The managed services market is anticipated to increase from USD 365.33 billion in 2024 to USD 511.03 billion by 2029 at a Compound Annual Growth Rate (CAGR) of 6.9%. The practice of contracting out specific corporate activities or functions to other businesses is known as managed services. Businesses can concentrate on their core competencies as managed services providers (MSPs) handle the daily management, oversight, and optimization of these services. IT infrastructure management, cybersecurity, cloud computing, network monitoring, and data storage are just a few of the disciplines that are included in managed services. The move of businesses to operate their operations and apps on the cloud is one of the main factors driving the growth of the managed services market.
Download PDF Brochure@ https://www.marketsandmarkets.com/pdfdownloadNew.asp?id=1141
The managed VOIP segment is expected to capture the highest CAGR during the forecast period by managed communication & collaboration service.
Managed Voice over Internet Protocol (VoIP) services are important for modern communication, equipping organizations with a dependable, cost-effective means to conduct voice communications over the internet. VoIP, uses the internet for voice transmission, which substantially reduces traditional phone service expenses, making it a more economical alternative for businesses of all kinds. Moreover, VoIP increases communication flexibility by allowing organizations to expand their phone solutions on demand and interface with other collaboration technologies such as video conferencing, messaging applications, and virtual conference rooms.
Managed VoIP services simplify call routing by offering useful insights on call volumes, peak times, and geographical patterns. Businesses utilize this data to adjust call management strategies, assuring more effective routing and avoiding unnecessary expenditures such as long-distance rates. This strategy not only saves money, but it also enhances the whole communication experience. Also, features like call forwarding, voicemail-to-email, call recording, and virtual phone numbers promote productivity and keep teams connected particularly in remote or hybrid work conditions. These services make it simple to work together across sites, ensuring that information flows smoothly regardless of where employees are located.
Based on the managed network services, the managed WAN segment is expected to hold the largest market share during the forecast period.
Managed wide area network (WAN) services are important to organizations which require a stable, secure infrastructure to link several locations. A wide-area network (WAN) connects numerous LANs to allow communication between sites such as branch offices and data centers. Managed WAN services deliver optimal data transfer by constantly altering routes depending on real-time network conditions, resulting in lower latency and rapid data transmission.
These services include developing and setting up WAN infrastructure depending on location, bandwidth needs, and connection types such as MPLS, Internet VPN, or SD-WAN. Traffic optimization techniques like as Quality of Service (QoS) and application-based routing prioritize vital data by assigning varying levels of priority, ensuring that high-priority applications, such as VoIP or video conferencing, obtain adequate bandwidth with minimal delay. This enables organizations to make better use of available bandwidth, decreasing congestion and increasing overall network efficiency. In addition, managed WAN services monitor network performance, resolving any faults and managing resources to ensure seamless operation. Encryption and firewalls are security methods that protect data privacy during transmission.
North America is projected to hold the largest market share during the forecast period.
The managed services market in North America is on the growth trajectory due to several factors such as cloud computing adoption, need for digital transformation and the need for enterprises to improve IT infrastructure. Enterprises are outsourcing IT management services such as network management, data protection and maintenance of the infrastructure enabling them to focus on core business activities. Increased need for cyber security solutions, complexities of IT systems and the transition to hybrid modes of working are other important factors. Managed services are also being utilized by small and large players across the healthcare, manufacturing, financial services, and retail industries for controlling expenses and increasing effectiveness while achieving compliance standards. Besides, the incorporation of artificial intelligence (AI) in managed services that is in addition to automation is also aiding the market in the active management of information technologies thus another factor that drives market expansion.
Recently there have been various developments in the market including Accenture’s acquisition of Navisite, finalized on January 30, 2024, which adds around 1,500 employees to enhance its managed services capabilities. In January 2024, Frontier Communications became the first service provider in North America to implement Nile’s network-as-a-service (NaaS) model, enabling customers to manage the network aspects without incurring large capital expenses beforehand. Additionally, in March 2024, SmartSource was included in CRN’s MSP 500 list as an organization with unique and robust solutions for the market, while in May 2024, NTT DATA was chosen by Salesforce to optimize its software applications provision. In addition, BlueVoyant announced the partnership with or signed an exclusive agreement to work with EY US aimed at promoting availability of Microsoft 365 E5 advanced security solutions to end-users affirms their commitment to innovative security technology. The above trends are indicative of a strong growth for managed services, reflective of the prevailing digitalization trends across sectors in the region.
Request Sample Pages@ https://www.marketsandmarkets.com/requestsampleNew.asp?id=1141
Unique Features in the Managed Services Market
The Managed Services Market is characterized by its focus on proactive IT management, where service providers take responsibility for continuously monitoring, maintaining, and optimizing client IT environments. Unlike traditional reactive support models, managed services emphasize prevention of downtime through predictive analytics, automation, and real-time performance tracking.
Another defining feature is the integration of advanced technologies such as artificial intelligence (AI), machine learning (ML), and automation tools. These innovations enhance service efficiency by enabling self-healing systems, automated issue resolution, and intelligent resource allocation — reducing manual intervention and improving operational agility.
