PUBLISHER: Roots Analysis | PRODUCT CODE: 1821514
PUBLISHER: Roots Analysis | PRODUCT CODE: 1821514
As per Roots Analysis, the global managed services market size is estimated to grow from USD 323.8 billion in the current year to USD 1,026 billion by 2035, at a CAGR of 11.1% during the forecast period, till 2035.
The opportunity for managed services market has been distributed across the following segments:
Type of Service
Type of Deployment
Type of Enterprise
Type of Vertical
Geographical Regions
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
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.
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.
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.
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.
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:
Key Questions Answered in this Report
Reasons to Buy this Report
Additional Benefits