Africa Managed Services Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)

The Africa Managed Services Market is segmented by Type of Service (Managed Network Services, Managed Security Services, Managed Mobility Services), Deployment (Private, Public, Hybrid), End-user Industry (IT & Telecom, BFSI, Retail, Healthcare), and Country (South Africa, Kenya, Rest of Africa). The market sizes and forecasts are provided in terms of value (USD million) for all the above segments.

Africa Managed Services Market Size

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Africa Managed Services Market Summary
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Study Period 2019 - 2029
Base Year For Estimation 2023
Forecast Data Period 2024 - 2029
Historical Data Period 2019 - 2022
CAGR 8.20 %
Market Concentration Medium

Major Players

Africa Managed Services Market Major Players

*Disclaimer: Major Players sorted in no particular order

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Africa Managed Services Market Analysis

The Africa Managed Services market is expected to grow at 8.2% CAGR during the forecast period. In the current market scenario, there has been a massive shift in focus toward managed services and their applications for short- and long-term strategic decisions in Africa. Hence, the African market for managed services is expected to witness significant demand for managed mobility and network services.

  • The rapidly increasing adoption and implementation of the cloud for data storage and the introduction of big data analytics contribute to the market's growth. Moreover, the rapid growth and evolution of IoT technology are also expected to support the growth and development of the market. As managed services enable companies to access enhanced applications and services, it primarily helps them target their core strategic areas while outsourcing the rest of the operations to the service providers with the operational expertise in that domain. Also, the managed services for cloud, IoT platforms, containers, DevOps, and Big Data are expected to hold tremendous potential for the managed service providers in the forecast period.
  • In the current market scenario, cyberattacks have rapidly increased in major African countries like South Africa. With more South African businesses and government institutions migrating to digital platforms, research by cyber security organizations has noted a growing need for a sustained national public awareness campaign to inform, educate and mobilize the public against an increasing pandemic of cyber-crime. The African Cyber threat Assessment Report 2021 found that South Africa had the highest number of targeted ransomware and business email compromise attacks in Africa. This has forced companies to adopt security-first thinking. Managed services providers are now putting more effort into securing the service infrastructure of their clients.
  • Managed services companies in the African region are taking advantage of the solutions built by major tech giants to develop their own managed services portfolio. For example, the IT consultancy firm that focuses on implementing, developing, and managing SAP-based solutions, Britehouse (a managed service provider present in the African region), has created a flexible platform for delivering hosted SAP solutions as a managed service to businesses throughout Africa. As per a recent survey by UN DESA, in 2022, the median age in Africa was 18.8 years, indicating that half of the population was older and half was younger than that age. Africa is the youngest continent in the world and presents the highest share of inhabitants aged 14 years and younger, 40% of the total population. A young and growing African population with improved digital skills and behavior could offset some adverse trends and indicate favorable growth for sectors like telecom and ICT services.
  • The COVID-19 pandemic has demonstrated the benefits of a digitized economy, facilitating working from home (WFH). This could prove to be an opportunity for the African market to accelerate its journey towards raising the bar of digital and telecom services, which play in a socio-economical context.
  • However, the surge in security and privacy concerns and the lack of infrastructure in Africa could be a significant concern, restricting the market's overall growth.

Africa Managed Services Market Trends

This section covers the major market trends shaping the Africa Managed Services Market according to our research experts:

IT & Telecom Industry is Expected to Grow at a Significant Rate Over the Forecast Period

  • Africa remains one of the fastest-growing mobile communication markets in the world. According to the Ericsson Mobility Report, by 2025, in Sub-Saharan Africa, mobile broadband subscriptions will reach around 70% of the mobile subscriptions, with increased 4G coverage and uptake being the main growth engine. Growth factors behind this shift include a young population and the availability of lower-priced smartphones.
  • The region is plagued by a cybersecurity skills shortage, which causes hackers to target organizations, especially banks and telecoms. For instance, in December 2022, New World TV, the company that holds Africa's 2022 World Cup broadcasting rights for sub-Saharan Africa, stated that it had suffered a series of cyberattacks since the tournament began. The region's rise in such cases fuels the market's overall growth.
  • Telephone cost in the country is high due to the high price involved in acquiring poor telecommunication infrastructure. Thus, local companies, such as IT-Simplified, LeftClick, Sensys, and Innovative Solutions, offer Voice over Internet Protocol (VoIP) as a core managed service. In the latest instance, Bigen Group selected LanDynamix to implement a voice-over-Internet protocol (VoIP) solution for the company's Bloemfontein office. This new installation is anticipated to reduce telephone costs by up to 50%.
  • The government of South Africa announced its plan to provide national broadband coverage by end-2023. South Africa's telecom sector boasts one of the most advanced infrastructures on the entire continent. Also, there has been considerable investment from Liquid Intelligence Technologies, Telkom, Broadband InfraCo, municipal providers, and mobile network operators, all aimed at improvising network capabilities.
  • As per Ericsson, the total number of 5G subscriptions in Sub-Saharan Africa is estimated to reach 104 million by 2027. With the rise in 5G subscriptions in the Sub-Saharan African region, the market is expected to witness drastic growth throughout the forecasted period.
Africa Managed Services Market - Number of 5G subscriptions in Sub-Saharan Africa from 2021 to 2027

