Managed Services Market (By Solution; By MIS; By Deployment: On-premise, Hosted; By Enterprise Size; By End Use: Government, Healthcare, Retail) - Global Industry Analysis, Size, Share, Growth, Trends, Revenue, Regional Outlook and Forecast 2023-2032

The global managed services market was surpassed at USD 267.34 billion in 2022 and is expected to hit around USD 963.62 billion by 2032, growing at a CAGR of 13.68% from 2023 to 2032.

Key Pointers

• The managed data center segment accounted for the largest market share of over 15.02% in 2022.
• The Business Process Outsourcing (BPO) segment accounted for the largest market share exceeding 40.11% in 2022.
• The on-premise segment accounted for the largest market share of over 64.03% in 2022.
• The large enterprise's segment accounted for the largest market share of over 60.15% in 2022.
• The financial services segment accounted for the largest market share of over 15.07% in 2022.
• North America dominated the market in 2022 with a market share of over 30.2%.
• The Asia Pacific regional market is expected to register significant growth during the forecast period.

Managed services reduce downtime redundancy and provide customized value-added services like application testing, service catalog building, and expert consultancy. Multiple monitoring tools and several layers of infrastructure managed by isolated teams contribute to the market growth. For instance, in April 2021, BMC launched the "BMC Helix ITSM," a centralized, cloud-native, observability, and AIOps-integrated system. Data from IT infrastructure, application performance, network performance, and cloud monitoring tools is completely visible through this system. Additionally, individual and team dashboards are tailored to the requirements of each user.

Factors such as improving operational efficiency by focusing more effectively on core competencies, cutting operating expenses, and increasing the use of cloud-based technologies such as automation, IoT, blockchain, and cloud computing are driving the market growth. Moreover, managed services focus on providing secure and customized IT solutions and end-to-end hosting applications is expected to drive market growth. Additionally, the emergence of the COVID-19 pandemic led to disruption in business operations and the supply chain. Thus, with a sudden change in business operations and remote working solutions, employees required access to different work applications for company-owned devices. Organizations have therefore started relying more on managed services during the Covid-19 pandemic.

Managed services involve outsourcing management functions to a third party to advance business operations. The introduction of cloud-based technologies and their technological proliferation have led to managed services. Managed services assist businesses in improving operational efficiency and cutting down companies' operating expenses. The growing preference for outsourcing management functions to cloud service providers and managed service providers is anticipated to drive the market's growth over the forecast period.

The adoption of the latest technologies such as artificial intelligence (AI), cloud management, and others is eventually helping organizations meet various functional business requirements while driving business process optimization. Managed services deliver effective functionalities at minimal costs without compromising on quality. Additionally, managed services also support and ensure the reliability and consistency of services offered for various business processes.

As cyber threats become more prevalent, organizations are adopting managed security services (MSSs) into their business models. There is an increase in cyber threats in government sectors and enterprises. Thus, forcing MSPs to develop advanced offerings that can detect and address cyber risks. For instance. in June 2021, Internal Business Machines Corporation (IBM) announced the IBM Center for Government Cybersecurity, designed to meet the cybersecurity needs of federal agencies.

Managed Services Market Segmentations: