As of 2023, respondents from North America and Europe said that, on average, ** percent of their company's information technology (IT) managed services budgets in 2024 were expected to be allocated to security and hosting services, respectively. In contrast, respondents reported that data analytics will be allocated an average of only *** percent of their companies’ managed services budgets. Information security at the forefront of corporate priorities IT security services can be segmented into multiple categories, including cloud security, data security, and identity access management. Managed security services refer to the tailored IT security services needed by companies everywhere to protect against cyber threats, ensure compliance with regulations, and safeguard their digital assets. Indeed, cybersecurity has been the leading priority for IT technology initiatives among companies worldwide in recent years. Accordingly, the managed security services market was valued at a staggering ** billion U.S. dollars in 2023. Hosting and cloud remain essential to operations A considerable part of the budget for managed services is allocated to cloud services, which encompass hosting, storage/backup, and infrastructure services. Public cloud spending is expected to generate over *** million U.S. dollars by 2024. Companies can choose from several cloud computing deployment options, including private cloud, public cloud, and hybrid cloud. Cloud deployments are defined by the deployment’s physical location and the management and access rights to the infrastructure.

North America Managed Services Market size was valued at USD 96.9 Billion in 2023 and is projected to reach USD 229 Billion by 2031, growing at a CAGR of 12.9% from 2024 to 2031.

North America Managed Services Market Dynamics

The key market dynamics that are shaping the North America managed services market include:

Key Market Drivers Digital Transformation and Cloud Adoption: According to a 2023 study from the United States Bureau of Labor Statistics (BLS), 78% of firms raised their IT expenditure on cloud and digital transformation programs, resulting in an increasing demand for managed services to manage complex cloud infrastructures. The US Department of Commerce revealed that cloud-based service spending increased by 32% year on year in North America.

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

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 statistic shows the annual spending on mergers and acquisitions in the global hosted and managed services industry from 2010 to 2019. In 2018, total spending amounted to **** billion U.S. dollars, a decrease from the previous year.

IT Spending by Online Service and Application Market Outlook

The global IT spending by online service and application market is projected to reach a valuation of approximately USD 1.5 trillion by 2032, growing at a robust CAGR of 8.5% from 2024 to 2032. This growth is largely driven by the increasing digitalization across various sectors and the ever-expanding adoption of cloud services.

One of the primary growth factors for this market is the surge in digital transformation initiatives by enterprises worldwide. As businesses strive to enhance operational efficiencies, cut costs, and provide better customer experiences, they are increasingly investing in advanced IT solutions. Cloud services, in particular, have emerged as a critical enabler of digital transformation, offering scalability, flexibility, and cost-efficiency. Additionally, the proliferation of Internet of Things (IoT), artificial intelligence (AI), and machine learning (ML) technologies is driving further investment in IT infrastructure and services.

The exponential growth in data generation and the need for robust data management and analytics capabilities are also significantly contributing to increased IT spending. Organizations across various sectors are looking to leverage big data analytics to gain insights, improve decision-making, and achieve competitive advantage. Moreover, with data becoming a strategic asset, there is a growing emphasis on cybersecurity measures to protect sensitive information from breaches and cyber threats, further bolstering IT spending.

The rapid expansion of e-commerce, online gaming, social media, and streaming services is another vital growth driver. These online platforms are experiencing unprecedented user engagement and demand, necessitating substantial investments in IT infrastructure to ensure seamless performance, scalability, and security. Furthermore, the COVID-19 pandemic has accelerated the shift towards online services, with businesses and consumers increasingly relying on digital platforms for communication, entertainment, shopping, and more, thereby fuelling IT spending.

Regionally, North America dominates the IT spending by online service and application market, owing to the presence of major technology companies and high adoption rates of advanced technologies. However, the Asia Pacific region is expected to exhibit the highest growth rate during the forecast period, driven by rapid digitalization, government initiatives supporting IT development, and the growing adoption of online services among a large and tech-savvy population.

