Managed Services Market size worth over $350 Bn by 2026
Published Date: November 20, 2020 Authors: Ankita Bhutani, Preeti Wadhwani
Managed Services Market size is likely to surpass USD 350 billion by 2026, according to a new research report by Global Market Insights, Inc.
Growing proliferation of IT services and cloud computing technologies across enterprises is poised to drive the managed services industry growth. Managed services enable enterprises to bolster business efficiency and enhance operational quality. The enterprise-wide growing demand for outsourcing the management of IT infrastructure is also contributing significantly to the market value.
Growing demand to reduce administration and maintenance costs across organizations
The need to minimize the total cost of ownership by lowering administration and maintenance costs across enterprises is one of the major factors supporting the managed services market growth. Enterprises are required to manage and modernize their business infrastructure and processes as per market trends. The management and maintenance of additional components further increase the associated costs, resulting in high financial expenditure. In response, companies are outsourcing their enterprise infrastructure to certified managed service providers to ensure reduced financial expenses.
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Phasing out of legacy components and transition to advanced infrastructure will augment managed infrastructure services
The managed infrastructure service market captured around 25% share in 2019. Growing technological advancements and the need to optimize IT infrastructure are contributing to the segment growth. The rising digitization is driving enterprises to deploy advanced IT infrastructure solutions. However, enterprises are required to assure the consistent availability of data and information systems. In response, companies are adopting managed services to manage the entire infrastructure within an enterprise.
Browse key industry insights spread across 270 pages with 259 market data tables and 26 figures & charts from the report, “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” in detail along with the table of contents:
The availability of cost-effective and advanced services fueling the managed services market revenue
The SME operation type segment is anticipated to witness 10% CAGR during 2020 to 2026 propelled by the extensive penetration of cost-effective services and the increased digitization of small & medium enterprises. These companies are adopting cloud-based managed services including security management, infrastructure management, etc. SMEs are benefitting from low-cost high-performance services to ensure reduced complexities and effectively managed enterprise infrastructure.
Need to modernize and secure the healthcare environment is driving the demand in the healthcare industry
The healthcare industry vertical is projected to observe growth rate of more than 10% through 2026 impelled by growing demand to manage diverse components including connected devices, cloud networks, etc. Additionally, there has been an increasing number of cyber incidents and the need to assure improved response time. Thus, enterprises in the healthcare market are adopting healthcare network monitoring managed services for the optimum utilization of resources and to ensure network efficiency.
Asia Pacific is expected to witness expansive growth
Asia Pacific managed services market is estimated to hold nearly 25% share by 2026 due to the extensive adoption of cloud services. Furthermore, the presence of prominent players, such as Cognizant, Infosys Limited, Tata Consultancy Services, and Tech Mahindra, is also fueling market growth.
Focus on inorganic growth strategies by key players to augment market share
Companies operating in the industry are focusing on the development of advanced solutions for service management. For instance, in September 2020, Tech Mahindra Ltd. launched iCOPS, an intelligent cloud operations and subscription management platform. It helps customers improve cloud operations and maintain security & compliance while reducing cloud operational costs. It also streamlines cloud operations through AIOps and analytics functions. The launch also helped the company in providing its customers an innovative platform to leverage cloud functionalities and enable cost-efficiency.
Some of the key managed services market players include Accenture Plc, AT&T Inc., ATOS SE, CENTURYLINK, INC (Lumen Technologies), Cisco Systems, Inc., Cloudreach, Cognizant, Deloitte Touche Tomatsu Limited, DXC Technology, Telefonaktiebolaget L M Ericsson, Fujitsu Limited, HCL Corporation, Huawei Technologies Co. Ltd., IBM Corporation, Infosys Limited, Nokia Corporation, NTT Data, Rackspace Technology, Inc., TCS, and Tech Mahindra.
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