PUBLISHER: MarketsandMarkets | PRODUCT CODE: 2061162
PUBLISHER: MarketsandMarkets | PRODUCT CODE: 2061162
The managed services market is projected to reach USD 705.22 billion by 2031, registering a compound annual growth rate (CAGR) of 8.9%. Market growth is driven by the increasing complexity of hybrid IT environments, rising cybersecurity threats, growing enterprise cloud adoption, and the need for scalable, cost-efficient IT operations. Managed services enable organizations to improve infrastructure availability, optimize network performance, strengthen cybersecurity resilience, and reduce operational burden through outsourced IT management. Enterprises are increasingly adopting managed infrastructure, managed security, managed network, and managed communication services to support digital transformation initiatives and maintain business continuity across distributed operating environments. Advanced capabilities such as AI-driven monitoring, predictive analytics, automated incident response, and cloud orchestration are further enhancing service efficiency and operational visibility.
| Scope of the Report | |
|---|---|
| Years Considered for the Study | 2020-2031 |
| Base Year | 2025 |
| Forecast Period | 2026-2031 |
| Units Considered | Value (USD Billion) |
| Segments | Service Type, Deployment Type, Organization Size, Vertical, and Region |
| Regions covered | North America, Europe, Asia Pacific, Middle East & Africa, Latin America |
Rising demand for remote workforce support, multi-cloud management, regulatory compliance, and continuous infrastructure monitoring is accelerating managed service adoption across industries. In addition, increasing investments in cloud-based managed platforms, security operations centers (SOCs), and automation-led service delivery models, particularly across North America and the Asia Pacific, are contributing significantly to the growth of the managed services market.

By service type, the managed security segment is expected to grow at the highest rate during the forecast period.
In April 2025, the FBI Internet Crime Report highlighted cybercrime-related losses exceeding USD 16 billion during 2024, reflecting a sharp increase in ransomware, phishing, business email compromise, and credential theft attacks targeting enterprises globally. Growing regulatory requirements related to PCI DSS, HIPAA, GDPR, SOX, and NIS2 are also accelerating enterprise demand for continuous compliance monitoring, audit reporting, managed SIEM, and identity governance services. The increasing adoption of hybrid cloud, remote workforce infrastructure, connected endpoints, and AI-enabled applications is further increasing enterprise reliance on managed security operations and endpoint protection services. Organizations are increasingly adopting AI-enabled threat analytics, zero-trust security frameworks, SASE architecture, and automated incident response platforms to improve cybersecurity efficiency and operational scalability. Managed security service providers are expanding cloud security monitoring, managed SOC operations, and threat intelligence capabilities to address evolving enterprise security requirements. Rising digital transformation investments and increasing cyber risk exposure across critical industries continue to create strong long-term growth opportunities for managed security services globally.
"By deployment type, the on-premises segment holds the largest market share in the market."
On-premises managed services refer to outsourced monitoring, management, maintenance, security, backup, and operational support for enterprise-owned IT infrastructure deployed within customer-controlled data centers or private facilities. These services cover servers, storage, databases, private networks, security appliances, backup systems, and mission-critical applications that require higher control, data residency, customization, and compliance assurance. Demand for on-premises managed services is expected to remain strong across BFSI, healthcare, government, telecom, and energy sectors due to strict regulatory requirements, sensitive workloads, legacy infrastructure dependence, and low-latency operational needs. Increasing cybersecurity exposure is expected to drive the adoption of on-premises managed services. For instance, in April 2025, the FBI reported that cybercrime losses exceeded USD 16 billion in 2024, a 33% increase from 2023. This rise is increasing demand for managed infrastructure monitoring, managed backup, disaster recovery, endpoint protection, SIEM management, and compliance reporting within private IT environments.
"By region, North America is projected to hold the largest market share in 2026."
North America represents one of the most strategically significant regions for managed services providers, driven by its large enterprise base, advanced cloud adoption, and an increasingly complex regulatory and cybersecurity environment that is accelerating demand for outsourced IT management and security operations. As enterprises across banking, financial services, healthcare, and manufacturing grapple with rising IT complexity, they are actively transitioning from traditional in-house IT models toward comprehensive managed services engagements spanning cloud infrastructure management, managed detection and response, and end-user computing services. This shift is further reinforced by mounting compliance pressures, as organizations navigate stricter data protection mandates under frameworks such as the Health Insurance Portability and Accountability Act (HIPAA), Cybersecurity Maturity Model Certification (CMMC), and state-level privacy laws, pushing them to rely on managed services providers with built-in compliance capabilities and audit-ready reporting. Supporting this momentum, the US Cybersecurity and Infrastructure Security Agency (CISA) reported in its 2024 Cybersecurity Year in Review that cybersecurity-related outsourcing engagements across federal and critical infrastructure sectors increased by over 40% compared to 2022 levels, directly reflecting how regulatory enforcement and threat escalation are translating into sustained managed services demand across the region.
Breakdown of Primaries
Major vendors in the managed services market include IBM (US), Accenture (Ireland), Microsoft (US), Cisco (US), Fujitsu (Japan), Google (US), TCS (India), Infosys (India), Capgemini (France), and Cognizant (US).
The study includes an in-depth competitive analysis of the key players in the managed services market, their company profiles, recent developments, and key market strategies.
Research Coverage
The report segments the managed services market and forecasts its size based on service type (managed security services, managed network services, managed IT infrastructure & data center services, managed communication & collaboration services, managed mobility services, managed information services), organization size (large enterprises, SMEs), deployment type (on-premises, cloud), organization size (large enterprises, SMEs), vertical (BFSI, retail & consumer goods, manufacturing, technology, telecommunications, government & public sector, energy & utilities, healthcare & life sciences, media & entertainment, other verticals), and region (North America, Europe, Asia Pacific, Middle East & Africa, and Latin America).
The study also includes an in-depth competitive analysis of the market's key players, their company profiles, key observations related to product and business offerings, recent developments, and key market strategies.
Key Benefits of Buying the Report
The report will help market leaders/new entrants with information on the closest approximations of revenue numbers for the overall managed services market and its subsegments. This report will help stakeholders understand the competitive landscape and gain valuable insights to better position their businesses and plan suitable go-to-market strategies. The report also helps stakeholders understand the market pulse and provides information on key market drivers, restraints, challenges, and opportunities.