Service Type Analysis

Within the IT spending by online service and application market, the service type segment is categorized into cloud services, managed services, professional services, and others. Cloud services are anticipated to dominate this segment, reflecting the shift towards cloud-based solutions among enterprises seeking agility and cost-efficiency. The demand for cloud services is expected to surge as organizations continue to migrate their workloads to cloud environments to leverage benefits such as scalability, flexibility, and reduced IT infrastructure costs.

Managed services are also expected to witness substantial growth, driven by the increasing need for specialized IT skills and the desire of organizations to focus on their core competencies while outsourcing IT operations to experts. Managed services providers offer a range of solutions, including IT infrastructure management, network management, and cybersecurity services, which are crucial for maintaining seamless operations and ensuring data security.

Professional services, encompassing consulting, integration, and support services, are projected to grow steadily. Businesses are investing in professional services to effectively implement and manage complex IT projects, ensuring alignment with business objectives and maximizing the return on investment. The growing complexity of IT environments and the rapid pace of technological advancements necessitate continuous support and expertise, further driving the demand for professional services.

Other services within this segment include various auxiliary IT services that support the deployment and operation of online applications. These could range from training and development to custom software solutions tailored to specific business needs. The diverse nature of these services ensures that businesses can find specialized support to address niche requirements, thereby contributing to the overall growth of this segment.<

This statistic shows the expenditure on on-premise application software and application management services worldwide, from 2015 to 2026. In 2018, spending on on-premise application software and application management services is expected to reach *** billion U.S. dollars globally.

As per Cognitive Market Research's latest published report, The Southeast Asia IT Managed Services Market size was $9,908.40 Million in 2016 and it is forecasted to reach $37,415.53 Million by 2030. What are the factors affecting IT Managed Services Market Growth?

Increased Digitalization in Southeast Asian Countries

The increasing use of communication infrastructures in countries of Southeast Asia and the increased facilitates and new services, products and applications has led to an increased demand for the IT managed services, across the world.

The IT-managed services, has the benefit of offering several opportunities for enhanced growth, productivity of several services and industries. The digital transformation is expected to support several industries, and helps in improving the governance, it also improves the quality and coverage of public services, and expand creation of content.

The IT managed services, also enable the small medium enterprises, to benefit from access to global markets and enable consumers to benefit from a greater diversity and choice of products and lower prices. These factors, contributes for the growth of the IT-managed services market in Southeast Asia.

Southeast Asia is one of the dynamic economic regions of the world, with an average growth of 5.1% per year from 2011 to 2015. The countries of the Association of Southeast Asian Nations (ASEAN) have identified the fostering opportunities for small and medium-sized enterprises (SMEs) as a key policy objective, and have expressed further a sense of urgency to achieve digital inclusion across the region.

Countries in SEA are at different stages of economic development, but all are experiencing rapid changes in their digital economies. The increased digitalization, has led to an increased adoption of the IT managed services, which contributes for the growth of the market.

Restrains of the Southeast Asia IT Managed Services Market

Lack of IT skilled professionals and High Costs of services.(Access Detailed Analysis in the Full Report Version)

Opportunities of the Southeast Asia IT Managed Services Market

Growth in Southeast Asia Market.(Access Detailed Analysis in the Full Report Version)

Definition of IT Managed Services

IT managed services involves management of IT solutions and outsourcing it to clients that optimizes and transform business of any organization with adoption of modern technologies. The IT manages services includes networks and servers, software and technology infrastructures, data backup systems, and overall network security and risk management. The services include Network testing and monitoring. Overseeing network security & risk mitigation, Connectivity and bandwidth, providing data storage, managing installations and upgrades, Suggesting and implementing software patches, providing web hosting, Network provisioning or virtualization, Performance monitoring and reporting, providing help desk technical support.

