August 2024
The global managed services market size was USD 351.68 billion in 2023, estimated at USD 393.88 billion in 2024 and is anticipated to reach around USD 1174.27 billion by 2034, expanding at a CAGR of 11.54% from 2024 to 2034.
The global managed services market size accounted for USD 393.88 billion in 2024 and is predicted to reach around USD 1174.27 billion by 2034, growing at a CAGR of 11.54% from 2024 to 2034.
The U.S. managed services market size was reached at USD 83.76 billion in 2023 and is expected to be worth around USD 281.87 billion by 2034 with a CAGR of 12% from 2024 to 2034.
The North American market had the largest revenue share 34% in 2023 due to an emphasis on digitalization. In US, the IT firms are trying to lower their operational expenses. Various companies are adopting a varied range of managed services to improve the operational efficiency. In case of IT support services, the businesses in the US are dependent on the managed service providers. It helps them in staying competitive.
As there is digitalization across many industries the Asia Pacific market is also expected to have a significant growth due to the use of cloud based solutions and boosting data security investments.
Due to pandemic, many companies are resorting for business automation as the business aggressively resorts to remote working. About 55% of companies have approached the managed service providers in order to opt for their value added services and reduce security risks for the employees and the business partners. Managed services help in outsourcing the management functions to a third party in order to escalate the business operations.
In order to improve the operational efficiencies and the operating expenses many businesses are approaching managed service providers. The outbreak of the pandemic has largely prompted the businesses to put a strong foot forward on remote working. Many organizations are adopting the latest technologies like that of augmented reality. The use of cloud management will help in optimizing the business.
Managed services provide optimum resource distribution utilization and they help in augmenting the overall profit for the businesses to operate. It's always helps in cutting down the company's operating expenses by improving the operational efficiency. There's an increase in outsourcing the management functions to manage service providers and to cloud service providers. Due to the spread of COVID lockdowns were imposed and they could be imposed by government and the adoption of cloud service will ensure business continuity even during those times.
The use of artificial technology and cloud management are solving the various functional business requirements, managed services, helping effective functioning of the organization with minimal cost and it does not compromise on the quality of the work done. The major market players are investing in the development of the new products and expansion of the products portfolio. They are also engaging in research and development activities in order to offer reliable services and cost-effective services.
Report Coverage | Details |
Market Size by 2034 | USD 1174.27 Billion |
Market Size in 2023 | USD 351.68 Billion |
Market Size in 2024 | USD 393.88 Billion |
Market Growth Rate from 2024 to 2034 | CAGR of 11.54% |
Largest Market | North America |
Base Year | 2023 |
Forecast Period | 2024 to 2034 |
Segments Covered | Solution, Enterprise Size, End-use, Managed Information Service, Deployment, and Region |
Regions Covered | North America, Europe, Asia-Pacific, Latin America, and Middle East & Africa |
The managed data center segment accounted revenue share 16.5% in 2023. The managed data center segment is expected to grow during the forecast as it provides cutting edge technology to the existing as well as the new corporates. Managed datacenters help in boosting business automation and strengthening the management of the business in an IT architecture. Due to a rise in cyberattacks the use of the managed security services is expected to grow during the forecast.
Business operations use managed security services to protect their confidential data. Due to increased complexities in the growing networks there are drawbacks in the effective data security management. There is a need for adoption of managed security services. The security services help in detecting and mitigating the risks with the help of security assessments. Therefore, the demand for the managed security services has increased. Apart from the managed security services, the endpoint management solutions are also available. In order to safeguard the business and secure the individual identities in the IT sector, organisations are proactively adopting these security technologies.
The on premise segment hit largest share 67% in 2023 and many organisations are adopting the on premise mode of deployment which does not require any Internet connection. The on premise segment helps in easy customization of the software in order to meet the requirements of the clients. As the on premise segment provides a Control Center within an organization, there is an increased efficiency in operations. There is efficient coordination and control in various management duties and activities. The constant technological developments that provide the benefits of minimal operational costs and the software setup cost.
The hosted deployment segment is also expected to grow fast during the forecast. The need for upgrading the software is ruled out in the hosted deployment segment. The upgrade to the software systems can be done as and when needed in order to relieve the organizations from various licensing expenses. The hosted managed services deployment approach is expected to gain more demand as it helps in saving time and as there are no upgrades required.
The financial services segment accounted largest revenue share 21.5% in 2023 and these financial institutes are turning to managed services in order to help them with their issues, including keeping up with the advancements in technology, regulatory changes in the market and the looming storage of employees with cutting edge technologies. The use of managed services helps in increasing the operational efficiency and the product quality. Amongst all the businesses, the managed services are becoming increasingly popular as they provide a strategic approach in order to protect the operations of an organization. Long term use of managed services helps in providing significant strategic benefits and also cost savings.
In order to automate the business operations, retailers can also use managed services and focus more on their core activities. The examples of this are retail assets management, remote monitoring and management and retail managed services. The retailers happen to overlook the infrastructure which is required in case there is an expansion since the retail sectors are also rapidly growing, the retail managed services will allow the company to have more flexible software during the time of growth.
The large enterprise segment had the largest market share of around 63% in 2023. Large enterprises deal with a lot of data which must be maintained and it should be accessible locally and remotely. Large organisations are using managed security services in order to monitor and manage their corporate data security. As there are less developed infrastructure in order to detect breaches and increasing cyber-attacks, Managed security services are in great demand across many businesses in the world. If there is a cyberattack or data breach in any organization which is located in the Asia Pacific region, there will be an enormous loss. The managed services have applications in manufacturing, telecom and IT, healthcare, retail and consumer goods. In order to encourage and promote SME's and various digital SME's, Governments are carrying out campaigns worldwide by providing loans, tax reliefs, social support, financial support.
Due to an increasing adoption of modern information technology, infrastructure and business operations and automation, the market is expected to grow during the forecast period. In order to provide the managed services effectively, cloud computing automation and virtualization are providing the delivery platform, which is very cost effective and efficient. Small businesses are also expected to increase their spending on it as they are benefiting from the managed service providers.
Segments Covered in the Report
By Solution
By Enterprise Size
By End-use
By Managed Information Service
By Deployment
By Geography
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