Managed Services Market

Managed Services Market Outlook (2022-2032)

The global managed services market was valued at US$ 242.9 Billion in 2021, and is projected to register a Y-o-Y increase of 7.8% in 2022 to be valued at US$ 262 Billion.

During the 2022-2032 period of assessment, demand is expected to rise at a 7.4% value CAGR, likely to reach US$ 535.7 Billion by the end of the said forecast period.

Report Attributes	Details
Anticipated Base Year Value in 2021	US$ 242.9 Billion
Market Value in 2022	US$ 262 Billion
Projected Forecast Value (2032)	US$ 535.7 Billion
Global Growth Rate (2022-2032)	7.4% CAGR
Growth Rate of the U.S (2022-2032)	7.2% CAGR
Expected Market Value of China (2032)	US$ 37 Billion
Growth Rate of U.K (2022-2032)	6.4% CAGR
Key Companies Analysis	IBM FUJITSU  ACCENTURE  ATOS  CISCO

Overall, the managed services system landscape is poised to yield an absolute dollar opportunity worth US$ 273.8 Billion until 2032. Sales of managed services systems for Managed Data Centre and IT Infrastructure Services will continue to flourish, with a documented CAGR of 7.9% from 2015-2021.

Moreover, on-premises will continue to remain the primary deployment choice, likely to register a CAGR worth 6.8% from 2022 to 2032. North America will remain at the forefront, generating an opportunity worth US$ 189.8 Billion during the forecast period.

Managed services System Revenue Analysis 2015-2021 vs. Future Outlook 2022-2032

Rising penetration of big data technologies, cloud computing and other advanced technologies have prompted managed services providers to transform services into a whole new level. As per market research and competitive intelligence provider Fact.MR, the market for managed services witnessed a staggering 8.0% CAGR from 2015 to 2021. As enterprises strive to attain a competitive edge, management services are a necessity.

Consistent upgradation of managed services to provide a seamless user experience is the need of the hour. By incorporating avant-garde breakthroughs, service providers are not only able to reduce operational costs, but also enhance their returns on investment. Furthermore, changing compliance and governance requirements are also widening the scope for managed services market.

In the future, as more businesses rely on managed services, they are continuously innovating their approaches, ushering in efficiency, enhancing quality and improve client experience. Whether it is to migrate, transform or build, deploying the right application strategy can work miracles. From 2022 to 2032, the managed services market is forecast to grow 1.04x.

Prominent Managed Services System Market Growth Drivers

Increasing demand for secure IT infrastructure

The growing demand to lower the overall cost of maintaining IT infrastructure and management is driving the growth of the global managed services market significantly. Increased in business risk due to more use of IT and Telecom many business firms opt for managed services to provide value added services to the customer. This increasing trend will impact the growth of the market positively.

Also managed services are required for privacy protection and data security purpose. Furthermore, the managed services assist organizations in enhancing their operational efficiency and lower operating expenses.

Advanced technology solutions are adopted for convenient businesses by Flexible managed services and scalable infrastructure models. All these emerging scenarios will significantly propel the growth of the global managed services market. The increasing demand for securing IT infrastructure against cyber threats is driving organizations to adopt managed security services (MSSs) in their businesses. Increasing adoption of managed security services (MSS) based on cloud, among the large organizations is one of the emerging managed services market trends.

Key Challenges Prevalent in the Global Managed Services Market

High cost and Data security concern may Impede Growth Prospects

The major restraining factor that affected this market is data security issue related with managed services market. Many big organisations are facing data breaches and privacy challenges. Increase in data security concern cause tangible and intangible losses for organizations managed services are needed to address these concerns.

Influenced by high costs and threat of data theft, several small scale industries are keeping away from leveraging managed services. Given their budget constraints, these companies find it difficult to outsource their IT segment to vendors.

Organizations and industries are not completely capable to offer optimal performances because of the high administration and maintenance costs. However, cost-cutting solutions and technological advancements have influenced the growth in the managed services market size. It is very necessary to maintain a balance between these things to get positive growth in the managed services market share.

Country-wise Analysis

What is the Growth Outlook for Managed services market in the U.S?

Changing landscape of IT infrastructure, especially in small and medium enterprises (SMEs) contributing to the growth of managed services market.

According to Fact.MR, demand for managed services in the U.S is likely to expand at a 7.2% value CAGR until 2032, forecast to yield an opportunity worth US$ 95.2 Billion. Demand is further expected to be valued at US$ 189.8 Billion by the end of the said forecast period. Growth is attributed to extensive digitization of professional workspaces to streamline workflow and enhance productivity.

Emerging as the pinnacle of the global technological advancement, US is likely to present highly attractive growth opportunities for managed services providers in the long –run. Due to Presence of companies like IBM Corporation Accenture, and Cognisant the region shows highest growth of managed services market. Market player of managed services in US focusing on enhancing cloud services to support the digital transformation. US continues to hold leading share in global managed services market, primarily fuelled by increasing use of managed services in IT sector owing to increasing integration of AI and cloud technologies in IT sector.

For instance, Managed Solution, a US company, integrated technical skillsets and the right resources to discover challenges, diagnose problem areas, and custom design, deliver, and execute a comprehensive technology roadmap based on needs, making customers more secure, compliant and efficient.

