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.

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).

According to Cognitive Market Research, the global managed service provider market size will be USD 301514.2 million in 2024. It will expand at a compound annual growth rate (CAGR) of 14.20% from 2024 to 2031.

North America held the major market share for more than 40% of the global revenue with a market size of USD 120605.68 million in 2024 and will grow at a compound annual growth rate (CAGR) of 12.4% from 2024 to 2031.
Europe accounted for a market share of over 30% of the global revenue with a market size of USD 90454.26 million.
Asia Pacific held a market share of around 23% of the global revenue with a market size of USD 69348.27 million in 2024 and will grow at a compound annual growth rate (CAGR) of 16.2% from 2024 to 2031.
Latin America had a market share of more than 5% of the global revenue with a market size of USD 15075.71 million in 2024 and will grow at a compound annual growth rate (CAGR) of 13.6% from 2024 to 2031.
Middle East and Africa had a market share of around 2% of the global revenue and was estimated at a market size of USD 6030.28 million in 2024 and will grow at a compound annual growth rate (CAGR) of 13.9% from 2024 to 2031.
The managed IT infrastructure & data center typically holds the largest market share of the managed service providers industry.

Market Dynamics of Managed Service Provider Market

Key Drivers for Managed Service Provider Market

Growing Need for Cybersecurity and Data Protection Drives Market Growth

The increasing demand for cybersecurity and data protection is driving significant market growth, mainly in the application of managed service providers (MSPs). As businesses rely more on digital infrastructure, they face increased risks from cyberattacks, data breaches, and regulatory compliance challenges. Managed service providers offer specialized cybersecurity services such as threat detection, incident response, and data protection solutions, allowing businesses to manage their security demands better. This outsourcing enables businesses to focus on core operations while maintaining comprehensive security. Furthermore, managed service providers' capacity to expand services and provide continuous surveillance makes them an appealing alternative for organizations of all sizes in a changing threat circumstance. For instance, Produce8, a leading work analytics software vendor, launched its new MSP Partner Program in June 2024 to enable MSPs to provide clients with Produce8’s advanced work analytics tools. This initiative aimed to enhance productivity, optimize operations, and improve employee experiences through detailed insights and analytics for data-driven decision-making.

Increasing Adoption of IoT and Big Data Analytics Fuels Market Growth

The managed service provider (MSP) market is expanding significantly due to the growing adoption of IoT and big data analytics. As companies connect IoT devices, the volume of data generated increases, and advanced analytics tools are required to extract relevant insights. Managed service providers offer full data management services, including seamless connectivity, security, and real-time monitoring. Furthermore, considering the complicated nature of big data analytics, many businesses rely on managed service providers to handle infrastructure, maintenance, and optimization. Managed service providers assist organizations in scaling operations, decreasing expenses, and improving decision-making by utilizing cloud-based solutions, which fuels market growth in a wide range of industries.

Restraint Factor for the Managed Service Provider Market

Dependence on Third-Party Providers For Certain Services Hampers Market Growth

Managed service providers (MSPs) might find it challenging to extend their offerings if they depend on outside service providers offering certain services. Relying on third-party vendors for critical components such as cloud infrastructure, software solutions, or cybersecurity technologies can pose concerns such as vendor lock-in, service disruptions, and restricted flexibility. Managed service providers may struggle to differentiate their services or maintain competitive pricing due to the costs associated with third-party dependence. Furthermore, third-party suppliers may have different objectives or service level agreements, resulting in delays or quality issues that can harm managed service providers' customer relationships. These obstacles li...

Worldwide revenue from managed services is estimated at US$ 302.11 billion in 2024. The global managed services market is forecasted to expand at 7.3% CAGR and climb to a size of US$ 611.17 billion by the end of 2034.

