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Managed Infrastructure Services Market Size & Share Analysis - Growth Trends & Forecasts (2023 - 2028)

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    Report

  • 120 Pages
  • August 2023
  • Region: Global
  • Mordor Intelligence
  • ID: 4535809
UP TO OFF until Mar 31st 2024
The Managed Infrastructure Services Market size is expected to grow from USD 106.31 billion in 2023 to USD 172.94 billion by 2028, at a CAGR of 10.22% during the forecast period (2023-2028).

Technology trends such as analytics, Cloud, IoT, and Cognitive Computing are creating new business imperatives. Companies are adopting these digital technologies to build innovative business models, optimize business processes, empower their workforce, and personalize the customer experience.

Key Highlights

  • Redundant downtime is reduced through managed services, which offer specialized value-added services like application testing, service catalog creation, and professional consulting. The market's development is aided by various monitoring tools and numerous layers of infrastructure controlled by separate teams. For instance, in BMC's "BMC Helix ITSM" the system is centralized, cloud-native, connected with observability, and optimized for AIOps. This solution fully exposes data from monitoring tools for IT infrastructure, application performance, network performance, and cloud services. Additionally, team and individual dashboards are customized to each user's needs.
  • Technological proliferation and advancement of cloud-based technology boosting the demand is driving the market. Over the past few years, daily operations of break-fix and troubleshooting of servers have been outsourced to reduce their attention over IT, thereby allowing the expertise of IT service vendors. An increase in the adoption of digital transformation with mobility and cloud has led to infrastructure modernization. The need to keep up with the latest technological enhancements has led organizations to opt for infrastructure-managed services.
  • Improved cost and operational efficiency and updates of outdated hardware are driving the market. Managed services offer several benefits, relentless focus on continuous improvement of operational and business processes being the most significant one. According to Cisco Systems, managed services reduce recurring in-house costs by 30-40% and increase efficiency by 50-60%. Moreover, as new and enhanced equipment is introduced to the infrastructure, the old hardware might not always be compatible. As data center operations increase, the hardware could become more of a liability which slows down operations, than an asset that enhances them.
  • Declining profit margins and integration and reliability concerns are restraining the market to grow. Emerging technologies, such as mobility and cloud computing, are rapidly changing the business landscape. Companies have to be in sync with these technologies to deliver desired benefits to the customers. Reliability concerns are also challenging the market to grow when hiring another partner to host critical business infrastructure.
  • Businesses are putting a lot of attention on remote working due to the COVID-19 pandemic. The use of cloud services grew significantly as companies became more concerned with maintaining operations during lockdowns imposed by various governments to stop the spread of the coronavirus. In anticipation of cloud migration becoming more widespread among corporations and, in some cases, even gaining traction, most businesses have already renewed their contracts with managed cloud service providers. Additionally, businesses and organizations prioritized integrating cutting-edge technologies like augmented reality and machine learning into their current IT infrastructure to promote digital transformation.

Managed Infrastructure Services Market Trends

The Cloud Segment is Expected to Exhibit the Highest Growth

  • The advent of cloud deployment has brought changes in the managed infrastructure services providers (MISP) space and made them embrace a delivery model for delivering technology services over a public or private cloud. Considering the advantages the cloud offers, businesses are seeking MISPs that have partnerships with cloud providers (such as Google, AWS, Microsoft, etc.) to choose the right cloud providers, migrate to the cloud, and manage cloud services after the transition.
  • With the increasing demand from enterprises, various companies have made advancements in their existing managed cloud infrastructure service. For instance, in December 2022, the Swiss finance company Klarpay AG decided to use Amazon Web Services to create its cloud-based infrastructure. Instead of spending its resources to operate a data center, the company concentrated on high-value tasks, such as enhancing its banking product by creating new features like scalable and API-enabled transactional capabilities.
  • Increasingly more consumers are using digital platforms, which has increased the demand for ongoing digitalization advancements for high-speed data transport with wide network coverage for large amounts of data storage. Examples of technologies that have accelerated the growth of the consumer base in the IT business include distance learning, multiplayer gaming, videoconferencing, and live streaming. Enormous servers and data storage units are necessary for IT organizations to store large amounts of data and offer improved services.
  • Recent technology trends, such as enhanced cloud infrastructure, IoT enabled ecosystems, have provided opportunities in creating new business imperatives across the US IT sector, and the penetration of public cloud in the United States is predicted to be higher during a pandemic. Additionally, Fujitsu has been recognized by Amazon Web Services (AWS) as an official AWS-managed infrastructure provider partner, thereby validating the company’s capabilities in accelerating cloud transformation and helping fast-track digital transformation, and accelerating innovation for enterprises and government. Such instances are expected to fuel the demand of the market across the United States during the forecast period.


Asia-Pacific Account for a Significant Market Growth

  • Asia-Pacific accounts to hold the highest market growth due to dominating sources of IT and IT-enabled services in various countries such as China and India. According to IBEF, the Indian IT and IT-enabled services industry accounted for over 55% of the global services sourcing businesses in 2018.
  • India most recently got its first hyper-scale data center park on September 27, 2019, where Yotta Infrastructure inaugurated this facility. Also, most recently, In July 2019, NTT Ltd launched its services in India and became the world’s top 11 ICT service provider to enter India. NTT plans to introduce an array of services for financial services, pharmaceuticals, telecommunications, energy & utilities, manufacturing, automotive and technology sectors.
  • China is going through rapid development and is set to be the global leader in new emerging IT technologies like Edge computing, Artificial intelligence, Autonomous cars, and IoT. Due to which, there is going to be a surge in demand for managed infrastructure services in the future. The most recent development in August 2019 was from Shanghai, where the Government released the “Several Opinions on Promoting the Development of Multinational Corporation Regional Headquarters in Shanghai” to develop Shanghai as the headquarters for MNCs. This suggestion was made to boost foreign investment in the service sector of Shanghai.


