Managed Services Market Size & Share 2024-2032
Market Size by Services (Cloud Managed Services, Managed Infrastructure, Managed Network, Managed Collaboration, Managed Security, Managed Mobility, Managed Backup and Recovery), Organization Size, Deployment Model, Industry Vertical & Forecast.
Report ID: GMI4862
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Published Date: July 2024
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Report Format: PDF
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Authors:
Preeti Wadhwani, Aishvarya Ambekar
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.
Managed Services Market Key Takeaways
Market Size & Growth
Key Market Drivers
Challenges
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.
For instance, in April 2024, SAS, a data and Artificial Intelligence (AI) specialist, expanded its SAS-hosted managed services to Amazon Web Services (AWS). This strategic addition to the SAS managed services portfolio gives customers more options for how they choose to deploy and manage their investments in industry-leading SAS technology and solutions.
The demand for managed services is significantly propelled by globalization and remote work trends, necessitating robust IT support for dispersed teams. As businesses expand globally, seamless cross-border communication and efficient IT infrastructure management become critical, driving the need for managed services. The shift toward remote work further highlights the importance of dependable cloud computing, cybersecurity, and network management systems to support distributed workforces effectively. Managed service providers offer flexible and scalable solutions that enable businesses to maintain operational stability, enhance productivity, and swiftly adapt to evolving work environments, regardless of geographical location.
A major challenge in the managed services industry is the shortage of qualified IT security specialists. As cyber threats become more complex and sophisticated, businesses are increasingly pressured to enhance their cybersecurity measures and protect their sensitive data and digital assets. Managed services offer a solution by providing access to advanced security tools, threat intelligence, and expert knowledge, enabling businesses to effectively detect, thwart, and address cyberattacks. Furthermore, the market growth is constrained by a shortage of skilled cybersecurity professionals. Companies struggle to find and retain employees capable of meeting their security needs, impeding the industry's ability to fully capitalize on the demand for robust cybersecurity solutions.
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
Based on enterprise size, the market is divided into large enterprises and SME. 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.
Based on industry vertical, the managed services market is categorized into IT & telecom, BFSI, healthcare, government, retail, energy & utility, and others. In 2023, the IT & telecom segment accounted for a market share of around 25%. The segment is propelled by the persistent demand for reliable communication networks and robust IT infrastructure. In this market, managed service providers offer a wide array of services, including cloud computing, cybersecurity, network management, data center services, and communication solutions. Businesses in the IT and telecom sectors increasingly depend on managed services to enhance operational efficiency, reduce downtime, and ensure data security amid the rapid technological advancements and growing complexity of IT infrastructures. This reliance underscores the critical role of managed services in maintaining seamless and secure operations.
North America dominated the global managed services market with a major share of over 35% in 2023. The North America market is experiencing growth due to the strong presence of major industry players, high levels of IT spending, and a robust technological infrastructure. This mature market features diverse industries including healthcare, IT, manufacturing, and finance that rely heavily on managed services to enhance efficiency and optimize operations. North America is a global leader in cloud computing adoption, driving increased demand for managed services. According to the International Trade Administration, the U.S. holds the largest technology market in the world, representing one-third of the USD 5 trillion global IT sector. This dominant position underscores the region's critical role in shaping the managed services landscape.
In Europe, organizations across diverse sectors including manufacturing, healthcare, and finance are increasingly adopting managed services to enhance operational efficiency and focus on core competencies. The market is also driven by extensive digital transformation initiatives and a strong demand for cloud computing solutions. Additionally, Europe's dominance is supported by a skilled workforce and the presence of numerous multinational corporations, further solidifying its position as a leader in the managed services industry.
In Asia Pacific, the managed services market is increasing owing to the region's quickening pace of digital transformation, expanding IT infrastructure, and rising industry use of cybersecurity and cloud computing solutions. In China, there is a significant demand for scalable, efficient solutions in cloud computing, cybersecurity, and data management driven by the country's burgeoning IT infrastructure and rapid digitalization across industries, coupled with government incentives to adopt technology.
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.
In Asia Pacific, the managed services market is increasing owing to the region's quickening pace of digital transformation, expanding IT infrastructure, and rising industry use of cybersecurity and cloud computing solutions. In China, there is a significant demand for scalable, efficient solutions in cloud computing, cybersecurity, and data management driven by the country's burgeoning IT infrastructure and rapid digitalization across industries, coupled with government incentives to adopt technology.
Managed Services Market Companies
The major players operating in the managed services industry are:
Managed Services Industry News
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
Market, By Organization Size
Market, By Deployment Model
Market, By Industry Vertical
The above information is provided for the following regions and countries:
Research methodology, data sources & validation process
This report draws on a structured research process built around direct industry conversations, proprietary modelling, and rigorous cross-validation and not just desk research.
Our 6-step research process
1. Research design & analyst oversight
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2. Primary research
Primary research forms the backbone of our methodology, contributing nearly 80% to overall insights. It involves direct engagement with industry participants to ensure accuracy and depth in analysis. Our structured interview program covers regional and global markets, with inputs from C-suite executives, directors, and subject matter experts. These interactions provide strategic, operational, and technical perspectives, enabling well-rounded insights and reliable market forecasts.
3. Data mining & market analysis
Data mining is a key part of our research process, contributing nearly 20% to the overall methodology. It involves analysing market structure, identifying industry trends, and assessing macroeconomic factors through revenue share analysis of major players. Relevant data is collected from both paid and unpaid sources to build a reliable database. This information is then integrated to support primary research and market sizing, with validation from key stakeholders such as distributors, manufacturers, and associations.
4. Market sizing
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5. Forecast model & key assumptions
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✓ Key growth drivers and their assumed impact
✓ Restraining factors and mitigation scenarios
✓ Regulatory assumptions and policy change risk
✓ Technology adoption curve parameter
✓ Macroeconomic assumptions (GDP growth, inflation, currency)
✓ Competitive dynamics and market entry/exit expectations
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Verified data sources
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GMI archive
13,000+ published studies across 30+ industry verticals
Trade data
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Parameters studied & evaluated
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