The IT managed services used to optimize operation reduce expenditure cost, expertise in business operations, reduced risk, accurate pricing management, high-security in the operation. Many large and medium scale enterprises use IT managed services. The modern technologies and skills of organization assists I in optimizing their business operation through security, IT maintenance services in the market that helps in increasing efficiency of business process.

There is higher demand for IT managed services in the South East Asia region due to increased adoption of cloud computing, AI, IoT adoption in the IT managed services to further bring optimization in the business process. The South East Asia Multinational organizations such as Google, Amazon, Microsoft and Equinix have preferred relocating data centers within Southeast Asia. The demand for cloud-based services, IoT big data analytics increased construction of data centers within South East Asia regions. These regions have data center relocation contains IT infrastructure, server market and uninterruptible power supplies.

This increasing adoption and presence of data center for IT manages services across globe increased its demand and boost growth of IT manages services in the market.

With the growing digitalization, organization face many challenges in growth of bus...

Snapshot img

Video Managed Services Market Size 2024-2028

The video managed services market size is forecast to increase by USD 19.21 billion at a CAGR of 55.91% between 2023 and 2028.

The market is experiencing significant growth, driven by the increasing need for organizations to focus on their core competencies and improve operational efficiency. This trend is further fueled by the automation of managed services, which enables service providers to offer more value-added services and reduce costs. However, the market also faces challenges such as system integration and interoperability issues, which can hinder market growth. Service providers must address these challenges by investing in advanced technologies and developing strategic partnerships to ensure seamless integration and interoperability of their services with various platforms and systems. By doing so, they can cater to the evolving needs of their customers and maintain a competitive edge In the market.In summary, the market is witnessing growth due to the need to improve efficiency and focus on core competencies, while facing challenges related to system integration and interoperability. Providers must address these challenges to capitalize on the market opportunities and deliver superior services to their customers.

What will be the Size of the Video Managed Services Market During the Forecast Period?

Request Free SampleThe market encompasses a range of offerings, including cloud videoconferencing, huddle room technology, and unified conferencing solutions. These services enable visual collaboration between businesses and consumers, as well as large enterprises and SMEs, through software and hardware offerings. IT operations play a crucial role In the adoption and implementation of these services, which can integrate with big data analytics, AI, and ML environments. Ott platforms and electronic components, such as networking equipment, are essential infrastructure components. The market caters to various sectors, including government organizations, public justice institutions, and work forces, with applications extending to video surveillance techniques using CCTV cameras and video management software.Business-to-business and business-to-consumer interactions are facilitated through conferencing solutions, further enhancing communication and productivity.

How is this Video Managed Services Industry segmented and which is the largest segment?

The video managed services industry research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in 'USD million' for the period 2024-2028, as well as historical data from 2018-2022 for the following segments. End-userEnterprisesGovernmentGeographyNorth AmericaCanadaUSEuropeGermanyAPACChinaIndiaSouth AmericaMiddle East and Africa

By End-user Insights

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

The enterprise sector is expected to lead the market due to the need to manage large deployments of video conferencing systems and audio-visual meeting rooms. Businesses encounter technical challenges, including inconsistent user experiences caused by a lack of standardization and complexity in meeting rooms. Decentralized purchasing methods allow companies to design overly elaborate rooms, leading to unnecessary expenses. These issues will drive market growth as enterprises seek solutions to streamline and optimize their video conferencing infrastructure. The market encompasses various components, including software, hardware, and services, as well as cloud-based solutions, OTT platforms, and visual collaboration tools. Key verticals include large enterprises, SMEs, government organizations, educational institutions, healthcare, and manufacturing industries.Video managed services enable productivity enhancements through applications such as telemedicine, connectivity tools, and security agencies. Additionally, video surveillance techniques and AI/ML environments are integral to the market, as are networking equipment and electronic components. ICT spending, cyber assaults, and smart city projects are significant factors influencing market trends.

Get a glance at the Video Managed Services Industry report of share of various segments Request Free Sample

The Enterprises segment was valued at USD 898.60 billion in 2018 and showed a gradual increase during the forecast period.

