Managed Services Market Size to grow by USD 184.29 billion between 2024-2028
According to a research report “ Managed Services Market” by Deployment (Cloud, On-premises) Type (MDS, MNS, MSS, MMS, Others) Geography (North America, Europe, APAC, South America, Middle East and Africa)- Global Forecast to 2028 published by Technavio, the market size is estimated to grow by USD 184.29 billion, at a CAGR of 10.75% during the forecast period. The Internet of Things (IoT) is a technological innovation that connects tangible objects and environments through communication services and embedded software, creating intelligent ecosystems. This network facilitates the communication of hardware devices, microcontrollers, and managed services, enabling remote control and monitoring of various objects. IoT plays a pivotal role in the growth of managed services, as smart machines demand efficient M2M communication and managed services to build comprehensive IoT infrastructures for sectors like healthcare, transportation, and smart homes. Managed services ensure seamless end-to-end connectivity and communication, thereby driving the expansion of IoT applications and industries.
Browse market data tables, figures, and in-depth TOC on “Managed Services Market” by Deployment (Cloud, On-premises) Type (MDS, MNS, MSS, MMS, Others) Geography (North America, Europe, APAC, South America, Middle East and Africa) Global Forecast to 2028. Download Free Sample
By Deployment, the Cloud segment is projected to dominate the market size in 2024
The managed data center services (MDS) segment holds a significant market share in the global managed services industry. This dominance is largely attributed to the surging demand from sectors such as IT, banking, financial services and insurance (BFSI), education, healthcare, and retail. These industries seek a centralized solution for their storage and operational needs. The increasing number of Small and Medium Enterprises (SMEs) in emerging economies, including China, India, Brazil, Indonesia, and Mexico, further fuels the demand for MDS. These businesses require cost-effective and highly dependable storage systems with expanded capacity. MDS offers a pay-per-use storage infrastructure, which is deployed, monitored, and managed by the service provider. This setup provides functionalities akin to standard data centers but through a managed service platform.
By Type, MDS segment is expected to hold the largest market size for the year 2024
The cloud-based managed services segment of the global market is projected to experience faster growth than its on-premises counterpart over the forecast period. Small and medium-sized enterprises (SMEs) and some large organizations are increasingly adopting cloud services due to their ease of use, cost-effectiveness, agility, and innovative security features. However, financially robust enterprises express concerns regarding the perceived lack of security and data theft protection in cloud models. Functionality and continuous innovation in data security are key factors persuading large organizations to transition to cloud-based managed services.
North America is forecasted to hold the largest market size by region in 2024
The North American market for managed services holds significant potential due to the region's status as an innovator in the adoption of advanced technologies, particularly in industries such as manufacturing, retail, and BFSI. Key players like Accenture Plc, Atos SE, Cisco Systems Inc., DXC Technology Co., and Fujitsu Ltd., with a strong presence and penetration in the market, contribute to its growth. With several economies of the world located in North America, the demand for managed services, including data processing and outsourcing, Internet services and infrastructure, cloud-based solutions, automation, and artificial intelligence (AI), is escalating. The integration of these technologies with operational and supply chain processes is leading to the emergence of new intelligent managed services in the region.
The Managed Services Market growth and forecasting report also includes detailed analyses of the competitive landscape of the market growth and forecasting and information about 20 market companies, including:
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Research Analysis Overview
The Managed Services Market is experiencing significant growth due to the increasing adoption of cloud-based solutions and IoT technologies to meet consumer needs and industry requirements. DevOps teams are leveraging AIOps analytics, Artificial Intelligence for IT Operations, to monitor and manage IT infrastructure, applications, and services in real-time. Cloud-based technologies, such as Automated Testing and Deployment (ADTD), Front-end monitoring, and Blockchain, are driving operational efficiency and digital transformation. MSPs (Managed Service Providers) offer professional services, including managed IT services on cloud platforms, to help businesses optimize their IT operations. The integration of IoT devices into business operations adds complexity, requiring MSPs to provide advanced security solutions, including cybersecurity services from IT security professionals. Hybrid work models are becoming the norm, and MSPs are responding by offering automation and artificial intelligence solutions to manage and secure cloud-based applications and data. Data management and data security are critical concerns, and MSPs are using advanced analytics and machine learning to ensure data privacy and compliance. Overall, the Managed Services Market is evolving to meet the changing needs of businesses, offering innovative solutions to help them navigate the complex world of cloud computing and IoT technologies.
Market Research Overview
The Managed Services Market is witnessing significant growth due to the increasing adoption of advanced technologies such as optical instruments, robotics, hybrid vehicles, cloud-based solutions, IoT technologies, and more. Consumer needs and industry requirements are driving businesses to adopt agile approaches, DevOps team, AIOps analytics, ADTD, Front-end monitoring, and large-scale deployments, including hosted and on-premise. Managed IT services providers (MSPs) offer various services such as project & portfolio management, endpoint management solutions, managed security services, managed data center, managed network services, computer & helpdesk, server & device management, network infrastructure, IT operations, machine learning (ML), big data, Software-as-a-Service (SaaS), business applications, business productivity, and professional services. MSPs leverage cloud-based technologies, including AI and ML, to provide cybersecurity, data management, and cyber threat protection. With the rise of hybrid work models and IoT devices, MSPs are offering automation, AI, and data management services to ensure operational efficiency and digital transformation. Additionally, MSPs are providing services in specific industries such as media & entertainment, energy & utilities, healthcare & life science, retail & consumer goods, and more. Furthermore, MSPs are offering services in emerging technologies like blockchain and cloud platforms, application testing, information services, mobility services, and network services. With the increasing number of cyber threats, MSPs are also focusing on providing skilled resources and IT security professionals to ensure privacy protection. Overall, the Managed Services Market is expected to continue growing as businesses increasingly rely on technology to meet their evolving needs.
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Jesse Maida
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Email: media@technavio.com
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