Report Attributes	Details
Managed Services Market Size (2024E)	US$ 302.11 Billion
Forecasted Market Value (2034F)	US$ 611.17 Billion
Global Market Growth Rate (2024 to 2034)	7.3% CAGR
North America Market Value (2024E)	US$ 99.7 Billion
East Asia Market Growth Rate (2024 to 2034)	8.4% CAGR
Cloud-Based Segment Value (2034F)	US$ 397.26 Billion
Managed Data Center & IT Infrastructure Services Segment Value (2034F)	US$ 244.47 Billion
Key Companies Profiled	IBM; Fujitsu; Accenture; Atos; Cisco Systems, Inc.; Lenovo; BMC Software, Inc.; Atera Networks Ltd.; DXC Technology Company; HCL Technologies Limited; Cloud5 Communications; Wipro Limited

Country-wise Insights

Attribute	United States
Market Value (2024E)	US$ 44.36 Billion
Growth Rate (2024 to 2034)	7.1% CAGR
Projected Value (2034F)	US$ 87.79 Billion

Attribute	Japan
Market Value (2024E)	US$ 20.52 Billion
Growth Rate (2024 to 2034)	8.6% CAGR
Projected Value (2034F)	US$ 46.72 Billion

Category-wise Insights

Attribute	Cloud-Based
Segment Value (2024E)	US$ 181.27 Billion
Growth Rate (2024 to 2034)	8.2% CAGR
Projected Value (2034F)	US$ 397.26 Billion

Attribute	Managed Data Centers & IT Infrastructure Services
Segment Value (2024E)	US$ 126.89 Billion
Growth Rate (2024 to 2034)	6.8% CAGR
Projected Value (2034F)	US$ 244.47 Billion

Get key insights from Market Research Intellect's Managed Service Provider (MSP) Market Report, valued at USD 300 billion in 2024, and forecast to grow to USD 600 billion by 2033, with a CAGR of 8.7% (2026-2033).

US Managed Services Market is Segmented by Deployment (On-Premise, Cloud), Service Type (Managed Data Center, Managed Security, Managed Communications, and More), by Organization Size (Small and Medium Enterprises, Large Enterprises), End User (BFSI, IT and Telecom, Healthcare, and More). The Market Forecasts are Provided in Terms of Value (USD).

The managed services market size is projected to grow from USD 323.8 billion in the current year to USD 1,026 billion by 2035, representing a CAGR of 11.1%, during the forecast period till 2035

Managed Services Market size was valued at USD 340.0 billion in 2023 and is poised to grow from USD 364.14 billion in 2024 to USD 630.35 billion by 2032, growing at a CAGR of 7.1% during the forecast period (2025-2032).

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Managed Services Market Size 2025-2029

The managed services market size is forecast to increase by USD 217 billion, at a CAGR of 11.3% between 2024 and 2029.

The market is experiencing significant growth, driven by the increasing adoption of Internet of Things (IoT) solutions and the advent of big data and analytics services. Companies are recognizing the value of outsourcing IT management to focus on core business functions, leading to a surge in demand for managed services. However, this market landscape is not without challenges. Data privacy and security risks in cloud-based services continue to pose a significant obstacle, as more businesses move their operations to the cloud. Ensuring the confidentiality, integrity, and availability of sensitive data is a top priority for organizations, necessitating robust security measures and compliance with data protection regulations.
Companies must navigate these challenges to effectively capitalize on the opportunities presented by the market's dynamic landscape. By investing in advanced security solutions and adhering to best practices, businesses can mitigate risks and build trust with their customers, ultimately driving growth and success in this competitive market.

What will be the Size of the 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.
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The market continues to evolve, with dynamic market activities unfolding across various sectors. Entities seek to optimize their IT infrastructure through data governance, endpoint security, incident response, technical support, hybrid cloud, system administration, infrastructure management, service level agreements, performance monitoring, software licensing, big data analytics, and artificial intelligence. These solutions are integrated into comprehensive offerings, ensuring businesses maintain optimal IT performance and security. Data governance strategies enable organizations to manage and protect sensitive information, while endpoint security safeguards against cyber threats. Incident response and technical support provide swift resolution to IT issues, ensuring minimal disruption to business operations. Hybrid cloud solutions offer flexibility and cost savings, allowing businesses to leverage both on-premises and cloud resources.

System administration and infrastructure management ensure IT environments run efficiently, while service level agreements and performance monitoring enable businesses to measure and improve service quality. Software licensing solutions provide cost optimization, while big data analytics and artificial intelligence offer valuable insights for strategic decision-making. Vulnerability assessments and security audits ensure IT environments remain compliant with industry regulations, safeguarding against potential risks. Disaster recovery and business continuity plans ensure uninterrupted operations in the face of unexpected events. IT consulting and outsourcing offer expert guidance and cost savings, enabling businesses to focus on their core competencies. Remote monitoring and customer relationship management enhance IT service delivery, improving customer satisfaction and loyalty.

