The Cloud Managed Services Market was valued at USD 26.08 billion in 2017 and is expected to reach USD 61.34 billion by 2023, registering a CAGR of 15.3% during the forecast period (2018 - 2023).
Increasing need for businesses to cut down operational and infrastructural costs involved in business processes is anticipated to drive the demand for cloud managed services. The expanding big data space has created a higher demand for managed analytical services and cloud storage services. Also, the increasing demand for reliability and scalability may further elevate the need for these services as it will enable enterprises in scaling-up and down their operations by providing custom-made offerings to the available services.
As various organizations, such as American Red Cross, Netflix, and Rovio, are increasingly utilizing a wide array of Software-as-a-Service (SaaS) applications and various other cloud-based services, the demand for cloud-based managed security services is set to increase. Increasing penetration of mobile devices and the trend of BYOD in multiple organizations are also likely to drive the demand for this market, to manage these devices for utilization and security need. Around 67% of the workforce is expected to adopt own devices for work, which may further drive the growth for cloud managed services market. However, concerns regarding cloud privacy are estimated to challenge the growth of the market.
BFSI Sector is Expected to Drive Growth in the Market
The BFSI sector, a pioneer in the adoption of computer and networking systems to curtail large, space-intensive repositories and databases, is expected to have a substantial share in the cloud managed services market, during the forecast period. The BFSI sector assesses the risks accurately using big data solutions thus, enabling firms to make informed decisions, by analyzing transactional data to determine risks based on market behavior, scoring customers, and potential clients. Banks, such as BNY Mellon, Morgan Stanley, Bank of America, Credit Suisse, and PNC, are already working on strategies around big data in banking, further increasing the growth prospect for cloud managed services.
Moreover, many banks such as Thai Bank, Krungsri, are entering into strategic collaborations for upgrading its technology infrastructure to be cloud-ready to support digital banking. The bank has entered into a five-year USD 140 million partnership with IBM for its digital transformation which will also cover managed services, thus driving the demand for this market.
North America is Expected to Occupy Substantial Market Share
North America’s strong financial position enables it to invest heavily in advanced solutions and technologies, which has provided organizations in the region a competitive edge in the market. Moreover, the region has the presence of several key cloud managed services vendors, such as IBM Corporation (US), CenturyLink Inc., (US) and Cisco Systems Inc. (US), among others.
The increasing deployment of big data solutions by major IT enterprises, such as Google and Microsoft, to enhance the efficiency and streamline their business operations is driving the adoption for the cloud managed services market in this region. Companies in this region, such as IBM Corp, have invested USD 1 billion in Watson, which focuses on big data and artificial intelligence. This, in turn, is expected to drive the growth of the cloud managed services market.
The increased sale of smartphones and penetration of mobile device has resulted in the high adoption of BYOD in this region, which is also driving companies to adopt cloud managed services. According to NewZoo, the smartphone penetration in the United States is estimated at 69.3% in 2016. With many end-user industries, such as healthcare, implementing IoT to enable better operations, the usage of the cloud is increasing, which in turn, promotes the growth of this market in North America. According to Intel, the trend of IoT is rising at rapidly, from 2 billion in 2006 to a projected 200 billion by 2020.
Key Developments in the Market
- Aug 2018: DXC Technology entered into a partnership with Amazon Web Services (AWS) to build a new multi-billion dollar DXC – AWS Integrated Practice that will deliver IT migration, application, transformation, and business innovation to clients. The DXC – AWS Integrated Practice will offer clients secure, cloud-first solutions to enable them to innovate in their industries while modernizing their operations for a digital era.
- Aug 2018: CenturyLink collaborated with IBM to deliver secure, dedicated, and private network connectivity to the IBM Cloud through their Cloud Connect solutions. The collaboration between CenturyLink and IBM builds on CenturyLink's existing support for IBM Business Resiliency Services and IBM Cloud Managed Services.
Major Players: Cisco Systems, Inc., Ericsson Inc., IBM Corporation, Accenture PLC, Huawei Technologies Co. Ltd, NEC Corporation, Fujitsu Ltd, DXC Technology Company, NTT Data Corporation, and CenturyLink Inc., among others.
Cloud Managed Services Market - Report Summary
Cloud Managed Services Market
Market Size in 2017
USD 26.08 billion
Market Size in 2023
USD 61.34 billion
This report on the Cloud Managed Services Market offers the latest trends, growth prospects, industry competitiveness, major players, industry value chain analysis, regional market share, and forecast until 2023.
Reasons to Purchase this Report
- Impact of growth of cloud managed services on the market studied
- Analysis of various perspectives of the market with the help of Porter’s five forces analysis
- The segments that are expected to dominate the market
- Regional analysis of the market during the forecast period
- Latest developments, market shares, and strategies employed by major market players and key innovators
- 3-month analyst support, along with the Market Estimate sheet (in Excel)
Customization of the Report
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1.1 Key Deliverables of the Cloud Managed Services Market Study
1.2 Cloud Managed Services Market Study Assumptions
1.3 Cloud Managed Services Market Definition
1.4 Key Findings of the Cloud Managed Services Market Study
2. Research Approach and Methodology
3. Executive Summary
4. Cloud Managed Services Market Dynamics
4.1 Cloud Managed Services Market Overview
4.2 Industry Value Chain Analysis
4.3 Factors Driving the Cloud Managed Services Market
4.3.1 Increasing Adoption of Cloud Technology and Big Data
4.3.2 Growing Usage of Mobile Devices and Adoption of BYOD Concept
4.4 Factors Restraining the Cloud Managed Services Market
4.4.1 Concerns Regarding Cloud Privacy
4.5 Industry Attractiveness – Porter's Five Industry Forces Analysis
4.5.1 Bargaining Power of Suppliers
4.5.2 Bargaining Power of Consumers
4.5.3 Threat of New Entrants
4.5.4 Threat of Substitute Products or Services
4.5.5 Competitive Rivalry among Existing Competitors
5. Global Cloud Managed Services Market Segmentation
5.1 By Type
5.1.1 Infrastructure Services
5.1.2 Network Services
5.1.3 Data Center Services
5.1.4 Security Services
5.1.5 Other Types
5.2 By Deployment
5.2.1 Public Cloud
5.2.2 Private Cloud
5.3 By End-user Industry
5.3.2 IT and Telecom
5.3.6 Other End-user Industries
5.4 By Geography
5.4.1 North America
5.4.4 Latin America
5.4.5 Middle East & Africa
6. Competitive Intelligence – Company Profiles of the Cloud Managed Services Market
6.1 Cisco Systems, Inc.
6.2 Ericsson Inc.
6.3 IBM Corporation
6.4 Accenture PLC
6.5 Huawei Technologies Co. Ltd
6.6 NEC Corporation
6.7 Fujitsu Ltd
6.8 DXC Technology Company
6.9 NTT Data Corporation
6.10 CenturyLink Inc.
6.11 Civica Group Ltd
6.12 Alcatel-Lucent SA
*List Not Exhaustive
7. Investment Analysis of the Cloud Managed Services Market
8. Future of the Global Cloud Managed Services Market