Regional Analysis

APAC is estimated to contribute 44% to the growth of the global market during the forecast period.

Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.

For more insights on the market share of various regions, Request Free Sample

The North American market for video managed services is thriving due to the region's advanced technology adoption in in

Cloud Managed Services Market Outlook

According to our latest research, the cloud managed services market size reached USD 122.5 billion in 2024, reflecting robust momentum driven by widespread digital transformation initiatives and escalating cloud adoption across industries. The market is witnessing a healthy growth trajectory, with a compound annual growth rate (CAGR) of 13.7% projected between 2025 and 2033. By the end of 2033, the cloud managed services market is expected to achieve a value of USD 377.2 billion. This impressive expansion is primarily fueled by the increasing complexity of IT environments, the need for cost optimization, and the growing demand for scalable, secure, and agile cloud solutions.

A key growth factor for the cloud managed services market is the accelerating pace of digital transformation across both large enterprises and small and medium-sized businesses. Organizations are increasingly leveraging cloud managed services to streamline operations, enhance business agility, and reduce the burden on internal IT teams. The adoption of advanced technologies such as artificial intelligence, machine learning, and the Internet of Things (IoT) is further amplifying the need for managed cloud environments that can support dynamic workloads and provide real-time analytics. Additionally, the proliferation of remote and hybrid work models post-pandemic has heightened the demand for robust, secure, and easily managed cloud infrastructures, driving further market expansion.

Another significant driver is the escalating threat landscape, which is compelling organizations to prioritize security and compliance. Managed security services, a crucial segment of the cloud managed services market, are experiencing heightened demand as businesses seek to safeguard sensitive data and ensure regulatory compliance. The increasing frequency and sophistication of cyberattacks have made it imperative for organizations to invest in comprehensive security solutions that can be seamlessly integrated with their cloud environments. Managed service providers (MSPs) are responding by offering advanced security services, including threat detection, incident response, and vulnerability management, tailored to the unique needs of different industries.

Cost optimization remains a pivotal consideration for businesses migrating to the cloud. Cloud managed services enable organizations to shift from capital-intensive IT investments to more predictable operational expenditures. By outsourcing the management of cloud infrastructure, network, and applications, companies can achieve significant cost savings while benefiting from the latest technological advancements and best practices. This shift not only reduces the total cost of ownership but also allows internal IT teams to focus on strategic initiatives rather than routine maintenance and troubleshooting. The scalability and flexibility offered by cloud managed services make them an attractive proposition for organizations aiming to align IT spending with business growth.

Regionally, North America continues to dominate the cloud managed services market, accounting for the largest share in 2024, driven by the presence of major technology providers, early adoption of cloud computing, and a mature regulatory environment. However, the Asia Pacific region is emerging as the fastest-growing market, propelled by rapid economic development, increasing digitalization, and significant investments in cloud infrastructure. Europe also represents a substantial market, with stringent data protection regulations and a strong emphasis on cybersecurity. Latin America and the Middle East & Africa are witnessing steady growth, supported by government initiatives and the expanding footprint of global cloud service providers.

Service Type Analysis

The cloud managed services market is segmented by service type, including managed network services, managed security services, managed infrastructure services, managed mobility services, managed communication

This statistic shows the IT services spending of small and medium sized businesses on business applications, collaboration tools, cyber security and remotely managed IT services, split by on-premises and cloud-based solutions. According to the source, spending on cloud-based solutions is forecast to grow strongly up to 2023, when the market is projected to reach *** billion U.S. dollars. Spending for on-premises IT services on the other hand is expected to stay almost flat over the next five years.

Managed Application Services Market Outlook

The global managed application services market size was valued at approximately USD 12.5 billion in 2023, and it is expected to reach around USD 28.7 billion by 2032, growing at a compound annual growth rate (CAGR) of 9.5% during the forecast period. This significant growth is driven by increasing digital transformation initiatives, growing adoption of cloud-based solutions, and the rising need for businesses to focus on their core competencies while outsourcing application management.

