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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.

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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,

In UK Managed Services Market , was valued at approximately USD 10.11 billion in 2022 and is projected to reach USD 12.45 billion by 2029,

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Data Center Managed Services Market Size 2024-2028

The data center managed services market size is forecast to increase by USD 57.63 billion at a CAGR of 10.14% between 2023 and 2028.

The market is experiencing significant growth due to increasing demands for advanced computing capabilities and data storage solutions. With budgetary limits driving organizations to outsource IT infrastructure management, there is a rising need for managed services that can effectively manage computing machines, hardware equipment, IT systems, servers, data storage drives, and network equipment. The trend towards edge computing is also expanding the market, as businesses seek to process data closer to the source for faster response times. However, the integration of these services into existing data centers presents complex challenges, requiring expertise in both IT infrastructure and managed services. This market analysis report delves into these growth factors and the complexities of integrating data center-managed services, providing valuable insights for businesses looking to optimize their IT infrastructure.

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The market represents a significant segment of the IT infrastructure landscape, providing businesses with essential solutions for maintaining and optimizing their IT infrastructure. This market encompasses a range of offerings, including hardware services, network services, backup maintenance, and fault tolerance solutions, among others. A reliable third-party managed service platform plays a crucial role in ensuring the upkeep and maintenance of an organization's IT infrastructure. By outsourcing these tasks, businesses can focus on their core competencies while ensuring their IT infrastructure remains reliable and efficient. Cloud infrastructure has become a norm in today's business environment, and data center managed services have evolved to meet the demands of this technology.



Furthermore, managed service providers offer expertise in managing complex IT networks, allowing businesses to leverage sophisticated technology without the need for extensive in-house IT resources. IT infrastructure is a foundational element of any growing business, and the need for reliable and efficient data center solutions is paramount. Managed services offer businesses the flexibility to scale their infrastructure as needed, without the logistical limits of managing hardware and software in-house. Network services are a critical component of data center managed services. External networks must be secure and reliable to ensure business continuity. Managed service providers offer solutions for upgrading and patching operating systems, disaster planning, and backup maintenance to mitigate potential risks and minimize downtime.

How is this market segmented and which is the largest segment?

The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in 'USD billion' for the period 2024-2028, as well as historical data from 2018-2022 for the following segments.

End-user

  Retail
  Energy
  BFSI
  Healthcare
  Others


Deployment

  Cloud
  On-premises


Geography

  North America

    US


  Europe

    Germany
    UK


  APAC

    China
    Japan


  South America



  Middle East and Africa

By End-user Insights

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

The market caters to the management of digital data and computing equipment for various businesses, including those that run web applications and internal applications. This market is witnessing significant growth due to the increasing demand for efficient and reliable IT infrastructure management services. Customers across multiple industries, such as human resources and accounting, are turning to managed services to streamline their operations and focus on their core competencies. Managed services providers offer a range of solutions, including monitoring, maintenance, and security, ensuring that businesses can effectively manage their IT infrastructure and mitigate potential risks.

The integration of advanced technologies, such as artificial intelligence and machine learning, further enhances the value proposition of these services. The market is expected to continue its expansion as more businesses recognize the benefits of outsourcing their IT management needs.

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The retail segment was valued at USD 15.59 billion in 2018 and showed a gradual increase during the forecast period.

Regional Analysis

North America is estimated to contribute 32% to the growth of the global market during the forecast period.

Technavio's analysts have elaborately explained the regional trends and drivers that

The UK Managed Services Market is expected to grow from USD 15,349.99 million in 2023 to USD 28,291.12 million by 2032, with a compound annual growth rate (CAGR) of 7.03%.

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Cloud Managed Services Market Size 2024-2028

The cloud managed services market size is forecast to increase by USD 41.5 billion at a CAGR of 8.5% between 2023 and 2028.

The market is experiencing significant growth, driven primarily by the increasing adoption of cloud computing services and the implementation of Bring Your Own Device (BYOD) policies in businesses. The flexibility and cost savings offered by cloud solutions have led to their widespread adoption, particularly in sectors such as healthcare, finance, and education. However, this market is not without challenges. Data privacy and security risks associated with cloud-based services continue to be a major concern for organizations. The input data highlights that data breaches, cyber security and cyber-attacks are becoming more frequent and sophisticated, making it crucial for companies to implement robust security measures to protect their sensitive information.
Despite these challenges, opportunities abound for businesses that can effectively address these concerns and provide reliable, secure cloud managed services to their clients. Companies seeking to capitalize on this market's growth should focus on offering advanced security features, such as encryption, multi-factor authentication, and access control, to mitigate the risks associated with cloud adoption. Additionally, providing customized solutions and exceptional customer service can help differentiate businesses in this competitive landscape.

