The "Managed Services Market Size and Share Analysis - Growth Trends and Forecast Report 2025-2033" report has been added to ResearchAndMarkets.com's offering.
The Managed Services Market is expected to reach US$ 572.15 billion by 2033 from US$ 279.16 billion in 2024, with a CAGR of 8.30% from 2025 to 2033. Some of the key drivers driving the market's expansion include the growing need for scalable and affordable business solutions, the growing complexity of managing IT infrastructure, and the growing demand for IT outsourcing solutions.
Global Managed Services Industry Overview
The increased complexity of IT systems and the growing demand for businesses to optimize operations have led to significant expansion in the worldwide managed services sector in recent years. Managed services are a broad category of IT solutions that companies contract out to outside service providers, including network management, data storage, cloud computing, and cybersecurity. By utilizing these services, businesses can concentrate on their main operations while making sure that their IT infrastructure is secure, optimized, and complies with legal requirements. Managed services are now a strategic way for organizations to stay competitive in an increasingly digital world as they look to save expenses and improve operational efficiency.
The industry has been widely adopted by a number of industries, including telecommunications, healthcare, and finance. As businesses place a higher priority on protecting data and digital assets, cloud computing and cybersecurity are two major motivators. Furthermore, the scope of managed services has been further broadened by the development of automation, artificial intelligence, and the Internet of Things (IoT), opening up new potential for service providers. In emerging markets, where IT infrastructure development and digital transformation are accelerating, the industry is also seeing rising demand. The managed services sector is expected to grow even more in the years to come due to ongoing technology developments and changing corporate requirements.
In the managed services sector, enterprise cloud transition still offers both possibilities and difficulties. The complexity of modern infrastructure transitions is highlighted by recent research that show 48% of IT decision-makers in the US and the UK need 1-2 months to successfully perform a single multi-cloud application transfer. Specialized managed service products centered on cloud optimization, migration support, and hybrid infrastructure management have emerged as a result of this complexity.
Growth Drivers for the Managed Services Market
Growing Difficulties in Cybersecurity
For companies of all sizes, maintaining strong cybersecurity has become crucial in an era of constantly changing cyberthreats. Specialized security solutions, such as round-the-clock monitoring, threat detection, incident response, and compliance management, are provided by managed services providers. While guaranteeing adherence to pertinent laws and standards, they assist companies in safeguarding their vital information and IT resources against a variety of online dangers.
This is especially important for sectors like retail, healthcare, and finance that are governed by strict data privacy regulations. Businesses may uphold strict security requirements, reduce risks, and steer clear of possible legal and financial repercussions linked to data breaches or non-compliance by utilizing MSPs' experience. Industry statistics indicate that there were 2,365 cyberattacks in 2023, resulting in 343,338,964 victims.
Data breaches increased by 72% in 2023 compared to the previous record of 2021. The average cost of a data breach is $4.45 million. In 2023, around 35% of malware was distributed by email, making it the most prevalent malware vector. Email security problems have been reported by 94% of firms. In 2022, business email hacks caused losses totaling $2.7 billion. It is anticipated that employment in information security would increase by 32% between 2022 and 2032. Statistics on the managed services market are being greatly impacted by this.
Widespread Use of Cloud Computing
One of the main factors driving market expansion is the growing trend toward cloud computing. Businesses frequently need professional help to manage these settings when they move to cloud-based solutions in order to gain access, collaboration, and cost savings. Providers of managed services provide all-inclusive cloud management solutions that guarantee cost-effectiveness, performance, and security. For example, the top end-to-end, hybrid multi-cloud, and AI solutions provider, Rackspace Technology, stated in May 2024 that it was collaborating with young Hollywood on a multi-phase Google Cloud solution to revolutionize video content management.
The partnership effectively developed the required third-party metadata, video assets, and infrastructure, and used the Google Cloud Video Intelligence Application Programming Interface (API) to process videos. The innovative entertainment network can now process videos ten times faster and have better access to data thanks to the new cloud architecture, which also opens up new avenues for distribution and revenue.
Growing IT Infrastructure Complexity
The market for managed services is significantly influenced by the growing complexity of IT systems, including hybrid cloud environments, vast data networks, and sophisticated cybersecurity requirements. Rapid technological breakthroughs, a wide range of software applications, and the integration of several platforms are making it more and more difficult for businesses to manage and maintain their IT infrastructure. In order to effectively handle this complexity and guarantee the best possible system performance, dependability, and security, managed service providers (MSPs) provide specialized knowledge, resources, and cutting-edge solutions.
