Cloud Managed Services Market Report 2025

The cloud managed services market size has grown strongly in recent years. It will grow from $96.12 billion in 2024 to $105.21 billion in 2025 at a compound annual growth rate (CAGR) of 9.5%. The growth in the historic period can be attributed to rise of cloud computing, business cost reduction initiatives, security concerns and compliance needs, industry-specific requirements, complexity of its operations.

The cloud managed services market size is expected to see rapid growth in the next few years. It will grow to $178.45 billion in 2029 at a compound annual growth rate (CAGR) of 14.1%. The growth in the forecast period can be attributed to customer experience and support, digital transformation initiatives, service provider competition, security and compliance requirements, hybrid, and multi-cloud adoption. Major trends in the forecast period include specialized industry solutions, IoT infrastructure support, scalability and flexibility demands, security and compliance focus, hybrid and multi-cloud adoption.

The increasing adoption of cloud technology among enterprises is anticipated to drive the growth of the cloud-managed services market in the future. Cloud technology allows individuals and businesses to store and process data over the internet at a location separate from its end use, eliminating the need for physical infrastructure. By utilizing cloud technology through managed services, organizations can reduce expenses associated with establishing and maintaining physical infrastructure for data storage, while also facilitating easy access to data. For instance, in January 2023, Google LLC, a US-based information technology company, reported that 76% of people utilized public cloud services in 2022, marking a 56% increase from 2021. Therefore, the rising adoption of cloud technology across enterprises is driving the growth of the cloud-managed services market.

The rise in remote work is expected to significantly boost the growth of the cloud-managed services market in the future. Remote work, often referred to as telecommuting or telework, is a work arrangement where employees perform their job tasks from locations outside the traditional workplace, typically from home or other remote settings. This surge in remote work creates a strong demand for flexible, scalable, and remotely operable IT solutions, driving the adoption of cloud-managed services that provide essential infrastructure, security, and support to help organizations thrive in an evolving remote work landscape. For example, in September 2023, the Bureau of Labor Statistics, a US-based government agency, reported that approximately one in five workers (19.5 percent) teleworked or worked from home for pay in August 2023. Thus, the increasing prevalence of remote work is propelling the growth of the cloud-managed services market.

Technological advancements are a significant trend gaining traction in the cloud-managed services market. Major companies in this sector are focused on developing innovative technological solutions to enhance their market position. For example, in May 2023, IBM, a US-based technology company, introduced the IBM Hybrid Cloud Mesh to help enterprises regain control over their multicloud infrastructure. This new offering delivers a streamlined and automated solution, enabling organizations to manage and secure their hybrid cloud environments effectively while ensuring seamless operations across multiple cloud platforms.

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 2023, F5, a US-based company specializing in application services and security, acquired Lilac Cloud for an undisclosed amount. This acquisition is intended to enhance F5's ability to deliver cloud-based services and solutions, further advancing the company's strategy in the evolving cloud market. Lilac Cloud is a US-based firm that provides a variety of cloud-based solutions for different applications.

Major companies operating in the cloud managed services market include 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., 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 2024. 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.

Cloud managed services encompass outsourced solutions facilitating efficient management of an organization's cloud resources, resulting in streamlined operations and cost savings. These services are sought by entities aiming to delegate the supervision of their cloud platforms to third-party providers.

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 cloud managed services market includes revenues earned by entities by providing services such as cloud deployment, cloud security, network and storage, cloud monitoring and reporting, backup and disaster recovery, infrastructure set up, business continuity, and cloud migration services. 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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