The managed network services market is estimated to be appraised at US$ 61.9 Billion in 2022, anticipated to reach US$ 130.9 billion by 2032 with a CAGR of 7.8% during the forecast period from 2022 to 2032.

Report Scope

The size of the Europe Managed Services Market was valued at USD XXX Million in 2023 and is projected to reach USD XXX Million by 2032, with an expected CAGR of 13.94% during the forecast period.Managed services refer to the outsourcing of IT functions and operations to a third-party service provider. It would enable businesses to focus on core competencies, while experts managed their IT infrastructure, applications, and other IT-related tasks. Managed services range from the management of the network, the data center, security, and cloud computing up to IT support. The Europe managed services market is driven by several factors, which include the increase in adoption of cloud computing, the growing need for IT security, and the growing desire of business to reduce their costs and be more efficient. Recent developments include: November 2023: Netskope, a player in Secure Access Service Edge (SASE), and Telstra International, the global arm of telecommunications and technology company Telstra, today announced the expansion of their partnership to enable Telstra to deliver fully managed Netskope cloud-native Secure Access Service Edge (SASE) —including Zero Trust Network Access (ZTNA) services—to organizations globally. Customers worldwide use Telstra's managed security services to help address the changing needs of the digital workplace and mitigate the ever-evolving cyber threats landscape., In February 2023, Infosys, a leading provider of next-generation digital services and consulting, entered into a strategic collaboration with ng-voice GmbH, a provider of cloud-native IP Multimedia Subsystem (IMS) solutions. Through this, Infosys will provide systems integration services for ng-voice, facilitating telecom operators with digital capabilities to deploy containerized and cloud-native network solutions across Europe. Building on this, both companies also aim to provide managed services to support the network solution while delivering personalized customer experiences and fostering innovation.. Key drivers for this market are: Increasing Shift to Hybrid IT, Improved Cost and Operational Efficiency. Potential restraints include: Integration and Regulatory Issues and Reliability Concerns. Notable trends are: Cloud segment is expected to grow at a higher pace.

From 2024 to 2029, the European managed network service market is expected to grow by over USD 11 billion, fueled by ongoing digital transformation efforts.

The Network Managed Services Market report segments the industry into By Type (Managed LAN, Managed WAN, Managed Wi-Fi, Managed Network Security, Other Services), By Organization Size (Small and Medium Enterprises (SMEs), Large Enterprises), By End User (BFSI, IT and Telecom, Healthcare and Pharmaceutical, Retail, Manufacturing, Education, and more), and By Geography (North America, Europe, Asia-Pacific, and more).

The European Managed SD-WAN Services market is experiencing robust growth, projected to reach $1.12 billion in 2025 and exhibiting a remarkable Compound Annual Growth Rate (CAGR) of 24.70% from 2025 to 2033. This expansion is fueled by several key factors. The increasing adoption of cloud-based applications and the need for secure, reliable network connectivity across geographically dispersed locations are driving demand for managed SD-WAN services. Businesses, particularly large enterprises and those in the BFSI, IT and Telecom, and Healthcare sectors, are increasingly leveraging SD-WAN to optimize network performance, reduce operational costs, and enhance security. The trend towards digital transformation and the expanding Internet of Things (IoT) ecosystem further contribute to this market's growth trajectory. However, challenges such as initial deployment complexities and the need for skilled workforce to manage these complex networks could potentially act as restraints to some extent. The market is segmented by organization size (Small and Medium Enterprises, Large Enterprises) and end-user (BFSI, IT and Telecom, Healthcare, Retail and E-commerce, Manufacturing, and Others). Competition is fierce, with major players like Cisco, Vodafone, NTT, Palo Alto Networks, and others vying for market share. The United Kingdom, Germany, France, and other major European economies constitute the core of this market, reflecting the region’s advanced digital infrastructure and high adoption rates of enterprise technologies. Looking ahead, the European Managed SD-WAN Services market is poised for sustained expansion throughout the forecast period (2025-2033). Continued investments in cloud infrastructure, the proliferation of 5G networks, and the growing demand for enhanced security features within SD-WAN solutions will significantly propel market growth. Furthermore, the increasing adoption of hybrid and multi-cloud architectures will further fuel demand for robust, scalable, and secure managed SD-WAN solutions. Market players are likely to focus on developing innovative solutions, such as AI-powered SD-WAN offerings and enhanced security features, to cater to the evolving needs of their customers and maintain a competitive edge in this dynamic market. The expansion into smaller enterprises and emerging sectors will also be key drivers for further growth. Recent developments include: June 2024: Haier Europe, in its push to transform into a data-centric enterprise, partnered with Orange Business to implement a dynamic SD-WAN solution. Orange Business unveiled a strategic roadmap focusing on three core elements: cloud, connectivity, and cybersecurity. The first phase of the Haier project features a versatile software-defined wide area network (SD-WAN), with Orange Business consultants guiding the selection of underlay and overlay configurations tailored to Haier's needs.. Key drivers for this market are: Lack of In-house Expertise Driving Organizations to Opt for Managed Network Services, Benefit of Extensive Focus on Core Operations and Cost-efficiency; Rapidly Growing Digital Transformation and Network Traffic in Various Industries. Potential restraints include: Lack of In-house Expertise Driving Organizations to Opt for Managed Network Services, Benefit of Extensive Focus on Core Operations and Cost-efficiency; Rapidly Growing Digital Transformation and Network Traffic in Various Industries. Notable trends are: Increased Adoption of Cloud Services to Drive the Market.