One of the primary growth factors for the managed application services market is the increasing digital transformation across various industries. Enterprises are rapidly adopting digital technologies to enhance their operational efficiencies and customer experiences. This digital shift necessitates robust and efficient application management services to ensure that applications are running optimally, securely, and up-to-date. Furthermore, the proliferation of mobile applications and the increasing use of data analytics tools are contributing to the demand for managed application services.

The growing adoption of cloud-based solutions is another significant driver of the market. Cloud computing offers numerous advantages, including scalability, cost-efficiency, and flexibility, making it an attractive option for businesses of all sizes. Managed application services providers enable organizations to leverage these benefits by managing and maintaining cloud-based applications, ensuring that they are secure, performant, and compliant with relevant regulations. This trend is particularly evident in industries such as BFSI, healthcare, and retail, where cloud adoption is accelerating rapidly.

The dynamics of IT Spending by Online Service and Application are increasingly influencing the managed application services market. As businesses continue to expand their digital presence, there is a growing need for robust IT infrastructure to support online services and applications. This trend is driving organizations to allocate more resources towards IT spending, focusing on enhancing their online platforms to improve customer engagement and operational efficiency. Managed application services providers play a crucial role in this landscape by offering solutions that ensure the seamless operation and security of online applications, allowing businesses to focus on innovation and growth. As the demand for online services continues to rise, IT spending in this area is expected to grow, further propelling the managed application services market.

Additionally, the need for businesses to focus on their core competencies is propelling the market's growth. In an increasingly competitive business environment, organizations are looking to outsource non-core functions, such as application management, to specialized service providers. This allows them to concentrate on their primary business activities while ensuring that their applications are managed by experts. Managed application services providers offer a range of services, including application monitoring, security, modernization, and integration, enabling businesses to achieve greater operational efficiency and agility.

Regionally, North America dominates the managed application services market, driven by the presence of a large number of technology-driven enterprises and early adoption of advanced technologies. The region is expected to maintain its leading position throughout the forecast period. In contrast, the Asia Pacific region is anticipated to exhibit the highest growth rate, attributable to the increasing digitalization efforts, rising adoption of cloud services, and expanding IT infrastructure in countries like China, India, and Japan.

Service Type Analysis

The service type segment of the managed application services market is categorized into application monitoring, application security, application modernization, application integration, and others. Each of these service types addresses specific needs within the application management lifecycle and has distinct growth drivers and market dynamics. Application monitoring services are crucial for ensuring the optimal performance and availability of applications. These services involve continuous tracking of application performance metrics, detecting anomalies, and providing insights to prevent downtime and enhance user experience. The increasing complexity of modern applications and the need

According to Cognitive Market Research, the global Managed Services market size will be USD 367,842.6 million in 2025. It will expand at a compound annual growth rate (CAGR) of 7.20% from 2025 to 2033.

North America held the major market share for more than 37% of the global revenue with a market size of USD 136,101.76 million in 2025 and will grow at a compound annual growth rate (CAGR) of 5.0% from 2025 to 2033.
Europe accounted for a market share of over 29% of the global revenue with a market size of USD 106,674.35 million in 2025 and will grow at a compound annual growth rate (CAGR) of 5.5% from 2025 to 2033.
APAC held a market share of around 24% of the global revenue with a market size of USD 88,282.22 million in 2025 and will grow at a compound annual growth rate (CAGR) of 9.2% from 2025 to 2033.
South America has a market share of more than 3.8% of the global revenue with a market size of USD 13,978.02 million in 2025 and will grow at a compound annual growth rate (CAGR) of 6.2% from 2025 to 2033.
Middle East had a market share of around 4.0% of the global revenue with a market size of USD 14,713.70 million in 2025 and will grow at a compound annual growth rate (CAGR) of 6.5% from 2025 to 2033.
Africa had a market share of around 2.2% of the global revenue with a market size of USD 8,092.54 million in 2025 and will grow at a compound annual growth rate (CAGR) of 6.9% from 2025 to 2033.
Managed IT Infrastructure & Data Center Service is the dominating segment of the Managed Services industry