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The market continues to evolve, driven by the increasing adoption of cloud computing across various sectors. Cloud computing's agility and flexibility have made it a preferred choice for businesses seeking to optimize costs, ensure business continuity, and enhance security. Cloud managed services encompass a range of offerings, including cloud migration, backup, security compliance, software management, and storage. Cloud security, a critical component of these services, is an ongoing concern as threats evolve. Cloud threat intelligence, security analytics, and monitoring are essential to mitigate risks. Compliance with security standards and regulations is paramount, with ongoing auditing and testing ensuring adherence.
Cost optimization remains a key driver, with cloud security orchestration and automation streamlining processes and reducing overheads. Cloud governance frameworks provide the necessary guidelines for effective management and ensure adherence to best practices. Agile development and continuous integration are increasingly being adopted, requiring robust cloud security solutions. The data center plays a crucial role in cloud managed services, providing the infrastructure for seamless integration and efficient delivery of services. The market's dynamics continue to unfold, with new trends and patterns emerging as businesses navigate the complex cloud landscape.

How is this Cloud Managed Services Industry segmented?

The cloud managed services industry research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in 'USD billion' for the period 2024-2028, as well as historical data from 2018-2022 for the following segments.

End-user

  Large enterprise
  Small and medium enterprise


Service Type

  Managed Security Services
  Managed Network Services
  Managed Infrastructure Services
  Managed Business Services


Deployment Type

  Public Cloud
  Private Cloud
  Hybrid Cloud


Technology

  AI & Automation
  Cloud-Native
  IoT Integration


Geography

  North America

    US
    Canada
    Mexico


  Europe

    France
    Germany
    Italy
    Spain
    UK


  Middle East and Africa

    UAE


  APAC

    China
    India
    Japan
    South Korea


  South America

    Brazil


  Rest of World (ROW)

By End-user Insights

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

The market is witnessing significant growth as businesses increasingly adopt cloud computing solutions for their managed IT infrastructure. Cloud threat intelligence, a crucial aspect of cloud security, is becoming essential for businesses to protect their data from cyber threats. Cloud migration, a key driver of the market, is being facilitated by cloud computing's flexibility and cost savings. However, ensuring cloud security compliance with various regulations and standards is a major challenge. Cloud management, including business continuity, cost optimization, disaster recovery, and agile development, is a critical component of cloud services. Cloud security analytics, forensics, awareness, training, and orchestration are vital for effective threat detection and response.

Cloud security testing, auditing, governance, frameworks, and monitoring are

The managed workplace services (MWS) market in the United Kingdom is growing substantially, rising from USD 4,672.8 million in 2025 to USD 12,765.0 million by 2035 by impressive expansion with growth rate of 10.6% during the forecast period.

Attribute	Description
Historical Size, 2024	USD 4,237.1 million
Estimated Size, 2025	USD 4,672.8 million
Projected Size, 2035	USD12,765.0 million
CAGR	10.6%

Category-Wise Insights

Segment	Value Share (2025)
End-User Computing	38.7%

Segment	CAGR (2025 to 2035)
Mid-Sized Enterprises	11.4%

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

The European Managed Services Market is experiencing robust growth, projected to reach €52.09 billion in 2025 and maintain a Compound Annual Growth Rate (CAGR) of 13.94% from 2025 to 2033. This expansion is fueled by several key drivers. The increasing adoption of cloud-based solutions across various sectors, including BFSI, manufacturing, and healthcare, is a primary catalyst. Businesses are increasingly outsourcing IT functions to focus on core competencies, leading to higher demand for managed services like data center, security, network, and infrastructure management. Furthermore, the rising need for enhanced cybersecurity measures and the complexity of modern IT infrastructure are compelling organizations to leverage specialized managed service providers. The shift towards digital transformation and the growing adoption of mobile technologies are also contributing significantly to market growth. The market is segmented by deployment (on-premise and cloud), service type (managed data center, security, communications, network, infrastructure, mobility), enterprise size (SMEs and large enterprises), and end-user vertical. The cloud deployment model is expected to witness faster growth compared to on-premise solutions due to its scalability, cost-effectiveness, and flexibility. Large enterprises are currently the major contributors to market revenue, but the SME segment presents significant untapped potential for future growth. Germany, the United Kingdom, and France are anticipated to be the leading national markets within Europe due to their advanced digital infrastructure and high IT spending. The competitive landscape is characterized by a mix of global technology giants and specialized managed service providers. Companies like Fujitsu, Cisco, IBM, and Microsoft are major players, offering a broad range of managed services. However, smaller, specialized firms are also gaining traction by offering niche services and localized expertise. Sustained growth will depend on providers' ability to adapt to evolving technological advancements, offer innovative solutions, and effectively address the security concerns of their clients. Future growth will likely be driven by the increasing adoption of artificial intelligence (AI) and machine learning (ML) in managed services, further enhancing automation and efficiency. The integration of these technologies within managed service offerings will be a key competitive differentiator. 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: Increasing Shift to Hybrid IT, Improved Cost and Operational Efficiency. Notable trends are: Cloud segment is expected to grow at a higher pace.