South Africa is Expected to Hold a Significant Share Throughout the Forecast Period

  • The wide adoption of cloud computing services in South Africa has gained pace, owing to factors such as changes in work styles, user device proliferation, emerging cloud-native applications, and mobile application growth. This will act as a significant driver within the region, which in turn will assist in augmenting the market's growth exponentially.
  • In the current market scenario, more and more businesses across South Africa are making a move toward the cloud and, subsequently, managed services. According to Afrihost, one of the cloud solution providers in South Africa, 'more and more organizations are moving their data and communication needs to the cloud as they feel more confident about the security, savings, and flexibility provided by the cloud, as opposed to traditional local server solutions.' The growing demand from organizations to focus on core business activities is expected to create opportunities for the market in South Africa.
  • Moreover, the market in South Africa is home to significant activities by key major players as a part of its strategy to improve its business and its presence to reach customers and meet their requirements for various applications. For instance, in December 2022, Kocho, the UK-headquartered provider of cyber security, identity, cloud transformation, and managed services, announced it had established operations in Cape Town, South Africa. The new office would create frontline and DevOps roles to support Kocho's expanding portfolio of international customers.
  • Cloud solutions across backup, data governance, and compliance are growing in South Africa. Thus, many companies are outsourcing their cloud division to gain a competitive edge. Gabsen Technologies selected Dhruva, a data protection and management company, to expand its cloud-based data protection services across Africa.
  • As per GSMA, the overall mobile usage in Sub-Saharan Africa is expected to increase drastically in the next coming years, reaching 623 million unique subscribers by the end of the year 2025. Also, it is anticipated that there will be around 483 million mobile internet users within the region by 2025, creating massive growth opportunities throughout the region.
Africa Managed Services Market - Unique mobile subscriptions and mobile internet users in Sub-Saharan Africa from 2018 to 2025

Africa Managed Services Industry Overview

The Africa Managed Services Market is moderately competitive and consists of a significant number of global and regional players. These players account for a considerable market share and focus on expanding their regional customer base. These players focus on the research and development investment in introducing new solutions, strategic alliances, and other organic and inorganic growth strategies to earn a competitive edge over the forecast period.

In October 2022, SmartCIC, a managed service provider, expanded its fixed-line connectivity and field service solutions across 32 African countries. Customers gain the support of on-the-ground engineers in each country, delivering consistent performance and customer experience in local markets throughout the continent. In addition to fixed-line connectivity, SmartCIC has launched satellite services connecting Africa's 54 countries. SmartCIC's Africa expansion enables enterprises and services providers to efficiently connect, deploy, and manage digital infrastructure in new and challenging markets.

In February 2022, BARQ Systems, a leading regional IT services provider serving business and government clients across the Middle East and Africa (MEA), announced its transition to an IT service provider, providing a full-fledged portfolio of managed services. As a crucial part of this transition, BARQ Systems is introducing a new Security Operations Centre as a Service (SOCaaS), marking the beginning of its journey to offer a more comprehensive set of subscription-based IT Services by 2025.

Africa Managed Services Market Leaders

  1. Cisco Systems

  2. IBM Corporation

  3. Accenture PLC

  4. Fujitsu Ltd.

  5. HP Development Company LP

*Disclaimer: Major Players sorted in no particular order

Africa Managed Services Market Concentration
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Africa Managed Services Market News

  • October 2022: Silicon Overdrive, a leading IT Managed Services provider with headquarters in Cape Town, South Africa, and a footprint across Sub-Saharan Africa, announced that it had officially opened its regional office in Nairobi, Kenya. Expanding into the Kenyan market was a strategic decision to support the regional customers.
  • August 2022: SkyMax Network Limited, a multinational wireless communications engineering company, and Ericsson signed a Memorandum of Understanding (MoU) to create a partnership to build a next-generation 5G broadband network, including digital services delivery platform across Sub-Saharan Africa (SSA). Under the MoU, Ericsson will be SkyMax's trusted partner for network supply, rollout, optimization, and managed services. Ericsson will explore partnership opportunities in end-to-end business and technology solutions, including Radio Access and Mobile Transport network solutions, core network and provisioning systems, Business Support Systems, and Managed Services, including Cognitive Software network optimizations and Business Consulting Support.

