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.

Managed Services Market is Segmented by Deployment (On-Premises, Cloud), Service Type (Managed Data Center, Managed Security, Managed Communications, and More), Enterprise Size (Small and Medium Enterprises, Large Enterprises), End-User Vertical (BFSI, IT and Telecommunication, Manufacturing, and More), and by Geography. The Market Forecasts are Provided in Terms of Value (USD).

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

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 Demand for IT Cost Optimization

Organizations are increasingly turning to Managed Service Providers (MSPs) to outsource IT services, aiming to lower operational expenses, enhance IT infrastructure efficiency, and gain access to expert assistance without the need to expand internal teams. This model of cost-effectiveness allows businesses to concentrate on their primary activities while ensuring dependable and secure IT environments, thereby propelling substantial market growth for managed services.

Escalating Complexity in IT Infrastructure

As companies embrace hybrid cloud solutions, Internet of Things (IoT), and artificial intelligence (AI) technologies, the management of varied IT environments becomes increasingly intricate. MSPs provide scalable, 24/7 support for cybersecurity, network oversight, data management, and regulatory compliance. The growing need for specialized management of dynamic IT infrastructures is significantly driving the global expansion of the MSP market.

Restraint Factor for the Managed Service Provider Market

Concerns Regarding Data Security and Privacy

Outsourcing IT services to Managed Service Providers (MSPs) raises significant concerns about the control of sensitive corporate data. Issues such as data breaches, compliance risks, and vulnerabilities associated with third parties may discourage certain companies from utilizing managed services. Particularly in regulated sectors, fears surrounding data sovereignty and security could hinder market expansion unless MSPs commit to transparent and compliant practices.

High Dependence and Vendor Lock-In Challenges

A prolonged dependence on a particular MSP can result in vendor lock-in, making it expensive and complicated to switch providers. Organizations may struggle to adapt or regain control over their IT operations if the quality of service deteriorates. This inflexibility and associated risks can prevent businesses from fully adopting MSP models.

Key Trends for the Managed Service Provider Market

Transition to Cloud-Based Managed Services

Organizations are progressively embracing cloud-based managed services to enhance agility, scalability, and remote access. MSPs are now offering services related to cloud migration, management, and security. This transition is particularly evident among small to medium-sized businesses (SMBs) and larger enterprises undergoing digital transformation, which is driving the demand for cloud-focused managed service solutions.

Incorporation of AI and Automation in Service Delivery

MSPs are utilizing artificial intelligence (AI) and automation to improve service efficiency, decrease response times, and provide predictive maintenance. Innovations such as automated ticketing systems and AI-driven security monitoring enable MSPs to offer smarter, more proactive support. This trend is reshaping MSP capabilities and granting competitive advantages in a saturated market.

The COVID-19 pandemic had an immense effect on the managed ...

The global managed services market size crossed USD 380.33 billion in 2025 and is likely to register a CAGR of over 12.8% between 2026 and 2035, attributed to rising cybersecurity concerns.

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

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.

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 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).

Managed Services Market Outlook

According to our latest research, the global managed services market size reached USD 309.4 billion in 2024, driven by the escalating demand for efficient IT operations and cost-effective business solutions across diverse industries. The market is projected to expand at a robust CAGR of 12.2% from 2025 to 2033, reaching a forecasted value of USD 791.3 billion by 2033. This impressive growth is primarily fueled by rapid digital transformation, increasing adoption of cloud-based technologies, and the pressing need for enhanced cybersecurity frameworks among enterprises worldwide.

One of the primary growth factors propelling the managed services market is the increasing complexity of IT environments. Organizations are rapidly adopting advanced technologies such as artificial intelligence, Internet of Things (IoT), and big data analytics to remain competitive. However, managing these technologies in-house often requires specialized expertise and substantial financial investment, which can be challenging for many enterprises, particularly small and medium-sized businesses. Managed service providers (MSPs) offer a compelling solution by delivering expert support, proactive monitoring, and end-to-end management of IT infrastructure, enabling organizations to focus on their core competencies while optimizing operational efficiency and reducing costs.

Another significant driver is the growing threat landscape associated with cybersecurity. As digital transformation accelerates, businesses are increasingly exposed to sophisticated cyberattacks, data breaches, and regulatory compliance challenges. Managed security services have become a critical component of the overall managed services portfolio, providing organizations with advanced threat detection, incident response, and continuous security monitoring. The evolving regulatory environment, with stringent data protection laws such as GDPR and CCPA, further compels organizations to rely on managed services for maintaining compliance and safeguarding sensitive information. This heightened focus on security is expected to sustain robust demand for managed services across all sectors.

Additionally, the ongoing shift towards cloud computing and remote work models has amplified the need for managed services. Enterprises are leveraging cloud-based solutions to achieve greater scalability, flexibility, and business continuity. However, migrating to and managing cloud environments presents unique challenges related to integration, security, and performance optimization. MSPs play a pivotal role in facilitating seamless cloud adoption, offering tailored services such as cloud infrastructure management, migration support, and disaster recovery. The proliferation of hybrid and multi-cloud strategies, combined with the rise of distributed workforces, is anticipated to further accelerate the adoption of managed services in the coming years.

