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Managed Services Market Size, Share - Growth, Trends and Forecast (2019 - 2024)

Managed Services Market is segmented by Deployment, Type (Managed Data Center, Managed Mobility, Managed Security), Enterprise Size, End-user Vertical (BFSI, IT and Telecom, Healthcare, Retail) and Geography.

Market Snapshot

managed services market
Study Period:

2018-2024

Base Year:

2018

Fastest Growing Market:

Asia Pacific

Largest Market:

North America

Key Players:

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Managed Services Market

The global managed services market was valued at USD 166.8 billion in 2018, and it is expected to reach USD 319.5 billion by 2024, registering a CAGR of 11.5%, during the forecast period of 2019-2024. The market for managed services is expected to witness a keen interest in information services and managed mobility. There has been a shift in focus towards managed services and their applications for both short and long-term strategic decisions. As managed services enable a company to access enhanced applications and services that could not be possible in-house, it helps them to target their core strategic area, while outsourcing the rest of the tasks to the service providers who possess the operational expertise in that domain.
  • Managed services are majorly used to provide additional value for end-users in their respective business processes. Over the past few years, the network-cost model has been changing from an asset and liability-based model to a utility-based model.
  • It is estimated that the year on year capital expenditure by small and medium businesses towards these services will increase by 25%. The market for SMBs and cloud services is expected to take a bigger share, despite the slow growth rate of the overall IT expenditure in SMBs.
  • Organizations are focusing on cost reduction by cutting down the number of suppliers and are reducing the payment size. Over the past few years, bundled services have gained traction in the market over the discrete ones.
  • In 2019, the Blockchain and IoT technologies are set to create better opportunities for the managed services providers, as these organizations require expertise to implement these technologies. To get a hold of this opportunities and to stay relevant and keep up with the competition, the managed services providers are increasingly acquiring essential skillsets for these among other innovative technologies like AR, VR, and AI.

Scope of the Report

Managed services refer to a concept wherein an organization’s in-house day-to-day management functions are managed by a third party service provider. Managed services involve outsourcing of services related to infrastructure, security, printing, mobility and other functions, while the ownership rights stay with the end-user.

By Deployment
On-premise
Cloud
By Type
Managed Data Centre
Managed Security
Managed Communications
Managed Network
Managed Infrastructure
Managed Mobility​
By Enterprise Size
Small and Medium Enterprise
Large Enterprise
By End-user Vertical
BFSI
IT and Telecommunication
Healthcare
Entertainment and Media
Retail
Manufacturing
Government
Other End-user Verticals
By Geography
North America
United States
Canada
Europe
United Kingdom
Germany
France
Rest of Europe
Asia-Pacific
China
India
Japan
Rest of Asia-Pacific
Latin America
Brazil
Argentina
Mexico
Rest of Latin America
Middle East & Africa
United Arab Emirates
Saudi Arabia
South Africa
Rest of Middle East & Africa

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Key Market Trends

Managed Security is Expected to Hold a Significant Share

  • Worldwide spending on security-related hardware, software, and services is forecast to reach USD 120 billion by 2022. Rising security threats, regulatory compliance, and fear of data breaches will continue to drive security investments across various industries. Many major organizations are adopting managed security services to help maintain security within an organization.
  • Managed security services (MSSs) with advanced threat detection and remediation capabilities are enjoying high adoption rates. Connected devices are further expected to propel distributed denial of service (DDoS), and advanced persistent threat (APT) attacks. Thus, enterprises are seeking more proactive security measures to maintain security within an organization. According to Cloudflare, the financial cost of a DDoS is significant, as falling victim to a DDoS attack can cost an organization around USD 100,000 for every hour the attack lasts. The above factor is fueling the demand for managed security services.
  • In addition to traditional security services, many MSSPs have begun offering other advanced security services, be it managed advanced persistent threats (APT), application, cloud, mobile security, and advanced endpoint detection and response.
  • According to the 2018 report by Kaspersky Lab, the three industries most likely to suffer from a DDoS attack are telecoms, financial services, and IT. On average, large enterprises lose USD 417,000 as a result of a denial of service attack and small and medium enterprises lose USD 53,000. In 2018, around 20% of the companies with 50 employees or more reported that they have been the victim of at least one DDoS attack.
managed services market

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Asia-Pacific is Expected to Witness Rapid Growth

  • Asia-Pacific is currently experiencing a high adoption of cloud owing to a large number of organizations moving from traditional business models to cloud-based infrastructure to modernize the organizations business process including a multitenant architecture. Digital transformation has become a top priority in Asia-Pacific, and an increasing amount of companies are implementing formal strategies to support their efforts.
  • As more Asian enterprises and government agencies migrate their infrastructure to the cloud, MSPs can provide a variety of services to help these organizations address advanced persistent threat (APT), monitoring, and perform scheduled maintenance.
  • Most customers in this region prefer MSSPs that have local security operations centres (SOCs) due to the requirements of data sovereignty and other security compliance regulations released by governments.
managed services market

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Competitive Landscape

The managed services market is consolidated and is dominated by major players. Some of the major players in the market are Cisco Systems Inc.​, IBM Corporation​, Microsoft Corporation​, Verizon Communications Inc.​, Fujitsu Ltd., Dell Technologies Inc.​, Wipro Ltd., among others.