The market also stands out for its scalability and flexibility, allowing businesses to adjust their IT resources and support levels as per their evolving needs. This subscription-based or pay-as-you-go model provides cost predictability and ensures that enterprises only pay for what they use, aligning IT spending with business goals.
A critical differentiator of managed services is the growing emphasis on cybersecurity and compliance management. Managed Security Service Providers (MSSPs) offer end-to-end protection through threat intelligence, continuous monitoring, and incident response, helping organizations meet regulatory requirements and safeguard sensitive data.
Major Highlights of the Managed Services Market
The Managed Services Market is witnessing rapid growth driven by the increasing complexity of IT infrastructures and the rising demand for specialized expertise. Organizations are increasingly outsourcing IT operations to managed service providers (MSPs) to enhance efficiency, reduce operational costs, and focus on core business objectives. This shift allows companies to gain access to the latest technologies and professional support without the need for heavy in-house investments.
A key highlight of the market is the accelerated adoption of cloud-based managed services. With businesses migrating to hybrid and multi-cloud environments, MSPs are offering comprehensive solutions for cloud management, data migration, and optimization. This trend supports digital transformation initiatives while ensuring flexibility and scalability across diverse IT ecosystems.
The market is also characterized by a strong focus on cybersecurity and risk management. As cyber threats become more sophisticated, MSPs are integrating advanced threat detection, security monitoring, and compliance management into their service offerings. This not only helps organizations safeguard their data but also ensures regulatory adherence across global markets.
Another major highlight is the integration of AI, automation, and analytics into managed services. These technologies enhance predictive maintenance, streamline operations, and enable real-time decision-making. Automation, in particular, is reducing downtime and improving service delivery, leading to more proactive and data-driven IT management.
Inquire Before Buying@ https://www.marketsandmarkets.com/Enquiry_Before_BuyingNew.asp?id=1141
Top Companies in the Managed Services Market
Some of the significant managed services vendors include IBM (US), Accenture (Ireland), Microsoft (US), Cisco (US), Fujitsu (Japan), TCS (India), Google (US), DXC Technology (US), Infosys (India),and Capgemini (France).
IBM
IBM is a major player in cloud platforms and AI solutions. Its main areas of operation include AI, business services, cloud technology, systems, and global financing. The company is focused on expanding its offerings by introducing new and advanced products in these fields. It helps customers streamline business processes and enhance data-driven decision-making capabilities. It offers a broad product portfolio that includes analytics, cloud computing, blockchain, intelligent automation, business operations, mobile technology, security, IT infrastructure, software development, and supply chain management.It helps customers streamline business processes and enhance data-driven decision-making capabilities. It offers a broad product portfolio that includes intelligent automation, analytics, cloud computing, blockchain, business operations, mobile technology, IT infrastructure, security, software development, and supply chain management.
Accenture
Accenture is a diversified technology and consulting organization. Accenture’s diverse portfolio spans various services, from hands-on delivery and installation to more specialized areas like application management, BPO, and technology consulting. The company also brings expertise in advanced fields such as blockchain, security, cloud services, and network transformation, ensuring comprehensive solutions tailored to the specific needs of its clients across various industries. It serves across multiple verticals: aerospace and defense, chemicals, healthcare, life sciences, software and platforms, automotive, communications and media, high technology, natural resources, travel, banking, consumer goods and services, industrial equipment, public services, utilities, capital markets, energy, insurance, and retail.
Microsoft
Microsoft, headquartered in Redmond, Washington, is a leading multinational technology company founded in 1975 by Bill Gates and Paul Allen. The company is renowned for its software products, including the Windows operating system and Microsoft Office suite. In addition to software, Microsoft has expanded into hardware with products like the Xbox gaming console and Surface devices. The company has also made significant advancements in cloud computing through its Azure platform, offering a wide range of services to businesses and developers. Microsoft’s mission is to empower every person and organization on the planet to achieve more.
Cisco
Cisco, based in San Jose, California, is a multinational technology conglomerate specializing in networking hardware, software, and telecommunications equipment. Founded in 1984 by Leonard Bosack and Sandy Lerner, Cisco has become a global leader in IT and networking. The company offers a broad range of products and services, including routers, switches, cybersecurity solutions, and collaboration tools like Webex. Cisco plays a crucial role in connecting people and devices across the globe, enabling secure and efficient communication.
Fujitsu
Fujitsu, headquartered in Tokyo, Japan, is a leading information and communication technology (ICT) company established in 1935. The company offers a comprehensive range of technology products, solutions, and services, including computing devices, servers, storage systems, and software applications. Fujitsu has a strong focus on research and development, driving innovation in areas such as artificial intelligence, the Internet of Things (IoT), and cloud computing. The company has collaborated with Microsoft to enhance cloud computing services and transform manufacturing processes through IoT innovation.
Media Contact
Company Name: MarketsandMarkets™ Research Private Ltd.
Contact Person: Mr. Rohan Salgarkar
Email: Send Email
Phone: 18886006441
Address:1615 South Congress Ave. Suite 103, Delray Beach, FL 33445
City: Florida
State: Florida
Country: United States
Website: https://www.marketsandmarkets.com/Market-Reports/managed-services-market-1141.html