Managed Services Market was valued at US $231.8 BN in 2022 and is expected to reach US $468.22 BN by 2030, growing at a CAGR of 9.6% during the forecast period 2023 – 2030. Managed services has become one of the most crucial aspect when it comes to any business across industries as well as the employees as they have. With the dawn of internet, managed services also being to expand and as of today managed services is some what became parallel to any business where at least one part of any business is managed by a third-party provider.
IMPACT OF COVID 19
Cyber security growth driven by increased spending in regulated industries such as banking, healthcare and government and defence.
Covid-19 pandemic was unseen and unheard and the way pandemic enterprises had little to no time to change their style of working. With the world coming to stand still during the pandemic, enterprises suddenly had to manage with employees working from home and the need to manage and provide secure access to enterprise IT infrastructure. Now post the pandemic, the trend for work from anywhere will continue as enterprises have the infrastructure in place to meet up this demand.
So the Covid-19 pandemic definitely had a positive impact of the managed services market where the adoption increased during the pandemic
Driving forces for the market
Increasing focus on digital transformation across enterprises.
With enterprises looking for increasing there operational efficiency by adopting digital technologies such as AI/ML, ChatGPT, edge computing, IoT and others the demand for these services will boost the adoption of managed services as enterprises will be looking for a managed services vendor to mange these services and also ensure that the new solutions are able to fit into the legacy infrastructure.
According to the World Economic forum, USD 100 trillion will be combined effect added to society and the industries due to digital technologies. This is significant and clearly states the impact that digital transformation activities will have on the world as a whole.
Restraints
Security and compliance.
Security and compliance issues still remain a major restraint for enterprise to adopt managed services and the challenge is must greater in regulated industries such as healthcare, banking and others. Enterprise adopting managed services, trust third parties to manage their IT infrastructure and with the strict government regulations and policies and any compliance issues may result in financial as well as brand loss for any enterprise
Components:
Managed security services will outgrowth other services in terms of growth for the next five years
The managed services market is segmented into managed security services, managed network services, managed data center services, managed communication and collaboration services and managed mobility services . Within these service category managed security services wis expected to have the highest share currently and the same trend is expected to follow during the next eight years.
Deployment Type
The deployment type is further categorised into cloud and on premise. Within the deployment type, cloud-based security solutions are the front runners in adoption, and this trend will continue for the next five years. Presence of specialist cloud based security providers, on the go solutions, easy of network maintenance are some of the factors that are driving the cloud based adoption.
Vertical Level Analysis
The report also provided the adoption rate of managed services among industry verticals namely banking financial services and insurance, Healthcare and Lifesciences, Government and Défense, consumer goods and retail, information and technology, manufacturing, energy. Among these industries the healthcare and life sciences vertical is expected to have the highest adoption in coming years.
The report categories the cyber security market in five regions: North America, Europe, Asia Pacific, Middle East and Africa and Latin America. North America, is the leader in terms of adoption where this region alone contributes 35~ 38% to the global market. The regions boasts of huge presence of cyber security solution providers , coupled with higher It budgets among industries are some of the major factors that are driving the adoption of cyber security solutions.
Vendor Strategy
To expand their presence in the managed services market vendors are going the organic route, where they are focusing their attention on product development, product enhancement and expanding their presence both footprint wise as well as coming up expanding their portfolio of solution and services.
For instance, DXC technology one of the prominent vendor in the managed services market expanded its managed services portfolio, where the company partnered with Oracle to deliver its cloud managed services on Oracle Cloud Infrastructure (OCI).
*For more information about companies covered please refer the TOC
| Report Components | Details |
|---|---|
| Parameter | Details |
| Forecast | 2022-2027 |
| Base Year | 2021 |
| Estimated Year | 2022 |
| Market Size | USD Billion |
| Component |
|
| Managed Security Services |
|
| Managed Network Services |
|
| Managed Data Center Services |
|
| Managed communication and collaboration services |
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