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Data Center Managed Services Market Size 2024-2028

The data center managed services market size is forecast to increase by USD 57.63 billion at a CAGR of 10.14% between 2023 and 2028.

The market is experiencing significant growth due to increasing demands for advanced computing capabilities and data storage solutions. With budgetary limits driving organizations to outsource IT infrastructure management, there is a rising need for managed services that can effectively manage computing machines, hardware equipment, IT systems, servers, data storage drives, and network equipment. The trend towards edge computing is also expanding the market, as businesses seek to process data closer to the source for faster response times. However, the integration of these services into existing data centers presents complex challenges, requiring expertise in both IT infrastructure and managed services. This market analysis report delves into these growth factors and the complexities of integrating data center-managed services, providing valuable insights for businesses looking to optimize their IT infrastructure.

What will the size of the market be during the forecast period?

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The market represents a significant segment of the IT infrastructure landscape, providing businesses with essential solutions for maintaining and optimizing their IT infrastructure. This market encompasses a range of offerings, including hardware services, network services, backup maintenance, and fault tolerance solutions, among others. A reliable third-party managed service platform plays a crucial role in ensuring the upkeep and maintenance of an organization's IT infrastructure. By outsourcing these tasks, businesses can focus on their core competencies while ensuring their IT infrastructure remains reliable and efficient. Cloud infrastructure has become a norm in today's business environment, and data center managed services have evolved to meet the demands of this technology.



Furthermore, managed service providers offer expertise in managing complex IT networks, allowing businesses to leverage sophisticated technology without the need for extensive in-house IT resources. IT infrastructure is a foundational element of any growing business, and the need for reliable and efficient data center solutions is paramount. Managed services offer businesses the flexibility to scale their infrastructure as needed, without the logistical limits of managing hardware and software in-house. Network services are a critical component of data center managed services. External networks must be secure and reliable to ensure business continuity. Managed service providers offer solutions for upgrading and patching operating systems, disaster planning, and backup maintenance to mitigate potential risks and minimize downtime.

How is this market segmented and which is the largest segment?

The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in 'USD billion' for the period 2024-2028, as well as historical data from 2018-2022 for the following segments.

End-user

  Retail
  Energy
  BFSI
  Healthcare
  Others


Deployment

  Cloud
  On-premises


Geography

  North America

    US


  Europe

    Germany
    UK


  APAC

    China
    Japan


  South America



  Middle East and Africa

By End-user Insights

The retail segment is estimated to witness significant growth during the forecast period.

The market caters to the management of digital data and computing equipment for various businesses, including those that run web applications and internal applications. This market is witnessing significant growth due to the increasing demand for efficient and reliable IT infrastructure management services. Customers across multiple industries, such as human resources and accounting, are turning to managed services to streamline their operations and focus on their core competencies. Managed services providers offer a range of solutions, including monitoring, maintenance, and security, ensuring that businesses can effectively manage their IT infrastructure and mitigate potential risks.

The integration of advanced technologies, such as artificial intelligence and machine learning, further enhances the value proposition of these services. The market is expected to continue its expansion as more businesses recognize the benefits of outsourcing their IT management needs.

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The retail segment was valued at USD 15.59 billion in 2018 and showed a gradual increase during the forecast period.

Regional Analysis

North America is estimated to contribute 32% to the growth of the global market during the forecast period.