Market Dynamics of Managed Services Market

Key Drivers for Managed Services Market

Surge in IoT Connections Fueling Demand for Managed Services

Surge in IoT Connectivity Driving Demand for Managed Services

The rapid expansion of the Internet of Things (IoT) is driving an increasing demand for managed services. As more devices become interconnected, businesses face new challenges in managing and securing the vast amounts of data generated by these devices. The need for specialized solutions to support IoT network integration, management, and security is growing. According to GSMA, the global number of IoT connections is expected to rise from 15.1 billion in 2021 to 23.3 billion by 2025, reflecting a 54% increase over just five years. Also, GSMA Intelligence predicts that IoT connections will exceed 38 billion by 2030, with the enterprise sector representing over 60% of the total connections. This surge in IoT connectivity creates significant opportunities for managed service providers to offer tailored solutions to businesses seeking to efficiently handle IoT-related infrastructure management and security, fueling continued growth in the managed services market.

https://www.gsmaintelligence.com/research/iot-connections-forecast-to-2030

Rise in Cloud Adoption Driving Managed Services Growth

The shift towards cloud computing continues to accelerate, with businesses migrating to cloud-based infrastructure and services to enhance flexibility, scalability, and cost-efficiency. This widespread cloud adoption has created a demand for managed services that can optimize cloud environments, ensure data security, and facilitate seamless integration with existing IT systems. As companies embrace cloud-based solutions, managed service providers play a crucial role in helping businesses navigate complex cloud deployments and ensure continuous, reliable cloud performance. The ongoing trend of cloud adoption is expected to significantly contribute to the growth of the managed services market.

Restraint for the Managed Services Market

High Initial Investment Costs Limiting Market Growth

One of the key challenges hindering the growth of the managed services market is the high initial investment required for implementing and managing these services. Businesses, particularly small and medium-sized enterprises (SMEs), may face financial constraints when adopting managed services due to the substantial upfront costs involved in integrating new IT infrastructure, tools, and software solutions. These costs can limit the willingness of businesses to adopt managed services, especially when coupled with the need for ongoing operational expenditures. As a result, high initial investment costs remain a significant restraint to the widespread adoption of managed services across various industries.

Introduction of the Managed Services Market

The managed services market enco...

The size of the Africa Managed Services market was valued at USD XX Million in 2023 and is projected to reach USD XXX Million by 2032, with an expected CAGR of 8.20% during the forecast period.Managed services are the outsourcing of IT operations and functions to a third-party service provider. Therefore, organizations can focus on their core business while outsourcing the management of their IT infrastructure and applications to experts. Some of the common managed services include network management, data center management, security management, and application management.Africa is the fast-growing managed services market through cloud computing, improvement of the demand for IT efficiency, and cost-cutting operational measures. Outsourcing of IT functions is how companies can gain access to the specific expertise needed for improved delivery of their service offerings and, therefore, become more agile in their businesses. As the digital landscape continues to evolve in Africa, so will the demand for managed services, and great opportunities will be offered here for service providers, propelling the growth of IT in the region. Recent developments include: October 2022: Silicon Overdrive, a leading IT Managed Services provider with headquarters in Cape Town, South Africa, and a footprint across Sub-Saharan Africa, announced that it had officially opened its regional office in Nairobi, Kenya. Expanding into the Kenyan market was a strategic decision to support the regional customers., August 2022: SkyMax Network Limited, a multinational wireless communications engineering company, and Ericsson signed a Memorandum of Understanding (MoU) to create a partnership to build a next-generation 5G broadband network, including digital services delivery platform across Sub-Saharan Africa (SSA). Under the MoU, Ericsson will be SkyMax's trusted partner for network supply, rollout, optimization, and managed services. Ericsson will explore partnership opportunities in end-to-end business and technology solutions, including Radio Access and Mobile Transport network solutions, core network and provisioning systems, Business Support Systems, and Managed Services, including Cognitive Software network optimizations and Business Consulting Support.. Key drivers for this market are: Favorable Trends Pertaining to Big Data and Analytics, along with Growing ICT Spending, Increasing Adoption of Managed Service Among Small and Medium Enterprises across Africa. Potential restraints include: Lack of Skilled Professional Across Industries. Notable trends are: IT & Telecom Industry is Expected to Grow at a Significant Rate Over the Forecast Period.