Africa Managed Services Market Report - Table of Contents

  1. 1. INTRODUCTION

    1. 1.1 Study Assumptions and Market Definition

    2. 1.2 Scope of the Study

  2. 2. RESEARCH METHODOLOGY

  3. 3. EXECUTIVE SUMMARY

  4. 4. MARKET INSIGHT

    1. 4.1 Market Overview

    2. 4.2 Industry Attractiveness - Porter's Five Forces Analysis

      1. 4.2.1 Threat of New Entrants

      2. 4.2.2 Bargaining Power of Buyers/Consumers

      3. 4.2.3 Bargaining Power of Suppliers

      4. 4.2.4 Threat of Substitute Products

      5. 4.2.5 Intensity of Competitive Rivalry

    3. 4.3 Assessment of Impact of COVID-19 on the Africa Managed Services Market

  5. 5. MARKET DYNAMICS

    1. 5.1 Introduction to Market Dynamics

    2. 5.2 Market Drivers

      1. 5.2.1 Favorable Trends Pertaining to Big Data and Analytics, along with Growing ICT Spending

      2. 5.2.2 Increasing Adoption of Managed Service Among Small and Medium Enterprises across Africa

    3. 5.3 Market Challenges

      1. 5.3.1 Security & Privacy Concerns and Lack of Infrastructure

  6. 6. MARKET SEGMENTATION

    1. 6.1 Type of Service

      1. 6.1.1 Managed Network Services

      2. 6.1.2 Managed Security Services

      3. 6.1.3 Managed Mobility Services

      4. 6.1.4 Other Types of Service

    2. 6.2 Deployment

      1. 6.2.1 Private

      2. 6.2.2 Public

      3. 6.2.3 Hybrid

    3. 6.3 End-user Industry

      1. 6.3.1 IT & Telecom

      2. 6.3.2 BFSI

      3. 6.3.3 Retail

      4. 6.3.4 Healthcare

      5. 6.3.5 Other End-user Industries

    4. 6.4 Country

      1. 6.4.1 South Africa

      2. 6.4.2 Kenya

      3. 6.4.3 Rest of Africa

  7. 7. COMPETITIVE LANDSCAPE

    1. 7.1 Company Profiles

      1. 7.1.1 Cisco Systems

      2. 7.1.2 IBM Corporation

      3. 7.1.3 HP Development Company LP

      4. 7.1.4 NEC Corporation

      5. 7.1.5 Accenture PLC

      6. 7.1.6 Fujitsu Ltd.

      7. 7.1.7 Telefonaktiebolaget LM Ericsson

      8. 7.1.8 Castlerock Managed IT Services Company

      9. 7.1.9 LanDynamix Managed IT Services

      10. 7.1.10 Dimension Data Holdings PLC

    2. *List Not Exhaustive
  8. 8. INVESTMENT ANALYSIS AND FUTURE OF THE AFRICA MANAGED SERVICES MARKET

**Subject to Availability
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Africa Managed Services Industry Segmentation

Managed services are outsourcing on a proactive basis, with specific processes and functions intended to improve operations and cut expenses. They simplify IT operations, increase user satisfaction, and enhance service quality while reducing operating costs. Managed services options range from short-term post-go-live assistance to long-term application operations. The study's scope includes segmentation by deployment, type of services, end-user industry, and country. The research also focuses on the impact of COVID-19 on the market ecosystem. In the report scope, the existing service provider landscape is also covered, consisting of major market players.

Africa Managed Services Market is Segmented by Type of Service (Managed Network Services, Managed Security Services, Managed Mobility Services), Deployment (Private, Public, Hybrid), End-user Industry (IT & Telecom, BFSI, Retail, Healthcare), and Country (South Africa, Kenya, Rest of Africa). The market sizes and forecasts are provided in terms of value (USD million) for all the above segments.

Type of Service
Managed Network Services
Managed Security Services
Managed Mobility Services
Other Types of Service
Deployment
Private
Public
Hybrid
End-user Industry
IT & Telecom
BFSI
Retail
Healthcare
Other End-user Industries
Country
South Africa
Kenya
Rest of Africa
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Africa Managed Services Market Research FAQs

The Africa Managed Services Market is projected to register a CAGR of 8.20% during the forecast period (2024-2029)

Cisco Systems, IBM Corporation, Accenture PLC, Fujitsu Ltd. and HP Development Company LP are the major companies operating in the Africa Managed Services Market.

The report covers the Africa Managed Services Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Africa Managed Services Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.

Africa Managed Services Industry Report

Statistics for the 2023 Africa Managed Services market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Africa Managed Services analysis includes a market forecast outlook to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.

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Africa Managed Services Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)