Managed Services Market, Till 2035: Distribution by Type of Service, Type of Deployment, Type of Enterprise, Type of Vertical, and Geographical Regions: Industry Trends and Global Forecasts

The global managed services market size is estimated to grow from USD 323.8 billion in the current year to USD 1.02 trillion by 2035, at a CAGR of 11.1% during the forecast period, till 2035.

Managed Services Market: Growth and Trends

The information technology industry is continuously evolving, and the digital transformation, along with its expanding roles and areas, has significantly increased the need for managed services. Managed services entail an arrangement where a third party oversees business IT services. In this model, organizations delegate the management and monitoring of various IT functions and infrastructure to an external service provider. The goal of managed services is to reduce costs and improve service quality by transferring routine tasks to experts.

The managed service market is undergoing significant change fueled by the growing complexity of IT infrastructure management and a rising preference for cloud computing solutions. Companies are turning to external expertise to streamline IT operations and achieve competitive advantages. This shift has led to a heightened demand for business continuity and application management services.

Moreover, organizations looking to optimize their operations and boost productivity have become essential for sustainable growth. In this landscape, to stay competitive, businesses are adopting managed service solutions that allow them to tap into expert knowledge while ensuring operational resilience within a constantly changing technological environment.

The future of IT infrastructure management hinges on recognizing the importance of collaborations with skilled managed service providers capable of delivering innovative, customized solutions to meet specific business needs. Nevertheless, challenges in the managed service market, such as cybersecurity threats and the need for regulatory compliance, could hinder market growth.

Driven by the increasing demand for IT infrastructure management solutions and the escalating need for managed security services to tackle cybersecurity issues, the managed services market is expected to grow significantly during the forecast period.

Managed Services Market: Key Segments

Market Share by Type of Service

Based on type of service, the global managed services market is segmented into managed backup and disaster recovery, managed communication service, managed IT infrastructure service, managed mobility services, managed network services, and managed security services. According to our estimates, currently, the IT infrastructure services captures the majority of the market share. This can be attributed to the increasing need for dependable IT infrastructure management, aiding enterprises in overseeing their servers, storage, databases, and data centers.

However, the managed network service segment is expected to grow at a higher CAGR throughout the forecast period, propelled by a rising demand for enhanced connectivity networks that include WAN, LAN, and SD-WAN to ensure uninterrupted connectivity and dependable network performance.

Market Share by Type of Deployment

Based on type of deployment, the global managed services market is segmented into cloud-based and on-premises. According to our estimates, currently, the cloud-based deployment segment captures the majority of the market share. This can be attributed to its distinctive advantages, such as scalability, cost-effectiveness, remote accessibility, flexibility, swift implementation, and effective disaster recovery. Additionally, cloud-based services involve the outsourcing of IT operations, infrastructure, and applications to manage services that are hosted on a cloud platform.

However, the on-premises deployment is expected to grow at a higher CAGR throughout the forecast period, due to its advantages in providing enhanced security and privacy.

Market Share by Type of Enterprise

Based on type of enterprise, the global managed services market is segmented into small and medium-sized enterprises and large enterprises. According to our estimates, currently, the large enterprises capture the majority of the market share. This can be attributed to their complex operations, extensive IT infrastructure, and global reach.

However, the small and medium-sized enterprises is expected to grow at a higher CAGR during the forecast period, driven by the need for managed services due to their limited resources, insufficient internal IT capabilities to manage intricate systems, and the need for scalable solutions.

Market Share by Type of Vertical

Based on type of vertical, the global managed services market is segmented into BFSI, energy & utility, government, healthcare, it & telecommunication, manufacturing, retail & e-commerce, and others. According to our estimates, currently, the BFSI sector captures the majority of the market share. This can be attributed to the advantages of managed services in the banking, financial services, and insurance sectors, where they provide the necessary expertise and support to meet specific needs.

However, the IT and telecommunications sector is expected to grow at a higher CAGR during the forecast period. This can be attributed to the fact that these industries require IT infrastructure, cloud solutions, and network management services to adapt to rapid technological advancements.

Market Share by Geographical Regions

Based on geographical regions, the managed services market is segmented into North America, Europe, Asia, Latin America, Middle East and North Africa, and the rest of the world. According to our estimates, currently, North America captures the majority share of the market. However, the market in Asia is expected to grow at a higher CAGR during the forecast period, driven by swift digital transformation and economic development in emerging countries.

In particular, nations like China, India, and South Korea are seeing substantial investments from both governments and organizations in digital transformation to enhance efficiency, competitiveness, and customer engagement.

Managed Services Market: Research Coverage

The report on the managed services market features insights on various sections, including:

• Market Sizing and Opportunity Analysis: An in-depth analysis of the managed services market, focusing on key market segments, including [A] type of service, [B] type of deployment, [C] type of enterprise, [D] type of vertical, and [E] geographical regions.
• Competitive Landscape: A comprehensive analysis of the companies engaged in the managed services market, based on several relevant parameters, such as [A] year of establishment, [B] company size, [C] location of headquarters and [D] ownership structure.
• Company Profiles: Elaborate profiles of prominent players engaged in the managed services market, providing details on [A] location of headquarters, [B] company size, [C] company mission, [D] company footprint, [E] management team, [F] contact details, [G] financial information, [H] operating business segments, [I] managed services portfolio, [J] moat analysis, [K] recent developments, and an informed future outlook.
• Megatrends: An evaluation of ongoing megatrends in the managed services industry.
• Patent Analysis: An insightful analysis of patents filed / granted in the managed services domain, based on relevant parameters, including [A] type of patent, [B] patent publication year, [C] patent age and [D] leading players.
• Recent Developments: An overview of the recent developments made in the managed services market, along with analysis based on relevant parameters, including [A] year of initiative, [B] type of initiative, [C] geographical distribution and [D] most active players.
• Porter’s Five Forces Analysis: An analysis of five competitive forces prevailing in the managed services market, including threats of new entrants, bargaining power of buyers, bargaining power of suppliers, threats of substitute products and rivalry among existing competitors.
• SWOT Analysis: An insightful SWOT framework, highlighting the strengths, weaknesses, opportunities and threats in the domain. Additionally, it provides Harvey ball analysis, highlighting the relative impact of each SWOT parameter.
• Value Chain Analysis: A comprehensive analysis of the value chain, providing information on the different phases and stakeholders involved in the managed services market.

Key Questions Answered in this Report

• How many companies are currently engaged in managed services market?
• Which are the leading companies in this market?
• What factors are likely to influence the evolution of this market?
• What is the current and future market size?
• What is the CAGR of this market?
• How is the current and future market opportunity likely to be distributed across key market segments?

Reasons to Buy this Report

• The report provides a comprehensive market analysis, offering detailed revenue projections of the overall market and its specific sub-segments. This information is valuable to both established market leaders and emerging entrants.
• Stakeholders can leverage the report to gain a deeper understanding of the competitive dynamics within the market. By analyzing the competitive landscape, businesses can make informed decisions to optimize their market positioning and develop effective go-to-market strategies.
• The report offers stakeholders a comprehensive overview of the market, including key drivers, barriers, opportunities, and challenges. This information empowers stakeholders to stay abreast of market trends and make data-driven decisions to capitalize on growth prospects.

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