  • August 2019 - AT&T and Dell Technologies are jointly exploring the development of key open infrastructure technology areas for the next-generation network edge that will be required by service providers to support new use cases and service opportunities in a cloud-oriented 5G world.
  • January 2019 - Ericsson launched a new AI-based managed services offering for communications service providers, called the Ericsson Operations Engine. The Ericsson Operations Engine proactively and directly addresses service providers’ managed services complexity challenges as the industry moves towards an era of 5G and IoT.
  • January 2019 - Fujitsu announced that it had entered into a global systems integrator partnership with Microsoft. Three months later (March 2019), it attained the status of global Microsoft Azure Expert Managed Services Provider (MSP).

Major Players

  1. Fujitsu Ltd.
  2. Cisco Systems Inc.
  3. IBM Corporation
  4. Wipro Ltd.
  5. Microsoft Corporation

* Complete list of players covered available in the table of contents below

managed services market

Table of Contents

  1. 1. INTRODUCTION

    1. 1.1 Study Deliverables

    2. 1.2 Study Assumptions

    3. 1.3 Scope of the Study

  2. 2. RESEARCH METHODOLOGY

  3. 3. EXECUTIVE SUMMARY

  4. 4. MARKET INSIGHTS

    1. 4.1 Market Overview

    2. 4.2 Industry Attractiveness - Porter's Five Force 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 Industry Value Chain Analysis

  5. 5. MARKET DYNAMICS

    1. 5.1 Market Drivers

      1. 5.1.1 Increasing Shift to Hybrid IT

      2. 5.1.2 Improved Cost and Operational Efficiency

    2. 5.2 Market Challenges

      1. 5.2.1 Integration and Regulatory Issues and Reliability Concerns

  6. 6. MARKET SEGMENTATION

    1. 6.1 By Deployment

      1. 6.1.1 On-premise

      2. 6.1.2 Cloud

    2. 6.2 By Type

      1. 6.2.1 Managed Data Centre

      2. 6.2.2 Managed Security

      3. 6.2.3 Managed Communications

      4. 6.2.4 Managed Network

      5. 6.2.5 Managed Infrastructure

      6. 6.2.6 Managed Mobility​

    3. 6.3 By Enterprise Size

      1. 6.3.1 Small and Medium Enterprise

      2. 6.3.2 Large Enterprise

    4. 6.4 By End-user Vertical

      1. 6.4.1 BFSI

      2. 6.4.2 IT and Telecommunication

      3. 6.4.3 Healthcare

      4. 6.4.4 Entertainment and Media

      5. 6.4.5 Retail

      6. 6.4.6 Manufacturing

      7. 6.4.7 Government

      8. 6.4.8 Other End-user Verticals

    5. 6.5 By Geography

      1. 6.5.1 North America

        1. 6.5.1.1 United States

        2. 6.5.1.2 Canada

      2. 6.5.2 Europe

        1. 6.5.2.1 United Kingdom

        2. 6.5.2.2 Germany

        3. 6.5.2.3 France

        4. 6.5.2.4 Rest of Europe

      3. 6.5.3 Asia-Pacific

        1. 6.5.3.1 China

        2. 6.5.3.2 India

        3. 6.5.3.3 Japan

        4. 6.5.3.4 Rest of Asia-Pacific

      4. 6.5.4 Latin America

        1. 6.5.4.1 Brazil

        2. 6.5.4.2 Argentina

        3. 6.5.4.3 Mexico

        4. 6.5.4.4 Rest of Latin America

      5. 6.5.5 Middle East & Africa

        1. 6.5.5.1 United Arab Emirates

        2. 6.5.5.2 Saudi Arabia

        3. 6.5.5.3 South Africa

        4. 6.5.5.4 Rest of Middle East & Africa

  7. 7. COMPETITIVE LANDSCAPE

    1. 7.1 Company Profiles

      1. 7.1.1 Fujitsu Ltd.

      2. 7.1.2 Cisco Systems Inc.

      3. 7.1.3 IBM Corporation

      4. 7.1.4 AT&T Inc.

      5. 7.1.5 HP Development Company L.P.

      6. 7.1.6 Microsoft Corporation

      7. 7.1.7 Verizon Communications Inc.

      8. 7.1.8 Dell Technologies Inc.

      9. 7.1.9 Nokia Solutions and Networks

      10. 7.1.10 Deutsche Telekom AG

      11. 7.1.11 Rackspace Inc.

      12. 7.1.12 Tata Consultancy Services Limited

      13. 7.1.13 Citrix Systems Inc.

      14. 7.1.14 Wipro Ltd.

      15. 7.1.15 NSC Global Ltd

    2. *List Not Exhaustive
  8. 8. INVESTMENT ANALYSIS

  9. 9. MARKET OPPORTUNITIES AND FUTURE TRENDS

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