Managed Services Market Size By Service Type (Cloud Managed Service, Managed Infrastructure, Managed Network, Managed Collaboration, Managed Security, Managed Mobility, Managed Backup & Recovery), By Organization Type (SME, Large Enterprises), By Industry

Managed Services Market Size By Service Type (Cloud Managed Service, Managed Infrastructure, Managed Network, Managed Collaboration, Managed Security, Managed Mobility, Managed Backup & Recovery), By Organization Type (SME, Large Enterprises), By Industry Vertical (BFSI, Government, Retail, IT & Telecom, Energy & Utility, Healthcare), COVID-19 Impact Analysis, Regional Outlook, Application Potential, Competitive Market Share & Forecast, 2023- 2032

Managed Services Market is poised to witness significant growth through 2032. Business organizations are increasingly outsourcing the maintenance of enterprise infrastructure to MSP enterprises, to lessen their maintenance and administration costs, which would eventually benefit the product demand.

In addition, the key market providers are working to expand their portfolios and enter mergers and acquisitions to gain a better edge in the market. To cite an instance, in January 2023, Rackspace Technology, a global firm providing end-to-end multi-cloud technology services, launched Modern Operations, offering cloud services to users. As per reports, the new service will equip customers with Azure, AWS, and GCP, enabling them to focus on core business activities and enjoy better functional competencies.

Overall, the managed services market has been segmented in terms of service, organization size, industry vertical, and region.

Based on service, the cloud managed services segment is expected to witness significant growth between 2023 and 2032. The rising adoption of cloud-based applications by enterprises, given their cost-effectiveness and increased efficiency will support the burgeoning cloud-based managed services demand.

By organization size, the SMEs segment is set to register substantial growth through 2023-2032. The increasing adaptation of managed services by the SMEs, owing to high scalability, cost-effective nature, and fewer infrastructure-related complexities would add to the segmental growth. Major managed service providers are also expanding their services to cater to the need of the SMEs. For instance, in November 2022, Fujifilm Business Innovation announced offering IT Expert Services in Singapore. The service would not only provide traditional IT support to SMEs but also act as the sole supplier for the company’s technological requirements.

On the basis of industry vertical, the market is likely to be characterized by the IT & Telecom segment, which will grow at more than 6% CAGR by 2032 end. The segmental growth can be credited to the telephonic companies’ ability to provide extensive network connectivity which covers a huge geographical area.

In the regional context, the North America managed services market was valued at more than USD 60 billion in 2022. The regional market growth can be accredited to the increasing adoption of cloud computing platforms, hefty investments in the field of emerging 5G technology, and the increasing usage of smartphones. As per credible sources, North America boasts of 3.4 million 5G connections and half a billion LTE connections as of third quarter 2020.