Managed services MARKET – OVERVIEW The global managed services market is projected to witness a rapid growth during the forecast period owing to the increasing demand for scalable and cost-effective technology services.
A new report narrows it down- CAGR will be over 8% in the period until 2033 and the same report estimates the market worth will rise to well above $570 billion as compared the value being around $280 billion in 2024.
The growth is being driven by several key factors. The continuously increasing complexity of IT environments requires knowledge and experience many companies consider too expensive to maintain in-house.
This is especially applicable to SMBs, who often can’t afford huge in-house IT departments. The increasing wave of advanced cyber attacks is another key driver behind the adoption of Managed Security Service Providers (MSSPs) for 24/7 monitoring, detecting threats and responding to incidents.
Cloud is a pervasive trend and a large number of enterprises are depending on MSPs to migrate, optimize, and manage the cloud and hybrid infrastructure.
This need is exacerbated by the growing use of disruptive technologies (such as Artificial Intelligence (AI), or Machine Learning (ML), or the Internet of Things (IOT), etc.), which the businesses today are heavily depending on. These technologies demand specialized management and support.
We are seeing the market now move towards more strategic and proactive partnerships where MSPs are not just seen as IT. [‘.support’] but as businesses enabler. 2025 trends focus on the increasing predominance of chat-platform-based support for immediate support, using AI to automate and move into full predictive maintenance and the managed services “security-first” strategy.
And consolidation in the market is only set to rise, as MSPs look for the opportunity to consolidate offerings and gain a wider share of the market.
Now, even though North America still has the largest market share, the Asia-Pacific region is expected to show the highest growth over the forecast period, because of accelerated digitalisation and greater consumption of cloud services. Prominent players in the market are working towards providing customized and industry-oriented solutions to address distinct requirements of BFSI, healthcare, and manufacturing industry.
However, the market is limited by a few restraints such as high initial setup cost for managed services, and the integration of managed services with the IT infrastructure. However, the increasing demand for expertise, increased security, and affordability of solutions have caused the Managed Services Market to continue to grow significantly during the next decade.