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Managed Services Market Size, Share & COVID-19 Impact Analysis, By Service (Voice Service, Non-Voice Service, and IT Managed Service), By Function (Finance & Accounting, Marketing, Supply Chain, Human Resource, Information Technology, and Others), By End-user (BFSI, IT & Telecom, Government, Retail & E-commerce, Energy & Utility, Healthcare, Manufacturing, and Others), and Regional Forecast, 2023-2030

Region : Global | Format: PDF | Report ID: FBI102430

 

KEY MARKET INSIGHTS

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The global managed services market size was valued at USD 255.86 billion in 2022 and is projected to grow from USD 283.90 billion in 2023 to USD 671.14 billion by 2030, exhibiting a CAGR of 13.1% during the forecast period.


This report studies services offered by market players such as Atos SE, which offers managed detection & response services and managed security services. Similarly, Fujitsu offers managed infrastructure services & multi-cloud managed services and Capgemini SE offers application managed & professional services, managed public cloud services, and many other solutions.


The global market is driven by the rising adoption of these services among enterprises in various sectors such as IT & telecommunications, BFSI, and healthcare, among others. Enterprises are implementing these services in their business units to digitize their business processes, upgrade & innovate their infrastructure, and enhance productivity & scalability. In addition, the rising demand for end-to-end hosting applications is expected to drive the market growth. In addition, key Managed Service Providers (MSPs) are focusing on providing secure and customized IT solutions to their customers by deploying various advanced tools in their business units to safeguard their businesses from any kind of cyberattack.



  • In April 2023, Aeries Technology launched cyber security managed services for enterprises to meet the regulation and compliance framework. The company is offering significant support to firms in their digital transformation with safe and secured infrastructure.


COVID-19 IMPACT


COVID-19 Boosted Demand for Managed Services as Businesses Switched to Cloud Services


COVID-19 impacted the world economy and forced many enterprises to implement spending cuts and contingency planning in the short term. However, the adoption of cloud applications, artificial intelligence (AI), security solutions, and Big Data surged considerably during this period. This growth allowed cloud giants to switch their services to deal with the increased load. MSPs adopted the new norms of working remotely to curb the virus spread.


As the world struggled with the COVID-19 pandemic, businesses enabled remote working for most of their workforce. Companies and government agencies started migrating to cloud-based solutions and services for more mission-critical workloads and compute instances. Furthermore, the load on data centers rose due to the increasing use of IoT, Big Data analytics, and cloud across numerous enterprises as a significant route to digital transformation. This factor drove the growth of the global market during the pandemic.


LATEST TRENDS


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Increasing Adoption of Cloud-based Managed Security Services (MSS) will Contribute to Market Growth


The increasing adoption of cloud-based services is a major global trend. The rising demand for securing IT infrastructure against cyber threats has pushed organizations to adopt Managed Security Services (MSSs) in their business models. Cyber threats are evolving in both enterprises and government sectors, thus forcing MSPs to develop advanced offerings that can detect and address cyber risks. Various companies are focused on adopting cloud-based managed security services to boost their security against various email viruses, Distributed Denial of Service (DDOS) attacks, firewalls, and intrusion detection. Key players are offering advanced cloud-based security services to cater to rising security needs. For instance,



  • In May 2023, Ireland-based Ernst & Young Global Limited introduced managed security services for small and medium-sized enterprises facing cyberattack challenges. The company aims to offer cost-effective services to secure cloud-based infrastructure and modern tools.


The adoption of managed security services enables various organizations to handle an incident, monitor & manage ongoing cybersecurity risks, and detect threats. Therefore, demand for cloud-based services will grow in the forthcoming years.


DRIVING FACTORS


Growing Adoption of Bring Your Own Device (BYOD) among Organizations to Aid Market Growth


Bring Your Own Device (BYOD) stands as one of the primary components of digital technology and productivity across various sectors in the current technology-driven business environment. The BYOD strategy allows workforces to access and manage their company’s data through personal devices to improve productivity. According to a 2019 report The Future of BYOD, companies favoring the use of BYOD can save up to USD 350 per year, per team member. The usage of BYOD enhances work flexibility and accountability of employees, resulting in higher productivity. This, in turn, has urged organizations to deploy options for BYOD solutions with the existing systems to create an employee-friendly environment.


The increased use of BYOD has raised the number of intelligent devices in a workplace, such as tablets, smartphones, laptops, and other gadgets. This method would raise the risk of data integrity and security as it moves across smart devices. As a result, many companies are turning to these services to monitor the security of these smart devices, thereby promoting managed services market growth in the forthcoming years.


RESTRAINING FACTORS


Lack of IT Security Professionals May Inhibit Market Growth


The lack of availability of IT and cybersecurity professionals is one of the major limitations for the growth of this market. This factor can hinder organizations’ ability to meet their IT security needs. Lack of valued IT security skills can leave organizations open to cyberattacks, resulting in data loss and reputation damage. With the growth of several cybersecurity threats, the requirement for advanced security solutions to deal with cyberattacks is growing exponentially. This highlights the need for cybersecurity training to help close the skills gap, introduce new talent to the work field, and make the organization more secure.