Cost optimization and resource optimization strategies help businesses maximize their IT investments, while digital transformation initiatives drive innovation and growth. Knowledge management solutions enable effective information sharing and collaboration, fostering a culture of continuous learning and improvement. The IT service management landscape is continually evolving, with new technologies and trends shaping the market. Managed services providers must stay abreast of these developments to deliver value to their clients and remain competitive in the marketplace.

How is this Managed Services Industry segmented?

The 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.

Type

  MDS
  MNS
  MSS
  MMS
  Others


Deployment

  Cloud
  On-premises


Geography

  North America

    US
    Canada


  Europe

    France
    Germany
    Italy
    UK


  APAC

    China
    India
    Japan
    South Korea


  Rest of World (ROW)

By Type Insights

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

The market is witnessing significant growth, particularly in sectors such as IT, banking, financial services and insurance (BFSI), education, healthcare, and retail. The demand for managed services, including capacity planning, hardware maintenance, machine learning, security audits, performance metrics, cybersecurity services, disaster recovery,

The statistic shows the market share of the leading IT professional service and managed service providers worldwide in 2017, based on revenue. IBM held six percent of the global IT professional and managed services market in 2017.

The North America Managed Services Market report segments the industry into By Deployment (On-premise, Cloud), By Type (Managed Data Center, Managed Security, Managed Communications, Managed Network, and more), By Enterprise Size (Small Enterprises, Medium Enterprises, Large Enterprises), By End-user Vertical (BFSI, IT and Telecom, Healthcare, and more), and By Country (United States, Canada).

The managed security services market was valued at over 31 billion U.S. dollars in 2021. The managed security services market can be segmented into different deployment types, such as on-premise and cloud, managed security service provider, as well as end-user vertical. Generally, managed security service providers (MSSPs) provide managed security services (MSS) to manage their customers' information technology (IT) infrastructure.

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.

The Managed Service Provider In Europe Market report segments the industry into By Deployment (On-Premise, Cloud), By Type (Managed Data Center, Managed Security, Managed Communications, and more), By Enterprise Size (Small And Medium Enterprises, Large Enterprises), By End-User Vertical (BFSI, Manufacturing, Healthcare, and more), and By Country (United Kingdom, Germany, France, and more).

Global Video Managed Services Market is Segmented by type (Software, Hardware), enterprise size (Large Enterprise, Small & Medium Enterprise), applications (Business to Business, Business to Consumer), and geography (North America, Europe, Asia Pacific, Rest of the World). The market sizes and forecasts are provided in terms of value (USD million) for all the above segments.

The global managed services market size reached USD 304.6 Billion in 2024. Looking forward, IMARC Group expects the market to reach USD 570.8 Billion by 2033, exhibiting a growth rate (CAGR) of 7.2% during 2025-2033. The increasing demand for IT outsourcing solutions, the growing complexities in IT infrastructure management, and the rising need for cost-effective and scalable business solutions are some of the major factors propelling the growth of the market.

Report Attribute	Key Statistics
Base Year	2024
Forecast Years	2025-2033
Historical Years	2019-2024
Market Size in 2024	USD 304.6 Billion
Market Forecast in 2033	USD 570.8 Billion
Market Growth Rate 2025-2033	7.2%

IMARC Group provides an analysis of the key trends in each segment of the market, along with forecasts at the global, regional, and country levels for 2025-2033. Our report has categorized the market based on type, deployment mode, enterprise size, and end use.

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MSP Software Market Size 2025-2029

The MSP software market size is forecast to increase by USD 55.1 million at a CAGR of 16% between 2024 and 2029.

