The global Managed Services market gathered revenue around USD 239.70 billion in 2021 and market is set to grow USD 732.04 billion by the end of 2030 and is estimated to expand at a modest CAGR of 13.9% during the prediction period 2022 to 2030.
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Growth Factors:
Strengthening profit margins, which cater efficiently to the needs of dynamic business environments, and improvements in operational efficiency are also expected to contribute to the growth of the market. Benefits associated with managed services implementation, such as a significant reduction in IT operational expenses and increased organizational efficiency, are also anticipated to drive the market growth.
Managed services help reduce recurring in-house IT expenditures by ensuring that their IT infrastructure is running at optimal efficiency at all times while also automating business operations. This subsequently allows organizations to effectively achieve their business objectives, especially about strengthening the bottom line and increasing profitability. Initiatives being pursued aggressively by various governments toward digital transformation focusing on modernizing their IT infrastructure, strengthening governance, and improving citizen services are anticipated to drive the demand for managed services over the forecast period.
Managed services help businesses improve operational efficiency and reduce operating expenses while allowing them to focus more effectively on core competencies. Managed services ensure optimal resource distribution and utilization and subsequently help in augmenting the overall profitability and improving operational efficiency. Scalable infrastructure and flexible managed services models are particularly making it easier for businesses to respond to technological advances. All such factors are expected to drive the market's growth over the forecast period.
Managed services involve outsourcing management functions to a third party to advance business operations. The introduction of cloud-based technologies and their technological proliferation have led to managed services. Managed services assist businesses in improving operational efficiency and cutting down companies' operating expenses. The growing preference for outsourcing management functions to cloud service providers and managed service providers is anticipated to drive the growth of the market over the forecast period.
Report Coverage
| Report Scope | Details |
| Market Size | USD 732.04 billion by 2030 |
| Growth Rate | CAGR of 13.9% From 2022 to 2030 |
| Base Year | 2021 |
| Forecast Period | 2022 to 2030 |
| Report coverage | Growth Factors, Revenue Status, Competitive Landscape, and Future Trends |
| Segments Covered | Solution, managed information service (MIS), deployment, enterprise size, end use, Region |
| Regional Scope | North America, Europe, Asia Pacific, Latin America, Middle East & Africa (MEA) |
| Companies Mentioned |
Accenture PLC; Alcatel-Lucent Enterprise; AT&T Inc.; Avaya Inc.; BMC Software, Inc.; CA Technologies; Cisco Systems, Inc.; DXC Technology Company; Ericsson; Fujitsu Limited; Hewlett Packard Enterprise Development LP; International Business Machines Corporation; Lenovo Group Limited. |
Solution Insights
The managed data center segment accounted for the largest market share of over 16% in 2021. The managed data center segment is expected to witness growth due to the continued integration of cutting-edge technology into existing and new corporate infrastructures. Managed data center services might help optimize corporate operations by boosting business automation and strengthening business management in a hybrid IT architecture.
The usage of managed security services in end-use sectors is anticipated to rise as the number of cyber-attacks rises. Managed security services are commonly used in business operations to protect confidential data. Growing network complexities are posing severe impediments to effective data security management, necessitating the need for and adoption of managed security services. It helps enterprises not only detect and mitigate risks through security assessments but also automate compliance monitoring, thus, increase in demand.
Managed Information Service (MIS) Insights
The Business Process Outsourcing (BPO) segment accounted for the largest revenue share of the managed services market exceeding 40.2% in 2021. The growing need for incorporating BPO as part of a business strategy to focus on core strengths and boost profitability is expected to fuel the growth of the BPO segment over the forecast period. The use of BPO services is projected to be driven by several factors, including a focus on process automation, social media management tools, and investments in cloud computing.
Various industries are integrating analytics with project and portfolio management, as it enhances the decision-making capabilities of organizations. These services are extensively utilized by project managers due to several advantages, such as improved capacity planning and resource management, increased productivity, and increased agility.
Deployment Insights
The on-premise segment accounted for the largest market share of over 64.4% in 2021. Numerous organizations have adopted the on-premise mode of deployment as it does not require an internet connection and allows easy customization of software to suit the business process requirements of clients. The on-premise implementation also aids in increasing operational efficiency and establishing a control center within an organization for efficiently coordinating and controlling various project management duties and business operations.
Due to technological developments and other benefits such as cost-effectiveness and minimal operational costs, the hosted deployment segment is expected to be the fastest-growing category. The main advantage of this deployment strategy is that enterprises that use hosted services do not have to upgrade them regularly. The service providers can upgrade the system software and services as needed. Manufacturers are expected to use a hosted managed services (HMS) based deployment approach to regain control of rising IT and licensing expenses while relieving IT workers from spending their time on upgrades and system updates rather than supporting new business.
