Home > Sustainable & Smart Technologies > Managed Services Market
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, Industry Vertical, & Forecast, 2023-2032
- Report ID: GMI4862
- Published Date: Jan 2023
- Report Format: PDF
Industry drivers
Managed Services Market size valued at USD 200 billion in 2022 and is poised to showcase around 10% CAGR from 2023 to 2032. A visible surge in government expenditure in the ICT sector is among the leading factors positively influencing the industry landscape. Governments across several economies have been making significant investments and rolling out necessary initiatives to aid the ongoing digitization trends and strengthen their existing IT infrastructure.
To get more details on this report: Request Free Sample PDF
This, in consequence, has resulted in increased ICT spending, which will favor the market growth. For instance, ICT spending in Europe reached approximately USD 1.1 trillion in 2022 and is expected to reach USD 1.4 trillion by 2026. Besides, the increasing popularity of cloud computing services, aided by the enterprise-wide transition toward cloud infrastructure.
| Report Coverage | Details |
|---|---|
| Base Year: | 2022 |
| Market Size in 2022: | USD 200 Billion |
| Forecast Period: | 2023 to 2032 |
| Forecast Period 2023 to 2032 CAGR: | 10% |
| 2032 Value Projection: | USD 600 Billion |
| Historical Data for: | 2018 to 2022 |
| No. of Pages: | 270 |
| Tables, Charts & Figures: | 247 |
| Segments covered: | Service Type, Organization Size, Industry Vertical, and Region |
| Growth Drivers: | |
| Pitfalls & Challenges: |
To get more details on this report: Request Free Sample PDF
Cloud services offer a range of benefits over traditional technologies, such as access to powerful analytical tools for processing big data, advanced cybersecurity features, the capacity to scale rapidly, and increased cost savings. These attributes are likely to boost the cloud adoption rate, which, in consequence, will stimulate the managed services market revenue streams. The deployment of security solutions into the network architecture is crucial to protecting the privacy, availability, and integrity of all connected resources and information. Therefore, the increasing security and privacy concerns associated with the usage of these services may hamper the market progression.
Rise in outsourcing trends to increase product penetration through the BFSI sector
To get more details on this report: Request Free Sample PDF
The managed services market from the BFSI segment accounted for 18% of revenue share in 2022. Across the banking sector, managed services are outsourced in a hybrid deployment with remote resource management and staff augmentation. Besides, the increasing strategic collaboration among regional banking organizations and global companies such as AT&T, ATOS, IBM, NTT, etc., offering dedicated managed security, service desk management, and security services will increase the market value. For instance, in September 2021, IBM announced a new agreement with CaixaBank and launched a new IBM Cloud Multizone Region (MZR) in Spain.
Cost-effective benefits to boost the adoption of managed network services
Regarding the service, the managed network segment is predicted to garner more than 9% revenue share by 2032. A significant upsurge in network security breaches, rapid technological advancements, and increasing customer requirements are some of the prominent factors driving the market size. The deployment of managed network services and tools across enterprises helps ensure the complete optimization of business operations. Besides, the involvement of lower operational, maintenance, service, software, infrastructure, and hardware costs may further escalate the market demand.
Better management of IT services to increase product deployment across large enterprises
Based on organization size, the managed services market share from large enterprise segment is projected to expand at 10% CAGR through 2032. The deployment of hybrid collaboration software solutions across large enterprises provides a supportive environment to a plurality of employees, raising the demand for collaboration-managed services. Besides, these services efficiently cover the essential IT requirements of a business while eliminating or minimizing the scope of vulnerabilities.
Expanding cloud infrastructure to facilitate industry growth across North America
To get more details on this report: Request Free Sample PDF
Geographically, the North America managed services industry dominated around USD 60 billion revenue in 2022, credited to the proliferation of cloud computing platforms and the increasing smartphone penetration. Besides, the rising investments in the 5G and high-speed internet technologies will further drive optimistic growth outcomes for the regional industry. For instance, as per the experts it is expected that by the end of 2025, 5G forecast will account for almost two-thirds of mobile connections, equivalent to nearly 270 million connections.
Acqluisitions to define the competitive landscape
Major companies participating in the global managed services market include Nokia Networks, AT&T Inc, Accenture plc, ATOS SE, Cisco Systems, Inc., Cloudreach, Centurylink, Inc. (Lumen Technologies), Deloitte Touche Tomatsu Limited, Cognizant, DXC Technology, HCL Technologies Limited, Huawei Technologies Co., Ltd., Infosys Limited, NTT Data Corporation, Rackspace Technology, Inc., Fujitsu Limited, TCS Limited, IBM Corporation, Tech Mahindra Limited, and Telefonaktiebolaget LM Ericsson.
These firms have been actively adopting necessary growth measures such as partnerships, mergers & acquisitions, collaborations, new product development, etc., to gain a competitive edge over others. For instance, in June 2022, Greensboro-based IT services company Dynamic Quest acquired Hargray's Managed IT services, a company with a customer base in Georgia and South Carolina. Hargray Managed IT provides Managed Network services, Hardware-as-a-Service, cloud hosting, backup & disaster recovery, and managed security services for small-to-medium-sized businesses across a wide array of verticals.
How COVID-19 impacted the market?
The sudden outbreak of the COVID-19 pandemic severely disrupted IT operations across numerous industrial verticals, especially in companies operating in the IT industry. Since these companies have an increased dependence on outsourced managed services to properly manage their business operations and provide 24*7 IT assistance to their remote workforce, the industry experienced a significant boost during the crisis. Moreover, the massive rise in the utilization of digital services and the flourishing work-from-home trends further transformed the market dynamics.
This managed services market research report includes in-depth coverage of the industry with estimates & forecast in terms of revenue in USD from 2018 to 2032, for the following segments:
Click here to Buy Section of this Report
Market, By service type
- Cloud managed services
- Managed infrastructure
- Managed network
- Managed collaboration
- Managed security
- Managed mobility
- Managed backup and recovery
Market, By Organization size
- Large Enterprise
- SMEs
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
- Italy
- Spain
- Netherlands
- Rest of Europe
- Asia Pacific
- China
- Japan
- India
- ANZ
- South Korea
- Southeast Asia
- Rest of Asia Pacific
- Latin America
- Brazil
- Mexico
- Argentina
- Colombia
- Rest of Latin America
- Middle East & Africa
- South Africa
- Saudi Arabia
- Israel
- UAE
- Rest of Middle East & Africa