United Kingdom Managed Security Services Market By Size, Share, Trends, Growth, Forecast 2027, Segmented By Type, By Security Type, By Deployment Mode, By Organization Size, By End User Industry, By Company, By Region

Pages	80
Market Size
Forecast Market Size
CAGR
Fastest Growing Segment
Largest Market
Key Players

United Kingdom IT Services Market Report is Segmented by Type (IT Outsourcing, IT Consulting & Implementation, and Business Process) and End User (IT and Telecommunication, Government, BFSI, Energy & Utilities, Consumer Goods & Retail, and Other End Users). The Market Sizes and Forecasts are Provided in Terms of Value (USD) for all the Above Segments.

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IoT Managed Services Market Size 2025-2029

The iot managed services market size is forecast to increase by USD 538.5 billion, at a CAGR of 33.1% between 2024 and 2029.

The Internet of Things (IoT) Managed Services Market is experiencing significant growth, driven by the increased adoption of IoT solutions across various industries. Companies are recognizing the potential of IoT to optimize operations, enhance productivity, and improve customer experiences. One key application area is predictive maintenance in manufacturing, where IoT data is leveraged to anticipate equipment failures and schedule maintenance proactively. However, the market also faces challenges. Despite the numerous benefits, there is a lack of awareness regarding efficient management of IoT initiatives and investments. Companies need to address this issue to ensure they maximize the value of their IoT projects. Additionally, managing the complexities of IoT deployments, including security concerns and data integration, presents significant challenges that must be addressed to ensure successful implementation and adoption. Companies seeking to capitalize on the opportunities in the market must focus on addressing these challenges and providing comprehensive, end-to-end solutions that simplify IoT management and deliver measurable business value.

What will be the Size of the IoT 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.
Request Free SampleThe Internet of Things (IoT) managed services market continues to evolve, driven by the increasing adoption of IoT devices and the need for efficient data management and analysis. Cloud connectivity plays a crucial role in enabling seamless integration of these devices, while data governance ensures compliance with industry regulations and standards. AI-powered analytics and machine learning algorithms are transforming the way data is processed and insights are derived, leading to improved operational efficiency and enhanced decision-making capabilities. Sensor integration and real-time tracking are essential for various sectors, including manufacturing, healthcare, and transportation. Network security and access control are paramount in safeguarding IoT systems against cyber threats. Technical documentation and support services are essential for ensuring smooth deployment and management of IoT solutions. Edge computing and big data are also gaining traction, enabling faster processing of data at the source and reducing latency. Deployment models, including public, private, and hybrid cloud, offer flexibility and scalability to businesses. IoT platforms are providing integrated solutions for device management, data analytics, and network infrastructure management. Cellular networks and wireless communication are enabling remote monitoring and management of IoT devices. Ongoing developments in IoT technologies include advancements in sensor integration, system integration, and managed services pricing models. Industry regulations continue to evolve, requiring ongoing training programs and adherence to compliance standards. Data encryption, data visualization, and deep learning are also emerging trends in the IoT landscape. In the constantly evolving IoT market, businesses must stay abreast of the latest trends and technologies to remain competitive. IoT managed services providers are offering comprehensive solutions, including network security, device management, and technical support, to help businesses navigate the complexities of IoT deployments. The integration of APIs into IoT systems is ensuring seamless data flow and enabling real-time insights, further enhancing the value of IoT solutions.

How is this IoT Managed Services Industry segmented?

