Managed Services Market Size, Share, Growth Analysis, By Service Type (Network, Security), By Deployment (On-premises, Cloud), By Vertical (BFSI, IT & Telecom), By Region - Industry Forecast 2024-2031

Global Managed Services Market was valued at USD 242.9 billion in 2022 and is expected to rise from USD 262 billion in 2023 to reach a value of USD 519.57 billion by 2031, at a CAGR of 7.9% during the forecast period (2024-2031).

The market is expected to grow as companies focus on enhancing profit margins and expanding operational capacity to navigate volatile environments effectively. Managed services benefit from reduced IT operational costs and increased organizational efficiency, which drive market expansion. These services help businesses achieve their goals by optimizing IT infrastructure and automating processes, particularly in addressing profitability challenges. Managed services also support various end-users, such as the public sector, by facilitating digital transformation and promoting cloud solutions. For instance, in July 2023, MongoDB, Inc. introduced MongoDB Atlas for the public sector, offering government agencies technology partnerships, expert-led design reviews, and specialized training to improve data application and service delivery. Additionally, key drivers of growth include the rising adoption of cloud technology, the Internet of Things (IoT), and the expansion of 5G networks. Cloud infrastructure expenditures reached USD 152 billion in 2023, reflecting a 12% increase from the previous year. Emerging technologies like artificial intelligence and machine learning are also significantly influencing the market by enabling more efficient data management, predictive analytics, and automation of routine tasks, thereby enhancing the value proposition of managed services.

Top-down and bottom-up approaches were used to estimate and validate the size of the Global Managed Services market and to estimate the size of various other dependent submarkets. The research methodology used to estimate the market size includes the following details: The key players in the market were identified through secondary research, and their market shares in the respective regions were determined through primary and secondary research. This entire procedure includes the study of the annual and financial reports of the top market players and extensive interviews for key insights from industry leaders such as CEOs, VPs, directors, and marketing executives. All percentage shares split, and breakdowns were determined using secondary sources and verified through Primary sources. All possible parameters that affect the markets covered in this research study have been accounted for, viewed in extensive detail, verified through primary research, and analyzed to get the final quantitative and qualitative data.

Global Managed Services Market Segmental Analysis

The Managed Services Market is segmented based on Service Type, Deployment, And Vertical, and Region. Based on the Services Type, the market is segmented into Managed Network Service (Managed Wi-Fi, Managed LAN, Managed VPN, Managed WAN, Network Monitoring, Others), Managed IT Infrastructure and Data Center Service (Server Management, Storage Management, Managed Print Services, Others), Managed Security Service (Managed Firewall, Managed Vulnerability Management, Managed Risk & Compliance Management, Managed Identity & Access Management, Managed Antivirus/Anti-malware, Managed Security Information & Event Management, Managed Intrusion Detection Systems/Intrusion Prevention Systems, Managed Unified Threat Management, Managed Encryption, Others), Managed Communication & Collaboration Services (Managed VOIP, Managed UCAAS, Others), Managed Mobility Service (Application Management and Device Life Cycle Management), Managed information services (Business Process Management, Managed OSS/BSS). Based on the Deployment, the market is segmented into On Premises and Cloud. Based on the Vertical, the market is segmented into BFSI, Government & Public Sector, Healthcare & Life Sciences, IT & Telecom, Manufacturing, Media & Entertainment, Retail & Consumer Goods, Energy & Utilities, and Others. Based on Region it is categorized into North America, Europe, Asia-Pacific, Latin America, and Middle East and Africa.

Drivers of the Global Managed Services Market

SkyQuest's findings indicate that 90% of global businesses are engaged in digital initiatives, with 88% of senior business leaders prioritizing digital strategies for their companies. This widespread acceptance of digital transformation reflects a strong inclination towards adopting digital platforms, which significantly enhance efficiency while minimizing costs. As a result, solutions like managed network services are being increasingly adopted to support network management and ensure uninterrupted operations amid ongoing digitization efforts.

Restraints in the Global Managed Services Market

A major challenge facing market expansion is the shortage of IT and cybersecurity specialists. This gap can hinder organizations' ability to address their IT security needs, leaving them vulnerable to data breaches and potential damage to their reputation from cyberattacks. The demand for advanced security measures is growing rapidly due to the increasing frequency of cyber threats.

Market Trends of the Global Managed Services Market

The Managed Service Provider (MSP) sector is undergoing a technological transformation, driven primarily by the integration of Artificial Intelligence, the Internet of Things (IoT), and Cloud Computing. These advanced technologies are fundamentally altering the landscape and operations of MSPs. NinjaOne has explored the extensive use of chatbots on their platform, providing valuable guidance to MSPs and showcasing the tools available in this evolving field.