Managed Services Market Growth & Trends

The global managed services market is expected to reach USD 731.08 billion by 2030, according to a new study conducted by Grand View Research, Inc. The market is projected to register a CAGR of 13.4% from 2022 to 2030. Strengthening profit margins, which cater efficiently to the needs of dynamic business environments, and improvements in operational efficiency are also expected to contribute to the growth of the market. Benefits associated with managed services implementation, such as a significant reduction in IT operational expenses and increased organizational efficiency, are also anticipated to drive the market growth.

Managed services help reduce recurring in-house IT expenditures by ensuring that their IT infrastructure is running at optimal efficiency at all times while also automating business operations. This subsequently allows organizations to effectively achieve their business objectives, especially about strengthening the bottom line and increasing profitability. Initiatives being pursued aggressively by various governments toward digital transformation focusing on modernizing their IT infrastructure, strengthening governance, and improving citizen services are anticipated to drive the demand for managed services over the forecast period.

For instance, in May 2021, the Government of Canada (GC) has released the most recent version of its digital strategy, which includes a renewed push to provide individuals with secure digital identities. The government of Canada is expected to create a single digital identity for Canadians, and Shared Services Canada (SSC) is trying to consolidate ministries’ networks and move them all to cloud-first networks. The GC is intended to modernize how the government manages technology and technical transformation to maintain government responsiveness and resilience to changing requirements and expectations of Canadians and companies.

Several businesses faced challenges because of the COVID-19 pandemic, and Managed Services Providers (MSPs) are no exception. Organizations across the globe opted for managed services to ensure operational efficiency amid lockdowns being implemented across various nations to halt the spread of coronavirus, organizational spending on new automation initiatives gradually slowed down.

Managed Services Market Report Highlights

  • The managed security segment is expected to register the highest CAGR over the forecast period owing to the adoption of managed security services in end-use industries due to various benefits such as security monitoring and management, email threat management, restoral management & backups, and support & maintenance management
  • The business support systems segment is anticipated to register the highest CAGR from 2022 to 2030. The increasing adoption of business support system services such as business analysis, database integration, demand management service, and project management in end-use industries is anticipated to propel the growth of the business support systems segment over the forecast period
  • The on-premise segment dominated the market in 2021. Numerous organizations have adopted the on-premise mode of deployment as it does not require an internet connection and allows easy customization of software to suit the business process requirements of clients
  • The Small and Medium Enterprises (SMEs) segment is anticipated to register a significant CAGR over the forecast period. Increasing government initiatives through various digital SME campaigns across the globe is expected to drive the growth of the SMEs segment over the forecast period.
  • The healthcare segment is anticipated to emerge as the fastest-growing segment over the forecast period. Several healthcare organizations are opting for managed services to protect patient data and secure monetary transactions, thereby contributing to the growth
  • North America accounted for the largest market share in terms of revenue in 2021. The rising number of Multinational Companies (MNCs) in North America bodes well for the regional market’s growth