Managed Information Services Market Size & Share Analysis - Growth Trends & Forecasts (2025 - 2030)

Global Managed Information Services Market Trends and Insights

Shift to Hybrid / Multi-Cloud Architectures

Hybrid and multi-cloud have become a board-level imperative rather than a tooling preference, with 90% of enterprises projected to adopt the approach by 2027. Workload portability, data residency rules, and vendor diversification multiply operational complexity, prompting organisations to source unified management from third-party specialists. Cisco reports that 53% of firms move workloads between on-premise and cloud environments each week, creating sustained demand for orchestration platforms and cross-domain governance services.^{[1]Cisco Systems, “2025 Hybrid Cloud Survey,” Cisco, cisco.com} Providers that supply consistent policy enforcement, integrated observability, and automated workload placement across dissimilar platforms currently command premium pricing. Adoption is most visible in highly regulated sectors that must simultaneously satisfy compliance and innovation goals, reinforcing the value proposition of managed services that can blend local control with cloud agility.

Cost-Optimization and OPEX Preference

Economic uncertainty and rapid technology churn are driving finance leaders toward predictable subscription spending. Managed services convert capital outlays into operating expenses while transferring hardware obsolescence, licence management, and talent retention risks to the vendor. Small and medium enterprises are embracing the model fastest because it unlocks enterprise-grade security and analytics without heavy up-front investment. Providers also assume compliance reporting and incident response responsibilities, allowing internal teams to redirect scarce skills toward customer-facing innovation. As a result, OPEX-driven contracts increasingly include outcome guarantees tied to service levels, user experience, and business metrics rather than infrastructure availability alone.

Escalating Cyber-Threat and Compliance Pressure

Cyber-attacks have grown both in frequency and sophistication, with predictions that 17% of incidents will leverage generative AI by 2027. Organisations therefore require around-the-clock monitoring, threat intelligence, and incident response that few can sustain internally. Managed security services revenue per client now averages USD 8,900 per month among hybrid MSP / MSSP firms.^{[2]IBM Corporation, “2025 X-Force Threat Intelligence Index,” IBM, ibm.com} Regulations such as the EU Digital Operational Resilience Act impose continuous control testing and reporting, further boosting demand for managed detection and response, compliance automation, and zero-trust frameworks delivered as a fully managed package. Providers integrating security orchestration and automated response workflows differentiate by shrinking dwell time and demonstrating clear risk-reduction metrics.

Edge-Computing Roll-Outs Requiring Local MSP Nodes

Smart city projects, industrial IoT programs, and 5G deployments are pushing compute resources closer to data sources. Each edge site introduces new device, network, and security considerations that often exceed the scope of central IT teams. Expereo notes that distributed sites in Asia-Pacific are scaling fastest as governments fund manufacturing modernisation and digital public services.^{[3]Expereo, “Edge Computing Connectivity Trends 2025,” Expereo, expereo.com} Managed service providers with global footprints and local field engineering capacity are therefore preferred partners because they can operate “lights-out” infrastructure with minimal on-site staff. Service bundles increasingly include edge orchestration, remote remediation, and secure connectivity that align with industry-specific latency and compliance targets.

Legacy Integration and Regulatory Complexity

Many enterprises run core applications on decades-old systems that cannot easily interface with modern managed platforms. Banking, utilities, and public-sector agencies face stringent audit requirements that demand bespoke controls, specialised adapters, and extended validation cycles. Custom integration inflates project costs and erodes the economies of scale that make managed services attractive. Compliance frameworks such as SOX and GDPR often mandate on-premise audit logging and data segregation, forcing providers to deploy dedicated environments that increase delivery effort. These factors lengthen sales cycles and delay time-to-value, especially for global organisations with diverse regulatory obligations.

Serverless / No-Ops Architectures Reducing MSP Scope

Public-cloud vendors now offer serverless computing that abstracts infrastructure provisioning, patching, and scaling. As adoption rises, portions of traditional managed infrastructure services risk disintermediation. Cloud Foundry reports that 19% of enterprises already use serverless functions in production, and another 42% intend to evaluate within two years.^{[4]Cloud Foundry Foundation, “Global Serverless Adoption Study 2025,” Cloud Foundry, cloudfoundry.org} Providers must therefore pivot toward higher-value activities such as event-driven application management, policy governance, and runtime security. Failure to evolve beyond basic monitoring and maintenance could lead to revenue compression, especially in mature markets where automation levels are well advanced.

Segment Analysis

By Deployment: Cloud Acceleration Amid On-Premise Dominance

On-premise environments retained 54.1% of managed information services market share in 2024 because many highly regulated firms continue to demand direct infrastructure custody. Heavy investments in private data centres and latency-sensitive workloads further anchor this preference. Yet cloud-based managed services are on track for a 13.8% CAGR, underscoring that workload migration is gathering pace across industries that prize agility and elastic consumption. Hybrid estates now prevail, compelling service providers to offer single-pane visibility, automated configuration drift remediation, and uniform security controls across both venues. 