Moreover, many limitations, such as demand for experienced professionals, ineffectiveness of the managed service model, data privacy & security issues, and requirement for large investments are projected to limit the market growth.


SEGMENTATION


By Service Analysis


Rapid Growth in Technological Infrastructure to Boost Demand for IT Managed Services


Based on service, the market is classified into voice service, non-voice service, and IT managed services.


This segment is expected to account for the largest managed services market share during the forecast period. The rising penetration of virtual chat-box services based on AI and Internet of Things (IoT) platforms and Big Data is expected to significantly accelerate the segment’s growth.


Furthermore, various organizations are implementing voice and non-voice services integrated with the virtual chat-box. This strategy will assist in managing various functions, such as email marketing, human resources outsourcing, marketing, sales, and customer relations services. MSPs are focusing on integrating conversational interfaces, such as voice-enabled chatbots into their customer service applications to create an automated workflow. Vendors, such as SAP and Microsoft, deployed speech-enabled chatbot options in their service offerings to transform customer service interactions as well as human resource applications.


Furthermore, the IT managed services segment is sub-segmented into managed communication services, managed networks & infrastructure, managed security, managed wireless & mobile computing, managed cloud infrastructure, managed software as a service, and others (managed print services, managed support services, data analytics, and more.)


By Function Analysis


Stringent Financial Regulations to Fuel Adoption of Managed Services in Finance and Accounting


Based on function, the market is divided into Finance & Accounting (F&A), marketing, supply chain, Human Resource (HR), Information Technology (IT), and others (customer services and more).


The finance & accounting segment captured the maximum market share in 2022. These services help in managing and analyzing the financial requirements through financial reporting, bookkeeping services, and more. Also, the segment’s growth is due to the increasing adoption of services based on Big Data and cloud applications among various organizations to manage capital exchange with customers and partners.


Furthermore, the supply chain segment is expected to record a rapid CAGR during the forecast period. The globalization of goods and services is driving the demand for these services in supply chain functions. Similarly, increasing competition is driving the marketing strategies, thus propelling the service demand in the marketing function.


By End-user Analysis


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Early Adoption of Advanced Technologies to Propel Product Usage in IT & Telecom


Based on end-user, the market is divided into BFSI, IT & telecom, government, retail & e-commerce, energy & utility, healthcare, manufacturing, and others (education, travel, and more).


The IT & telecom segment is predicted to gain a dominant market share during the forecast period. The growth of the segment can be attributed to the increased need for these services to manage and maintain highly complex IT infrastructure. This is expected to fuel the market growth during the forecast period.


The BFSI segment is estimated to be the fastest growing segment over the forecast period. Businesses in this sector require a sophisticated IT infrastructure to preserve and manage data ranging from trading instruments to record-keeping, reporting & computation, and more. IT services are critical to the success of financial transactions that require the exchange of information with customers or internal employees.


The retail & e-commerce segment is set to showcase steady growth considering the robust increase in online customers and shopping. In addition, the healthcare and manufacturing segments are predicted to witness a significant increase in their CAGR. The rise in usage of IoT solutions in different applications, such as patient service, automated surgeries, nanotechnology, and more, is driving the growth.


REGIONAL INSIGHTS


North America Managed Services Market Size, 2022 (USD Billion)

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Geographically, the market is classified across five major regions, North America, Europe, Asia Pacific, the Middle East & Africa, and Latin America.


North America is expected to dominate the market share in terms of revenue. The growth in this region is mainly due to the robust presence of many MSPs, such as IBM Corporation, Accenture, and Cognizant, among others. The U.S. holds a majority of the North America market owing to the rising adoption of these services among small and medium-sized enterprises and provision of substantial IT budgets. Thus, key players in this market are focused on merger and acquisition strategies to prevent cybersecurity breaches.


Asia Pacific is expected to record the highest CAGR during the forecast period. The region's strong growth is owing to the increasing investments in data security and rising adoption of cloud-based solutions among several organizations. Growing economies, such as China, India, Singapore, Australia, and New Zealand provide massive opportunities to adopt such managed outsourcing services. Besides, various other service providers in this region are developing an integrated cloud storage platform for sectors such as retail, BFSI, manufacturing, and more.


Europe holds a significant position in this market. The growth of the regional market is owing to the rising adoption of cloud platforms and high demand for managing confidential enterprise data. Germany, the U.K., and France are expected to showcase strong growth opportunities in the region considering the increasing number of small and medium-sized enterprises and their investments in advanced technologies.


Similarly, the Middle East & Africa and Latin America are estimated to grow at a considerable rate. This growth is due to the increasing ICT spending, rising government initiatives, growing trend of big data & analytics, and technological advancements in these regions. For instance, the governments of GCC countries are focusing on pursuing pioneering national development projects, such as the UAE’s Vision 2021 and Saudi Arabia’s Vision 2030. These projects will help improve cloud-based services and boost economic diversification through the expansion of IT infrastructures. This is expected to boost the growth of the market in these regions during the forecast period.


