Managed Services Market - Growth, Trends, COVID-19 Impact, and Forecasts (2021 - 2026)

The Global Managed Services Market (henceforth, referred to as the market studied) was valued at USD 152.05 billion in 2020, and it is expected to reach USD 274.20 billion by 2026, registering a CAGR of 11.2%, during the forecast period (2021-2026).

Since the outbreak of COVID-19, the demand for cloud-based solutions has seen a significant growth owing to remote working models being adopted by enterprises; however, various industries such as retail, manufacturing, BFSI, and others have seen a significant slump in their revenues during 2020. As MSPs offer services to enterprises operating in such industries, they have also seen a decline in revenues and growth.

• Enterprises and government organizations across the world are moving from test environments to place more of their work-critical workloads and compute instances into the cloud. Further, owing to the rapidly increasing adoption of IoT, cloud, and Big Data analytics across multiple organizations as a major part of their digital transformation strategy, the burden on the data centers is also increasing. This is leading to the growth of the market.
• The managed services, for cloud, IoT platforms, containers, DevOps, and Big Data, are expected to hold tremendous potentials for managed service providers during the forecast period. Additionally, according to Cisco, 46% of network devices are likely to be machine-to-machine or IoT, by 2020, which are vulnerable to attacks.
• The market studied is expected to witness a high demand for managed mobility and information services. There has been a tremendous shift in focus towards the managed services and their applications for both the short and long-term strategic decisions. It is estimated that successful deployment of managed services will help in reducing IT cost by 25-45% and will also increase the operational efficiency by 45-65%.
• Additionally, over the past few years, organizations have been actively amending their strategies to get the maximum benefit out of managed services. For instance, in the past years it has been observed that organizations are increasingly focusing on the reduction of cost by cutting down the number of suppliers and reducing the payment size. As a result, the demand for bundled services has gained immense traction in the market over the discrete offerings.
• Cloud is expected to command a prominent share of the market and even grow at a faster rate owing to the cost and operational benefits offered by the deployment mode is expected to shift the trend away from the on- premise deployment model over the forecasted period. For instance, according to the study by NTT Ltd, over half of the respondents (52%) mentioned that the cloud would have the most transformational impact on their organization's business operations.