sales, and boost overall revenue. Detection and Response security services are cybersecurity solutions designed to identify and mitigate security threats within an organization's network. Notably, in March 2023, NTT Ltd., a UK-based technology company, introduced a cloud-native Managed Detection and Response (MDR) security service. This pioneering solution seamlessly integrates human and machine expertise, utilizing advanced technologies and threat intelligence to significantly reduce the mean time for detecting and responding to cyber-attacks. Anchored on Microsoft Sentinel, a leading next-gen Security Information and Event Management (SIEM) platform infused with AI, automation, and threat intelligence, the MDR service enables organizations to collect extensive data across users, devices, apps, and infrastructure, spanning both on-premises and multi-cloud environments. Through advanced analytics, machine learning, and threat intelligence, the service proactively identifies suspicious activities while minimizing false positives. Its standout feature includes built-in orchestration and automation for common tasks, facilitating swift incident response and threat isolation, even in remote settings.

In January 2021, International Business Machines (IBM) Corporation, a prominent US-based technology company, completed the acquisition of Taos for an undisclosed amount. This strategic move is geared toward fortifying IBM's capabilities in cloud migration and transformation, aligning with IBM's growth strategy for its hybrid cloud platform. Taos, a US-based company specializing in technical consulting and professional managed services, contributes to IBM's efforts to enhance its position in the cloud-managed services market.

Major companies operating in the cloud managed services market report are International Business Machines Corporation, Ericsson Telecom AB, Amazon Web Services Inc., Cisco Systems Inc., Infosys Limited, NTT DATA Corporation, Fujitsu Limited, Accenture Plc., NEC Corporation, Wipro Limited, Atos SE, Huawei Technologies Co. Ltd., The Hewlett Packard Enterprise Company, Rackspace Technology Inc., Cloudticity LLC, Datacom Group Limited, Connectria LLC, Microsoft Corporation, Google LLC, DigitalOcean Inc., Oracle Corporation, SAP SE, Salesforce.com inc., VMware Inc., Deloitte Touche Tohmatsu Limited, Cognizant Technology Solutions Corporation, CDW Corporation, Capgemini SE, Cloudnexa Inc., Hewlett Packard Enterprise Company, Dimension Data Holdings Plc.

North America was the largest region in the cloud managed services market in 2023. Asia-Pacific is expected to be the fastest-growing region in the cloud managed services market report during the forecast period. The regions covered in the cloud managed services market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the cloud managed services market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

Diverse types of cloud-managed services exist, including managed business services, managed network services, managed security services, managed infrastructure services, managed mobility services, and managed communication and collaboration services. Managed business services, spanning areas such as recruitment, accounting, payroll, mobility, marketing, and vendor management, allow companies to outsource their cloud-based business operations. These services are deployed across public and private cloud infrastructures, catering to a wide array of sectors, including government, retail, IT, telecommunications, manufacturing, BFSI (banking, financial services, and insurance), healthcare, energy, and utilities.

The cloud-managed services market research report is one of a series of new reports that provides cloud-managed services market statistics, including cloud-managed services industry global market size, regional shares, competitors with a cloud-managed services market share, detailed cloud-managed services market segments, market trends and opportunities, and any further data you may need to thrive in the cloud managed services industry. This cloud-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 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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