KEY INDUSTRY PLAYERS


Leading Market Players are Focusing on Strengthening their Market Positions


Companies operating in the market are focusing on offering services that drive business growth and enhance customer experience. The services offered by these companies are easy to deploy and operate. These services drive efficiency, enhance customer experience, and pave the way for innovation on next-generation network services. Also, the key players in the market are keen on offering innovative services to support the adoption of various technological infrastructures and digital transformation. Through strategic partnerships and collaborations, key market players are expanding their global presence.



  • April 2023 - VMware, Inc. launched VMware Cross-Cloud managed services to help customers and partners expand their services and practices in a secured multi-cloud environment. It will also help enterprises accelerate their digital transformation with the implementation of smart cloud strategy.

  • April 2023 – Sinch AB announced its strategic collaboration with Microsoft Teams and Synoptek to provide managed and professional services. The company will offer voice services for Teams using operator connect that enables call to anyone and anywhere.


List of the Key Companies Profiled:



KEY INDUSTRY DEVELOPMENTS:



  • May 2023 – NTT Corporation launched SPEKTRA, a next-generation managed network solution to support digital transformation. The new service launch was in in-line with the company’s vision of autonomous Network Operations Center to boost network performance.

  • March 2023 - Tech Mahindra Limited announced a strategic partnership with Indosat Ooredoo Hutchison to support its first digital platform with its managed services for enhanced customer service. The collaboration is helping Indosat with improved customer experience and digital growth.

  • March 2023 - Vanta Inc. introduced its MSP Partner Program to help businesses and clients strengthen their security. It claims to offer fast and secured compliance services to companies to boost trust in the competitive environment.

  • June 2022 – Digital transformation managed service provider, Thrive acquired Edge Technology Group to expand its customer base and international presence. This collaboration would help Edge customers with automation, cybersecurity, managed & professional services, and more.  

  • March 2021 – Amazon Web Services, Inc., a leading technology company, announced AMS Accelerate, a new operations plan for AWS Managed Services (AMS). The plan provides operations assistance to clients that have existing workloads, are planning new workloads, or are transitioning to AWS. AMS Accelerate can help with day-to-day operations management by monitoring, security, incident management, and backup services.


REPORT COVERAGE


An Infographic Representation of Managed Services Market

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The research report provides an in-depth analysis of the market. It focuses on key aspects, such as leading companies, top end-users, and prominent product applications. Besides this, the report offers insights into the latest market trends and highlights key industry developments. In addition to the factors mentioned above, the report encompasses several key factors that have contributed to the market's growth in recent years.


Report Scope and Segmentation


























































  ATTRIBUTE



  DETAILS



Study Period



2019 – 2030



Base Year



2022



Estimated Year



2023



Forecast Period



2023 – 2030



Historical Period



2019 – 2021



Growth Rate



CAGR of 13.1% from 2023 to 2030



Unit



Value (USD billion)



Segmentation



By Service, Function, End-user, and Region



By Service




  • Voice Service

  • Non Voice Service

  • IT Managed Service

    • Managed Communication Services

    • Managed Networks & Infrastructure

    • Managed Security

    • Managed Wireless & Mobile Computing

    • Managed Cloud Infrastructure

    • Managed Software as a Service

    • Others (Managed Print Services, Managed Support Services, Data Analytics)





By Function




  • Finance & Accounting (F&A)

  • Marketing

  • Supply Chain

  • Human Resource

  • Information Technology (IT)

  • Others (Customer Service)



By End-user




  • BFSI

  • IT & Telecom

  • Government

  • Retail & E-commerce

  • Energy & Utility

  • Healthcare

  • Manufacturing

  • Others (Education, Travel)



By Region




  • North America (By Service, By Function, By End-user, and By Country)

    • U.S. 

    • Canada 



  • Europe (By Service, By Function, By End-user, and By Country)

    • U.K. 

    • Germany 

    • France 

    • Italy 

    • Spain 

    • Rest of Europe



  • Asia Pacific (By Service, By Function, By End-user, and By Country)

    • China 

    • Japan 

    • India 

    • Southeast Asia 

    • Rest of Asia Pacific



  • Middle East and Africa  (By Service, By Function, By End-user, and By Country)

    • GCC 

    • South Africa 

    • Rest of MEA



  • Latin America (By Service, By Function, By End-user, and By Country)

    • Brazil 

    • Mexico 

    • Rest of Latin America





Frequently Asked Questions

According to Fortune Business Insights, the global market is expected to reach USD 671.14 billion by 2030.

Fortune Business Insights says that the market stood at USD 255.86 billion in 2022.

The market is expected to record a CAGR of 13.1% during the forecast period of 2023-2030.

Based on service, the IT managed services segment is expected to lead the market during the forecast period.

The growing adoption of Bring Your Own Device (BYOD) among organizations is one of the key drivers for this market’s growth.

IBM Corporation, Accenture plc, Fujitsu Ltd., Microsoft Corporation, NTT DATA Corporation, Amazon Inc., and DXC Technology are the top companies in the market.

The IT & telecom segment holds the major market share.

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