Market Trends of Managed Services Industry
Manufacturing is Expected to Hold a Significant Market Share
- In the current technology-driven business environment, Big Data is one of the manufacturers' primary drivers of productivity and efficiency. 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 it can reap from this volume of data. The motto of the manufacturing industry is moving toward a metrics-based sector, 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 numerous others.
- There are several applications in the semiconductors, consumer electronics, and the automotive industry, where manufacturers have to monitor numerous variables to ensure the quality of end products. Big Data analytics has emerged as an effective solution to traditional methods.
- As most 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 software services are further reducing their expenditure. Outsourcing other software services, such as field service management and ERP, is expected to 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 the country and is moving rapidly as more companies are implementing formal strategies to support their efforts. In January 2021, China's State Council released a proposal to help the digital economy flourish throughout the 14th Five-Year Plan period (2021-2025). According to the plan, China's digital transformation of industries will reach a new level by 2025, while digital public services will become more inclusive, and the digital economy governance structure will visibly improve.
- 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. These companies are also strategically acquiring companies offering managed services to gain more market share.
- Furthermore, the banking sector in India is experiencing a colossal change due to the rapid evolution of technology in its verticals, which led to the adoption of cloud computing services by organizations to address their issues. Additionally, the managed storage providers in the country are investing in developing an integrated cloud storage platform dedicated to the BFSI sector.
- Moreover, the ongoing extensive investments by the Indian government toward physical infrastructures, like smart cities, are expected to create more opportunities for deploying managed services, like data storage, security, and network management, in the country. Currently, the Indian smart cities program is focused on transforming 100 cities.
- In January 2022, KPMG India and Qualys announced a partnership to add Qualys solutions to KPMG's Managed Security service. KPMG's industry-leading and globally recognized cybersecurity services in India will be combined with Qualys' world-class cybersecurity innovations to enable enterprises to protect their network, applications, endpoints, and cloud workloads from security vulnerabilities, provide visibility, and ensure compliance.
- Whereas, with the service industry taking up the largest portion of its GDP, Japan has much to share in managing the service industry. Japan has always been a market-oriented economy and represents the second-most developed economy in the world. Currently, the country is focusing on the manufacturing sectors, including the production of hybrid vehicles, robotics, and optical instruments.
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