|Study Period:||2019- 2026|
|Fastest Growing Market:||Asia Pacific|
|Largest Market:||North America|
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The managed services market (hereafter referred to as the market studied) was valued at USD 152.05 billion in 2020. 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 toward managed services and their applications for 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 increase operational efficiency by 45-65%.
- Additionally, organizations have actively amended their strategies to get the maximum benefit from managed services over the past few years. For instance, in the past years, organizations have been increasingly focusing on reducing costs 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 discrete offerings.
- Cloud is expected to command a prominent share of the market and even grow faster due to the cost and operational benefits offered by the deployment mode 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.
Scope of the Report
Managed services are outsourcing on a proactive basis; certain processes and functions are intended to improve operations and cut expenses. It simplifies IT operations, increases user satisfaction, and improves service quality while reducing operating costs. Managed services options range from short-term post-go-live assistance to long-term application operations.
The study focuses on various types of managed services offered by MSPs, such as managed data center, managed security, managed communications, managed network, managed infrastructure, and managed mobility, which can be deployed both on-premise and on-cloud.
These managed services find various applications across end-user verticals, like BFSI, IT and telecommunication, healthcare and hospitality, entertainment and media, retail, manufacturing, and government. The various enterprise sizes considered under the scope of the study of the end-users are small and medium enterprises and large enterprises both.
|Managed Data Center|
|Small and Medium Enterprises|
|IT and Telecommunication|
|Entertainment and Media|
|Other End-User Verticals|
Key Market Trends
Manufacturing is Expected to Hold a Significant Market Share
- In the current technology-driven business environment, big data stands as one of the primary drivers of productivity and efficiency for manufacturers. With the high rate of adoption of sensors and connected devices and the enabling of M2M communication, there has been a massive increase in the data points that are generated in the manufacturing industry.
- Industries are pitching hard and fast to switch to a “smart industry,” where data generation and visualization can become real-time. From descriptive to predictive, the evolution of analytics has made the industry aware of the benefits that it can reap from this volume of data. The motto of the manufacturing industry is moving toward a metrics-based industry, which can improve decision-making based on the data-driven use of statistics.
- With the concept of Industry 4.0 influencing production establishments in the manufacturing industry, the amount of data produced from the manufacturing industry has snowballed, as they have been able to create data from each process point, varying from temperature, pressure, humidity, stress, strain, and quality, among multiple others.
- There are several applications in the field of semiconductors, consumer electronics, and the automotive industry, where manufacturers have to monitor numerous variables to ensure the quality of end products, wherein big data analytics has emerged as an effective solution to the traditional methods.
- As most of the small and medium manufacturing industries are more concentrated on hardware equipment and lack expertise in software solutions, they are outsourcing these big data analytic solutions.
- Outsourcing the software services is further reducing their expenditure. This trend of outsourcing other software services, such as field service management and ERP, would boost managed services during the forecast period.
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Asia Pacific is Expected to be the Fastest Growing Market
- Digital transformation has become a top priority in China, and it is moving at a rapid pace, as a greater number of companies are implementing formal strategies to support their efforts. China Telecom mentioned that in 2013, cloud computing was only worth 3% of China’s enterprise IT market, and it is expected to grow up to 20% by 2021.
- The managed service providers in China focus on reducing security risks and optimizing operations for the end-users by keeping up with the latest technologies. The telecommunication companies in the country majorly offer the managed services market.
- Further, the Indian IT and IT-enabled services industry is the dominating source for most countries worldwide, accounting for over 55% of the global services sourcing businesses in 2018 (IBEF).
- Indian IT and IT-enabled services companies have set up over 1,000 global delivery centers in about 80 countries across the world. Also, the business process management sectors account for 32% of the revenue in the Indian IT market.
- Additionally, the banking sector in India is experiencing a colossal change due to the rapid evolution of technology in their vertical, which led to the adoption of cloud computing services by these organizations for addressing their issues.
- Further, the managed storage providers in the country are investing in developing an integrated cloud storage platform dedicated to the BFSI sector. For instance, in August 2018, ESDS introduced Banking Community Cloud, which offers all the cloud-based services to the organizations in the sector for addressing issues like security, compliance, and service norms.
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The managed services market is consolidated, as it is dominated by major players. Some of the major players in the market are Cisco Systems Inc., IBM Corporation, Microsoft Corporation, Fujitsu Ltd, and Wipro Ltd, among others. The market players are forming strategic collaborations with a view to enhance their market presence.
- July 2021 - Fujitsu Limited successfully leveraged the world’s fastest supercomputer, Fugaku, to demonstrate the feasibility of high-performance, large-scale, very high-definition analyses with commercial applications widely used in the industrial field for simulations including fluid dynamics.