The Managed Service Provider (MSP) software market is experiencing significant growth, driven by the increasing adoption of Internet of Things (IoT) solutions and bring your own device (BYOD) policies in businesses. The proliferation of IoT devices in various industries is creating a wave in demand for MSPs to manage and secure these connected devices, ensuring optimal performance and data protection. Simultaneously, the widespread implementation of BYOD policies is increasing the complexity of IT environments, necessitating MSPs to provide comprehensive management and security services for diverse devices and platforms. However, the market is not without challenges. Data privacy and security risks associated with cloud-based services continue to be a major concern for businesses, particularly those handling sensitive information.
As a result, MSPs must prioritize security measures to mitigate these risks and build trust with their clients. Furthermore, the intense competition in the market necessitates MSPs to differentiate themselves through innovative offerings, exceptional customer service, and competitive pricing. Companies seeking to capitalize on market opportunities and navigate challenges effectively should focus on developing strong partnerships, investing in advanced technologies, and providing customized solutions to cater to the unique needs of their clients.

What will be the Size of the MSP Software Market during the forecast period?

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The Managed Service Provider (MSP) software market exhibits strong growth, driven by the increasing adoption of cloud services, IT transformation, and the digital workplace. Key areas of focus include data governance, knowledge base development, virtual desktop infrastructure, real-time analytics, and data protection. Application monitoring, remote collaboration, and service level reporting are essential for ensuring optimal performance and customer experience. Security remains a top priority, with managed security services, penetration testing, compliance audits, network security, and incident response addressing various threats. IT governance, ITIL framework, and IT service orchestration are crucial for managing complex IT environments.
Additionally, emerging trends such as AI-powered IT operations, proactive monitoring, asset tracking, software upgrades, and software-defined networking contribute to the market's expansion. Cloud strategy, license compliance, and cloud adoption continue to shape the landscape, while big data, business intelligence, and self-service portals offer new opportunities for MSPs to add value. The Internet of Things (IoT) and IT governance further expand the market's scope, ensuring a dynamic and evolving ecosystem.

How is this MSP Software Industry segmented?

The MSP software industry research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in 'USD million' for the period 2025-2029, as well as historical data from 2019-2023 for the following segments.

Deployment

  On-premises
  Cloud-based
  Hybrid
  Others


Type

  Managed data center
  Managed network
  Managed infrastructure
  Managed mobility
  Others


Application

  Telecom and IT
  BFSI
  Retail
  Media and entertainment
  Others


Geography

  North America

    US
    Canada


  Europe

    France
    Germany
    Italy
    UK


  APAC

    China
    India
    Japan


  South America

    Brazil


  Middle East and Africa

By Deployment Insights

The on-premises segment is estimated to witness significant growth during the forecast period. The market is experiencing notable growth, particularly in the on-premises segment. On-premises MSP software offers end-to-end quality control, ensuring higher security compared to SaaS-based managed services. Large client organizations, predominantly in sectors such as BFSI, aerospace and defense, and government, prioritize functionality and are more likely to adopt on-premises solutions due to regulatory requirements. These sectors handle sensitive data, making security a top priority. For instance, government bodies like the Central Intelligence Agency (CIA), Research and Analysis Wing (RAW), and Inter-services Intelligence (ISI) utilize on-premises MSP software to mitigate the risk of cyber threats and terrorism.

In addition to security, on-premises solutions offer customizability, control, and compliance with specific industry regulations. The market dynamics are influenced by factors such as IT budgeting, IT infrastructure management, system updates, vulnerability assessment, firewall management, disaster recovery, and IT support. Companies are also focusing on cost optimization, change management, project manage

Managed Services Software Market size was valued at USD 50 Billion in 2023 and is projected to reach USD 123.80 Billion by 2031, growing at a CAGR of 12% during the forecast period 2024-2031.

Managed Services Software Market: Definition/ Overview

Managed Services Software is a comprehensive suite of tools designed to streamline and automate the operations of Managed Service Providers (MSPs). It provides a centralized platform for managing clients' IT infrastructure, allowing MSPs to deliver and monitor services efficiently.

MSP software typically includes features such as remote monitoring and management (RMM), help desk ticketing, asset management, network management, and security monitoring.

Explore Market Research Intellect's Managed Service Provider Software Market Report, valued at USD 32.0 billion in 2024, with a projected market growth to USD 75.0 billion by 2033, and a CAGR of 10.3% from 2026 to 2033.

The Managed Security Services Market report segments the industry into By Deployment Type (On-premise, Cloud), By Solution Type (Intrusion Detection and Prevention, and more.), By Managed Security Service Provider (IT Service Providers, Managed Security Specialist, and more.), By End-user Industry (BFSI, Government and Defense, and more.), and By Geography (North America, Europe, and more.).