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 ...

In 2023, spending on IT services amounted to around *** trillion U.S. dollars worldwide. And in 2024 spending came up to **** trillion U.S. dollars. IT services market The IT services market encompasses a range of offerings that assist enterprises in implementing, managing, and operating a wide variety of systems, software, and equipment that are used in modern IT environments. Some of the market’s major sub-segments are managed services, which accounted for over *** billion U.S. dollars in 2020, and Software-as-a-service (SaaS), which was forecasted to account for over *** billion dollars in 2020. IT services are one of the fastest growing segments in the overarching IT industry, trailing only enterprise software in terms of year-over-year growth. Developments in the market Perhaps one of the most exciting developments in IT services in recent years has been the growth of cloud computing. Cloud computing describes the use of networks of remote servers - usually accessed over the Internet - to store, manage, and process data. As a segment of IT services, cloud computing generates billions of dollars in revenue annually and is showing few signs of slowing down.

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 Network Services Market size was valued at USD 71.9 Billion in 2024 and is projected to reach USD 130.9 Billion by 2031, growing at a CAGR of 7.8% from 2024 to 2031.

Managed Network Services Market Drivers

Reduced Operational Costs: Outsourcing network management to specialized providers can significantly reduce operational costs for businesses, including personnel costs, infrastructure maintenance, and equipment upgrades.

Predictable Costs: Managed services often come with predictable subscription fees, making it easier for businesses to budget for IT expenses.

Increased Uptime: Managed service providers have the expertise and resources to proactively monitor and maintain network performance, minimizing downtime and ensuring business continuity.

Enhanced Security: Managed security services provide robust protection against cyber threats, such as malware, DDoS attacks, and data breaches, safeguarding critical business data.

The managed services market is projected to experience significant growth over the next decade, reaching a market size of 4.044 billion by 2033, with a robust compound annual growth rate (CAGR) of 21.40%. The market has witnessed a surge in demand for managed services offerings due to the increasing adoption of cloud and digital technologies, the need for enhanced efficiency, and reduced operational costs. Organizations are increasingly seeking to outsource their IT infrastructure and operations to specialized service providers to gain access to expertise, improve service levels, and focus on their core competencies. Key drivers of the managed services market include the growing adoption of hybrid cloud models, the increasing demand for data security and compliance solutions, the need for improved operational efficiency, and the emergence of new technologies such as artificial intelligence (AI) and machine learning (ML). These trends are expected to continue to drive market growth as organizations look to leverage managed services to optimize their IT infrastructure and operations, enhance cybersecurity measures, and gain a competitive advantage. The market is expected to witness significant growth across various industry verticals, including banking, financial services, insurance (BFSI), healthcare, retail, and manufacturing, as organizations seek to improve customer experience, increase operational efficiency, and reduce costs. Key drivers for this market are: Predictive Analytics and AIOps: Managed services providers are increasingly using predictive analytics and artificial intelligence for operations (AIOps) to enhance service delivery and customer experience.

Managed Services as a Platform: Managed services are evolving into platforms that offer a range of capabilities, enabling businesses to build and scale their IT operations.

Blockchain and Distributed Ledger Technology: Blockchain and distributed ledger technology are creating new opportunities for managed services providers to enhance security and transparency.

Managed Services for Edge Computing: The growing adoption of edge computing is creating demand for managed services that support edge devices and applications.