The iot 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. TypeNetwork management servicesSecurity management servicesInfrastructure management servicesData management servicesDevice management servicesDeploymentOn-premisesCloudSectorSMEsLarge enterprisesEnd-userHealthcareManufacturingBFSIRetailOthersGeographyNorth AmericaUSCanadaEuropeFranceGermanyItalyUKAPACChinaIndiaJapanSouth KoreaRest of World (ROW)

By Type Insights

The network management services segment is estimated to witness significant growth during the forecast period.The Internet of Things (IoT) managed services market is experiencing steady growth, driven by the increasing adoption of IoT devices and the need for effective data governance, cloud connectivity, and AI-powered analytics. Compliance with industry regulations and robust training programs are essential for businesses implemen

Legal Managed Services Market Outlook

The global market size for Legal Managed Services was valued at USD 16.5 billion in 2023 and is projected to reach USD 30.8 billion by 2032, growing at a compound annual growth rate (CAGR) of 7.1% from 2024 to 2032. The Legal Managed Services market is experiencing significant growth due to the increasing complexity of legal processes, the rising need for cost-efficient legal services, and the growing adoption of technology-driven solutions. These factors collectively contribute to the robust expansion of this sector on a global scale.

One of the primary growth drivers for the Legal Managed Services market is the escalating pressure on organizations to manage legal costs efficiently. Companies are increasingly outsourcing legal tasks to specialized service providers to streamline their operations and focus on core competencies. This trend is particularly pronounced among large enterprises that deal with extensive legal documentation, compliance issues, and litigation cases. The integration of advanced technologies such as artificial intelligence (AI) and machine learning (ML) in legal processes is further simplifying complex tasks, thereby fostering market growth.

Another significant factor contributing to market growth is the increasing regulatory scrutiny across various industries. Corporations are required to maintain compliance with a plethora of regulations, necessitating specialized assistance. The demand for compliance assistance services is rising as organizations seek to mitigate risks associated with non-compliance. Legal Managed Services providers offer expert guidance on navigating regulatory landscapes, thus enabling businesses to adhere to legal standards more effectively. Additionally, the growing volume of electronic data has increased the need for e-discovery services, further propelling market expansion.

The advent of digital transformation is also playing a pivotal role in the growth of the Legal Managed Services market. Law firms and corporate legal departments are leveraging digital tools to enhance their service offerings. Cloud-based legal services have gained prominence due to their scalability, flexibility, and cost-effectiveness. The shift towards digital solutions is not only improving operational efficiency but also enabling better collaboration and communication among legal teams. As a result, the market is witnessing increased investments in digital infrastructure, driving further growth.

The demand for Legal Services has been a driving force in the evolution of the Legal Managed Services market. As businesses navigate increasingly complex legal landscapes, the need for specialized legal expertise becomes paramount. Legal services encompass a wide range of activities, from contract management to litigation support, and are essential for ensuring compliance with regulatory standards. The integration of technology in legal services has further enhanced their efficiency, enabling legal professionals to deliver more accurate and timely solutions. This growing reliance on legal services is not only a testament to their importance but also highlights the critical role they play in supporting business operations across various industries.

Regionally, North America holds a significant share of the Legal Managed Services market due to the presence of a large number of multinational corporations and established legal service providers. The region's advanced technological landscape and stringent regulatory environment have accelerated the adoption of managed legal services. Europe follows closely, with countries like the UK and Germany witnessing substantial demand for legal outsourcing. The Asia Pacific region is expected to exhibit the highest growth rate during the forecast period, driven by the rapid economic development, rising corporate activities, and increasing awareness about the benefits of legal managed services.

Service Type Analysis

Within the Legal Managed Services market, the service type segment is categorized into Contract Management, Compliance Assistance, Litigation Support, E-Discovery, and Others. Contract Management services are gaining traction due to the increasing complexity of contractual agreements and the need for meticulous oversight. Organizations are seeking specialized contract management services to ensure that their contractual obligations are met efficiently and that risks associated with contracts are minimized.

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Managed IT Infrastructure Services Market Size 2025-2029

The managed IT infrastructure services market size is forecast to increase by USD 84.1 billion, at a CAGR of 6.4% between 2024 and 2029.

