New York, USA, June 26, 2023 (GLOBE NEWSWIRE) -- According to a report published by Research Dive, the global managed services market is anticipated to generate a revenue of $594.8 billion and rise at a stunning CAGR of 11.3% throughout the analysis timeframe from 2022 to 2031.
As per our analysts, the rising adoption of cloud computing services among businesses to enter new markets more effectively, quickly, and affordably is expected to bolster the growth of the managed services market during the estimated timeframe. Besides, the increasing use of managed services also helps businesses lower their IT and operational expenditures which is further expected to amplify the growth of the market during the forecast period. Moreover, the increasing digitalization and the adoption of new technologies such as cloud computing, data analytics, and many more, across organizations to help them become more productive, perform better, and save money is the major factor expected to create massive growth opportunities for the managed services market over the analysis period. However, data security concerns may impede the growth of the market throughout the estimated period.
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Segments of the Managed Services Market
The report has divided the market into segments based on organization size, deployment type, service type, industry vertical, and region.
Organization Size: Large Sub-Segment to be Most Productive
The large sub-segment held the largest managed services market share in 2021. This is mainly because large businesses require intensive administration of their systems, applications, and networks owing to their complex IT infrastructure. In addition, the increasing need for ongoing monitoring and assistance among large enterprises to accelerate seamless operation is expected to augment the growth of the market sub-segment over the analysis period.
Deployment Type: Cloud Sub-Segment to be Most Profitable
The cloud sub-segment is predicted to have the fastest growth during the forecast timeframe. The increasing need for cloud-based managed services across businesses to streamline their operations and cut down their expense for managing and maintaining their IT infrastructure is expected to amplify the growth of the managed services market sub-segment during the estimated timeframe.
Service Type: Security Services Sub-Segment to be Most Lucrative
The security services sub-segment is expected to have the highest CAGR during the analysis timeframe. Managed security service providers offer numerous security services to businesses such as intrusion detection, managed firewalls, anti-viral services, and many more, which is expected to propel the growth of the market sub-segment over the forecast period.
Industry Vertical: BFSI Sub-Segment to be Most Beneficial
The BFSI sub-segment registered the highest revenue in 2021. This is majorly due to the increasing demand for managed services among banks and other financial institutions to monitor and maintain their complicated systems. In addition, managed service providers help banks to reduce in-house costs, automate business operations, and restructure IT systems, which are expected to fuel the growth of the market sub-segment during the analysis period.
Region: North America Market Held the Maximum Market Share in 2021
The North America region of the managed services market generated the biggest revenue in 2021. This is mainly due to the strong presence of both large enterprises and SMEs across the region. In addition, the increasing need for affordable IT operations, the growing use of cloud technology, and the increasing investments in modern technologies such as artificial intelligence (AI), and machine learning (ML) by leading MSPs to improve their service offerings are expected to drive the regional growth of the market over the estimated period.
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Covid-19 Impact on the Managed Services Market
Though the rise of the Covid-19 pandemic devastated several industries, it positively impacted the managed services market. This is mainly due to the increased shift of organizations to remote work and the rising demand for cloud services, which enhanced the demand for managed services, especially cloud computing and cybersecurity. Moreover, many organizations started outsourcing their operations and are paying attention to their core business, which further increased the demand for managed services during the pandemic. Additionally, the digital transformation of businesses during the crisis further increased the demand for managed services. However, the supply chain disruptions and the budget cuts during the pandemic slightly affected the demand for managed services throughout the crisis.
Key Players of the Managed Services Market
The major players of the market include
- Cisco
- Fujitsu
- AT&T
- Ericsson
- Atos
- Accenture
- TCS
- Accenture
- HCL
- Dimension Data
- IBM
These players are widely working on the development of new business strategies and tactics such as mergers and acquisitions, partnerships and collaborations, and product development to acquire a leading position in the global industry.
For instance, in April 2023, Siemens Digital Industries Software, an American computer software company, announced its partnership with IBM, a leading American multinational technology corporation. With this partnership, the companies aimed to develop combined software solutions for organizations by offering various managed services such as asset management, service lifecycle management, and systems engineering.
Further, the report also presents other vital aspects including SWOT analysis, the financial performance of the key players, the product portfolio, and the latest strategic development.
More about Managed Services Market:
- 7 Latest Trends to Watch Out for in Managed Services Market
- Global Managed Services Market to Grow Exponentially by 2027 Owing to Company Collaborations & Technological Advancements
