Managed Infrastructure Services Market Analysis by Mordor Intelligence
The managed infrastructure services market size is valued at USD 129.14 billion in 2025 and is forecast to reach USD 210.08 billion by 2030, advancing at a 10.22% CAGR during the period. The expansion reflects a decisive enterprise shift toward consumption-based IT models that embed artificial intelligence, zero-trust security, and edge orchestration directly into service contracts. Cloud deployment models accounted for 64.51% of 2024 revenue, underscoring how software-defined, API-driven architectures are erasing legacy infrastructure boundaries. Server management services held 34.72% of the service-type segment, yet automation is rapidly displacing routine administration tasks. Large enterprises represented 70.62% of demand in 2024, but small and mid-sized organizations constitute the fastest-growing customer group as outcome-based pricing neutralizes upfront capital barriers. Regionally, North America led with 39.89% market share in 2024, while Asia Pacific is pacing the global advance with a 10.99% CAGR thanks to manufacturing digitization and sovereign-cloud mandates.
Key Report Takeaways
- By deployment model, cloud services captured 64.51% of the managed infrastructure services market share in 2024, while hybrid deployments are projected to post an 11.36% CAGR through 2030.
- By service type, server management accounted for 34.72% of the managed infrastructure services market size in 2024 and edge and IoT management is anticipated to grow at 10.78% CAGR to 2030.
- By organization size, large enterprises held 70.62% of 2024 revenue in the managed infrastructure services market, whereas small and mid-sized enterprises are forecast to expand at 11.47% CAGR through 2030.
- By end-user vertical, banking, financial services, and insurance led with 29.72% revenue share in 2024 in the managed infrastructure services market; healthcare is on track for a 10.60% CAGR between 2025 and 2030.
- By geography, North America maintained 39.89% of 2024 revenue in the managed infrastructure services market; Asia Pacific is projected to record a 10.99% CAGR through 2030.
Global Managed Infrastructure Services Market Trends and Insights
Drivers Impact Analysis
| Driver | (~) % Impact on CAGR Forecast | Geographic Relevance | Impact Timeline |
|---|---|---|---|
| Shift to Everything-as-a-Service (XaaS) business models | +1.8% | Global, with APAC and North America leading adoption | Medium term (2-4 years) |
| Accelerated cloud-native application modernization | +2.1% | North America and EU core, expanding to APAC | Short term (≤ 2 years) |
| Need for zero-trust security frameworks in hybrid estates | +1.4% | Global, regulatory-driven in EU and North America | Medium term (2-4 years) |
| Edge-to-core orchestration for Industry 4.0 roll-outs | +0.9% | APAC manufacturing hubs, expanding to MEA | Long term (≥ 4 years) |
| AI-driven observability and self-healing infrastructure | +1.2% | North America and EU early adopters, global expansion | Medium term (2-4 years) |
| Sustainability mandates driving green data-centre outsourcing | +0.8% | EU regulatory leadership, North America corporate-driven | Long term (≥ 4 years) |
| Source: Mordor Intelligence | |||
Shift to Everything-as-a-Service (XaaS) Business Models
Enterprises favor metered contracts that map infrastructure spend to actual usage, cutting capital volatility and enabling elastic scaling for AI workloads. Providers aggregate multi-tenant demand to secure discounted hyperscaler capacity, sustaining margins while passing cost savings to clients. Hardware refresh cycles cease to drive revenue as service monetization pivots to operating-expense models. Mid-market buyers benefit most because they lack direct bargaining leverage with the largest cloud vendors. Outcome-based pricing links fees to business metrics such as transaction volume, shifting performance risk onto suppliers who must optimize resource efficiency to remain profitable. Competitive differentiation therefore moves from asset ownership to automation depth, governance rigor, and cost-to-serve discipline. The managed infrastructure services market gains resilience from these structural economics, reinforcing steady double-digit growth through 2030.