The market is experiencing significant growth, driven by the increasing adoption of cloud-based managed security services (MSS). Businesses are recognizing the benefits of outsourcing their IT security needs to specialized service providers, leading to a rise in demand for MSS. Additionally, the increasing demand for low-cost IT infrastructure solutions is fueling market expansion. This trend is particularly prevalent in small and medium-sized enterprises (SMEs) that seek cost-effective alternatives to building and maintaining their own IT infrastructure. However, the market faces challenges as well. The lack of IT security professionals is a major obstacle, as organizations struggle to find and retain skilled personnel to manage their IT infrastructure and security needs.
This shortage of talent can lead to increased vulnerability to cyber threats and data breaches. Furthermore, the rapid pace of technological change in the IT infrastructure landscape poses challenges for service providers, requiring them to continually innovate and adapt to meet evolving customer needs. Security remains a top priority, with cloud security and risk management taking center stage. Companies seeking to capitalize on market opportunities must invest in building a strong talent pool and staying abreast of emerging technologies to effectively navigate these challenges and meet the evolving demands of their customers.

What will be the Size of the Managed IT Infrastructure Services Market during the forecast period?

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The market continues to evolve, with dynamic market activities unfolding across various sectors. Entities such as penetration testing, business continuity, network security, data centers, system integration, unified communications, IT audit, public cloud, collaboration tools, vulnerability management, help desk support, and others are seamlessly integrated into comprehensive offerings. The ongoing digital transformation drives the demand for managed services, with organizations seeking to optimize their IT infrastructure and improve operational efficiency. IT strategy is increasingly centered around cloud computing, with hybrid and private cloud solutions gaining traction.

Network engineering and database administration are crucial components of IT infrastructure management, ensuring optimal performance and availability. Endpoint management and incident response are essential for securing the digital workplace, while network virtualization and IT consulting offerings help organizations navigate complex IT landscapes. Agile methodology and project management are critical for successful IT infrastructure implementations. Performance monitoring, capacity planning, and server management are key components of IT infrastructure management, ensuring that systems run smoothly and efficiently.

How is this Managed IT Infrastructure Services Industry segmented?

The managed IT infrastructure 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.

End-user

  SMEs
  Large enterprise


Deployment

  Cloud-based
  On-premises


Service

  Server management
  Networking services
  Virtualization services
  Storage services


Geography

  North America

    US
    Canada


  Europe

    France
    Germany
    Italy
    UK


  APAC

    China
    India
    Japan


  South America

    Brazil


  Rest of World (ROW)

By End-user Insights

The SMEs segment is estimated to witness significant growth during the forecast period. The market is witnessing significant growth, driven by the increasing adoption of digital transformation initiatives and the need for advanced IT strategies. SMEs continue to dominate the market, accounting for the largest revenue share, as they invest heavily in upgrading and maintaining their IT infrastructure. This includes the implementation of hybrid cloud solutions, machine learning, and IT outsourcing, among other services. Security audits and risk management are also critical priorities, with businesses seeking to enhance their cloud security and network security. Managed services, including network engineering, database administration, and endpoint management, are increasingly popular as companies seek to improve performance monitoring, incident response, and capacity planning.

The adoption of agile methodologies and system administration practices is driving the demand for IT

SAP Managed Services Market Outlook

The global SAP managed services market size was estimated at USD 20.8 billion in 2023 and is projected to reach USD 45.9 billion by 2032, reflecting a compound annual growth rate (CAGR) of 8.9% from 2024 to 2032. This market's robust growth is primarily driven by the increasing demand for efficient and secure IT infrastructure management, which is crucial for businesses to maintain competitiveness and operational efficiency in an increasingly digitalized world.

One of the critical growth factors in the SAP managed services market is the rising adoption of cloud-based services. As businesses continue to migrate their critical applications to the cloud for better scalability, flexibility, and cost-efficiency, the demand for managed services to manage these complex environments grows. Cloud-based SAP managed services offer businesses the ability to streamline operations, improve performance, and ensure compliance with regulatory standards, making them an attractive option for companies of all sizes. Additionally, the growing complexity of IT environments and the need for specialized expertise to manage these systems are further driving the market's growth.

Another significant factor contributing to the market's expansion is the increasing reliance on data analytics and business intelligence. As organizations strive to gain actionable insights from their data to drive strategic decision-making, the need for robust and efficient SAP systems becomes paramount. Managed services provide the necessary support to ensure that SAP systems are optimized for performance, security, and reliability, enabling businesses to leverage their data effectively. Furthermore, the ongoing advancements in artificial intelligence and machine learning are expected to enhance the capabilities of SAP managed services, further fueling market growth.

