Managed Services Market Research Report Information By Service Type (Cloud Services, Managed Data Center Services, Managed Security Services, Managed Collaboration Services, Managed Mobility Services, Network Services and Testing, Others), Organization Size Large Enterprises, SMEs), Vertical (BFSI, IT & Telecommunication, Retail & E-commerce, Healthcare, Industrial/Manufacturing, Energy & Utilities, Education & Research, Others) - Forecast till 2032

Managed Services Market Summary

As per Market Research Future Analysis, the Managed Services Market is projected to grow from USD 277.5 Billion in 2023 to USD 518.8 Billion by 2032, with a CAGR of 7.20% during the forecast period (2024 - 2032). The demand for cloud-based platforms and technological advancements such as IoT and Big Data Analytics is driving this growth. The COVID-19 pandemic has accelerated the adoption of remote work and digital solutions, further boosting market opportunities. However, challenges such as high maintenance costs and demand-supply imbalances persist. Key players are focusing on strategic partnerships and technological innovations to enhance service offerings.

Key Market Trends & Highlights

The Managed Services Market is witnessing significant growth driven by technological advancements and changing work dynamics.

• Market size in 2023: USD 277.5 Billion; projected to reach USD 518.8 Billion by 2032.
• CAGR during 2024-2032: 7.20%; indicating robust growth potential.
• Increased adoption of cloud and IoT solutions due to COVID-19; enhancing remote work capabilities.
• Major players focusing on mergers and technological innovations to expand market presence.

Market Size & Forecast

2023 Market Size: USD 277.5 Billion

2032 Market Size: USD 518.8 Billion

CAGR (2024-2032): 7.20%

Largest Regional Market: North America.

Major Players

Cisco Systems Inc, NTT Data Corporation, Accenture, Unisys Corporation, Huawei Technologies Co. Ltd, Amdocs Limited, Telefonaktiebolaget LM Ericsson, Atos SE, IBM Corporation, DXC Technology Company, Fujitsu.

The wide range of adoption of these technologies has played a vital role in digital transformation strategy. Due to this, there is a huge burden on the data center organizations which ultimately leads to the Managed Services Market Growth.

Figure 1: Managed Services Market Size, 2024-2032 (USD Billion)

Source: Secondary Research, Primary Research, Market Research Future Database and Analyst Review

Covid 19 Analysis

During the covid 19 periods, most of the industries and government sectors have to face several difficult situations. Indeed, the global economy during the pandemics was disturbed due to a lack of demand and supply. It led the industries and organizations to cut small and short-term budgets and exigence forecasting.

However, the presumption of wide-range adoption of Internet of Things, cloud, and other such platforms will increase and lead the Managed Services Market to grow eventually. Moreover, this development has influenced the cloud giant market to modify their services so that they can easily co-operate with the increasing workloads.

The Managed Services Market operators have also acknowledged the remote works during the pandemic crisis. Moreover, this covid 19 crisis had influenced the industries and people to work digitally to expand their markets. This will result in an increment of production and offers new Managed Services Market opportunities.

Market Dynamics

Market dynamics are basically the responsible factors that influence the global economy of any organization or industry. In this Managed Services Market Forecast report, detailed information about the market drivers, opportunities, challenges, and other factors is mentioned.

Market Drivers

Undoubtedly, the Major driving factor of the Managed Services Market growth is the increasing need for reduction in the maintenance and administration costs through the organizations globally. This overall cost reduction can help the market to grow exponentially. Due to this cost reduction, the industries and organizations will easily be able to accomplish modern business infrastructure according to the Managed Services Market trends. Also, the industries can outsource their organizations to expert service providers to reduce these extra compound costs. Furthermore, this will help the organizations with financial assistance because of the management of the overall costs.  

Opportunities

During the covid 19 situations, there was a huge requirement for online and remote works. Organizations, as well as consumers, have started using online platforms to connect and communicate. For example A.I., Big Data Analytics, Internet of Things, cloud, and security solutions.

Moreover, these increments in the use of technology and advancements have influenced the market and increase productivity. This will be the great Managed Services Market opportunities for all the industries and organizations throughout the world.

Restraints

The major restraining factor that affected this market is the lack of balance among the industry optimal performances and the maintenance costs. Furthermore, the industries in the market find it difficult to maintain an ideal performance level with the high costs involved in the administration and management. It is very necessary to maintain a balance between these things to get positive growth in the Managed Services Market Share.

Challenges

Despite the factors that result in the ultimate Managed Services Market growth, there are some challenging factors too. The lack of demand and supply in the economy is the main concern for the market during the forecast period from 2017 to 2024. Due to the high administration and maintenance costs, the organizations and industries are not completely capable to offer optimal performances.  However, the cost-cutting solutions and technological advancements have influenced the growth in the Managed Services Market size.

Cumulative Growth Analysis

The increasing demands for remote works from the consumers and enterprises have depicted a steady growth in the market. The Managed Services Market Industry is expected to rise at a CAGR of 8.1% during the forecast period. According to these presumptions, the value estimation can have ultimate growth. IoT, cloud, security solutions, and some other factors will significantly result in a positive upsurge according to the Managed Services Market Forecast.

Value Chain Analysis

Continuous growth in the technology and technological advancements in organizations will anticipate the market growth to a certain level.  The massive need for managed services in several industries such as communication, security, networks, mobility, and infrastructure leads to growth in this segment. Through better business management and automation advancements, the Managed Services Market share can help effectively and efficiently.

Segment Overview

The Managed Services Market is mainly classified into 3 different market segments. So, here are the segments mentioned along with their related sub-segments.

