The global managed services market reached a size of USD 304.6 Billion in 2024 and is projected to grow to USD 570.8 Billion by 2033, exhibiting a CAGR of 7.2% during 2025-2033. The market growth is driven by increasing IT outsourcing demands, complexity in IT infrastructure management, and the need for scalable and cost-effective solutions. Key market growth is bolstered by advances in AI, automation, and cybersecurity, with North America leading in adoption.

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%
• Forecast Period: 2025-2033
• The increasing need for IT cost reduction and efficiency enhancement is a major market driver.
• AI and automation are key trends improving service delivery efficiency and accuracy.
• Cybersecurity challenges elevate demand for managed security services.
• North America dominates the market, with Asia-Pacific rapidly growing due to digitization and SMB demand.
• Managed infrastructure services hold the largest market share among types.
• On-premises deployment mode is preferred due to security and compliance requirements.
• Large enterprises represent the largest customer segment.
• IT and telecommunication sector is the largest end-use segment.

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Market Growth Factors

The global managed services market growth is primarily driven by the increasing demand for IT cost reduction and efficiency enhancement among businesses. Organizations outsource IT operations to focus on core activities, leveraging managed services for expertise, advanced technologies, and continuous support. This shift helps organizations optimize costs while improving service reliability and performance.

Advancements in artificial intelligence (AI) and automation are significantly influencing the managed services market. AI integration enhances efficiency and reduces human errors in service delivery. Additionally, the rising sophistication and frequency of cyber threats propel the demand for cybersecurity-focused managed services, including continuous monitoring, threat detection, and compliance management, particularly in sensitive sectors like finance, healthcare, and retail.

The adoption of cloud technologies serves as a critical growth enabler for the market. Businesses increasingly migrate to cloud-based solutions to benefit from cost efficiencies and collaborative capabilities. Managed service providers offer comprehensive cloud management, ensuring optimal cloud performance, security, and cost-effectiveness. For instance, Rackspace Technology's deployment of multi-stage Google Cloud solutions illustrates the market's pivot towards hybrid multi-cloud and AI-driven services, catering to modern enterprise demands.

Market Segmentation

Breakup by Type:

• Managed Infrastructure: The largest segment involving the outsourcing of IT infrastructure components such as servers, storage, and networking equipment. It facilitates scalability, performance, and cost optimization for businesses.
• Managed Data Center
• Managed Security
• Managed Communications
• Managed Network
• Managed Mobility

Breakup by Deployment Mode:

• On-premises: Holds the largest market share, preferred for stringent security, compliance needs, and data sovereignty.
• Cloud-based

Breakup by Enterprise Size:

• Large Enterprises: Lead the market, characterized by complex IT infrastructure and the need for scalable, agile managed services.
• Small and Medium-sized Enterprises

Breakup by End Use:

• IT and Telecommunication: Largest segment, driven by the need for reliable infrastructure, network management, cloud computing, and cybersecurity solutions.
• BFSI
• Healthcare
• Entertainment and Media
• Retail
• Manufacturing
• Government
• Others

Regional Insights

North America dominates the managed services market due to a strong presence of technology firms, robust IT infrastructure, and high enterprise adoption. The mature landscape includes sectors like healthcare, IT, manufacturing, and finance relying on managed services for operational efficiency. Cloud computing adoption is notably high, further boosting demand. The U.S. alone represents one-third of the $5 trillion global IT market, accounting for $1.9 trillion of GDP and over 12 million jobs.

Recent Developments & News

In May 2024, Accenture acquired Customer Management IT and SirfinPA, Italian consultancies focusing on justice and public safety technology solutions. In November 2023, AT&T announced plans to create a standalone managed cybersecurity services business, securing capital investment from WillJam Ventures. In March 2024, Dell Technologies and CrowdStrike expanded a strategic partnership for delivering Dell's Managed Detection and Response services integrated with CrowdStrike's AI-native Falcon XDR platform to fortify cybersecurity defenses.

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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