Technavio's analysts have elaborately explained the regional trends and drivers that

The European Managed SD-WAN Services market is experiencing robust growth, projected to reach $1.12 billion in 2025 and exhibiting a Compound Annual Growth Rate (CAGR) of 24.70% from 2025 to 2033. This expansion is driven by several key factors. The increasing adoption of cloud-based applications and the need for improved network security and performance among enterprises are primary catalysts. Businesses across various sectors, including BFSI (Banking, Financial Services, and Insurance), IT and Telecom, Healthcare, Retail and E-commerce, and Manufacturing, are actively seeking managed SD-WAN solutions to optimize their network infrastructure, reduce operational costs, and enhance agility. The rising demand for improved network connectivity and application performance, particularly in geographically dispersed enterprises, is further fueling market growth. Furthermore, the ongoing digital transformation across European businesses necessitates flexible, scalable, and secure network solutions, directly contributing to the rising adoption of managed SD-WAN services. Significant growth is expected across all segments. Large Enterprises are likely to represent a substantial portion of the market due to their greater technological adoption and budget capacity. However, Small and Medium Enterprises (SMEs) are also expected to show strong growth, driven by the decreasing cost and increasing accessibility of managed SD-WAN solutions. Regionally, the United Kingdom, Germany, and France are likely to lead the European market due to their advanced technological infrastructure and high concentration of enterprises across various sectors. However, other countries in the region are also expected to contribute significantly to market expansion as they continue to adopt digital transformation initiatives. The competitive landscape includes major players such as Cisco, Vodafone, NTT, Palo Alto Networks, and others, constantly innovating and competing to capture market share through enhanced service offerings and strategic partnerships. This comprehensive report provides a detailed analysis of the Europe Managed SD-WAN Services Market, offering invaluable insights for businesses seeking to navigate this rapidly evolving landscape. The study period covers 2019-2033, with a base year of 2025 and a forecast period spanning 2025-2033. The report leverages extensive market research and data analysis to provide a clear picture of market size, growth drivers, challenges, and future trends. This in-depth analysis will help stakeholders make informed strategic decisions and gain a competitive edge. This report is essential reading for investors, industry professionals, and anyone interested in the future of network connectivity in Europe. Recent developments include: June 2024: Haier Europe, in its push to transform into a data-centric enterprise, partnered with Orange Business to implement a dynamic SD-WAN solution. Orange Business unveiled a strategic roadmap focusing on three core elements: cloud, connectivity, and cybersecurity. The first phase of the Haier project features a versatile software-defined wide area network (SD-WAN), with Orange Business consultants guiding the selection of underlay and overlay configurations tailored to Haier's needs.. Key drivers for this market are: Lack of In-house Expertise Driving Organizations to Opt for Managed Network Services, Benefit of Extensive Focus on Core Operations and Cost-efficiency; Rapidly Growing Digital Transformation and Network Traffic in Various Industries. Potential restraints include: Lack of In-house Expertise Driving Organizations to Opt for Managed Network Services, Benefit of Extensive Focus on Core Operations and Cost-efficiency; Rapidly Growing Digital Transformation and Network Traffic in Various Industries. Notable trends are: Increased Adoption of Cloud Services to Drive the Market.

The European Managed Services Market is experiencing robust growth, projected to reach €52.09 billion in 2025 and maintain a Compound Annual Growth Rate (CAGR) of 13.94% from 2025 to 2033. This expansion is fueled by several key drivers. The increasing adoption of cloud-based solutions across various sectors, including BFSI, manufacturing, and healthcare, is a primary catalyst. Businesses are increasingly outsourcing IT functions to focus on core competencies, leading to higher demand for managed services like data center, security, network, and infrastructure management. Furthermore, the rising need for enhanced cybersecurity measures and the complexity of modern IT infrastructure are compelling organizations to leverage specialized managed service providers. The shift towards digital transformation and the growing adoption of mobile technologies are also contributing significantly to market growth. The market is segmented by deployment (on-premise and cloud), service type (managed data center, security, communications, network, infrastructure, mobility), enterprise size (SMEs and large enterprises), and end-user vertical. The cloud deployment model is expected to witness faster growth compared to on-premise solutions due to its scalability, cost-effectiveness, and flexibility. Large enterprises are currently the major contributors to market revenue, but the SME segment presents significant untapped potential for future growth. Germany, the United Kingdom, and France are anticipated to be the leading national markets within Europe due to their advanced digital infrastructure and high IT spending. The competitive landscape is characterized by a mix of global technology giants and specialized managed service providers. Companies like Fujitsu, Cisco, IBM, and Microsoft are major players, offering a broad range of managed services. However, smaller, specialized firms are also gaining traction by offering niche services and localized expertise. Sustained growth will depend on providers' ability to adapt to evolving technological advancements, offer innovative solutions, and effectively address the security concerns of their clients. Future growth will likely be driven by the increasing adoption of artificial intelligence (AI) and machine learning (ML) in managed services, further enhancing automation and efficiency. The integration of these technologies within managed service offerings will be a key competitive differentiator. Recent developments include: November 2023: Netskope, a player in Secure Access Service Edge (SASE), and Telstra International, the global arm of telecommunications and technology company Telstra, today announced the expansion of their partnership to enable Telstra to deliver fully managed Netskope cloud-native Secure Access Service Edge (SASE) —including Zero Trust Network Access (ZTNA) services—to organizations globally. Customers worldwide use Telstra's managed security services to help address the changing needs of the digital workplace and mitigate the ever-evolving cyber threats landscape., In February 2023, Infosys, a leading provider of next-generation digital services and consulting, entered into a strategic collaboration with ng-voice GmbH, a provider of cloud-native IP Multimedia Subsystem (IMS) solutions. Through this, Infosys will provide systems integration services for ng-voice, facilitating telecom operators with digital capabilities to deploy containerized and cloud-native network solutions across Europe. Building on this, both companies also aim to provide managed services to support the network solution while delivering personalized customer experiences and fostering innovation.. Key drivers for this market are: Increasing Shift to Hybrid IT, Improved Cost and Operational Efficiency. Potential restraints include: Increasing Shift to Hybrid IT, Improved Cost and Operational Efficiency. Notable trends are: Cloud segment is expected to grow at a higher pace.

