United States Managed Services Market Report by Type, Size of Enterprise, End User, Deployment, States and Company Analysis, 2025-2033

United States Managed Services Market Size & Forecast 2025-2033

The United States Managed Services Market is expected to expand appreciably, from US$ 84.03 billion in 2024 to US$ 165.61 billion in 2033, at a Compound Annual Growth Rate (CAGR) of 7.83% over the forecast period of 2025-2033. This expansion is fueled by growing demand for optimal IT solutions, expansion of cloud usage, and cost-cutting measures among organizations interested in managed service providers to improve operational efficiency.

United States Managed Services Market Outlook

Managed services are defined as outsourcing some of the IT functions and tasks to a professional service provider, or in other terms, a Managed Services Provider (MSP). Through this, organizations are able to concentrate on their core business activities while leaving their IT requirements to professionals. Typical managed services involve network management, data backup and restore, security, cloud, and help desk services.

Popularity of managed services in the USA has increased exponentially with the growing complexity of IT environments and the pressure on businesses to remain competitive. All sizes of companies utilize these services to improve efficiency, improve security, and save money. Business organizations can tap into latest technologies as well as talent using managed services without the burden of keeping in-house IT teams.

Further, the increasing culture of remote working and the explosion in cyber attacks have also accelerated the need for managed services and positioned them as a vital part of current business strategy and digital innovation programs.

Growth Drivers in the United States Managed Services Market

Increasing Need for Cost Savings and IT Optimization

Organizations worldwide are experiencing mounting pressure to curtail operational costs without hampering streamlined IT operations. Managed services enable organizations to pay for IT functions like infrastructure monitoring, security, and cloud management on a predictable monthly basis rather than incurring big upfront capital expenses. With MSPs, businesses tap into specialist skills, sophisticated tools, and proactive monitoring, which enhances system uptime and minimizes expensive downtime. The emphasis on cost reduction and efficiency is the primary motive behind managed services usage across industries. June 2025, The U.S. Food and Drug Administration (FDA) introduced Elsa, a generative Artificial Intelligence (AI) device that will assist employees-ranging from scientific reviewers to investigators-on how to work more effectively. The new tool brings agency operations into the modern age and utilizes AI capabilities to serve the American people more effectively.

Sped-Up Digital Transformation and Cloud Adoption

The speed of digital transformation projects has increased demand for managed services. US businesses are shifting workloads to the cloud, implementing hybrid IT infrastructures, and using automation to boost competitiveness. Managed services help businesses tackle cloud migration, balance hybrid environments, and improve performance. MSPs also provide organizations with the ability to scale resources as necessary to ensure agility in an increasingly dynamic business environment. The emergence of cloud-native applications and distributed work patterns necessitates the need for managed services in order to support operational resilience and adaptability. May 2024, Accenture Federal Services won the US Army's Enterprise Application Modernization and Migration (EAMM) contract worth up to USD 127 million. Accenture Federal Services intends to utilize its capability in cloud migration and modernization to perform thorough analysis and implement large-scale migrations to the cloud.

Increasing Cybersecurity Threats and Compliance Needs

With the rising frequency of cyberattacks, ransomware incidents, and regulatory requirements, U.S. businesses are turning to MSPs for advanced cybersecurity services. Managed security services provide 24/7 monitoring, threat detection, and incident response, helping organizations protect sensitive data and comply with standards such as HIPAA, PCI-DSS, and GDPR. For industries like healthcare and finance, compliance-driven managed security solutions are particularly critical. Since companies struggle with cybersecurity talent shortages, outsourcing to MSPs means having instant access to expertise and advanced technologies, leading to high growth in this market.

Issues in the United States Managed Services Market

Data Privacy Issues and Regulation Complexity

One of the biggest challenges to the U.S. managed services market is compliance and data privacy across a myriad of regulations. States have different data protection regulations, while certain industries, such as finance and healthcare, have strict federal regulations they must comply with. Companies are reluctant to outsource IT because they fear the third-party handling of their data and ensuing breaches. Managed service providers would need to spend significant resources on compliance structures and open governance practices to get beyond this roadblock.

Shortage of Talented IT Personnel

While managed services offer access to talent, the industry itself has a shortage of talented people. Cybersecurity experts, cloud architects, and AI professionals are highly sought after but in short supply. This skill shortage can constrain MSPs' capacity to scale efficiently and deliver at high quality. Small providers are especially disadvantaged in competing against big MSPs for the best brains, leading to uneven availability of services throughout the U.S. This workforce challenge must be addressed to support sustainable market growth.

United States Managed Data Center Services Market

Managed data center services play a crucial role in enabling businesses to move towards hybrid and multi-cloud environments. U.S. businesses are increasingly depending on MSPs to manage data centers, such as managing servers, backup, disaster recovery, and security. Outsourcing these tasks helps organizations minimize the cost of operations and achieve greater reliability. As workloads in digital expand, organizations require flexible solutions that are capable of scaling rapidly while adhering to compliance needs. As colocation and edge computing gain popularity, managed data center services are becoming an anchor of US enterprise IT strategy.

