The Cloud managed services market size is expected to grow from USD 99.0 billion in 2022 to USD 164.0 billion by 2027, at a Compound Annual Growth Rate (CAGR) of 10.6% during the forecast period. Growing innovation and investment in cloud services with the remote working environment is boosting the growth of the cloud managed services market.
Managed infrastructure services to account for a larger market size during the forecast period.
Technology trends such AI, IoT, analytics, cloud, and cognitive computing are driving the demand for new business models, reduced time to market, and optimizing businesses processes to deliver personalized customer experiences. Aligning enterprise IT infrastructure with business requirements is a major step in digitalization. IT infrastructure management results in agile infrastructure, higher employee productivity, enhanced customer experience, and greater security and compliance.
BFSI industry vertical to hold largest market share in 2022
Cloud computing is a critical element of digital transformation. The BFSI vertical, which was initially hesitant to opt for digital transformation, is now embracing the benefits of cloud services. It is offering benefits such as customer relationship management, regulatory compliance, omnichannel banking, and open banking operations. These benefits are driving BFSI ?firms to incorporate cloud migration into their digital transformation strategies. Banks specializing in cards, wealth management, and investment services are introducing features like digital identity, behavioral biometrics, push notifications, e-wallets, and QR payments using the IaaS and PaaS models on private cloud. For instance, a leading Norwegian bank adopted the PaaS model on public cloud to transform its peer-to-peer mobile payment application. Thus, the growing technological revolution will create several opportunities for cloud managed service providers to offer customized services to the BFSI vertical.
North America to hold largest market share of cloud managed services market in 2022
North America comprises the US and Canada. The region has a well-developed and advanced infrastructure that supports the adoption of cloud managed services. It is also an early adopter of innovative technologies. The high internet penetration is driving the demand for cloud-based applications in the region. According to Statista, in 2021, North America had approximately 417 million internet users and this figure is expected to reach 448.55 million by 2026. Further, MSPs in the region will be able to utilize other emerging growth opportunities such as cyber security, IT infrastructure, business applications, communication and collaboration services by enhancing their service portfolios and offering end to end ICT services. This is likely to boost the cloud managed services market in North America.
In the process of determining and verifying the market size for several segments and subsegments gathered through secondary research, extensive primary interviews were conducted with the key people.
The breakup of the profiles of the primary participants is as follows:
- By Company Type: Tier I: 42%, Tier II: 24%, and Tier III: 34%
- By Designation: C-Level: 28%, D-Level: 38%, and Others: 34%
- By Region: North America: 41%, Europe: 22%, Asia Pacific: 19%, Row: 18%
The report profiles the various key players including IBM (US), Ericsson (Sweden), Cisco (US), Fujitsu (Japan), Accenture (Ireland), AWS (US), NTT DATA (Japan), Infosys (India), HPE (US), NEC (Japan), Atos (France), TCS (India), Wipro (India), Datacom (New Zealand), AT&T (US), HCL Technologies (India), CDW Corporation (US), Huawei (China), Nokia (Finland), Rackspace (US), Connectria (US), DLT Solutions (US), Softchoice (Canada), Cloudnexa (US), Bespin Global (South Korea), Cloudticity (US), 2 nd Watch (US), iSmile Technologies(US), Cloud4C(Singapore), Mission Cloud Services (US), and CloudNow (India).
- The report segments the Cloud managed services market by service type, (SMEs, large enterprises), vertical, and regions. The service type segment includes managed security services, managed network services, managed infrastructure services, managed communication & collaboration services, managed mobility services, and managed business services.
- Based on managed security services the market is segmented as managed identity & access management, managed antivirus/anti-malware, managed firewall, managed risk & compliance management, managed vulnerability management, managed security information & event management, managed intrusion detection system/intrusion prevention system, managed data loss prevention, and other managed security services (DDoS mitigation, managed encryption, and managed Unified Threat Management (UTM)).
- Managed network services are further segmented into managed network provisioning, and network monitoring & management. Managed infrastructure services are further segmented into server management, storage management, and managed print services.
- This report classifies the managed communication & collaboration services segment into managed voice over internet protocol (VoIP), and managed unified communication as a service (UCaaS). Managed mobility services are segmented into device management services and application management services. Managed business services is segmented into considers business process services, continuity & disaster recovery services, and other managed business services(desktop, and OSS/BSS).
- The market is segmented based on organization sizes as SMEs and large enterprises. Different industry verticals using cloud managed services include BFSI, telecom, IT, government & public sector, healthcare & life sciences, retail & consumer goods, manufacturing, energy & utilities, and other verticals.
- The geographic analysis of the cloud managed services market is spread across five major regions: North America, Europe, Asia Pacific, Middle East & Africa, and Latin America.
Key Benefits of Buying the Report
The report will help the market leaders/new entrants in the cloud managed services market with information on the closest approximations of the revenue numbers for the overall cloud managed services market and the subsegments. The report will help stakeholders understand the competitive landscape and gain more insights to better position their businesses and to plan suitable go-to-market strategies. The report also helps stakeholders understand the pulse of the market and provides them with information on key market drivers, restraints, challenges, and opportunities.