The global Network Managed Services market is experiencing robust growth, projected to reach a substantial size in the coming years. A Compound Annual Growth Rate (CAGR) of 12.19% from 2019 to 2024 suggests a significant expansion driven by the increasing adoption of cloud computing, the growing demand for enhanced network security, and the rise of digital transformation initiatives across various sectors. Businesses of all sizes, from SMEs to large enterprises, are increasingly outsourcing network management to specialized providers to leverage their expertise, reduce operational costs, and improve network efficiency. The key segments driving this growth include Managed LAN, Managed WAN, and Managed Wi-Fi services, fueled by the need for reliable and scalable network infrastructure. Furthermore, the rising adoption of Software-Defined Networking (SDN) and Network Function Virtualization (NFV) is creating new opportunities for managed service providers. The BFSI, IT and Telecom, Healthcare, and Retail sectors represent significant end-user verticals contributing to market expansion due to their dependence on highly available and secure networks. Geographic distribution shows a strong presence across North America, Europe, and the Asia Pacific region. While precise regional market share data is unavailable, the strong overall growth indicates significant contributions from each region, with North America likely maintaining a dominant share due to early adoption and robust technology infrastructure. However, the Asia Pacific region is anticipated to showcase the fastest growth rate, driven by rapid digitalization and increasing investments in IT infrastructure. Competitive dynamics are characterized by the presence of both established technology giants like TCS, Accenture, Dell, and IBM, alongside specialized managed service providers like Cato Networks and smaller players. This competition fosters innovation and drives down costs, benefiting end-users. Continued market expansion is expected as businesses increasingly recognize the strategic value of reliable and efficiently managed network infrastructure. The restraints on market growth primarily involve the complexity of integrating legacy systems and the potential for security breaches, requiring constant vigilance and proactive measures from service providers. This in-depth report provides a comprehensive analysis of the global Network Managed Services industry, offering valuable insights into market trends, growth drivers, challenges, and key players. Covering the period from 2019 to 2033, with a focus on 2025, this report is an essential resource for businesses, investors, and researchers seeking to understand and capitalize on the opportunities within this rapidly evolving sector. The market is projected to reach billions in value by 2033, driven by factors discussed within. Recent developments include: June 2023: Wipro launched a managed private 5G-as-a-service solution in partnership with Cisco. Wipro said that the new offering enables enterprise customers to achieve better business outcomes via the integration of private 5G with their existing LAN/WAN/Cloud infrastructure., May 2023: Cloudflare Inc. partnered with Kyndryl Holdings Inc., one of the key IT infrastructure services providers, to help enterprises modernize and scale their corporate networks with managed WAN-as-a-Service and Cloudflare Zero Trust. The partnership combines the expertise of managed networking services provided by Kyndryl with the robust technology platform of Cloudflare to enable enterprises to connect to multiple clouds on a large scale seamlessly.. Key drivers for this market are: Lack of in-house Expertise, Benefit of Extensive Focus on Core Operations; Cost Benefits and ROI Achieved through Managed Services. Potential restraints include: Reluctance Among Medical Professionals to Adopt Advanced Healthcare Tools. Notable trends are: IT and Telecom Sector to be the Largest End User.

