Global Managed Services Providers (MSP) Market Research Report 2023-Competitive Analysis, Status and Outlook by Type, Downstream Industry, and Geography, Forecast to 2029

Global Managed Services Providers (MSP) Market Research Report 2023-Competitive Analysis, Status and Outlook by Type, Downstream Industry, and Geography, Forecast to 2029

A managed service provider (MSP) delivers services, such as network, application, infrastructure and security, via ongoing and regular support and active administration on customers’ premises, in their MSP’s data center (hosting), or in a third-party data center. MSPs may deliver their own native services in conjunction with other providers’ services (for example, a security MSP providing sys admin on top of a third-party cloud IaaS). Pure-play MSPs focus on one vendor or technology, usually their own core offerings. Many MSPs include services from other types of providers. The term MSP traditionally was applied to infrastructure or device-centric types of services but has expanded to include any continuous, regular management, maintenance and support.

Market Overview:

The latest research study on the global Managed Services Providers (MSP) market finds that the global Managed Services Providers (MSP) market reached a value of USD 248772.91 million in 2022. It’s expected that the market will achieve USD 466315.44 million by 2028, exhibiting a CAGR of 11.04% during the forecast period.

The COVID-19 pandemic has brought many challenges to industries around the world, especially those that rely on the inability to complete work remotely. According to the latest survey by the National Association of Manufacturers (NAM), approximately 80% of manufacturers expect the pandemic to have a financial impact on their businesses. Some major industrial companies have closed factories and considered the scope of layoffs to help contain the spread of the virus and for economic reasons. This has also led to an increase in the global unemployment rate. Especially as a labor-intensive industry, the lack of labor will greatly affect the production plan. The bankruptcy of an enterprise will definitely destroy the supply chain of the downstream market of Managed Services Providers and cause serious losses to the Managed Services Providers industry.

With the spread of the coronavirus, the IT infrastructure of enterprises, governments, and educational institutions is facing increasing pressure, such as remote work, moving face-to-face meetings and classrooms to online/virtual courses. This puts more pressure on the existing infrastructure and brings more security risks. During the epidemic, the number of remote workers will increase due to the impact of isolation. All these have brought new pressure to IT and brought hidden security risks. At this time, the power management and maintenance of Managed Services Providers are of great significance. Therefore, for the Managed Services Providers industry, this is a challenge for technological upgrading and an opportunity for continuous development.

The development of enterprise data informatization

With the development of enterprise data informatization, most enterprises have turned to a more liquid digital infrastructure, in which multiple systems and servers are running in remote or hybrid clouds, the workforce that uses mobile devices to connect is dispersed, and departments are connected, Various APIs for customers and partners. The complexity of the IT environment has increased the demand for managed service providers.

Fierce competition

The industry is highly competitive. There are many companies operating in this industry, and companies compete for customer management and after-sales service to gain more market share. Some large multinational companies, such as IBM, Accenture, Cisco, etc., have taken advantage of their capital advantages, technical strength and brand effect to preemptively occupy part of the market, thus quickly accumulating a number of loyal customers and strengthening the competitive landscape. New entrants may face strong competitors in the industry. Without sufficient funds, a strong technical team and a mature operation team, it will be difficult for new entrants to gain a foothold in this market.

Downstream demand growth.

Businesses and government agencies around the world are shifting from testing environments to bringing more critical workloads into the cloud and computing instances. In addition, as companies increasingly adopt the Internet of Things, cloud, and big data analysis as an important part of their digital transformation strategies, the pressure on data centers is also increasing. This has promoted the growth of the custody service market.

Region Overview:

In 2021, the share of the Managed Services Providers (MSP) market in United States stood at 33.2%.

Company Overview:

IBM is one of the major players operating in the Managed Services Providers (MSP) market, holding a share of 6.33% in 2022.

IBM

International Business Machines Corporation (IBM) provides computer solutions. The Company offers application, technology consulting and support, process design and operations, cloud, digital workplace, and network services, as well as business resiliency, strategy, and design solutions. IBM serves clients worldwide.

Accenture PLC

Accenture is a global professional services company with leading capabilities in digital, cloud and security. Combining unmatched experience and specialized skills across more than 40 industries, Accenture offers Strategy and Consulting, Interactive, Technology and Operations services—all powered by the world’s largest network of Advanced Technology and Intelligent Operations centers.

Segmentation Overview:

By type, Managed Infrastructure segment accounted for the largest share of market in 2021.

Managed Data Centre

A managed data center is a type of data center model that is deployed, managed, and monitored by a third-party data center service provider.

Managed Mobility

Managed Mobility encompasses the IT and process management services required by a company to acquire, provision, and support smartphones, tablets, and ruggedized field force devices with integrated cellular and/or wireless connectivity. Although the current market for such services is largely focused on corporate-liable devices, Managed Mobility engagements also provide a level of control to companies supporting individual liable devices, or bring your own device, accessing corporate resources and information.

Managed Security

Managed Security provides outsourced monitoring and management of security devices and systems. Common services include managed firewall, intrusion detection, virtual private network, vulnerability scanning and anti-viral services. Managed Security use high-availability security operation centers (either from their own facilities or from other data center providers) to provide 24/7 services designed to reduce the number of operational security personnel an enterprise needs to hire, train and retain to maintain an acceptable security posture.

Managed Communications

Managed communications, which comprises email, unified communications and VoIP (Voice over IP), is one of the more challenging managed services.

Managed Network

Managed network service providers take the place of full-time IT staff or act as a supplement to an organization’s existing IT department. By working with a managed network service provider, a company is outsourcing its IT network support needs and management to a third-party provider. Service providers strive to improve daily business operations by putting network operations in the hands of licensed technicians, allowing business leaders to focus on other tasks.

Managed Infrastructure

Managed infrastructure services can help client companies reliably maintain various IT infrastructures and enable them to develop stably while reducing costs.

Managed Information

Managed information service is to collect and manage information from one or more sources, distribute the information to one or more audiences, and maintain and manage the system for organizing and controlling information.

Application Overview:

By application, the BFSI segment occupied the biggest share from 2017 to 2022.

Key Companies in the global Managed Services Providers (MSP) market covered in Chapter 3:

Rackspace Inc.
Deutsche Telekom AG
Fujitsu Ltd
IBM
Cisco Systems Inc.
Cognizant
Wipro Ltd.
Capgemini
HCL
Nokia Solutions and Networks
Infosys
Tata Consultancy Services Limited
Accenture PLC
Verizon Communications Inc
Hewlett-Packard
Atos
Dell Technologies Inc.
AT&T Inc.

In Chapter 4 and Chapter 14.2, on the basis of types, the Managed Services Providers (MSP) market from 2018 to 2029 is primarily split into:

Managed Data Centre
Managed Mobility
Managed Security
Managed Communications
Managed Network

In Chapter 5 and Chapter 14.3, on the basis of Downstream Industry, the Managed Services Providers (MSP) market from 2018 to 2029 covers:

BFSI
Retail
IT & Telecom
Manufacturing
Aerospace & Defense

Geographically, the detailed analysis of consumption, revenue, market share and growth rate, historic and forecast (2018-2029) of the following regions are covered in Chapter 8 to Chapter 14:

North America (United States, Canada)
Europe (Germany, UK, France, Italy, Spain, Russia, Netherlands, Turkey, Switzerland, Sweden)
Asia Pacific (China, Japan, South Korea, Australia, India, Indonesia, Philippines, Malaysia)
Latin America (Brazil, Mexico, Argentina)
Middle East & Africa (Saudi Arabia, UAE, Egypt, South Africa)