From a regional perspective, North America continues to dominate the managed services market, accounting for the largest revenue share in 2024. This leadership is attributed to the high concentration of technology-driven enterprises, early adoption of advanced IT solutions, and a mature managed services ecosystem in the region. Meanwhile, Asia Pacific is emerging as the fastest-growing market, propelled by rapid industrialization, expanding digital infrastructure, and increasing IT outsourcing activities in countries such as China, India, and Japan. Europe also demonstrates significant growth potential, supported by strong regulatory frameworks and a robust demand for managed security and compliance services. Latin America and the Middle East & Africa are witnessing steady growth, driven by rising investments in digital transformation and the growing presence of global managed service providers.

Service Type Analysis

The managed services market is segmented by service type into network management, data center and IT infrastructure management, security services, communication and collaboration services, mobility services, and ot

Snapshot img

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,

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).

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 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).

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.

A dataset containing statistics on the Managed Service Provider (MSP) industry in the USA, covering market size, adoption rates, competitive landscape, growth drivers, and client acquisition strategies.

Managed Services Market size was valued at USD 302.00 Billion in 2024 and is projected to reach USD 593.63 Billion by 2031, at a CAGR of 10.14% from 2024 to 2031.

Global Managed Services Market Overview

The increasing complexity of IT environments has become a significant driver fueling the growth of the global managed services market, particularly as organizations across various industries adopt a wide range of technologies to support their operations. According to industry statistics, the average number of technology solutions used by organizations has been steadily increasing over the years. Furthermore, the rising cybersecurity threats pose a significant challenge to organizations worldwide, driving a heightened focus on investments in cybersecurity measures. Industry statistics underscore the severity of this challenge, with cyberattacks becoming increasingly frequent and sophisticated.

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 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).

Snapshot img

Saudi Arabia Managed Services Market Size 2025-2029

The saudi arabia managed services market size is forecast to increase by USD 1.05 billion at a CAGR of 6.8% between 2024 and 2029.

Market Size & Forecast

Market Opportunities: USD 67.36 billion
Market Future Opportunities: USD USD 1.05 billion 
CAGR : 6.8%

Market Summary

Managed services in Saudi Arabia have seen significant growth, particularly in sectors such as banking, financial services, and insurance (BFSI), and retail. According to market research, the adoption of managed services in these industries is on the rise, with cloud-based solutions leading the charge. This shift can be attributed to the benefits offered by managed services, including cost savings, increased efficiency, and improved security. Data protection and privacy concerns have become increasingly important for businesses in Saudi Arabia, leading to a growing demand for managed services that can address these issues. The market is expected to continue expanding, driven by the need for businesses to focus on their core competencies while outsourcing non-core functions to specialized service providers. Despite this trend, it is essential to note that the specific numerical data on the market size and growth rate are not publicly available. However, the market's potential is evident, with numerous businesses recognizing the value of managed services in enhancing their operational capabilities and driving growth.

What will be the size of the Saudi Arabia Managed Services Market during the forecast period?

Explore in-depth regional segment analysis with market size data with forecasts 2025-2029 - in the full report.
Request Free Sample The market continues to expand, with IT spending projected to reach USD11.5 billion by 2023, up from USD8.3 billion in 2018. Two key areas driving this growth are IT operations management and security services. IT operations management encompasses ITIL processes, systems administration, service desk automation, and proactive monitoring. In 2020, IT operations management accounted for approximately 55% of the managed services market share. In contrast, managed security solutions, including security audits, penetration testing, vulnerability management, and compliance requirements, accounted for around 45%. As businesses in Saudi Arabia increasingly adopt cloud infrastructure management, cloud migration services, and hybrid cloud solutions, the demand for managed services in these areas is also expected to rise. Cost management, contract negotiations, and company management are additional areas of focus for managed service providers in this market. With the need for continuous improvement, technical expertise, and customer support, businesses in Saudi Arabia are turning to managed services to optimize their IT operations and mitigate risks.

How is this Saudi Arabia Managed Services Market segmented?

The saudi arabia managed services market market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in 'USD million' for the period 2025-2029,for the following segments. TypeMDSMNSMSSMMSOthersDeploymentCloudOn premisesEnd-userGovernmentFinancial servicesHealthcareOil and gasOthersGeography

By Type Insights

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

Managed Services in Saudi Arabia encompass a range of offerings, including cybersecurity consulting, remote monitoring, uptime guarantees, service catalog management, and IT service management. These services are essential for businesses seeking to maintain optimal IT infrastructure and enhance operational efficiency. Cybersecurity consulting plays a vital role in protecting against evolving digital threats. Remote monitoring ensures constant surveillance, while uptime guarantees provide businesses with peace of mind. Service catalog management and ITIL framework implementation streamline service delivery and improve compliance with SLAs. Business continuity planning, automation tools, and cloud service providers are crucial for disaster recovery and ensuring uninterrupted operations. IT asset management, help desk support, and virtualization technologies optimize IT infrastructure and reduce costs. Monitoring dashboards and remote infrastructure management offer real-time insights into performance metrics, enabling proactive issue resolution. Technical support, disaster recovery services, incident management, systems integration services, and IT consulting services address various IT needs. Change management, ITSM software, IT infrastructure management, problem management, and data center outsourcing ensure seamless IT transitions and ongoing improvements. According to recent studies, the adoption of managed services in Saudi Arabia has increased by 18%, with 30% of businesses planning to invest in these servi