Managed Services Market Size, Share & Analysis Report

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Report ID: GMI4862
Published Date: Jul 2024
Report Format: PDF

Managed Services Market Size

Managed Services Market was valued at USD 244.1 billion in 2023 and is estimated to register a CAGR of over 11% between 2024 and 2032. The growing recognition of cloud computing's benefits is driving an uptick in the adoption of cloud-managed services.

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By partnering with specialist service providers to manage and maintain their cloud platforms, applications, and infrastructure, businesses can focus on their core competencies. This approach leverages the expertise of managed service providers to optimize the cost, scalability, and performance of their cloud systems. As companies strive to modernize their IT infrastructure and embrace digital transformation initiatives, the demand for cloud-managed services is surging. This trend is propelling market growth, highlighting the strategic value of outsourcing cloud management to enhance operational efficiency and drive innovation.

Managed Services Market Report Attributes
Report Attribute	Details
Base Year:	2023
Managed Services Market Size in 2023:	USD 244.1 Billion
Forecast Period:	2024-2032
Forecast Period 2024-2032 CAGR:	11%
2032 Value Projection:	USD 644.8 Billion
Historical Data for:	2021-2023
No. of Pages:	300
Tables, Charts & Figures:	350
Segments covered:	Services, Organization Size, Deployment Model, Industry Vertical
Growth Drivers:	Rising adoption of cloud computing services Surging need for enhanced network connectivity Growing demand to reduce administration and maintenance cost Rising government expenditure on ICT sector
Pitfalls & Challenges:	Increasing complexity and frequency of cyber threats Limitations in IT security specialists

Managed Services Market Trends

The managed services sector is influenced by several significant developments shaping its future direction. There is a growing adoption of IT hybrid environments, where businesses integrate cloud-based technologies with their on-premises infrastructure. This trend underscores the need for managed services that can effectively manage and optimize diverse IT environments seamlessly. Cybersecurity remains a top priority for businesses facing increasingly sophisticated cyber threats. In response to this demand for comprehensive security measures, managed service providers are expanding their service portfolios to include robust cybersecurity solutions such as threat detection, incident response, and compliance management. These strategic shifts reflect the evolving landscape of managed services, driven by the imperative to enhance operational efficiency, mitigate security risks, and leverage hybrid IT environments for competitive advantage.

For instance, in May 2024, Elitery, a leading provider of cloud-based solutions and services in Indonesia, was named a Google Cloud Managed Services Provider (MSP). As a Google Cloud MSP, Elitery will expand its cloud expertise and deliver enhanced services to customers in Indonesia. The company aims to leverage its status as an MSP to introduce groundbreaking generative AI (gen AI) solutions to city governments.

Managed Services Market Analysis

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Based on enterprise size, the market is divided into large enterprises and SMEs. In 2023, the large enterprises segment accounted for a market share of around 75% and is expected to reach USD 450 billion by 2032. The managed services industry is primarily driven by major organizations characterized by substantial IT budgets, complex operations, and extensive IT infrastructures. These companies often require a comprehensive array of managed services, including network management, cybersecurity, data analytics, and cloud computing, to achieve their diverse business goals. The adoption of managed services among large enterprises is fueled by the need to offload routine IT tasks and focus on strategic business objectives. Additionally, the demand for scalability, agility, and cost efficiency is a significant factor driving this trend, enabling these organizations to enhance their operational effectiveness and competitive edge.

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Managed Services Market Share

Accenture plc and IBM Corporation hold a significant market share in the managed services industry in 2023. IBM Corporation has designed IBM’s Partner Plus program to help partners, including consultancies and managed service providers, to use IBM's technology to deliver more value to their clients. The program includes new service tracks and resources to support partner growth and client demand generation?.

Accenture uses its robust global delivery network to offer managed services and support to clients worldwide. This network ensures consistent service delivery and helps clients manage their IT operations more effectively. The company also invests in new technologies, including AI, blockchain, and cybersecurity, to provide cutting-edge solutions. This includes partnerships and collaborations with leading technology providers to stay ahead in the market.

