The global managed services market size was valued at USD 313.12 Billion in 2022, is projected to reach USD 756 Billion by 2031, and expand at a CAGR of 13.5% during the forecast period, 2023–2031. The growth of the market is attributed to the increasing need for safe and managed services.
The technique of outsourcing the responsibility for maintaining and anticipating the need for a variety of processes and functions in order to improve operations and cut costs is known as managed services. Managed services provide customized services like building service catalogs, application testing, and consultancy. The growth of the market is estimated to be a result of the management performed by isolated teams and monitoring tools.
The managed services are estimated to be a result of the introduction of cloud-based technologies and the development of their services. Many businesses approach managed service providers for enhanced operational efficiency and expenses. The increased number of small and medium businesses look forward to outsourcing non-core activities.
Managed services provide numerous benefits which are proven to contribute to the development of the organization, as the organization or businesses can follow towards focusing on their core expertise. In information technology, application performance monitoring plays a vital role.
As per the industry standards, consumer needs and requirements are unstable, thus businesses are focusing on result-based outcomes. They require managed services that are real-time, with set or pre-defined criteria. These factors help and allow organizations to achieve their business goals and objectives, strengthen bottom-line activities, and focus on productivity and profitability.
The outbreak of the COVID-19 pandemic has largely prompted businesses to adopt remote working facilities. Many organizations are adopting the latest technologies in augmented reality. The use of cloud management is anticipated to assist in optimizing the business. The pandemic has forced governments worldwide to impose lockdowns and close down offices, schools, and colleges. This has resulted, in companies implementing work-from-home policies.
Schools and colleges have been forced to continue education and regular classes by using online platforms. The global online retail market has therefore seen a boom due to the pandemic, not only because of work-from-home policies which are adopted by companies but also increasing use of the internet and mobile telecommunication platforms for daily business operations and many more stay-at-home activities. This has ultimately led to increased online transactions, and people prefer it more for safety reasons.
Managed Services Market Dynamics
The cost-effectiveness of managed services and their major benefits to the corporate segment are major factors driving the market. The increasing efficiency of the Internet of Things (IoT) and related technologies is estimated to fuel the market during the forecast period. The COVID-19 pandemic is estimated to increase the demand for digital transformation, which resulted in the expansion of information technology (IT) managed services. Managed services help in efficient operational activities.
The inaccuracy of testing software act as a major restraint for market growth. The threat of cyber-attacks because of such increased data manipulations and huge datasets is expected to hamper market growth. The inadequate availability of information technology (IT) and cybersecurity experts is estimated to limit the market growth. Restraints such as experienced workforces, ineffective managed service models, major investment decisions, and data privacy issues are projected to affect market growth.
Increasing demand for fast, and efficient testing, inspection, and investigation services is expected to create lucrative opportunities during the forecast period. Digitalization is projected to bring new marketing opportunities and growth in the business environment. This positively impacts in higher revenue generation and better recruitment in organizations.
Scope of Managed Services Market Report
The report on the global managed services market includes an assessment of the market, trends, segments, and regional markets. Overview and dynamics have also been included in the report.
Managed Services Market - Global Industry Analysis, Growth, Share, Size, Trends, and Forecast
2016 – 2021
Managed Information Services (Project and portfolio Management, Business Process Outsourcing (BPO), Business Support Systems, and Others), Enterprise Size (Small and medium Enterprises and Large Enterprises), Solution (Managed Networks, Managed Infrastructure, Managed Communication, Managed Security, Managed Data Center, Managed Mobility, Managed Backup & Recovery, and Managed Information), Deployment (Hosted .and On-premise), and End-user (Energy & Utility, Healthcare, Financial, Manufacturing, BFSI, Government, IT & Telecom, and Others)
Asia Pacific, North America, Latin America, Europe, and Middle East & Africa
Company Share, Market Analysis and Size, Competitive Landscape, Growth Factors, and Trends, and Revenue Forecast
Key Players Covered in the Report
Accenture; BMC Software, Inc.; AT&T; Cisco Systems, Inc.; Ericsson; Hewlett Packard Enterprise Development LP; Lenovo; Xperience; IBM; and Broadcom.