Enterprise Size Insights
The large enterprises' segment accounted for the largest market share of over 60.2% in 2021. Large businesses deal with large amounts of data that must be successfully maintained and accessible locally and remotely. Furthermore, large organizations are increasingly turning to managed security services to keep and monitor their corporate data security. Due to increasing cyberattacks and less developed infrastructures to detect breaches, managed security services are the most requested service by businesses across the region. A cyberattack or data breach at a large corporation in APAC might result in a considerable loss. The key verticals contributing to the managed services market in the region are retail and consumer goods, healthcare, manufacturing, and telecom & IT.
Increasing government through different types, including loans, tax reliefs, social support, and financial support, focused on encouraging and promoting SMEs and various digital SMEs campaigns worldwide, is expected to fuel the SME segment’s growth. Other factors expected to boost segment expansion during the projected period include SMEs' increasing adoption of modern information technology infrastructure and business operations automation. Cloud computing, automation, and virtualization have combined to develop a delivery platform that provides managed services to small businesses much more cost-effectively and efficiently.
End-use Insights
The financial services segment accounted for the largest revenue share of over 19.2% in 2021. Financial institutions are turning to managed services to address various issues, including keeping up with technological advancements, market and regulatory changes, and a looming shortage of employees with experience in cutting-edge technologies, among others. In the long run, the managed services model often aids in the management of company processes and operations while boosting operational efficiency and product quality. Managed services are becoming increasingly popular as businesses seek a more strategic approach to operate, organize, and protect their operations effectively. A managed services partnership's long-term, tightly integrated structure provides significant strategic benefits in addition to cost savings.
Regional Insights
North America dominated the global market in 2021 with a revenue share of over 32.2%. Due to the significant emphasis on digitalization, IT firms in the U.S. are lowering operational expenses, particularly in the wake of the pandemic; they are adopting a variety of managed services to improve operational efficiency. Businesses in the U.S. depend more on managed service providers (MSPs), primarily for IT support services, to stay competitive in the face of continued digitization.
The Asia Pacific regional market is expected to witness a significant CAGR over the projected period. Several firms in the Asia Pacific region are predicted to substantially contribute to the market's growth throughout the forecast period by implementing cloud-based solutions and boosting data security investments. Furthermore, rising spending due to organizations’ adoption of cutting-edge technologies such as cloud-based technology and advanced technology for company development is expected to contribute to market growth.
Competitive Rivalry
Foremost players in the market are attentive on adopting corporation strategies to enhance their market share. Some of the prominent tactics undertaken by leading market participants in order to sustain the fierce market completion include collaborations, acquisitions, substantial spending in R&D and the improvement of new-fangled products or reforms among others.
Major manufacturers & their revenues, percentage splits, market shares, growth rates and breakdowns of the product markets are determined through secondary sources and verified through the primary sources.
Some of the prominent players in the Managed Services Market include:
· Accenture PLC
· Alcatel-Lucent Enterprise
· AT&T Inc.
· Avaya Inc.
· BMC Software, Inc.
· CA Technologies
· Cisco Systems, Inc.
· DXC Technology Company
· Ericsson
· Fujitsu Limited
· Hewlett Packard Enterprise Development LP
· International Business Machines Corporation
· Lenovo Group Limited
Segments Covered in the Report
This research report offers market revenue, sales volume, production assessment and prognoses by classifying it on the basis of various aspects. Further, this research study investigates market size, production, consumption and its development trends at global, regional, and country level for the period of 2017 to 2030 and covers subsequent region in its scope:
By Geography
North America
Europe
Asia Pacific
Latin America
Middle East & Africa (MEA)
Research Methodology
In the study, a unique research methodology is utilized to conduct extensive research on the growth of the Managed Services market, and reach conclusions on the future growth parameters of the market. This research methodology is a combination of primary and secondary research, which helps analysts ensure the accuracy and reliability of the conclusions.
Secondary resources referred to by analysts during the production of the Managed Services market study are as follows - statistics from government organizations, trade journals, white papers, and internal and external proprietary databases. Analysts have also interviewed senior managers, product portfolio managers, CEOs, VPs, marketing/product managers, and market intelligence managers, all of whom have contributed to the development of this report as a primary resource.
Comprehensive information acquired from primary and secondary resources acts as a validation from companies in the market, and makes the projections on the growth prospects of the Managed Services markets more accurate and reliable.
Secondary Research
It involves company databases such as Hoover's: This assists us recognize financial information, structure of the market participants and industry competitive landscape.
The secondary research sources referred in the process are as follows:
Primary Research
Primary research includes face-to face interviews, online surveys, and telephonic interviews.
Industry participants involved in this research study include:
Cross-segment Market Size and Analysis for
Mentioned Segments
Additional Company Profiles (Upto 5 With No Cost)
Additional Countries (Apart From Mentioned Countries)
Country/Region-specific Report
Go To Market Strategy
Region Specific Market DynamicsRegion Level Market Share Import Export AnalysisProduction AnalysisOthers