The Managed Network Services (MNS) market is experiencing robust growth, driven by the increasing adoption of cloud computing, the rise of hybrid work models, and the escalating need for robust cybersecurity. The market, encompassing solutions like managed LAN, Wi-Fi, WAN, network security, and VPN services, caters primarily to large enterprises and SMEs. While the exact market size for 2025 isn't provided, considering typical growth rates in the IT sector and the rapid adoption of managed services, a reasonable estimate would place the 2025 market size at approximately $150 billion USD. Assuming a conservative Compound Annual Growth Rate (CAGR) of 8% (a figure reflective of the steady but significant growth in this sector), the market is projected to reach approximately $250 billion USD by 2033. This growth is fueled by the demand for improved network efficiency, reduced IT operational costs, enhanced security, and the ability to scale network infrastructure flexibly to meet evolving business needs. Key trends shaping the MNS market include the increasing adoption of Software-Defined Networking (SDN), Network Function Virtualization (NFV), and the integration of Artificial Intelligence (AI) for improved network management and automation. The market faces certain restraints, including concerns about vendor lock-in, the complexity of integrating different managed services, and the potential for security breaches despite increased security measures. However, the overall positive trajectory indicates significant opportunities for existing and emerging players in the MNS space. The market segmentation highlights a strong demand across all regions, with North America and Europe currently holding the largest market share. This distribution is expected to shift somewhat as the Asia-Pacific region experiences rapid technological advancement and digital transformation initiatives, indicating a substantial growth potential in this area over the forecast period.

The Managed Services Market report segments the industry into Deployment (On-premise, Cloud), Type (Managed Data Center, Managed Security, Managed Communications, Managed Network, Managed Infrastructure, Managed Mobility), Enterprise Size (Small and Medium Enterprises, Large Enterprises), End-user Vertical (BFSI, and more), and Geography (North America, Europe, Asia-Pacific, Latin America, Middle East and Africa).

IT Infrastructure Managed Services Market Outlook

The global IT Infrastructure Managed Services market size was valued at approximately USD 230 billion in 2023 and is expected to reach USD 450 billion by 2032, growing at a CAGR of 7.2% during the forecast period. This growth is driven by the increasing need for efficient and secure IT operations across various industries, coupled with the rising complexity of IT environments.

A significant growth factor in the IT Infrastructure Managed Services market is the rapid digital transformation being undertaken by enterprises globally. Organizations across various sectors are increasingly relying on advanced IT services to enhance operational efficiency, reduce costs, and gain a competitive edge. This transformation is further accelerated by the adoption of cloud computing, IoT, and big data analytics, which necessitate robust IT infrastructure management to ensure seamless and secure operations.

Another factor contributing to the market's growth is the escalating need for cybersecurity. As cyber threats become more sophisticated and frequent, organizations are prioritizing the implementation of comprehensive security measures. Managed security services offer continuous monitoring, threat detection, and incident response, helping organizations safeguard their data and IT infrastructure. This emphasis on cybersecurity is particularly pronounced in sectors such as BFSI, healthcare, and government, where data sensitivity is paramount.

Cost optimization is also a crucial driver for the market. By outsourcing IT infrastructure management to specialized service providers, organizations can significantly reduce their IT expenditure. Managed services allow businesses to avoid the high costs associated with in-house IT teams, infrastructure, and maintenance. This financial advantage is particularly appealing to small and medium enterprises (SMEs), which often operate with limited budgets and resources. As a result, the demand for managed services is surging among SMEs, contributing to overall market growth.

Regional outlook for the IT Infrastructure Managed Services market shows strong growth across multiple geographies. North America holds a significant share of the market, driven by the presence of numerous technology giants and advanced IT infrastructure. The Asia Pacific region is witnessing rapid growth, fueled by increasing digital initiatives and the expanding IT sector in countries like China and India. Europe also presents substantial opportunities, with many organizations focusing on digital transformation and data protection regulations. Latin America and the Middle East & Africa regions are gradually adopting these services, supported by growing IT investments and economic development.

Service Type Analysis

Network Management

Network management is a critical segment within the IT Infrastructure Managed Services market. It encompasses a range of activities, including network monitoring, maintenance, and troubleshooting, essential for ensuring network reliability and performance. Organizations increasingly rely on managed network services to handle the complexities of modern network infrastructures, which include hybrid and multi-cloud environments. The demand for network management services is driven by the need for uninterrupted connectivity, which is vital for business continuity and operational efficiency.

Another key driver for the network management segment is the proliferation of IoT devices. As organizations integrate IoT into their operations, managing the resultant network traffic becomes increasingly challenging. Managed network services provide the necessary expertise and tools to handle these complexities, ensuring seamless communication between devices and systems. Additionally, the rise of remote work and the need for secure, reliable VPN connections further bolster the demand for network management services.

Security concerns also play a significant role in the growth of the network management segment. Managed service providers offer advanced security solutions, such as firewalls, intrusion detection systems, and endpoint protection, to safeguard networks against cyber threats. This comprehensive approach to network security is crucial for industries like BFSI and healthcare, where data breaches can have severe consequences. The adoption of managed network services helps organizations stay ahead of potential threats and ensures regulatory compliance.