The growing trend of digital transformation across various industries is also propelling the demand for SAP managed services. Businesses are increasingly adopting digital technologies to improve customer experience, streamline operations, and gain a competitive edge. SAP managed services play a crucial role in supporting these digital transformation initiatives by providing end-to-end management of SAP applications and infrastructure. This allows organizations to focus on their core business activities while ensuring that their IT systems are running smoothly and efficiently.

From a regional perspective, North America holds a significant share of the SAP managed services market, driven by the presence of large enterprises and advanced IT infrastructure. The region's strong focus on innovation and early adoption of emerging technologies also contributes to the market's growth. Europe is another key market, with countries like Germany and the UK leading the way in the adoption of SAP managed services. The Asia Pacific region is expected to witness the highest growth rate during the forecast period, fueled by the rapid digitalization and increasing investments in IT infrastructure across countries like China, India, and Japan.

Service Type Analysis

Application Management Services dominate the SAP managed services market, accounting for a substantial share of the overall market revenue. These services involve the ongoing management, maintenance, and optimization of SAP applications to ensure they meet business requirements and performance standards. As businesses increasingly rely on SAP applications for critical operations, the demand for application management services continues to rise. These services help organizations minimize downtime, improve application performance, and ensure compliance with regulatory requirements. Furthermore, the growing complexity of SAP applications and the need for specialized expertise to manage them are driving the demand for application management services.

Implementation and Integration Services are another crucial segment within the SAP managed services market. These services involve the deployment and integration of SAP solutions into an organization's existing IT infrastructure. As businesses undergo digital transformation and adopt new technologies, the need for seamless integration of SAP systems becomes paramount. Managed services providers offer the necessary expertise and resources to ensure successful implementation and integration, minimizing disruptions to business operations. Additionally, the increasing adoption of hybrid and multi-cloud environments is driving the demand for implementation and integration services, as organizations seek to

The managed infrastructure services market is projected to reach USD 8.1 billion in 2025 and expand to USD 20.3 billion by 2035, reflecting a CAGR of 10.2% during the forecast period. The increasing demand for cloud-based IT infrastructure, growing digital transformation across industries, and advancements in automation and cybersecurity solutions are driving growth.

Contracts and Deals Analysis

Company	Contract Value
IBM Corporation	Approximately USD 1.2 billon
Accenture plc	Approximately USD 850 million
Fujitsu Ltd.	Approximately USD 500 million

Country Wise Analysis

Country	CAGR (2025 to 2035)
USA	10.5%

Country	CAGR (2025 to 2035)
UK	10.2%

Country	CAGR (2025 to 2035)
European Union (EU)	10.3%

Country	CAGR (2025 to 2035)
Japan	10.4%

Country	CAGR (2025 to 2035)
South Korea	10.6%

Competitive Outlook

Company Name	Estimated Market Share (%)
IBM	20-25%
Accenture	15-20%
HCL Technologies	12-17%
TCS	8-12%
DXC Technology	5-9%
Other Companies (combined)	20-30%

By 2025, the managed database services market will likely hit USD 445,020.1 million and grow to USD 1,497,335 million by 2035, with a CAGR of 12.9%. The rise of using multi-cloud and mixed cloud plans, rising AI use for smart database upkeep, and more people using Database-as-a-Service are guiding the future of the industry. Also, more worry about keeping data safe and following rules is driving market growth.

Metric	Value
Market Size (2025E)	USD 445,020.1 Million
Market Value (2035F)	USD 1,497,335 Million
CAGR (2025 to 2035)	12.9%

Country-wise Insights

Country	CAGR (2025 to 2035)
USA	13.1%

Country	CAGR (2025 to 2035)
UK	12.7%

Region	CAGR (2025 to 2035)
European Union (EU)	12.9%

Country	CAGR (2025 to 2035)
Japan	13.0%

Country	CAGR (2025 to 2035)
South Korea	13.2%

Managed Database Services Market - Segmentation Outlook

Service	Market Share (2025)
Database Administration	38.0%

Application	Market Share (2025)
Customer Relationship Management (CRM)	46.0%

Competitive Outlook

Company Name	Estimated Market Share (%)
Amazon Web Services (AWS)	18-22%
Microsoft Corporation (Azure)	14-18%
Google Cloud Platform (GCP)	12-16%
Oracle Corporation	10-14%
IBM Corporation	6-10%
Other Companies (combined)	30-40%