Managed Infrastructure Services Industry Overview

The managed infrastructure services market is highly fragmented as many large, technologically established players are present in the industry, and the rivalry is expected to be on the higher side. Additionally, in order to sustain in the market and retain their clients, companies are employing powerful competitive strategies, thereby intensifying competitive rivalry in the market. Key players are Fujitsu Ltd, Cisco Systems Inc., Dell Technologies Inc., etc. Recent developments in the market are -

In November 2022, Atos, a global leader in digital transformation, high-performance computing, and information technology infrastructure, and Amazon Web Services, Inc. (AWS), a subsidiary of Amazon.com, Inc., today announced a global Strategic Transformation Agreement. This agreement enables Atos customers with large-scale infrastructure outsourcing contracts to accelerate workload migrations to the cloud and complete digital transformation. With the multiyear, first-in-the-industry deal, Atos and AWS can further their strategic partnership. Atos has chosen AWS as its preferred enterprise cloud provider, and AWS has identified Atos as a strategic partner for IT outsourcing and data center transformation. With the help of this arrangement, Atos' clients may hasten their transitions to the cloud by receiving business and technology advisory, digital engineering, and managed services from Atos.

Additional Benefits:

  • The market estimate (ME) sheet in Excel format
  • 3 months of analyst support

Table of Contents

1 INTRODUCTION
1.1 Market Definition and Scope
1.2 Study Assumptions
2 RESEARCH METHODOLOGY3 EXECUTIVE SUMMARY
4 MARKET INSIGHTS
4.1 Market Overview
4.2 Industry Stakeholder Analysis
4.3 Industry Attractiveness - Porter's Five Forces Analysis
4.3.1 Bargaining Power of Suppliers
4.3.2 Bargaining Power of Consumers
4.3.3 Threat of New Entrants
4.3.4 Threat of Substitute Products
4.3.5 Intensity of Competitive Rivalry
5 MARKET DYNAMICS
5.1 Market Drivers
5.1.1 Increasing use of Cloud Managed Infrastructure Services
5.1.2 Technological Proliferation and Advancement of Cloud Based Technology Boosting the Demand
5.1.3 Improved cost and Operational Efficiency and Update of Outdated Hardware
5.2 Market Restraints
5.2.1 Declining Profit Margins and Integration and Reliability Concerns
5.3 Impact of COVID-19 on Managed Infrastructure Services Market
6 MARKET SEGMENTATION
6.1 By Deployment Type
6.1.1 On-premise
6.1.2 Cloud
6.2 By Services Type
6.2.1 Desktop and Print Services
6.2.2 Servers
6.2.3 Inventory
6.2.4 Other Types
6.3 By End User
6.3.1 BFSI
6.3.2 IT and Telecom
6.3.3 Healthcare
6.3.4 Manufacturing
6.3.5 Retail
6.3.6 Other End Users
6.4 Geography
6.4.1 North America
6.4.1.1 United States
6.4.1.2 Canada
6.4.2 Europe
6.4.2.1 Germany
6.4.2.2 UK
6.4.2.3 France
6.4.2.4 Spain
6.4.2.5 Rest of Europe
6.4.3 Asia-Pacific
6.4.3.1 China
6.4.3.2 Japan
6.4.3.3 India
6.4.3.4 Australia
6.4.3.5 Rest of Asia-Pacific
6.4.4 Latin America
6.4.4.1 Brazil
6.4.4.2 Mexico
6.4.4.3 Argentina
6.4.4.4 Rest of Latin America
6.4.5 Middle East and Africa
6.4.5.1 UAE
6.4.5.2 Saudi Arabia
6.4.5.3 South Africa
6.4.5.4 Rest of Middle East and Africa
7 COMPETITIVE LANDSCAPE
7.1 Company Profiles
7.1.1 Fujitsu Ltd
7.1.2 Cisco Systems Inc.
7.1.3 Dell Technologies Inc.
7.1.4 IBM Corporation
7.1.5 Hewlett Packard Enterprise
7.1.6 Microsoft Corporation
7.1.7 TCS Limited
7.1.8 Canon Inc.
7.1.9 Alcatel-Lucent SA (Nokia Corporation)
7.1.10 Toshiba Corporation
7.1.11 Verizon Communications Inc.
7.1.12 Citrix Systems Inc.
7.1.13 Deutsche Telekom AG
7.1.14 Xerox Corporation
7.1.15 Ricoh Company Ltd
7.1.16 Lexmark International Inc.
7.1.17 Konica Minolta Inc.
8 INVESTMENT ANALYSIS9 MARKET OPPORTUNITIES AND FUTURE TRENDS

Companies Mentioned

A selection of companies mentioned in this report includes:

  • Fujitsu Ltd
  • Cisco Systems Inc.
  • Dell Technologies Inc.
  • IBM Corporation
  • Hewlett Packard Enterprise
  • Microsoft Corporation
  • TCS Limited
  • Canon Inc.
  • Alcatel-Lucent SA (Nokia Corporation)
  • Toshiba Corporation
  • Verizon Communications Inc.
  • Citrix Systems Inc.
  • Deutsche Telekom AG
  • Xerox Corporation
  • Ricoh Company Ltd
  • Lexmark International Inc.
  • Konica Minolta Inc.

Methodology

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