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).

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 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.

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.

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 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

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.

Country-wise Insights

Category-wise Insights

Managed Services Market Reached USD 217.8 billion in 2022 and will Grow at a CAGR of 12.5% till 2030 and is projected to reach USD 558.8 billion in 2030.

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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 U.S. managed services market size was valued at USD 69.9 Billion in 2024. Looking forward, IMARC Group estimates the market to reach USD 171.7 Billion by 2033, exhibiting a CAGR of 10.5% from 2025-2033. The market is primarily driven by the considerable rise in the number of remote workers requiring secure IT infrastructure, the growing adoption of AI for efficiency and cybersecurity, and the increasing utilization of industry-specific services tailored to meet challenges in various end-use sectors such as retail, healthcare, and logistics.

IMARC Group provides an analysis of the key trends in each segment of the U.S. managed services market, along with forecasts at the country and regional levels from 2025-2033. The market has been categorized based on type, deployment mode, enterprise size, and end use.

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 global managed services market size exceeded USD 341.08 billion in 2024 and is projected to expand at a CAGR of more than 13.5%, crossing USD 1.77 trillion by 2037. The on-premise deployment segment is forecasted to secure a 67.6% share, attributed to the need for data security, compliance, and control in regulated industries.

Global IT Managed Services market size is expected to reach $436.27 billion by 2029 at 9.4%, segmented as by cloud-based, public cloud, private cloud, hybrid cloud

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

Cloud Managed Services Market is Segmented by Service Type (Managed Infrastructure Services, Managed Network Services, and More), Deployment Type (Public Cloud, Private Cloud, Hybrid Cloud), Enterprise Size (Large Enterprise and SMEs), End User Industry (BFSI, IT and Telecom, Retail and E-Commerce, and More), and by Geography. The Market Forecasts are Provided in Terms of Value (USD).

Global Managed Services market size is expected to reach $520.79 billion by 2029 at 13.8%, segmented as by service type, managed security services, managed network services, managed data center and it infrastructure services

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 global Cloud Managed Services is expected to grow from USD 524.28 billion by 2034 at a CAGR of 14.6% from 2025 to 2034.

Global Cloud Managed Services market size is expected to reach $178.45 billion by 2029 at 14.1%, surging growth in the cloud-managed services market fueled by widespread adoption of cloud technology across enterprises

Global Managed Services Market size was USD 239.56 billion in 2022 and is reach USD 413.79 billion between 2023- 2030 with a CAGR of 7.21%.