The United Kingdom IT services market, valued at approximately £105.30 million in 2025, is poised for robust growth, projected to expand at a Compound Annual Growth Rate (CAGR) of 6.84% from 2025 to 2033. This expansion is fueled by several key drivers. Increased digital transformation initiatives across various sectors, including BFSI (Banking, Financial Services, and Insurance), government, and energy & utilities, are driving demand for sophisticated IT solutions and outsourcing services. The growing adoption of cloud computing, big data analytics, and artificial intelligence (AI) further fuels this market growth. Furthermore, the UK's strong emphasis on cybersecurity and data privacy regulations necessitates robust IT services, creating further market opportunities for providers. Competition within the market is intense, with major players like Accenture, Infosys, and IBM vying for market share alongside strong regional players. While the market is experiencing robust growth, potential restraints include skills shortages within the IT sector, particularly in specialized areas like AI and cybersecurity, and the potential economic impact of global uncertainties. Segment-wise, IT outsourcing and IT consulting & implementation are expected to remain dominant segments, given the increasing complexity of IT infrastructure management and the need for specialized expertise across businesses. The forecast period of 2025-2033 presents significant opportunities for IT service providers in the UK. The market's robust growth is expected to continue, driven by increasing digitalization across industries and a growing focus on efficiency and innovation. The competitive landscape will remain dynamic, with companies focusing on strategic partnerships, acquisitions, and service diversification to maintain their edge. The ongoing investment in research and development of new technologies within the IT sector will contribute to the market's continued expansion, presenting opportunities for companies capable of adapting to the ever-evolving technological landscape. The UK government's continued emphasis on digital infrastructure investment will also play a vital role in supporting this positive growth trajectory. Recent developments include: January 2024: Global technology company FPT Software signed a strategic partnership with Alibaba Cloud, the digital technology and intelligence backbone of Alibaba Group. The two companies are set to delve into new collaborative opportunities, particularly in cloud migration and digital analytics. This partnership highlights FPT Software's broad tech expertise, spanning consulting, migration, delivery, and cloud-managed services., May 2024: CrowdStrike and Tata Consultancy Services (TCS) signed a strategic partnership to power TCS’ extended managed detection and response (XMDR) services with the AI-native CrowdStrike Falcon XDR platform. This partnership enables TCS to leverage the comprehensive security features of the Falcon platform. This includes cloud security and next-gen SIEM, facilitating an AI-driven transformation of their SOC to enhance breach prevention.. Key drivers for this market are: Digital Transformation in the United Kingdom, Growth in Nearshoring IT Outsourcing in the United Kingdom. Potential restraints include: Digital Transformation in the United Kingdom, Growth in Nearshoring IT Outsourcing in the United Kingdom. Notable trends are: Growth in Nearshoring IT Outsourcing and the SaaS (Software-as-a-Service) Industry Driving the UK IT Services Market.

The size of the Europe IT 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 7.10% during the forecast period.The Europe IT services market is changing rapidly and finds itself in a dynamic stage, providing all kinds of services an organization needs to exploit technology by which its operations are optimized and efficiency increases, and at the same time, innovation is also found. IT services tend to have a high degree of diversity that involves a wide spectrum of activity areas, such as software development, systems integration, cloud computing, cybersecurity, data analytics, and IT consulting. All small or big ventures, ranging from startup companies to multinational corporations, need these services for their abilities to adapt to the ever-changing tide of the technical world. IT services make or break organizations in many other industries today in this era of digitization. The practice of business organizations outsourcing IT functions to third-party service providers is increasingly becoming the case these days so as to be able to concentrate more on core competencies. It will utilize professional and experienced IT experts' knowledge and assets to achieve business enhancement for smooth operation flow with cost reduction and improved overall performance. Additionally, the business organization has an opportunity through IT services to explore the emerging areas of artificial intelligence, machine learning, and the Internet of Things. There are also few growth drivers for the Europe IT services market, which includes the growth in initiatives of digital transformation, growth in usage of cloud, and increasing demand for cybersecurity solutions and data-driven insights. With the continuous investment of organizations in technology, it will make the operation and customer experience much better, and IT services demand will be quite high in the next couple of years. Recent developments include: August 2022: Sky collaborated with Accenture to modernize its employee experience and human resources (HR) operations with a company-wide cloud-based transformation., August 2022: Wipro Limited signed a multi-year contract to deliver service integration and management services to the UK government treasury., September 2022: Keysight Technologies signed a memorandum of understanding (MoU) with IBM to pursue accelerating open radio access network (RAN) deployments in Europe.. Key drivers for this market are: Acceleration of Digital Transformation Across Industries and Adoption of New Technologies, Growing Emphasis on Leveraging the Core Competencies by Outsourcing Non-core Operations. Potential restraints include: Data Security, Customization, and Data Migration. Notable trends are: Growing Demand for Cloud Services.