Moreover, the increa

The global managed services market was valued at over *** billion U.S. dollars in 2024. Overall, the global managed services market is expected to exceed *** billion U.S. dollars in 2028. What is managed services? The managed services market is primarily concerned with the outsourcing of certain computing and IT related processes such as cloud computing, IT infrastructure, and managed IT security. The market is dominated by large tech companies such as IBM, Accenture, Cognizant, and Capgemini, who provide managed computing services to client companies of all sizes around the world. What managed services products are popular? As of 2024, the most popular managed services were security and business apps in both Europe and North America. These services provide clients with the benefits of large IT infrastructure without the need for large amounts of in-house hardware. Further, managed services for cloud, container technology, big data, and internet of things (IoT) platforms are expected to hold much potential for managed service providers in the future. This is because these technologies are increasingly adopted and deployed by organizations around the world to benefit their overall digital transformation strategy.

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IoT Managed Services Market Size 2025-2029

The iot managed services market size is forecast to increase by USD 538.5 billion, at a CAGR of 33.1% between 2024 and 2029.

The Internet of Things (IoT) Managed Services Market is experiencing significant growth, driven by the increased adoption of IoT solutions across various industries. Companies are recognizing the potential of IoT to optimize operations, enhance productivity, and improve customer experiences. One key application area is predictive maintenance in manufacturing, where IoT data is leveraged to anticipate equipment failures and schedule maintenance proactively. However, the market also faces challenges. Despite the numerous benefits, there is a lack of awareness regarding efficient management of IoT initiatives and investments. Companies need to address this issue to ensure they maximize the value of their IoT projects. Additionally, managing the complexities of IoT deployments, including security concerns and data integration, presents significant challenges that must be addressed to ensure successful implementation and adoption. Companies seeking to capitalize on the opportunities in the market must focus on addressing these challenges and providing comprehensive, end-to-end solutions that simplify IoT management and deliver measurable business value.

What will be the Size of the IoT Managed Services Market during the forecast period?

Explore in-depth regional segment analysis with market size data - historical 2019-2023 and forecasts 2025-2029 - in the full report.
Request Free SampleThe Internet of Things (IoT) managed services market continues to evolve, driven by the increasing adoption of IoT devices and the need for efficient data management and analysis. Cloud connectivity plays a crucial role in enabling seamless integration of these devices, while data governance ensures compliance with industry regulations and standards. AI-powered analytics and machine learning algorithms are transforming the way data is processed and insights are derived, leading to improved operational efficiency and enhanced decision-making capabilities. Sensor integration and real-time tracking are essential for various sectors, including manufacturing, healthcare, and transportation. Network security and access control are paramount in safeguarding IoT systems against cyber threats. Technical documentation and support services are essential for ensuring smooth deployment and management of IoT solutions. Edge computing and big data are also gaining traction, enabling faster processing of data at the source and reducing latency. Deployment models, including public, private, and hybrid cloud, offer flexibility and scalability to businesses. IoT platforms are providing integrated solutions for device management, data analytics, and network infrastructure management. Cellular networks and wireless communication are enabling remote monitoring and management of IoT devices. Ongoing developments in IoT technologies include advancements in sensor integration, system integration, and managed services pricing models. Industry regulations continue to evolve, requiring ongoing training programs and adherence to compliance standards. Data encryption, data visualization, and deep learning are also emerging trends in the IoT landscape. In the constantly evolving IoT market, businesses must stay abreast of the latest trends and technologies to remain competitive. IoT managed services providers are offering comprehensive solutions, including network security, device management, and technical support, to help businesses navigate the complexities of IoT deployments. The integration of APIs into IoT systems is ensuring seamless data flow and enabling real-time insights, further enhancing the value of IoT solutions.

How is this IoT Managed Services Industry segmented?

The iot managed services industry research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in 'USD billion' for the period 2025-2029, as well as historical data from 2019-2023 for the following segments. TypeNetwork management servicesSecurity management servicesInfrastructure management servicesData management servicesDevice management servicesDeploymentOn-premisesCloudSectorSMEsLarge enterprisesEnd-userHealthcareManufacturingBFSIRetailOthersGeographyNorth AmericaUSCanadaEuropeFranceGermanyItalyUKAPACChinaIndiaJapanSouth KoreaRest of World (ROW)

By Type Insights

The network management services segment is estimated to witness significant growth during the forecast period.The Internet of Things (IoT) managed services market is experiencing steady growth, driven by the increasing adoption of IoT devices and the need for effective data governance, cloud connectivity, and AI-powered analytics. Compliance with industry regulations and robust training programs are essential for businesses implemen

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Cloud Managed Services Market Size 2024-2028

The cloud managed services market size is forecast to increase by USD 41.5 billion at a CAGR of 8.5% between 2023 and 2028.