United States Large Enterprise Managed Services Market

Large US enterprises are leading the implementation of managed services with their complex IT infrastructure and global reach. They are looking for MSPs to handle cloud environments, security, networks, and advanced analytics at scale. Cost reduction, compliance management, and access to specialist know-how are key drivers for take-up. Enterprises also target automation and AI-based monitoring to improve operating efficiency. With their budget, these companies tend to work with tier-one MSPs that offer complete, end-to-end solutions. This segment accounts for a significant portion of the U.S. managed services market.

United States Healthcare Managed Services Market

The U.S. healthcare industry is quickly adopting managed services to enhance efficiency, security, and compliance. MSPs offer electronic health record (EHR) management, cloud hosting, and HIPAA-compliant data protection solutions. As more cyberattacks are directed at patient data, healthcare providers rely on managed security services to protect sensitive information. MSPs also ease the load on in-house IT staff so that healthcare organizations can concentrate on patient care. With growing telemedicine adoption, managed services for safe network connectivity and data management become increasingly important.

United States Retail Managed Services Market

The retail sector is significantly dependent on managed services to streamline operations across point-of-sale (POS) systems, e-commerce sites, supply chain management, and customer analysis. As customers increasingly demand cohesive omnichannel experiences, MSPs offer retailers IT infrastructure support, security, and cloud management. Retailers also use managed services to improve customer personalization with data-driven insights. As cyber attacks on payment systems continue to grow, managed security services become essential. The retail industry's drive toward digital transformation is fueling robust adoption of managed services throughout the U.S.

United States Cloud Managed Services Market

Cloud managed services are one of the fastest-growing areas in the U.S. market. Businesses are increasingly depending on MSPs to handle multi-cloud and hybrid cloud infrastructures, guaranteeing cost savings, scalability, and data security. MSPs offer services like cloud migration, infrastructure management, performance tuning, and disaster recovery. With the expansion of cloud usage across sectors, companies seek vendors with a high level of experience in platforms like AWS, Microsoft Azure, and Google Cloud. This segment is supported by the growing sophistication of cloud environments, where companies like to concentrate on core activities and outsource management.

California Managed Services Market

California is one of the major centers for managed services adoption because of its high level of technology companies, startups, and major corporations. The state's technologically advanced economy and high cloud adoption rate make California an MSP-leading market. Cybersecurity and data compliance solutions are highly sought after, particularly by tech companies and medical providers. As the hub of digital transformation lies in Silicon Valley, California businesses are among the first to embrace AI-powered managed services, cloud optimization, and sophisticated data analytics. Such factors cause California to be one of the most vibrant regional markets in the United States.

New York Managed Services Market

New York, with its banks, media firms, and retail centers, is another robust managed services market. The state's highly regulated banking industry fuels demand for compliance and security managed services. New York's dense population and business community also fuel robust cloud and data center growth. Companies in the area outsource IT functions more and more to concentrate on business innovation while ensuring business resilience from cyber attacks. The combination of finance, healthcare, and retail sectors renders New York a diversified and powerful managed services marketplace.

Washington Managed Services Market

Washington State is a significant regional managed services market driven by its robust establishment of technology firms, cloud vendors, and highly advanced manufacturing sectors. With major cloud platforms calling the state home, the state enjoys a robust ecosystem that accelerates demand for managed cloud computing, security, and data management. Local businesses embrace MSPs to address hybrid cloud infrastructures and safeguard against cyber threats. Moreover, Washington's expanding healthcare and retail industries further enhance demand for IT outsourcing. The state's innovation and integration of technology guarantee continuing growth in managed services usage.

Market Segmentation

Type

• Managed Data Center
• Managed Security
• Managed Communications
• Managed Network
• Managed Infrastructure
• Managed Mobility

Size of Enterprise

• Small & Medium Size
• Large Enterprise

End-User

• BFSI
• IT and Telecommunication
• Healthcare
• Entertainment and Media
• Retail
• Manufacturing
• Government
• Others

Deployment

• On-premise
• Cloud

Top States

• California
• Texas
• New York
• Florida
• Illinois
• Pennsylvania
• Ohio
• Georgia
• New Jersey
• Washington
• North Carolina
• Massachusetts
• Virginia
• Michigan
• Maryland
• Colorado
• Tennessee
• Indiana
• Arizona
• Minnesota
• Wisconsin
• Missouri
• Connecticut
• South Carolina
• Oregon
• Louisiana
• Alabama
• Kentucky
• Rest of United States

All companies have been covered with 5 Viewpoints

• Overviews
• Key Person
• Recent Developments
• SWOT Analysis
• Revenue Analysis

Key Players Analysis

1. Fujitsu Ltd

2. Cisco Systems Inc.

3. IBM Corporation

4. AT&T Inc.

5. Microsoft Corporation

6. Verizon Communications Inc.

7. Dell Technologies Inc.

8. Nokia Solutions and Networks

9. Rackspace Inc.

10. Tata Consultancy Services Limited