For example, Cognizant introduced a multi-hybrid cloud and edge management platform in April 2023 with the goal of streamlining their cloud management operations and facilitating the shift to contemporary cloud-native architectures. Through a carefully selected library of solution accelerators, Cognizant Skygreed employs an industry-focused methodology that promotes cost-effectiveness, sustainability, and simplification while empowering businesses to swiftly and effectively realize higher business value. Over the upcoming years, this is anticipated to improve the managed services market projection.
Challenges in the Managed Services Market
Cybersecurity Threats
Given the mounting pressure on Managed Service Providers (MSPs) to protect customer data, cybersecurity threats present a serious problem. As ransomware and data breaches become more common, MSPs need to constantly improve their security protocols to safeguard confidential data. These dangers have the potential to seriously harm a company's reputation in addition to being a financial risk.
To identify and stop such breaches, MSPs must put advanced security procedures, frequent vulnerability assessments, and quick response plans into place. MSPs must make investments in state-of-the-art technologies and make sure their staff is prepared to react swiftly and efficiently in order to preserve customer confidence and adhere to industry rules as the frequency and complexity of cyberattacks increase.
Compliance and Regulatory Challenges
Navigating a complicated regulatory framework presents major obstacles for managed service providers, or MSPs. Because data privacy and protection are governed by laws like the CCPA, GDPR, and HIPAA, MSPs have to make sure that their operations adhere to various regulatory requirements in various jurisdictions. Heavy fines, legal repercussions, and irreversible harm to a provider's reputation might result from noncompliance.
MSPs must put strict data security measures in place, handle personal data transparently, and make sure that client data is processed and stored in compliance with relevant legal requirements. This calls for constant observation, frequent audits, and current understanding of changing legislation. Although it complicates service delivery, compliance is necessary to preserve confidence and stay out of trouble with the law.
Key Players Analyzed: Overview, Key Persons, Product Portfolio, Recent Development & Strategies,Revenue Analysis
- Fujitsu Ltd
- Cisco Systems Inc.
- IBM Corporation
- AT&T Inc.
- Microsoft Corporation
- Verizon Communications Inc.
- Dell Technologies Inc.
- Nokia Solutions and Networks
- Rackspace Inc.
- Tata Consultancy Services Limited
Key Attributes:
| Report Attribute | Details |
| No. of Pages | 200 |
| Forecast Period | 2024 - 2033 |
| Estimated Market Value (USD) in 2024 | $279.16 Billion |
| Forecasted Market Value (USD) by 2033 | $572.15 Billion |
| Compound Annual Growth Rate | 8.3% |
| Regions Covered | Global |
Key Topics Covered:
1. Introduction
2. Research Methodology
3. Executive Summary
4. Market Dynamics
4.1 Growth Drivers
4.2 Challenges
5. Global Managed Services Market
6. Market Share Analysis
6.1 By Type
6.2 By Size of Enterprise
6.3 By End User
6.4 By Deployment
6.5 By Countries
7. Type
7.1 Managed Data Center
7.2 Managed Security
7.3 Managed Communications
7.4 Managed Network
7.5 Managed Infrastructure
7.6 Managed Mobility
8. Size of Enterprise
8.1 Small & Medium Size
8.2 Large Enterprise
9. End-User
9.1 BFSI
9.2 IT and Telecommunication
9.3 Healthcare
9.4 Entertainment and Media
9.5 Retail
9.6 Manufacturing
9.7 Government
9.8 Others
10. Deployment
10.1 On-premise
10.2 Cloud
11 Countries
11.1 North America
11.1.1 United States
11.1.2 Canada
11.2 Europe
11.2.1 France
11.2.2 Germany
11.2.3 Italy
11.2.4 Spain
11.2.5 United Kingdom
11.2.6 Belgium
11.2.7 Netherland
11.2.8 Turkey
11.3 Asia-Pacific
11.3.1 China
11.3.2 Japan
11.3.3 India
11.3.4 Australia
11.3.5 South Korea
11.3.6 Thailand
11.3.7 Malaysia
11.3.8 Indonesia
11.3.9 New Zealand
11.4 Latin America
11.4.1 Brazil
11.4.2 Mexico
11.4.3 Argentina
11.5 Middle East & Africa
11.5.1 South Africa
11.5.2 Saudi Arabia
11.5.3 UAE
12. Porter's Five Forces Analysis
12.1 Bargaining Power of Buyers
12.2 Bargaining Power of Suppliers
12.3 Degree of Rivalry
12.4 Threat of New Entrants
12.5 Threat of Substitutes
13. SWOT Analysis
13.1 Strength
13.2 Weakness
13.3 Opportunity
13.4 Threat
14. Key Players Analysis
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