Managed Infrastructure Services Market - By Deployment Model (On-premises, Cloud), By Organization Size (SMEs, Large Organization), By End-user (IT & Telecom, BFSI, Healthcare, Government, Retail, Manufacturing), Forecast 2023 - 2032

Managed Infrastructure Services Market Size

Managed Infrastructure Services Market size was valued at USD 53 billion in 2022 and is estimated to register a CAGR of over 5% between 2023 and 2032. The increasing adoption of cloud services is driving the market progress. Cloud services often require robust and secure infrastructure to operate effectively. As more businesses migrate to the cloud, they seek managed services to optimize and maintain their infrastructure.
 

For instance, in May 2023, Kyndryl, in collaboration with Fortinet, launched a managed Secure Access Service Edge (SASE) solution. This solution combines Fortinet's cloud-based security and secure networking solutions with Kyndryl's expertise in network & security services. It is designed to help customers enhance their network security and modernize their mission-critical networking infrastructure.
 

Artificial Intelligence (AI) is fueling the market size of managed infrastructure services. AI technologies enable proactive and predictive maintenance, enhancing the reliability & performance of IT infrastructure. Through AI-powered analytics & automation, service providers can optimize resource allocation, improve security, and streamline operations. For instance, in October 2023, ARM Hub announced its plan to introduce data and AI-as-a-service offerings in 2024. This launch involves providing businesses with a cloud-based, scalable, and secure infrastructure for data & AI applications. This service also aims to minimize ownership and maintenance costs for users, making it a cost-effective solution for harnessing the power of artificial intelligence & data analytics without the need for significant in-house resources or infrastructure investments.
 

Safety and security concerns pose significant challenges in the managed infrastructure services market. With the increasing complexity of digital environments, service providers need to ensure data privacy, protect against cyber threats, and comply with the evolving regulations. Safeguarding against data breaches, downtime, and unauthorized access requires constant vigilance. The rapid adoption of cloud services and remote work further amplifies these concerns. Managing infrastructure with robust security measures is crucial to mitigate risks and build trust with customers.
 

COVID-19 Impact

The COVID-19 pandemic accelerated the adoption of remote work and digital transformation initiatives. In response, organizations sought managed infrastructure services to support this shift. During this period, demand surged for services such as cloud hosting, cybersecurity & network management as companies aimed to ensure business continuity, improve data security, and optimize their infrastructure. This led to a significant uptick in the market with businesses recognizing the value of outsourced IT support for a distributed workforce.
 

Managed Infrastructure Services Market Trends

Security-as-a-service is an emerging trend in the managed infrastructure services industry, driven by the evolving threat landscape. With cyberattacks becoming more sophisticated and frequent, businesses increasingly rely on external experts for comprehensive security solutions. This approach offers several advantages including 24/7 monitoring, threat detection, and incident response. Managed security services provide businesses with access to skilled cybersecurity professionals, cutting-edge technologies & threat intelligence, allowing them to proactively defend against threats and ensure data protection.
 

For instance, in February 2023, OTAVA, a prominent provider of custom multi-cloud solutions, launched Security as a Service (SECaaS) tailored for businesses seeking external support in upholding strong cybersecurity measures. This service offers additional resources and expertise to enhance an organization's overall cybersecurity strategy, ensuring comprehensive protection in an ever-evolving threat landscape.
 

AI and automation are emerging trends in the market as organizations seek to enhance operational efficiency and responsiveness. AI-driven solutions streamline routine tasks, enabling predictive maintenance, resource optimization & self-healing IT systems. Automation reduces manual intervention and human errors while improving scalability. Together, AI and automation empower service providers to offer more agile, cost-effective, and reliable solutions. This trend aligns with the increasing demand for seamless and intelligent managed infrastructure services that adapt to dynamic business needs and evolving technology landscapes.
 

Managed Infrastructure Services Market Analysis

Based on deployment model, the market is divided into on-premises and cloud. The cloud segment held over 35% business share in 2022 and is poised for substantial growth over the forecast period due to the increasing adoption of cloud computing. Organizations are migrating to the cloud to leverage scalability, cost-efficiency, and flexibility. Managed infrastructure service providers are offering cloud management and optimization services to help clients navigate complex cloud environments. This trend aligns with the demand for cloud-native solutions and hybrid cloud strategies, making the cloud segment a focal point for expansion and innovation in the market.
 

Based on organization size, the managed infrastructure services market is categorized into SMEs and large organization. The large organization segment accounted for a market share of around 60% in 2022 and is anticipated to experience significant growth over the forecast period. Large enterprises, with their extensive IT infrastructure, are increasingly seeking managed services to enhance efficiency and reduce operational overhead. These organizations often require complex solutions to support their critical operations. Managed infrastructure service providers are customizing their offerings to meet the specific needs of large corporations including data center management, security, and network optimization. As digital transformation becomes imperative, large organizations will continue to drive the market expansion.
 

North America is experiencing growth in the managed infrastructure services market. The region held a market share of over 30% in 2022 and is anticipated to register significant growth over the forecast period. This expansion is attributed to the region's robust technological infrastructure, a high adoption rate of cloud services, and IT ecosystem. Enterprises in North America are increasingly outsourcing their infrastructure management to focus on core competencies and navigate complex regulatory landscapes. As cybersecurity and data protection remain paramount, the demand for managed security services is surging. The region's early technology adoption, coupled with evolving service offerings, positions North America as a key growth driver in the market.
 

Managed Infrastructure Services Market Share

Major players operating in the managed infrastructure services industry are:

• IBM Corporation
• Accenture
• Hewlett Packard Enterprise (HPE)
• NTT Ltd.
• Fujitsu
• Capgemini
• DXC Technology

IBM corporation and Accenture dominate the market. IBM offers robust, scalable infrastructure services catering to the diverse needs of clients in various industries. Both companies are focusing on service innovation, incorporating cutting-edge technologies such as cloud computing, AI, and automation into their services. Moreover, IBM and Accenture offer tailored solutions, ensuring a personalized approach to client requirements. This commitment to quality and flexibility cements their leadership in the managed infrastructure services sector.
 

Managed Infrastructure Services Industry News

• In August 2023, NetApp collaborated with Google Cloud to introduce a managed storage service, catering to enterprise workloads in the cloud. This service combines NetApp's data management expertise with Google Cloud's infrastructure capabilities. It enables organizations to seamlessly deploy, manage & protect their data-intensive applications, leveraging the scalability and agility of the cloud.
   

The managed infrastructure services market research report includes in-depth coverage of the industry with estimates & forecast in terms of revenue (USD Billion) from 2018 to 2032, for the following segments:

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By Deployment Model, 2018 – 2032

• On-premises
• Cloud

By Organization Size, 2018 – 2032

• SMEs
• Large organization

By End User, 2018 – 2032

• IT & telecom
• BFSI
• Healthcare
• Government
• Retail
• Manufacturing
• Others

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

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