Will China emerge as an Attractive Managed Services Market?

Rising adoption of cloud platform and rising demand to managed data enterprises

The managed services market in China is poised to yield a dollar opportunity worth US$ 18 Billion from 2022-2032, anticipated to expand at a CAGR of 6.9%. Furthermore, the country is anticipated to reach a valuation of US$ 37 Billion by the end of the said forecast period. Extensive migration towards cloud-based business models as a part of business innovations is propelling market growth.

The growth of the market is anticipated to increasing investment in data security and growing adoption of cloud based solution in large enterprises. Top leading managed services companies provide opportunities to adopt managed services.

Digitalization in top sector such as BSFI, telecommunication, manufacturing government in the country will boost the growth of the managed services market. Supportive government initiatives towards R&D and huge investments in technological innovation is anticipated to increase the usage of managed services in the region. Surging adoption of BYOD in office spaces would further drive the managed services market in china. Market incumbents are focusing on innovative technologies to collaborate with regional players to further expand their market footprint.

Country-wise Forecast CAGRs for the Managed Services Market

Countries	CAGR
U.S	7.2%
U.K	6.4%
China	6.9%
Japan	5.9%
South Korea	5.2%

Category-wise Insights

Managed Data Centre and IT Infrastructure Services to be Top Growth Driver in the Coming Years

According to Fact.MR, managed data centre and IT infrastructure services is likely to remain the top service category, growing at a value CAGR of 7.1% from 2022-2032. Demand is increasing due to the requirement of maintaining data consistency across independently designed applications, orchestrating integrated flow of multiple activities by disparate applications and providing access to data and functionality from independent applications.

Managed data centre and IT infrastructure services also facilitates access to organizational data from anywhere, helps resolve endpoint visibility and helps integrators focus more on building business logic. By addressing Storage Management, Server Management, Managed Print Services

and Others (Application and Middleware Management, and Database Management) enables users to create integration flows more without requiring a deep knowledge of the various platforms and domains.

Deployment to be maximum across On-premises segment

On the basis of deployment type managed services are categories into cloud and on premises, from which on premises segment accounts for highest CAGR 6.8% through forecasted period.

Managed services On-premise allow enterprises to hand over the complete system management to experts, ensuring maximum performance and availability of existing data centre investment. Due to security reasons larger enterprises with large amount of data prefer on-premises mode of deployment. Firewalls, IPSs, IDSs, and SIEM are some of the core services for on-premises. With their primary focus being enhanced customer outreach, large enterprises are investing in extensive cloud-based and virtual business ecosystems.

Competitive Landscape

The global market for managed services is characterized by the presence of multiple vendors, aiming to offer extensive consulting and integration services to clients. Additionally, enterprises are seeking out specialized service providers, offering solutions tailor-made to suit their business objectives. In addition, the vendors are likely to leverage upgradation to gain an edge over other competitors in the market.

• In January 2022, Tata Consultancy Services (TCS) announced a partnership with Microsoft Cloud for Retail. This new partnership, TCS will work with leading retailers and its multi-horizon cloud transformation framework. This will help retail clients accelerate their growth and transformation journeys using Microsoft Cloud for Retail.
• In October 2021, Wipro announced a deal with National Grid, a leading multinational electric and gas utility provider, to accelerate its digital innovation journey. Wipro will employ standardized tools and processes to provide cloud services that will strengthen National Grid’s infrastructure services.

Key Segments Covered in the Managed Services Market Study

• By Service Type :

  • Managed Security Services
    • Managed Identity and Access Management (IAM)
    • Managed Antivirus/Antimalware
    • Managed Firewall
    • Managed Risk and Compliance Management
    • Managed Vulnerability Management
    • Managed Security Information and Event Management (SIEM)
    • Managed Intrusion Detection System (IDS)/ Intrusion Prevention System (IPS)
    • Managed Unified Threat Management (UTM)
    • Managed Encryption
    • Others (Distributed Denial of Service (DDoS) Mitigation and Managed Data Loss Prevention (DLP))
  • Managed Network Services
    • Managed Local Area Network
    • Managed Wireless Fidelity
    • Managed Virtual Private Network
    • Managed Wide Area Network
    • Network Monitoring
    • Managed Network Security
  • Managed Data Centre and IT infrastructure services
    • Storage Management
    • Server Management
    • Managed Print Services
    • Others (Application and Middleware Management, and Database Management)
  • Managed Communication and Collaboration Services
    • Managed Voice over Internet Protocol (VoIP)
    • Managed Unified Communications as a Service (UCaaS)
    • Others (Managed Email Services)
  • Managed Mobility Services
    • Device Life Cycle Management
    • Application Management
  • Managed Information Services
    • Business Process Management
    • Managed Operational Support System/Business Support System

• By Deployment Type :

  • Cloud Managed Services
  • On-premises Managed Services

• By Organisation Size :

  • Managed Services for SMEs
  • Managed Services for Large Enterprises

• By Vertical :

  • BFSI
  • IT and Telecom
  • Retail and Consumer Goods
  • Manufacturing
  • Government
  • Healthcare and Life Sciences
  • Energy and Utilities
  • Media and Entertainment
  • Other Verticals

• By Region :

  • North America
  • Europe
  • Asia Pacific
  • Middle East and Africa
  • Latin America