Accelerated Cloud-Native Application Modernization
Re-architecting legacy portfolios around microservices, containers, and serverless functions drives sustained demand for blended infrastructure-and-application engagements.[1]Accenture, “Cloud Modernization Services Overview,” accenture.com Lift-and-shift alone fails to unlock elasticity and unit-economics advantages, prompting enterprises to seek partners that manage provisioning and code refactoring in tandem. Kubernetes adoption standardizes orchestration yet multiplies operational complexity at scale, opening niches for providers that mask cluster sprawl through controlled pipelines and unified observability. DevOps toolchain integration becomes a baseline expectation, tying build, deploy, and monitor workflows into a seamless loop across on-premises and public cloud estates. Compliance gates are embedded earlier in release cycles, reducing security drift and audit fatigue. As modernization accelerates, the managed infrastructure services market tightens the feedback loop between infrastructure and software, driving higher client stickiness and cross-sell velocity.
Need for Zero-Trust Security Frameworks in Hybrid Estates
Perimeter defenses erode as workloads span multiple clouds, data centers, and edge nodes, forcing identity-centric access policies at every interface.[2]Microsoft, “Zero-Trust Adoption Guide,” microsoft.com Regulatory regimes such as NIST CSF and ISO 27001 elevate zero-trust from best practice to compliance mandate, particularly across financial and healthcare domains. Continuous verification and micro-segmentation demand specialized skills and integrated toolchains that most enterprises cannot sustain internally. Managed providers therefore invest in security orchestration, automation, and response platforms that isolate threats and enforce policies in real time. Differentiation hinges on measurable security outcomes: reduced dwell time, rapid policy propagation, and lower incident remediation costs. The managed infrastructure services market scales this expertise across customers, turning sophisticated cyber defense into a utility with predictable economics.
Edge-to-Core Orchestration for Industry 4.0 Roll-outs
Smart factories deploy edge infrastructure for low-latency analytics, predictive maintenance, and real-time quality control, yet still rely on centralized engines for deeper insights.[3]Hewlett Packard Enterprise, “Edge Management Glossary,” hpe.com Providers must harmonize workload placement, firmware updates, and data pipelines across dispersed nodes without sacrificing security or uptime. Mastery of industrial protocols and safety-certified hardware separates specialists from generalist IT outsourcers. Contracts increasingly map fees to production yield or downtime reduction, aligning incentives with manufacturing KPIs. The managed infrastructure services market therefore embeds operational technology know-how, turning infrastructure management into a lever for factory efficiency rather than an overhead expense. Asia Pacific’s manufacturing base makes it the crucible for edge innovation, with lessons radiating globally.
Restraints Impact Analysis
| Restraint | (~) % Impact on CAGR Forecast | Geographic Relevance | Impact Timeline |
|---|---|---|---|
| Rising hyperscaler "operator lock-in" risk | +1.2% | Global, particularly affecting multi-cloud strategies in North America and EU | Short term (≤ 2 years) |
| Talent exodus from traditional MSPs to cloud providers | +0.8% | North America and EU primary impact, spreading to APAC | Medium term (2-4 years) |
| Data-sovereignty barriers in highly regulated sectors | +0.9% | EU regulatory leadership, expanding to APAC and MEA | Medium term (2-4 years) |
| Escalating cyber-insurance premiums eroding TCO benefits | +0.7% | Global, with highest impact in North America and EU | Short term (≤ 2 years) |
| Source: Mordor Intelligence | |||
Rising Hyperscaler “Operator Lock-In” Risk
Deep integration with proprietary serverless, AI, and data services boosts performance but inflates switching costs.[4]Amazon Web Services, “Data Egress Fee Schedule,” aws.amazon.com Egress fees and code refactoring hurdles surface late, eroding the perceived flexibility of cloud. Enterprises now demand contractual safeguards and architectural patterns that keep workloads portable, elevating multi-cloud proficiency as a vendor selection criterion. Yet multi-cloud operations increase tooling sprawl and expertise requirements, raising provider cost bases. Smaller managed service firms struggle to balance portability with profitability, slowing their expansion in the managed infrastructure services market. Mid-market buyers remain vulnerable because they often lack clause-level diligence and discover restrictions only during renegotiations.