Managed Services Market Companies

The major players operating in the managed services industry are:

Accenture plc
AT&T Inc
Cisco Systems, Inc.
Cognizant
DXC Technology
Fujitsu Limited
IBM Corporation
Infosys Limited
NTT Data Corporation
TCS Limited

Managed Services Industry News

In May 2024, Dell Technologies and CrowdStrike announced an expanded strategic partnership to assist clients protect against increasingly sophisticated cyberattacks. This partnership enabled Dell to offer Managed Detection and Response (MDR) services along with the industry-leading AI-native CrowdStrike Falcon XDR platform.
In March 2024, Cognizant renewed its long-standing relationship with Pon IT, a subsidiary of the Dutch family-owned multinational Pon Holdings, to continue providing cloud managed services across Pon IT's suite of operating companies. The extended collaboration enabled Cognizant to further optimize Pon IT's cloud platform, enhancing agility, intuition, and innovation.
In November 2023, AT&T announced an agreement to establish a stand-alone managed cybersecurity services company. WillJam Ventures, a Chicago-based investor with extensive leadership and cybersecurity industry expertise, has also committed funds to the venture.

The managed services market research report includes in-depth coverage of the industry

with estimates & forecasts in terms of revenue ($Bn) from 2021 to 2032

for the following segments:

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Market, By Services

Cloud managed services
- Cloud infrastructure management
- Cloud security services
- Cloud migration services
- Others
Managed infrastructure
- Data center management
- Server management
- Storage management
- Others
Managed network
- Network monitoring and maintenance
- Network security management
- Wireless network management
- Others
Managed collaboration
- Unified Communications as a Service
- Collaboration tools management
- Email and calendar management
- Others
Managed security
- Identity and access management (IAM)
- Security information and event management (SIEM)
- Threat detection and response
- Others
Managed mobility
- Mobile Device Management (MDM)
- Mobile Application Management (MAM)
- Others
Managed backup and recovery
- Data backup services
- Disaster recovery planning and management
- Data restoration services
- Others

Market, By Organization Size

Large enterprises
SMEs

Market, By Deployment Model

On-premises
Cloud

Market, By Industry Vertical

IT & telecom
BFSI
Healthcare
Government
Retail
Energy & utility
Others

The above information is provided for the following regions and countries:

North America
- U.S.
- Canada
Europe
- UK
- Germany
- France
- Italy
- Spain
- Russia
- Nordics
- Rest of Europe
Asia Pacific
- China
- India
- Japan
- South Korea
- ANZ
- Southeast Asia
- Rest of Asia Pacific
Latin America
- Brazil
- Mexico
- Argentina
- Colombia
- Rest of Latin America
MEA
- UAE
- Saudi Arabia
- South Africa
- Israel
- Rest of MEA

Authors: Preeti Wadhwani

Frequently Asked Questions (FAQ) :

The industry size for managed services was valued at USD 244.1 in 2023 and is estimated to register over 11% CAGR between 2024 and 2032, due to the growing recognition of cloud computing.

The managed services industry from the large enterprises segment accounted for 75% share in 2023 and is expected to reach USD 450 billion by 2032 characterized by substantial IT budgets, complex operations, and extensive IT infrastructures.

North America recorded over 35% of the global managed services market share in 2023 due to the strong presence of major industry players, high levels of IT spending, and the robust technological infrastructure.

Accenture plc, AT&T Inc, Cisco Systems, Inc., Cognizant, DXC Technology, Fujitsu Limited, IBM Corporation, Infosys Limited, NTT Data Corporation, and TCS Limited

Managed Services Market Scope

Managed Services Market Size

Managed Services Market Trends

Managed Services Market Analysis

Managed Services Market Share

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Premium Report Details

Base Year: 2023
Companies covered: 21
Tables & Figures: 350
Countries covered: 22
Pages: 300

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Managed Services Market Size, Share & Analysis Report - 2032 (2024)