The telecom managed service market will see amazing growth until 2025 to 2035 since there would be greater dependency on the third-party service providers to handle the network, security, and cloud-based services. The market would be approximately USD 28,745 million in 2025 and would be USD 89,512 million in 2035 with a compound annual growth rate (CAGR) of 12.0% during the forecast period.

Metric	Value
Industry Size (2025E)	USD 28,745 million
Industry Value (2035F)	USD 89,512 million
CAGR (2025 to 2035)	12.0%

Country Wise Outlook

Country	CAGR (2025 to 2035)
USA	12.2%

Country	CAGR (2025 to 2035)
UK	11.8%

Region	CAGR (2025 to 2035)
European Union	12.0%

Country	CAGR (2025 to 2035)
Japan	11.9%

Country	CAGR (2025 to 2035)
South Korea	11.1%

Competitive Outlook

Company Name	Estimated Market Share (%)
IBM Corporation	12-17%
Ericsson	10-15%
Cisco Systems, Inc.	9-13%
Nokia Corporation	6-10%
Huawei Technologies Co., Ltd.	5-9%
Other Companies (combined)	40-50%

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Managed Network Services Market Size 2024-2028

The managed network services market size is forecast to increase by USD 16.6 billion at a CAGR of 4.38% between 2023 and 2028.

The market is experiencing significant growth, driven by several key trends. The increasing adoption of Internet of Things (IoT) is one such trend, as organizations seek to enhance their operational efficiency and productivity by connecting various devices and systems. Another trend is the growing automation in managed network services, which is enabling service providers to offer more efficient and cost-effective solutions to their clients.
However, the market is also facing challenges, with data privacy and security risks emerging as a major concern. As businesses continue to digitize their operations and store sensitive information online, the need for robust data security to protect against cyber threats is becoming increasingly important.
Overall, these trends and challenges are shaping the future of the market and are expected to continue driving its growth In the coming years.

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

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The market is experiencing significant growth, driven by the increasing adoption of cloud technologies and the proliferation of mobile devices among Small and Medium-sized Enterprises (SMEs) and multinational corporations. This shift towards remote work and digital infrastructure has heightened the need for robust network security, as cyber threats and data breaches continue to pose a significant risk.
Managed Service Providers (MSPs) offer a range of services, including Managed LAN and Managed WAN, firewall management, threat intelligence, and networking applications, to help mitigate these risks. Large enterprises and government agencies, with their complex IT infrastructure and bandwidth requirements, are also turning to third-party service providers for managed network services.
Artificial intelligence is increasingly being integrated into these offerings, providing advanced threat detection and response capabilities. Overall, the market is expected to continue growing, as businesses seek to optimize their digital infrastructure and protect against cyber threats.

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

The managed network services industry research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in 'USD billion' for the period 2024-2028, as well as historical data from 2018-2022 for the following segments.

End-user

  BFSI
  Retail and e-commerce
  IT and telecom
  Healthcare
  Others


Deployment

  Cloud
  On-premises


Geography

  North America

    US


  Europe

    Germany
    UK


  APAC

    China
    Japan


  South America



  Middle East and Africa

By End-user Insights

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

The market is experiencing significant growth due to the increasing adoption of cloud technologies and the proliferation of mobile devices among large enterprises and multinational corporations. With the rise of 5G networks and high-speed internet, the demand for managed LAN and WAN services, including firewall management, threat intelligence, and digital infrastructure protection, is increasing. The financial and banking sector, in particular, is a major market for managed network services due to the sensitive nature of the data they handle. This data includes customer financials, account information, cardholder data, and personal information, which is highly regulated by entities such as the EU's General Data Protection Regulation (GDPR).

Non-compliance with these regulations can result in substantial penalties for financial institutions and banks. Managed Service Providers offer solutions for cloud networking, IoT, edge computing, and IT infrastructure management, leveraging artificial intelligence technology and automation to enhance network security and mitigate cyber threats. The market is shifting towards subscription models, multi-year contracts, and third-party service providers for cost savings and improved service level agreements. The integration of electronic devices and IT staff into digital networks further increases the need for managed network services.

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The BFSI segment was valued at USD 19.50 billion in 2018 and showed a gradual increase during the forecast period.

Regional Analysis

North America is estimated to contribute 37% 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.

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