Cross-Industry Partnerships: Managed services providers are forming partnerships with companies from other industries to offer specialized solutions, such as healthcare or manufacturing.. Potential restraints include: Security Concerns: Businesses may hesitate to outsource sensitive data to managed services providers due to security concerns.

Lack of Control: Outsourcing managed services can lead to a loss of control over IT operations and decision-making.

Integration Challenges: Integrating managed services with existing IT systems can be complex and time-consuming.

Pricing and Escalation: Managing service pricing can be complex, and costs may escalate due to hidden or unforeseen expenses.

Vendor Lock-In: Long-term contracts with managed services providers can lead to vendor lock-in, limiting flexibility and choice.. Notable trends are: Technological Advancements: Innovations in cloud computing, automation, and artificial intelligence are creating new opportunities for managed services providers.

Growing Cybersecurity Threats: The evolving cybersecurity landscape is driving demand for managed security services.

Cost Optimization: Managed services can help businesses reduce IT costs by outsourcing non-core functions.

Focus on Innovation: Managed services providers allow businesses to focus on their core competencies and drive innovation.

Regulatory Compliance: Managed services can help businesses meet industry regulations and compliance requirements..

IT Staff Augmentation And Managed Services Market size is growing at a moderate pace with substantial growth rates over the last few years and is estimated that the market will grow significantly in the forecasted period i.e. 2024 to 2031.

Global IT Staff Augmentation And Managed Services Market Drivers

The market drivers for the IT Staff Augmentation And Managed Services Market can be influenced by various factors. These may include:

Growing Demand for Skilled IT Professionals: The increasing complexity of technology solutions has intensified the demand for skilled IT professionals across various industries. Companies face challenges in hiring and retaining talent due to rapid technological advancements and a competitive job market. IT staff augmentation services allow firms to quickly access specialized skills without the long-term commitment of full-time hires. This need is particularly acute in areas such as cybersecurity, cloud computing, and artificial intelligence, where expertise can significantly enhance operational efficiency and innovation. As organizations look to scale their technological capabilities, the reliance on augmented staff becomes indispensable for meeting project deadlines and business objectives.

Cost-Effectiveness and Operational Efficiency: Organizations are continuously exploring ways to optimize costs without compromising on service quality. IT staff augmentation offers a flexible solution that allows businesses to scale their workforce based on project requirements, thereby minimizing overhead costs associated with full-time employees. Managed services further enhance efficiency by outsourcing routine IT functions, allowing internal teams to focus on strategic initiatives. This dual approach reduces operational expenses while providing access to high-quality services on demand. As companies aim to improve their bottom line, the economic argument for IT staff augmentation and managed services becomes increasingly compelling, driving market growth.

Global IT Staff Augmentation And Managed Services Market Restraints

Several factors can act as restraints or challenges for the IT Staff Augmentation And Managed Services Market. These may include:

Regulation Compliance: In the IT staff augmentation and managed services market, stringent regulations and compliance requirements present a significant restraint. Organizations must adhere to various data protection laws, industry standards, and compliance frameworks, such as GDPR, HIPAA, and PCI DSS. Non-compliance can lead to hefty fines and legal repercussions. Additionally, keeping up with constantly evolving regulations can drain resources and slow down project timelines. Providers of managed services must invest heavily in compliance training and system audits to ensure that they meet these regulations, which can increase costs and complexify service delivery, ultimately hindering market growth.

Talent Shortage: A persistent shortage of skilled IT professionals is a critical restraint affecting the IT staff augmentation and managed services market. The rapid technological advancements require specialized skill sets that are often not readily available in the labor market. Organizations face challenges in recruiting, retaining, and nurturing talented personnel, particularly in emerging fields like cloud computing, AI, and cybersecurity. This scarcity drives up the costs of hiring and can lead to project delays and lowered service quality when adequate talent is unavailable. As businesses increasingly seek expertise in these areas, the competition for talent heightens, complicating staffing strategies.