Talent Exodus from Traditional MSPs to Cloud Providers
Hyperscalers lure senior engineers with equity packages and bleeding-edge projects, draining traditional providers of skill depth. The wage inflation forces service partners to raise prices or absorb margin pressure. Knowledge gaps can degrade service quality, risking SLA breaches that tarnish brand equity. Providers counter with automation investments to stretch remaining staff but face up-front costs and change-management friction. In emerging regions, the talent crunch constrains capacity expansion despite rising demand. Unless MSPs revamp career paths and upskilling programs, the managed infrastructure services industry could bifurcate between automation-rich players and labor-constrained laggards, tempering aggregate growth.
Segment Analysis
By Deployment Model: Cloud Dominance Accelerates Multi-Cloud Complexity
Cloud deployments commanded 64.51% of 2024 revenue, giving this segment the largest slice of the managed infrastructure services market share. The segment is projected to post an 11.36% CAGR through 2030, driving the managed infrastructure services market size toward USD 210.08 billion. Elasticity, pay-as-you-go billing, and global reach encourage enterprises to migrate core workloads, yet varied compliance regimes trigger hybrid and multi-cloud architectures that few clients can govern alone. Providers that unify policy management, cost analytics, and workload placement across clouds gain strategic importance.
Hybrid adoption tempers latency and sovereignty concerns by keeping sensitive data on-premises while offloading burst demand to public infrastructure. Edge computing extends this continuum, situating compute nodes near sensors to support Industry 4.0 and telemedicine. The managed infrastructure services market anchors these distributed fabrics through automation and observability that span data centers, clouds, and edge sites. Providers monetize advisory, orchestration, and compliance oversight, creating bundled services that scale across verticals.
By Service Type: Server Management Evolves Toward AI-Driven Automation
Server management held 34.72% of 2024 revenue, representing the historical core of the managed infrastructure services market. However, AI-based observability and self-healing scripts now remediate most incidents, collapsing manual ticket volumes. As basic administration commoditizes, providers up-sell predictive maintenance, capacity forecasting, and sustainability reporting, enriching the managed infrastructure services market size per client.
Edge and IoT management, the fastest-growing service at 10.78% CAGR, responds to surging device deployments across factories and healthcare. Specialized skills in protocol translation and real-time analytics create premium niches. Network services simultaneously evolve into software-defined overlays secured by zero-trust micro-segmentation. The managed infrastructure services industry therefore reconfigures its portfolio mix, shifting resources from break-fix to platform engineering and outcome-based consulting.
By Organization Size: SME Adoption Accelerates Through Consumption-Based Models
Large enterprises generated 70.62% of 2024 revenue, maintaining priority access to bespoke architectures and dedicated account teams. Their complex estates and regulatory scrutiny require deep integration and custom governance, keeping average deal sizes high. Despite dominance, growth moderates as estates near saturation. Conversely, small and mid-sized enterprises will expand spending at 11.47% CAGR, reinforcing the democratization narrative within the managed infrastructure services market.
SMEs embrace standardized bundles that package cloud compute, IAM, and backup into monthly subscriptions, sidestepping capital outlays. Providers leverage multitenancy to achieve scale efficiencies, lowering per-seat pricing below internal alternatives. Education and advisory services reduce technology adoption friction, fueling cross-sell opportunities in security and analytics. Over time, SMEs transition from tactical outsourcing to strategic co-innovation, positioning the managed infrastructure services market as an enabler of competitive agility rather than a cost-center hedge.
By End-user Vertical: Healthcare Digitization Drives Edge Computing Demand
Banking, financial services, and insurance contributed 29.72% of 2024 revenue, propelled by real-time fraud analytics and regulatory automation requirements. Zero-trust architectures and high-availability SLAs underpin outsourcing decisions, anchoring long-term contracts that stabilize the managed infrastructure services market size.
Healthcare is projected to grow at 10.60% CAGR, making it the fastest-advancing vertical. AI-augmented diagnostics, remote monitoring, and electronic health record modernization rely on secure edge gateways that synchronize with cloud inference engines. Providers differentiate through HIPAA and HITRUST certifications and domain-specific reference architectures. Manufacturing and retail follow closely, using managed services to accelerate Industry 4.0 and unified commerce roadmaps. Vertical expertise therefore becomes as critical as technical acumen in winning bids inside the managed infrastructure services market.