- September 2021 - IBM announced that Virescent Infrastructure, a renewable energy platform backed by leading global investment firm KKR, is collaborating with IBM Global Business Services (GBS) and SAP to deploy RISE with SAP, an SAP offering that brings together what businesses need to pursue digital transformation objectives and accelerate their move to the cloud. Virescent Infrastructure chose RISE with SAP to completely redesign their processes for better business outcomes Business Network, and core business applications.
- September 2021- Fujitsu Limited and Nippon Yusen Kabushiki Kaisha (NYK), a major global shipping company, announced the introduction of Fujitsu’s quantum-inspired Digital Annealer technology to significantly streamline complex stowage planning for car carriers, leveraging the technology’s world-class combinatorial optimization capabilities. The Digital Annealer will play a role in automating aspects of the stowage planning process for NYK’s dedicated car carriers, an enormously complex task involving a vast number of possible stowage patterns depending on the number of vehicles loaded, models of vehicles, and the number of ports called along the shipping route. After successful initial tests, Fujitsu and NYK have launched a real-world operational trial of the technology on September 1st with an aim to commence full-scale operational use in April 2022.
- July 2021- Fujitsu Limited announced the development and deployment of a factory-wide production status visualization system in cooperation with Ricoh Co., Ltd. Ricoh has started full-scale system operations at its Numazu Plant, which manufactures polymerized toner.
Table of Contents
1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET INSIGHTS
4.1 Market Overview
4.2 Industry Attractiveness - Porter's Five Forces Analysis
4.2.1 Threat of New Entrants
4.2.2 Bargaining Power of Buyers
4.2.3 Bargaining Power of Suppliers
4.2.4 Threat of Substitute Products
4.2.5 Intensity of Competitive Rivalry
4.3 Industry Value Chain Analysis
4.4 Impact of COVID-19 on the Market
5. MARKET DYNAMICS
5.1 Market Drivers
5.1.1 Increasing Shift to Hybrid IT
5.1.2 Improved Cost and Operational Efficiency
5.2 Market Challenges
5.2.1 Integration and Regulatory Issues and Reliability Concerns
6. MARKET SEGMENTATION
6.2.1 Managed Data Center
6.2.2 Managed Security
6.2.3 Managed Communications
6.2.4 Managed Network
6.2.5 Managed Infrastructure
6.2.6 Managed Mobility
6.3 Enterprise Size
6.3.1 Small and Medium Enterprises
6.3.2 Large Enterprises
6.4 End-user Vertical
6.4.2 IT and Telecommunication
6.4.4 Entertainment and Media
6.4.8 Other End-User Verticals
6.5.1 North America
188.8.131.52 United States
184.108.40.206 United Kingdom
220.127.116.11 Rest of Europe
6.5.3 Asia Pacific
18.104.22.168 Rest of Asia Pacific
6.5.4 Latin America
22.214.171.124 Rest of Latin America
6.5.5 Middle East and Africa
126.96.36.199 United Arab Emirates
188.8.131.52 Saudi Arabia
184.108.40.206 South Africa
220.127.116.11 Rest of Middle East and Africa
7. COMPETITIVE LANDSCAPE
7.1 Company Profiles*
7.1.1 Fujitsu Ltd
7.1.2 Cisco Systems Inc.
7.1.3 IBM Corporation
7.1.4 AT&T Inc.
7.1.5 HP Development Company LP
7.1.6 Microsoft Corporation
7.1.7 Verizon Communications Inc.
7.1.8 Dell Technologies Inc.
7.1.9 Nokia Solutions and Networks
7.1.10 Deutsche Telekom AG
7.1.11 Rackspace Inc.
7.1.12 Tata Consultancy Services Limited
7.1.13 Citrix Systems Inc.
7.1.14 Wipro Ltd
7.1.15 NSC Global Ltd
7.1.16 Telefonaktiebolaget LM Ericsson
8. INVESTMENT ANALYSIS
9. MARKET OPPORTUNITIES AND FUTURE TRENDS
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Frequently Asked Questions
What is the study period of this market?
The Managed Services Market market is studied from 2019 - 2026.
What is the growth rate of Managed Services Market?
The Managed Services Market is growing at a CAGR of 11.2% over the next 5 years.
Which region has highest growth rate in Managed Services Market?
Asia Pacific is growing at the highest CAGR over 2021- 2026.
Which region has largest share in Managed Services Market?
North America holds highest share in 2020.
Who are the key players in Managed Services Market?
Fujitsu Ltd, Cisco Systems Inc., IBM Corporation, AT&T Inc., HP Development Company LP are the major companies operating in Managed Services Market.