The global Managed services market size was valued at USD 304.6 Billion in 2024 and is projected to reach USD 570.8 Billion by 2033, growing at a CAGR of 7.2% during the forecast period of 2025-2033. Growth is driven by increased IT outsourcing, heightened complexities in IT infrastructure management, and the need for scalable, cost-efficient business solutions. 

Study Assumption Years

• Base Year: 2024
• Historical Year/Period: 2019-2024
• Forecast Year/Period: 2025-2033

Managed Services Market Key Takeaways

• Current Market Size: USD 304.6 Billion in 2024
• CAGR: 7.2% during 2025-2033
• Forecast Period: 2025-2033
• The major drivers include the rising demand for IT cost reduction and efficiency enhancement through outsourcing.
• Increasing integration of AI and automation is improving service delivery efficiency.
• North America dominates the market due to a strong technology presence and robust IT infrastructure.
• Asia-Pacific shows rapid growth driven by digitization and IT spending, especially among SMEs.
• The market faces challenges like cybersecurity threats and data privacy concerns but offers opportunities through emerging technologies.

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Market Growth Factors

The managed services market is propelled primarily by the urgent need for IT cost reduction and enhanced operational efficiency. Organizations are increasingly outsourcing IT services to focus on core competencies, accessing expert technologies and continuous support that enable scalable and cost-effective solutions. This is particularly relevant as IT infrastructure becomes more fragmented and complex, requiring specialized management.

Technological advancements such as artificial intelligence (AI) and automation are key trends bolstering growth. These technologies reduce human error and increase efficiency in service delivery. Additionally, there is growing emphasis on cybersecurity managed services driven by the rising frequency and complexity of cyber threats. For instance, reports indicate 2365 cyber-attacks and a 72% increase in data breaches in 2023, with an average data breach cost of $4.45 million, underscoring demand for security expertise.

The widespread adoption of cloud technologies further fuels market expansion. Companies are migrating towards cloud infrastructures for cost efficiency, collaboration, and accessibility, relying on managed service providers for expert cloud management. Examples include Rackspace Technology's 2024 collaboration to create advanced Google Cloud solutions. This migration supports ongoing market growth through enhanced performance and security capabilities.

Market Segmentation

Type:

• Managed Infrastructure: This segment leads the market, encompassing outsourcing of IT infrastructure such as servers, storage, and networking to third-party providers. These services improve reliability, scalability, and performance.
• Managed Data Center
• Managed Security
• Managed Communications
• Managed Network
• Managed Mobility

Deployment Mode:

• On-premises: Dominates the market; services hosted within client's physical infrastructure supporting hardware procurement, installation, and maintenance, preferred in heavily regulated industries.
• Cloud-based

Enterprise Size:

• Large Enterprises: Lead the market due to extensive IT infrastructure needs and complex operations requiring diverse managed services.
• Small and Medium-sized Enterprises

End Use:

• IT and Telecommunication: Largest end-use segment, driven by ongoing demand for reliable IT infrastructure and communication services.
• BFSI
• Healthcare
• Entertainment and Media
• Retail
• Manufacturing
• Government
• Others

Region:

• North America (United States, Canada)
• Asia Pacific (China, Japan, India, South Korea, Australia, Indonesia, Others)
• Europe (Germany, France, United Kingdom, Italy, Spain, Russia, Others)
• Latin America (Brazil, Mexico, Others)
• Middle East and Africa

Regional Insights

North America leads the managed services market globally, attributed to robust IT infrastructure, substantial IT spending, and a strong presence of technology firms. The region exhibits a mature market landscape, with industries such as healthcare, IT, manufacturing, and finance heavily adopting managed services. This region benefits from high cloud computing adoption, driving demand further. The U.S. alone accounts for one-third of the $5 trillion global IT market, contributing $1.9 trillion to GDP and employing 12.1 million people.

Recent Developments & News

In May 2024, Accenture announced acquiring two Italian consultancies, Customer Management IT and SirfinPA, to enhance services in the justice and public safety sectors. In November 2023, AT&T revealed plans to establish a standalone managed cybersecurity business, supported by investment from WillJam Ventures. In March 2024, Dell Technologies partnered with CrowdStrike to expand Managed Detection and Response (MDR) services using CrowdStrike’s AI-native Falcon XDR platform, enhancing protection against complex cyber threats.

Key Players

• Accenture plc
• AT&T
• Capgemini
• Dell Inc.
• Fujitsu Limited
• Hewlett Packard Enterprise Development LP
• Infosys Limited
• International Business Machines Corporation
• Nokia Corporation
• Open Text Corporation
• Rackspace Technology
• Telefonaktiebolaget LM Ericsson
• Verizon

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