Geography Analysis
North America retained 39.89% of 2024 revenue by coupling mature cloud infrastructure with abundant engineering talent and regulatory clarity. Concentrated hyperscaler regions reduce latency and enable advanced offerings such as AI-driven observability. Yet escalating wage competition with cloud vendors erodes traditional MSP margins, pressing providers toward automation and value-added consulting. The USD 30 billion Global AI Infrastructure Investment Partnership announced in 2024 signals sustained data-center build-out, presenting fresh capacity for service orchestration.
Asia Pacific is forecast to post a 10.99% CAGR, the fastest among all regions. Manufacturing hubs in China, India, and Southeast Asia roll out smart-factory projects that require edge-to-core orchestration, while sovereign-cloud policies demand localized hosting. Providers able to navigate fragmented regulatory landscapes and multilingual support requirements secure outsized wins. Governments bankroll digital-infrastructure incentives, widening broadband reach and lowering data-center electricity tariffs, further energizing the managed infrastructure services market.
Europe records steady growth under strict data-protection and emerging AI governance regimes. Providers invest in local data centers, green power procurement, and compliance tooling to satisfy GDPR and anticipated AI Act mandates. Sustainability commitments amplify demand for carbon-aware workload placement and lifecycle reporting. Brexit-related border controls add cross-channel complexity, yet incumbent MSP relationships provide continuity for multinational clients. Collectively, these dynamics frame a managed infrastructure services market that adjusts offerings to regional policy vectors while exporting best practices globally.
Competitive Landscape
The managed infrastructure services market remains moderately fragmented, though consolidation accelerates as incumbents acquire cloud-native expertise. Traditional integrators such as Accenture augmented portfolios by absorbing Navisite’s multi-cloud operations in 2024. Infrastructure stalwarts followed, with IBM spending USD 6.4 billion on HashiCorp to embed infrastructure-as-code automation and boost multi-cloud orchestration. Private-equity plays, exemplified by Igneo’s acquisition of US Signal in 2025, roll up regional providers to achieve volume synergies and edge-located footprints.
Technology differentiation moves towards autonomous operations, zero-trust security, and sustainability analytics. Providers weave AI-based observability, declarative configuration management, and carbon accounting into integrated platforms, decreasing manual toil and boosting SLA compliance. Hyperscalers extend managed layers atop IaaS, but enterprise demand for multi-vendor neutrality leaves room for specialized partners. Market entrants born in Kubernetes ecosystems deliver everything-as-code services that leapfrog legacy processes, forcing incumbents to modernize or cede share.
Industry certifications such as ISO 27001 and SOC 2 Type II are table stakes, while sector-specific attestations (HITRUST, PCI DSS) create high entry barriers and pricing premiums. Over the horizon, white-space opportunities in AI-driven sustainability optimization, sovereign-cloud compliance management, and 5G-edge orchestration beckon new disruptors. The managed infrastructure services industry is thus evolving into a platformized arena where automation depth, compliance breadth, and sustainability credentials define competitive advantage.
Managed Infrastructure Services Industry Leaders
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Fujitsu Ltd
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Dell Technologies Inc.
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Hewlett Packard Enterprise
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Cisco Systems, Inc.
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International Business Machines Corporation
- *Disclaimer: Major Players sorted in no particular order
Recent Industry Developments
- June 2025: Igneo Infrastructure Partners agreed to acquire US Signal to scale edge-ready data-center and managed services capacity.
- June 2025: NWN Corporation purchased InterVision Systems to broaden AI-powered cybersecurity and intelligent infrastructure offerings.
- April 2025: WatchGuard reported that 30% of MSPs anticipate revenue growth above 20% in 2025 on the back of automation and compliance demand.
- February 2025: DXC Technology partnered with Skanska AB to modernize global IT operations across Europe and the United States, incorporating Azure cloud management and zero-trust security.