Managed Services Market Segment Insights
Managed Information Services Segment Analysis
On the basis of managed information services, the market is divided into project & portfolio management, business process outsourcing (BPO), business support systems, and others. The business process outsourcing (BPO) segment accounted for the major market share of around 42% in 2020.
Many businesses have started considering BPO as an integral part of their business that permits them to target their core competencies. Varied industries are in the process of integrating analytics with project portfolio management because it enhances the decision-making capabilities of organizations.
Enterprise Size Segment Size
On the basis of enterprise size, the market is bifurcated into small & medium, and large enterprises. The large enterprises segment accounted for the key market share of over 62% in 2020. Large enterprises have to deal with giant volumes of information that require to be effectively managed while being accessed domestically remotely. Increasing government initiatives geared toward encouraging and promoting SMEs and varied digital SME campaigns across the planet are expected to drive the market.
Solution Segment Analysis
Based on the solution, the market is divided into managed network, managed infrastructure, managed communication, managed security, managed data center, managed mobility, managed backup & recovery, and managed information. The managed data center segment accounted for a major market share of over 16% in 2020.
Continued integration of the most recent technologies in existing and new business infrastructures is expected to drive the segment. Increasing instances of cyber-attacks are predicted to drive the adoption of managed security services within the end-use industries. Also, managed security services are widely adopted in enterprise operations as a measure to secure confidential information.
Deployment Segment Analysis
Based on deployment, the market is bifurcated into on-premise and hosted. The on-premise segment held a major market share in 2020. On-premise software system installation permits large-scale customization while making certain infrastructure flexibility. Hosted deployment is anticipated to be the fastest-growing. It's most popular among enterprises thanks to advancements in technology and the numerous options it offers like low operational value and overall cost-effectiveness.
End-User Segment Analysis
Based on end-user, the market is segmented into energy & utility, healthcare, financial, manufacturing, BFSI, government, IT & telecom, and others. The financial services segment accounted a market share of over 17% in 2020.
The financial establishments are choosing managed services to deal with varied issues, like addressing the advances in technology and market and regulative changes, and a looming lack of resources holding experience within the latest technologies. The managed services model generally helps in running business processes and operations while raising operational potency and merchandise quality in the long run.
In terms of region, the managed services market is classified as Asia Pacific, North America, Latin America, Europe, and Middle East & Africa. North America dominated the market in 2020 with a market share of over 34%. The market in Asia Pacific was valued at USD 35.89 billion in 2018 and is estimated to witness substantial growth over the forecast period.
Implementation of cloud-based solutions and increasing investments in information security among many corporations within the Asia Pacific is expected to drive the market during the forecast period.
The global Managed Services Market has been segmented on the basis of
Managed Information Services (MIS)
- Business Process Outsourcing (BPO)
- Business Support Systems
- Project & Portfolio Management
- Small & Medium Enterprises (SMEs)
- Large Enterprises
- Managed Data Center
- Managed Network
- Managed Mobility
- Managed Infrastructure
- Managed Backup and Recovery
- Managed Communication
- Managed Information
- Managed Security
- Financial Services
- IT & Telecom
- Media & Entertainment
- Asia Pacific
- North America
- Latin America
- Middle East & Africa
- BMC Software, Inc.
- Cisco Systems, Inc.
- Hewlett Packard Enterprise Development LP
Key players in the global managed services market are Accenture; BMC Software, Inc.; AT&T; Cisco Systems, Inc.; Ericsson; Hewlett Packard Enterprise Development LP; Lenovo; Xperience; IBM; and Broadcom. For instance,
- In March 2022, Xperience, an Ireland-based IT firm acquired Riverlite Limited, a firm which provides cloud expertise and cybersecurity. With this acquisition, managed services are anticipated to be provided across the U.K. and Ireland.
- In June 2021, IBM introduced IBM Center for Government Cybersecurity, a collaborative environment that mainly focuses to help agencies address potential cybersecurity threats.