Managed Services Market Size By Service Type (Cloud Managed Service, Managed Infrastructure, Managed Network, Managed Collaboration, Managed Security, Managed Mobility, Managed Backup & Recovery), By Organization Type (SME, Large Enterprises), By Industry Vertical (BFSI, Government, Retail, IT & Telecom, Energy & Utility, Healthcare), Industry Analysis Report, Regional Outlook, Growth Potential, Competitive Market Share & Forecast, 2020 – 2026
Published Date: Nov 2020 | Report ID: GMI4862 | Authors: Ankita Bhutani, Preeti Wadhwani
Industry Trends
Managed Services Market size exceeded USD 190 billion in 2019 and is expected to grow at over 10% CAGR from 2020 to 2026. The rising demand to reduce the total cost of ownership of management and maintenance of IT infrastructure across enterprises is driving the market growth. The adoption of managed services can help enterprises to reduce both administrative and maintenance costs to a significant level.
The overall management and monitoring of complex IT infrastructure resources across enterprises will result in operational expenditure. The managed services can help these enterprises with skilled IT workforce and expertise that proactively responds to their business needs.
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Major IT operations have been severely affected by the current COVID-19 pandemic. The enterprises operating in the IT industry are largely dependent on outsourcing their managed service portfolio to multiple regions. The increasing work-from-home trend during COVID-19 pandemic requires continuous assistance to continue business operations. Managed services are thus helping enterprises with 24x7 assistance during the pandemic period. The COVID-19 outbreak has positively impacted the market growth.
| Report Coverage | Details | ||
|---|---|---|---|
| Base Year: | 2019 | Market Size in 2019: | USD 190 Billion |
| Historical Data for: | 2015 to 2019 | Forecast Period: | 2020 to 2026 |
| Forecast Period 2020 to 2026 CAGR: | 10% | 2026 Value Projection: | USD 350 Billion |
| Pages: | 270 | Tables, Charts & Figures: | 285 |
| Geographies covered (22): | U.S., Canada, UK, Germany, Italy, Spain, France, Netherlands, China, India, Japan, South Korea, Australia & New Zealand (ANZ), Southeast Asia, Brazil, Mexico, Argentina, Colombia, South Africa, Saudi Arabia, Israel, UAE | ||
| Segments covered: | Service Provider, Vehicle Type, Subscription Period, and Region | ||
| Companies covered (20): | Accenture plc, AT&T, Inc., ATOS SE, CENTURYLINK, INC (Lumen Technologies ), Cisco Systems, Inc., Cloudreach, Cognizant, Deloitte Touche Tomatsu Limited, DXC Technology Company, Telefonaktiebolaget LM Ericsson, Fujitsu Limited, HCL Technologies Limited, Huawei Technologies Co., Ltd., Infosys Limited, IBM Corporation, Nokia Networks, NTT DATA Corporation, Rackspace Technology, Inc., Tata Consultancy Services Limited and Tech Mahindra Limited | ||
| Growth Drivers: |
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| Pitfalls & Challenges: |
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Rapidly growing adoption of cloud computing services will fuel the UK market growth
The cloud managed service market in UK is projected to witness growth rate of around 10% through 2026 due to the rapid usage of cloud-based applications across various businesses. The acceptance of cloud-based applications is on the rise as they ensure low cost and high effectiveness in storing data.
The rising usage of cloud-based applications has boosted organizations to take assistance from Managed Service Providers (MSPs) to manage their cloud applications. These managed services offered by MSPs enable users to configure the application’s service to any level of the cloud.
Large enterprises in China are likely to lead the market revenue
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In China, the large enterprises segment held more than 80% of the managed services market share in 2019 owing to the growing need to manage their IT infrastructure in order to provide uninterrupted service. Additionally, the companies also witnessed network complexities and security concerns, thus, the companies are focusing on developing a robust IT infrastructure.
The IT teams monitor & maintain the overall infrastructure and make necessary changes in accordance with the business requirements. Enterprises operating in the China market are focusing on developing integration capabilities. The adoption rate of network monitoring and security management services across large enterprises is also increasing significantly.
Rising IT sector in Brazil is fueling the managed services market growth
The IT & telecom sector in Brazil captured above 30% of the market share in 2019 driven by the changing requirements of the network infrastructure in IT & telecom companies. The IT companies with multiple branches located at different locations are looking for centrally managed WAN solutions to manage their remote workforce.
The VPN as a service helps companies in providing their remote workforce secure access to their internal resources. It also reduces the cost and maintenance overhead associated with the physical network infrastructure. The IT companies are outsourcing network-related services to third-party service providers to emphasize on their core competencies.
The growing acceptance of cloud managed services in North America
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North America managed services market accounted for over30% share in 2019 propelled by the rising demand for cloud managed services across the region. The rise of cloud managed services is enabling businesses to adopt flexible, scalable, and agile network infrastructures. The IT companies are deploying cloud-based infrastructure to help their businesses to digitally transform.
The managed services are helping enterprises in reducing the overall cost required for network infrastructure. The large cost of deploying and maintaining in-house legacy systems along with the need to satisfy changing customer expectations is making enterprises to demand innovative, flexible, and cost-effective deployment for their network infrastructure. The well-established IT industry in the U.S. is supporting the market expansion.
The development of innovative services is the key market strategy adopted by leading market players
Major managed services industry players are emphasizing on improving the delivery of their services through development of new solutions to gain a competitive advantage over other market competitors. For instance, in November 2019, DXC Technology, a leading IT service provider, introduced Managed Multi-Cloud Services to improve the delivery of managed services across any cloud platform. This new solution helped the company to strengthen its position in the market.
Some of the companies operating in the managed services market are Accenture plc, AT&T, Inc., ATOS SE, CENTURYLINK, INC (Lumen Technologies ), Cisco Systems, Inc., Cloudreach, Cognizant, Deloitte Touche Tomatsu Limited, DXC Technology Company, Telefonaktiebolaget LM Ericsson, Fujitsu Limited, HCL Technologies Limited, Huawei Technologies Co., Ltd., Infosys Limited, IBM Corporation, Nokia Networks, NTT DATA Corporation, Rackspace Technology, Inc., Tata Consultancy Services Limited, and Tech Mahindra Limited.
This market research report on managed services includes in-depth coverage of the industry with estimates & forecast in terms of revenue in USD from 2015 to 2026 for the following segments:
Market, By Service Type
- Cloud Managed Services
- Managed Infrastructure
- Managed Network
- Managed Collaboration
- Managed Security
- Managed Mobility
- Managed Backup and Recovery OEM
Market, By Organization Size
- SMEs
- Large Enterprises
Market, By Industry Vertical
- IT & Telecom
- BFSI
- Healthcare
- Government
- Retail
- Energy & Utility
- Others
The above information has been provided for the following regions and countries:
- North America
- U.S.
- Canada
- Europe
- UK
- Germany
- France
- Spain
- Italy
- Netherlands
- APAC
- China
- Japan
- India
- ANZ
- South Korea
- Southeast Asia
- Latin America
- Brazil
- Mexico
- Argentina
- Colombia
- MEA
- South Africa
- Saudi Arabia
- UAE
- Israel
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