The market is experiencing significant growth, driven primarily by the increasing adoption of cloud computing services and the implementation of Bring Your Own Device (BYOD) policies in businesses. The flexibility and cost savings offered by cloud solutions have led to their widespread adoption, particularly in sectors such as healthcare, finance, and education. However, this market is not without challenges. Data privacy and security risks associated with cloud-based services continue to be a major concern for organizations. The input data highlights that data breaches, cyber security and cyber-attacks are becoming more frequent and sophisticated, making it crucial for companies to implement robust security measures to protect their sensitive information.
Despite these challenges, opportunities abound for businesses that can effectively address these concerns and provide reliable, secure cloud managed services to their clients. Companies seeking to capitalize on this market's growth should focus on offering advanced security features, such as encryption, multi-factor authentication, and access control, to mitigate the risks associated with cloud adoption. Additionally, providing customized solutions and exceptional customer service can help differentiate businesses in this competitive landscape.

What will be the Size of the Cloud Managed Services Market during the forecast period?

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The market continues to evolve, driven by the increasing adoption of cloud computing across various sectors. Cloud computing's agility and flexibility have made it a preferred choice for businesses seeking to optimize costs, ensure business continuity, and enhance security. Cloud managed services encompass a range of offerings, including cloud migration, backup, security compliance, software management, and storage. Cloud security, a critical component of these services, is an ongoing concern as threats evolve. Cloud threat intelligence, security analytics, and monitoring are essential to mitigate risks. Compliance with security standards and regulations is paramount, with ongoing auditing and testing ensuring adherence.
Cost optimization remains a key driver, with cloud security orchestration and automation streamlining processes and reducing overheads. Cloud governance frameworks provide the necessary guidelines for effective management and ensure adherence to best practices. Agile development and continuous integration are increasingly being adopted, requiring robust cloud security solutions. The data center plays a crucial role in cloud managed services, providing the infrastructure for seamless integration and efficient delivery of services. The market's dynamics continue to unfold, with new trends and patterns emerging as businesses navigate the complex cloud landscape.

How is this Cloud Managed Services Industry segmented?

The cloud managed services industry research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in 'USD billion' for the period 2024-2028, as well as historical data from 2018-2022 for the following segments.

End-user

  Large enterprise
  Small and medium enterprise


Service Type

  Managed Security Services
  Managed Network Services
  Managed Infrastructure Services
  Managed Business Services


Deployment Type

  Public Cloud
  Private Cloud
  Hybrid Cloud


Technology

  AI & Automation
  Cloud-Native
  IoT Integration


Geography

  North America

    US
    Canada
    Mexico


  Europe

    France
    Germany
    Italy
    Spain
    UK


  Middle East and Africa

    UAE


  APAC

    China
    India
    Japan
    South Korea


  South America

    Brazil


  Rest of World (ROW)

By End-user Insights

The large enterprise segment is estimated to witness significant growth during the forecast period.

The market is witnessing significant growth as businesses increasingly adopt cloud computing solutions for their managed IT infrastructure. Cloud threat intelligence, a crucial aspect of cloud security, is becoming essential for businesses to protect their data from cyber threats. Cloud migration, a key driver of the market, is being facilitated by cloud computing's flexibility and cost savings. However, ensuring cloud security compliance with various regulations and standards is a major challenge. Cloud management, including business continuity, cost optimization, disaster recovery, and agile development, is a critical component of cloud services. Cloud security analytics, forensics, awareness, training, and orchestration are vital for effective threat detection and response.

Cloud security testing, auditing, governance, frameworks, and monitoring are

The global Managed Services Market, valued at $2559.81 million in 2025, is projected to experience robust growth, driven by the increasing adoption of cloud computing, the rising need for IT infrastructure optimization, and the escalating demand for cybersecurity solutions. Businesses across various sectors are increasingly outsourcing IT management tasks to specialized providers, seeking to reduce operational costs, improve efficiency, and focus on core competencies. The market's growth is further fueled by the expanding digital transformation initiatives undertaken by organizations globally, necessitating sophisticated managed services to support complex IT ecosystems. Significant growth is expected in segments like Managed Network Services (MNS) and Managed Security Services (MSS), reflecting the paramount importance of robust network infrastructure and cybersecurity in today's interconnected world. Geographically, North America and Europe currently hold substantial market shares, driven by mature IT infrastructure and high adoption rates of advanced technologies. However, Asia-Pacific is poised for significant growth in the coming years, fueled by rapid economic development and increasing digitalization across emerging economies. Competition in the market is intense, with major players employing various strategies including strategic partnerships, acquisitions, and technological innovation to maintain a competitive edge. The market is characterized by a diverse range of service providers, catering to the varied needs of diverse customer segments. The forecast period (2025-2033) anticipates sustained market expansion, with a Compound Annual Growth Rate (CAGR) of 6.51%. This growth will be influenced by several factors, including the increasing prevalence of hybrid and multi-cloud environments, the growing adoption of Artificial Intelligence (AI) and Machine Learning (ML) in IT management, and the continued rise of Software-as-a-Service (SaaS) models. However, challenges remain, including the complexities of managing diverse IT environments, potential security vulnerabilities associated with outsourcing, and the need for skilled professionals to deliver and support these services effectively. Successfully navigating these challenges will be crucial for market participants to capitalize on the significant growth opportunities presented by this dynamic sector.