By Service Type

• Cloud Services
• Security Services
• Data Center Services
• Collaboration Services
• Mobility Services
• Network and Testing services
• Others

These are the main global Managed Services Market segments that are based on Services. All these services have their own set of sub-segments. Some of them are migration and brokerage service under cloud services, monitoring and change management under Datacenter services. Moreover, the security segments are further classified into identifying & access management, threat detection monitoring, and vulnerability services. the other services mentioned above have further segmentation such as Data &Information management and BSS/OSS managed services.

By Organizational Sizes

• Large Enterprises
• Medium and Small Enterprises

By Vertical

• IT and Telecommunication
• BFSI
• Utilities and Energies
• Retails
• E-commerce
• Manufacturing
• Healthcare
• Education and Research

Regional Analysis

The largest Managed Services Market offers its services in several regions that dominate the international market during the forecast period. The region-based market segmentation is as follows:

• North America
• Asia Pacific
• Europe
• South America
• The Middle East and Africa

Among these regional distributions, North America acts as the largest dominating region for offering the managed service. The only reason that makes it big is the role of significant key players in the market that invests in more reliable research and development.

Following North America, Europe is the second-largest market for managing services globally. Increasing demands and adoptions of cloud and IoT platforms help the European markets to grow effectively.

Competitive Landscape

This market has a steady growth due to the requirements of the managed services throughout the world. The Regional segmentations act significantly and focus on the strategies and achievements that help in growing the Managed Services Market. Moreover, these market players mainly focus on mergers, partnerships, joint ventures, and the establishment of new strategic developments to survive and expand in their markets.

Also, these players look for collaborations with other industries that concentrate on digitalization and automation, for competitive gaining purposes. Some of the major Managed Services Market Key Players are mentioned below:

• Cisco Systems Inc of US
• NTT Data Corporation of Japan
• Accenture of US
• Unisys Corporation of US
• Huawei Technologies Co. Ltd of China
• Amdocs Limited of US
• Telefonaktiebolaget LM Ericsson of Sweden
• Atos SE of France
• IBM Corporation of US
• DXC Technology Company from the US
• Fujitsu from Japan

Managed Services Market Industry Developments

• Q2 2024: IBM to acquire HashiCorp for $6.4 billion to boost cloud automation IBM announced it will acquire HashiCorp, a provider of multi-cloud infrastructure automation software, for $6.4 billion to strengthen its managed services and hybrid cloud offerings.
• Q2 2024: Accenture Acquires Cientra to Expand Engineering and Managed Services Capabilities Accenture completed the acquisition of Cientra, an engineering solutions company, to enhance its managed services portfolio and support clients in digital transformation initiatives.
• Q2 2024: Managed services startup Electric raises $40M Series D to expand IT automation Electric, a provider of IT managed services for small and medium businesses, raised $40 million in Series D funding to accelerate product development and expand its managed IT automation platform.
• Q2 2024: NTT DATA Launches New Managed Security Services Platform NTT DATA announced the launch of a new managed security services platform designed to provide advanced threat detection and response capabilities for enterprise clients.
• Q3 2024: Capgemini acquires Quorsus to strengthen managed services in financial sector Capgemini acquired Quorsus, a consultancy specializing in post-trade services, to expand its managed services and consulting offerings for financial institutions.
• Q3 2024: Wipro appoints new CEO for Cloud and Managed Services division Wipro announced the appointment of a new CEO to lead its Cloud and Managed Services division, aiming to drive growth and innovation in its global managed services business.
• Q3 2024: HCLTech wins $200 million managed services contract from European telecom operator HCLTech secured a $200 million multi-year managed services contract to provide IT infrastructure management and support for a major European telecom operator.
• Q4 2024: Cognizant launches new AI-powered managed services platform Cognizant introduced a new AI-powered managed services platform aimed at automating IT operations and improving service delivery for enterprise clients.
• Q4 2024: DXC Technology and AWS announce strategic partnership for cloud managed services DXC Technology and Amazon Web Services (AWS) announced a strategic partnership to deliver joint cloud managed services solutions for enterprise customers.
• Q1 2025: Kyndryl opens new managed services delivery center in Poland Kyndryl opened a new managed services delivery center in Poland to expand its service capacity and support European clients with IT infrastructure management.
• Q1 2025: Atos sells managed services unit to private equity firm for €1.2 billion Atos completed the sale of its managed services unit to a private equity firm for €1.2 billion as part of its restructuring and focus on digital transformation.
• Q2 2025: Fujitsu wins managed services contract with UK government agency Fujitsu secured a managed services contract to provide IT support and infrastructure management for a major UK government agency.

Attribute/Metric	Details
Market Size	USD 518.8 Billion (2024-2032)
CAGR	7.20% (2024-2032)
Base Year	2023
Forecast Period	2024-2032
Historical Data	2018- 2022
Forecast Units	Value (USD Billion)
Report Coverage	Revenue Forecast, Competitive Landscape, Growth Factors, and Trends
Segments Covered	By Service Type, Vertical
Geographies Covered	North America, Europe, Asia-Pacific, and Rest of the World (RoW)
Key Vendors	Accenture (US), Cisco Systems Inc (US), NTT Data Corporation (Japan), Amdocs Limited (US), Unisys Corporation (US),Huawei Technologies Co. Ltd (China),Telefonaktiebolaget LM Ericsson (Sweden),DXC Technology Company (US),Atos SE (France),IBM Corporation (US),Fujitsu (Japan)
Key Market Opportunities	The COVID-19 crisis will extend to the online world through consumers and organizations. As a consequence, productivity can increase, and new opportunities can be opened up..
Key Market Drivers	Furthermore, due to the increasingly growing adoption of IoT, cloud, and Big Data analytics across numerous organizations as a significant part of their digital transformation strategy, the burden on data centers is also increasing. This leads to the growth of the market.