Cloud acceleration also reflects growing trust in hyperscale platforms that now provide sector-specific compliance blueprints, sovereign cloud zones, and granular encryption options. Enterprises moreover recognise that cloud modernisation is inseparable from application transformation, driving demand for refactoring, DevSecOps pipelines, and continuous compliance monitoring. Managed services partners that demonstrate certified cloud expertise, proprietary migration accelerators, and robust financial optimisation tooling are winning larger contract scopes. Conversely, providers limited to data-centre outsourcing risk contract attrition as clients adopt cloud-native design patterns and expect proactive guidance on workload placement economics.

By Service Type: Security Services Lead Growth Acceleration

Managed security services controlled 28.5% of the total revenue pool in 2024 and are expanding at 14.7% CAGR, reflecting cyber risk’s elevation to an enterprise-wide priority. Advanced services now blend threat intelligence, behaviour analytics, and automated response executed through unified platforms, reducing manual triage workloads. 

Demand also rises for zero-trust network access, cloud workload protection, and supply-chain risk assessments. In parallel, managed data-centre and network services continue to deliver predictable annuity streams, but their growth trails security because infrastructure automation compresses traditional ticket volumes. Service portfolios are therefore converging around secure multi-cloud enablement, with providers integrating identity governance, data loss prevention, and compliance dashboards. Canalys highlights that combined security and cloud optimisation offerings generate 1.6 times higher cross-sell revenue relative to siloed propositions. Vendors investing in MDR platforms, security analytics, and specialist incident-response teams consequently command differentiated margins.

By Enterprise Size: SME Segment Drives Market Democratization

Large enterprises represented 63.8% of revenue in 2024 owing to complex application estates, multi-region governance, and continuous compliance needs that mandate advanced managed services. These organisations typically sign multi-year global agreements that bundle infrastructure, cloud, workplace, and security operations under unified service-level frameworks. Notably, average deal size exceeds USD 65 million and often encompasses transformative commitments such as application modernisation and AI-assisted operations. 

Small and medium enterprises, however, register the fastest trajectory at 12.5% CAGR. Adoption is propelled by persistent cyber threats, hybrid workplace models, and acute talent shortages that raise the cost of standing up in-house teams. Providers are addressing affordability concerns through modular service catalogues, fixed-fee bundles, and marketplace distribution channels. The managed information services market size for the SME segment is expected to double by 2030 as consumption-based billing and remote delivery models further reduce entry barriers. Successful vendors couple automated onboarding, prescriptive best-practice blueprints, and vertical templates that accelerate time-to-value for resource-constrained clients.

By End-User Vertical: Healthcare Accelerates Digital Transformation

Banking, financial services, and insurance led in 2024 with 21.2% share, driven by stringent data-protection statutes, real-time fraud monitoring, and high-frequency transaction systems that demand five-nines uptime. Managed providers in this domain are expanding capabilities around regulatory reporting automation, open-banking API security, and AI-enabled credit-risk analytics. Despite BFSI dominance, healthcare is pacing the managed information services market at 13.2% CAGR. Growth is tied to electronic health record interoperability, telemedicine expansion, and the imperative to secure sensitive patient data without impeding clinical workflows. 

Hospital groups also seek managed services partners to implement medical-device segmentation, imaging-data archiving, and HIPAA audit readiness. Interoperability mandates compel integration of legacy systems, cloud-based analytics, and edge devices within secure frameworks. Manufacturing, retail, and public-sector entities register steady uptake as they digitise supply chains, modernise citizen platforms, and embed IoT sensors on production lines. In each case, providers that combine domain expertise, regulatory fluency, and automation-driven efficiency gain competitive traction.

Geography Analysis

North America retained 35.4% of 2024 revenue due to early cloud adoption, sophisticated cybersecurity regulations, and a deep ecosystem of tier-one providers. Enterprises in the United States routinely demand predictive analytics, AI-assisted operations, and outcome-based contracts that tie fees to business KPIs. Canada adds momentum through federal digital-government programmes and modern banking initiatives that depend on secure multi-cloud elasticity. Many providers deploy regional delivery hubs and sovereign cloud zones to comply with evolving state-level privacy laws while sustaining low-latency service levels. 

Asia-Pacific is the fastest-growing theatre at 12.9% CAGR and is closing the gap on incumbent regions. China scales managed information services through smart-city investments and manufacturing upgrade policies that require edge orchestration and secure connectivity. Southeast Asian nations are leapfrogging legacy infrastructure by adopting cloud-hosted applications and mobile-first commerce, necessitating partner support for network optimisation and regulatory compliance. Providers that establish joint ventures, multilingual service desks, and region-specific vertical solutions are well positioned to capture wallet share. 

Europe shows mature yet resilient demand anchored in GDPR, the Digital Operational Resilience Act, and sustainability reporting obligations. Germany and the United Kingdom remain top spenders, but southern Europe is accelerating as EU recovery funds support digitisation projects. Providers differentiate by offering measurable carbon-reduction initiatives, EU-only data residency, and audit-ready compliance artefacts. Over time, tighter environmental rules will shift procurement criteria toward partners that demonstrate verifiable progress on renewable energy sourcing and circular-economy hardware practices