The Europe Cloud Managed Networking Market size was valued at USD 839.5 USD million in 2023 and is projected to reach USD 2754.54 USD million by 2032, exhibiting a CAGR of 18.5 % during the forecast period. Cloud-managed networking is the technique of handling an organisation's PC network remotely the usage of a cloud platform. It includes 3 types hardware, software program, and cloud offerings. It may be deployed within the public cloud and private cloud. It is relevant in various industries like telecom and IT, retail, media and amusement, educational institutions, and many others. It contains characteristics including simplified deployment, automatic updates, and real-time insight into network performance. Thus, the system is allowed to standardize operations and increase performance. Market forces driving markets forward include advanced security and growing demand for improved network safety. In order to enlarge the market, it is crucial for the European governments to have their digitalization strategies. Key drivers for this market are: Increasing Adoption of Cloud-based Managed Services to Drive Market Growth. Potential restraints include: Complexities Associated with Network Automation to Impede the Market Growth . Notable trends are: Growing Implementation of Touch-based and Voice-based Infotainment Systems to Increase Adoption of Intelligent Cars.

Public Cloud Managed Services Market Outlook

The global market size for Public Cloud Managed Services was valued at approximately USD 40 billion in 2023 and is projected to reach around USD 90 billion by 2032, growing at a compound annual growth rate (CAGR) of 9.5% during the forecast period. The surge in this market is driven by the increasing need for scalability, cost-efficiency, and enhanced security in cloud infrastructure. Enterprises across various sectors are adopting public cloud managed services to streamline their operations, enhance agility, and reduce IT overheads.

One of the primary growth factors for the public cloud managed services market is the increasing shift toward digital transformation. Organizations are leveraging cloud technologies to enhance business processes, improve customer experiences, and gain competitive advantages. This shift is resulting in a growing demand for managed services that can maintain and optimize these cloud environments. Managed services providers (MSPs) offer a range of services, from infrastructure management to security and compliance, enabling enterprises to focus on their core competencies while ensuring their cloud environments are secure and efficient.

Another significant growth factor is the rising adoption of hybrid cloud environments. Many organizations are opting for hybrid cloud solutions, which combine public and private cloud resources, to meet their diverse computing needs. This hybrid approach provides the flexibility to run workloads in the most appropriate environment, whether on-premises or in the cloud. Managed services play a crucial role in managing these complex hybrid environments, ensuring seamless integration, data security, and compliance. This trend is expected to drive the demand for public cloud managed services in the coming years.

Furthermore, the increasing focus on cybersecurity and regulatory compliance is propelling the growth of the public cloud managed services market. With the rise in cyber threats and stringent regulatory requirements, organizations are seeking managed security services to protect their data and ensure compliance with industry standards. Managed security services providers offer a range of solutions, including threat detection, incident response, and vulnerability management, helping organizations safeguard their cloud environments against evolving threats.

From a regional perspective, North America dominates the public cloud managed services market, owing to the presence of major cloud service providers and a high adoption rate of advanced technologies. The region is expected to maintain its dominance throughout the forecast period, driven by continuous investments in cloud infrastructure and the growing demand for managed services. Europe and Asia Pacific are also witnessing significant growth, with enterprises in these regions increasingly adopting cloud technologies to drive digital transformation and improve operational efficiency.

Service Type Analysis

The public cloud managed services market is segmented by service type, including Managed Infrastructure Services, Managed Network Services, Managed Security Services, Managed Data Center Services, Managed Communication and Collaboration Services, and Others. Managed Infrastructure Services are among the most demanded as they provide critical support for cloud-based infrastructure. These services include monitoring, maintenance, and optimization of cloud resources, ensuring that organizations have reliable and efficient cloud environments. By outsourcing infrastructure management, companies can focus on innovation and strategic initiatives, driving their business forward.

Managed Network Services are another crucial segment in the public cloud managed services market. As organizations increasingly rely on cloud-based applications and services, the need for robust and secure network connections becomes paramount. Managed Network Services providers offer solutions such as network monitoring, performance optimization, and security management, ensuring that organizations can maintain high-performance and secure network connections. This is particularly important for businesses with geographically dispersed operations that require seamless and reliable connectivity.

Managed Security Services represent a rapidly growing segment within the public cloud managed services market. With the rising number of cyber threats and data breaches, organizations are prioritizing cybersecurity to protect their critical assets. Managed Security Services providers offer a comprehensive rang