Global Managed Infrastructure Services Market Report Scope
Managed infrastructure services refer to outsourcing an organization's infrastructure and inventory activities to a third-party managed service provider (MSP). These services are often taken on a contract basis, where the MSP has to fulfill a set of agreed standards to benefit from the contract. These practices are typically found in large-scale and small-scale organizations for desktop & print services contracts, servers, etc.
The managed infrastructure services market is segmented by deployment type (on-premise and cloud), services type (desktop and print services, servers, inventory), end-user (BFSI, IT, telecom, healthcare, manufacturing, retail), and geography (North America (United States, Canada), Europe (Germany, UK, France, Spain, and rest of Europe), Asia-Pacific (China, Japan, India, Australia, and rest of Asia-Pacific), and Latin America (Brazil, Mexico, Argentina, and rest of Latin America), and Middle East & Africa (UAE, Saudi Arabia, South Africa, and rest of MEA).
The market sizes and forecasts are provided in terms of value in USD for all the above segments.
| On-premises |
| Cloud |
| Desktop and Print Services |
| Server Management |
| Inventory and Asset Management |
| Network and Connectivity Services |
| Other Managed Infrastructure Services |
| Large Enterprises |
| Small and Mid-Sized Enterprises |
| Banking, Financial Services and Insurance (BFSI) |
| Information Technology and Telecommunications |
| Healthcare and Life Sciences |
| Manufacturing |
| Retail and e-Commerce |
| Government and Public Sector |
| Other Verticals |
| North America | United States | |
| Canada | ||
| South America | Brazil | |
| Mexico | ||
| Argentina | ||
| Rest of South America | ||
| Europe | Germany | |
| United Kingdom | ||
| France | ||
| Spain | ||
| Russia | ||
| Rest of Europe | ||
| Asia Pacific | China | |
| Japan | ||
| India | ||
| Australia | ||
| Rest of Asia Pacific | ||
| Middle East and Africa | Middle East | United Arab Emirates |
| Saudi Arabia | ||
| Rest of Middle East | ||
| Africa | South Africa | |
| Nigeria | ||
| Rest of Africa | ||
| By Deployment Model | On-premises | ||
| Cloud | |||
| By Service Type | Desktop and Print Services | ||
| Server Management | |||
| Inventory and Asset Management | |||
| Network and Connectivity Services | |||
| Other Managed Infrastructure Services | |||
| By Organisation Size | Large Enterprises | ||
| Small and Mid-Sized Enterprises | |||
| By End-user Vertical | Banking, Financial Services and Insurance (BFSI) | ||
| Information Technology and Telecommunications | |||
| Healthcare and Life Sciences | |||
| Manufacturing | |||
| Retail and e-Commerce | |||
| Government and Public Sector | |||
| Other Verticals | |||
| By Geography | North America | United States | |
| Canada | |||
| South America | Brazil | ||
| Mexico | |||
| Argentina | |||
| Rest of South America | |||
| Europe | Germany | ||
| United Kingdom | |||
| France | |||
| Spain | |||
| Russia | |||
| Rest of Europe | |||
| Asia Pacific | China | ||
| Japan | |||
| India | |||
| Australia | |||
| Rest of Asia Pacific | |||
| Middle East and Africa | Middle East | United Arab Emirates | |
| Saudi Arabia | |||
| Rest of Middle East | |||
| Africa | South Africa | ||
| Nigeria | |||
| Rest of Africa | |||
Key Questions Answered in the Report
What is the current value of the managed infrastructure services market?
The managed infrastructure services market size is USD 129.14 billion in 2025.
Which deployment model dominates spending?
Cloud deployments account for 64.51% of 2024 revenue and continue to outpace on-premises investments.
Which region is growing fastest through 2030?
Asia Pacific is projected to expand at a 10.99% CAGR, the highest among all regions.
Why are SMEs adopting managed infrastructure services more rapidly?
Outcome-based, consumption pricing removes capital barriers and delivers enterprise-grade capabilities without in-house expertise.
Which vertical is forecast to grow quickest?
Healthcare leads with a projected 10.60% CAGR as AI diagnostics and remote monitoring demand secure edge-to-cloud orchestration.
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