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).

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 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.

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).

According to Cognitive Market Research, the global managed service provider market size was 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 serv...

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 North America Managed Services Market Report is Segmented by Deployment (On-Premises, and More), Service Type (Managed Data Centre, Managed Security, and More), Enterprise Size (Small and Medium Enterprises and Large Enterprises), End-User Vertical (BFSI, IT and Telecom, Healthcare and Life Sciences, and More), and Country. 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

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.

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,

The Managed Services Market valued at USD 298.53 Billion in 2024, is projected to reach a significant USD 516.22 Billion by 2032, growing at a CAGR of 7.7% from 2025 to 2032.

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.

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

Managed Services Software Market: Definition/ Overview

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

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

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.

Report Attribute	Key Statistics
Base Year	2024
Forecast Years	2025-2033
Historical Years	2019-2024
Market Size in 2024	USD 69.9 Billion
Market Forecast in 2033	USD 171.7 Billion
Market Growth Rate (2025-2033)	10.5%

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.

Global IT Managed Services market size is expected to reach $435.0 billion by 2029 at 9.3%, segmented as by cloud-based, public cloud, private cloud, hybrid cloud

Snapshot img

MSP Software Market Size 2025-2029

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

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

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

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

How is this MSP Software Industry segmented?

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

Deployment

  On-premises
  Cloud-based
  Hybrid
  Others


Type

  Managed data center
  Managed network
  Managed infrastructure
  Managed mobility
  Others


Application

  Telecom and IT
  BFSI
  Retail
  Media and entertainment
  Others


Geography

  North America

    US
    Canada


  Europe

    France
    Germany
    Italy
    UK


  APAC

    China
    India
    Japan


  South America

    Brazil


  Middle East and Africa

By Deployment Insights

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

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

Data Center Managed Services Market Outlook

According to our latest research, the global Data Center Managed Services market size reached USD 29.4 billion in 2024, with a robust year-on-year growth trajectory. The market is expected to expand at a CAGR of 9.2% from 2025 to 2033, reaching an estimated value of USD 65.7 billion by 2033. This growth is primarily fueled by the increasing complexity of IT infrastructure, the rising adoption of cloud computing, and the urgent need for enhanced security and compliance in data center operations. As organizations continue to digitize their operations and migrate to hybrid IT environments, the demand for comprehensive managed services is surging globally.

One of the primary growth factors driving the Data Center Managed Services market is the exponential increase in data generation across industries, necessitating efficient and scalable data management solutions. Enterprises are grappling with vast volumes of structured and unstructured data, leading to heightened demand for services such as monitoring & maintenance, backup & recovery, and network management. The proliferation of IoT devices, big data analytics, and artificial intelligence workloads is further amplifying the need for robust, always-available, and secure data center infrastructure. Managed service providers are stepping in to address these needs by offering specialized expertise, 24/7 monitoring, and proactive maintenance, thereby reducing downtime and optimizing operational efficiency for organizations of all sizes.

Another significant growth driver is the increasing focus on cybersecurity and regulatory compliance. With cyber threats becoming more sophisticated and regulatory requirements more stringent, organizations are turning to managed service providers to ensure their data centers are secure and compliant. Services such as security management, vulnerability assessments, and compliance audits are in high demand, particularly in sectors like BFSI, healthcare, and government, where data sensitivity is paramount. Managed service providers leverage advanced security tools, AI-driven threat detection, and automated patch management to safeguard critical assets, helping organizations mitigate risks and avoid costly breaches or regulatory penalties.

Furthermore, the shift towards hybrid and multi-cloud environments is fueling the adoption of data center managed services. Enterprises are increasingly deploying workloads across on-premises, private, and public clouds, creating complex and distributed IT ecosystems. Managing such hybrid environments requires specialized skills and tools to ensure seamless integration, optimal performance, and consistent security policies. Managed service providers offer tailored solutions that enable organizations to manage their hybrid infrastructures efficiently, providing unified monitoring, automated orchestration, and centralized management. This trend is especially pronounced among large enterprises seeking to leverage the scalability and flexibility of cloud while retaining control over mission-critical workloads.

As the demand for managed services continues to rise, Data Center Integration Services are becoming increasingly vital. These services play a crucial role in ensuring seamless connectivity and interoperability between various data center components. By integrating diverse systems and technologies, organizations can achieve greater efficiency and agility in their operations. Data Center Integration Services facilitate the smooth transition to hybrid and multi-cloud environments, allowing businesses to leverage the benefits of both on-premises and cloud-based infrastructures. This integration is essential for maintaining consistent performance, security, and compliance across complex IT landscapes, ultimately enabling organizations to focus on their core competencies while optimizing their data center investments.

From a regional perspective, North America continues to dominate the Data Center Managed Services market, driven by the presence of major technology players, early adoption of advanced IT solutions, and high investment in digital transformation initiatives. However, Asia Pacific is emerging as the fastest-growing region, propelled by rapid industrialization, increasing cloud adoption, and a burgeoning digital economy. Countries such as China,

Global Managed Services market size is expected to reach $510.24 billion by 2029 at 13.4%, segmented as by service type, managed security services, managed network services, managed data center and it infrastructure services

Global Managed Services Providers MSP market size 2021 was recorded $165.485 Billion whereas by the end of 2025 it will reach $294.5 Billion. According to the author, by 2033 Managed Services Providers MSP market size will become $932.698. Managed Services Providers MSP market will be growing at a CAGR of 15.5% during 2025 to 2033.