Market Trends of Managed Infrastructure Services Industry
The Cloud Segment is Expected to Exhibit the Highest Growth
- The advent of cloud deployment has brought changes in the managed infrastructure services providers (MISP) space and made them embrace a delivery model for delivering technology services over a public or private cloud. Considering the advantages the cloud offers, businesses are seeking MISPs that have partnerships with cloud providers (such as Google, AWS, Microsoft, etc.) to choose the right cloud providers, migrate to the cloud, and manage cloud services after the transition.
- With the increasing demand from enterprises, various companies have made advancements in their existing managed cloud infrastructure service. For instance, in December 2022, the Swiss finance company Klarpay AG decided to use Amazon Web Services to create its cloud-based infrastructure. Instead of spending its resources to operate a data center, the company concentrated on high-value tasks, such as enhancing its banking product by creating new features like scalable and API-enabled transactional capabilities.
- Increasingly more consumers are using digital platforms, which has increased the demand for ongoing digitalization advancements for high-speed data transport with wide network coverage for large amounts of data storage. Examples of technologies that have accelerated the growth of the consumer base in the IT business include distance learning, multiplayer gaming, videoconferencing, and live streaming. Enormous servers and data storage units are necessary for IT organizations to store large amounts of data and offer improved services.
- Recent technology trends, such as enhanced cloud infrastructure, IoT enabled ecosystems, have provided opportunities in creating new business imperatives across the US IT sector, and the penetration of public cloud in the United States is predicted to be higher during a pandemic. Additionally, Fujitsu has been recognized by Amazon Web Services (AWS) as an official AWS-managed infrastructure provider partner, thereby validating the company's capabilities in accelerating cloud transformation and helping fast-track digital transformation, and accelerating innovation for enterprises and government. Such instances are expected to fuel the demand of the market across the United States during the forecast period.
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Asia-Pacific Account for a Significant Market Growth
- Asia-Pacific region accounts for the significant market growth due to dominating sources of IT and IT-enabled services in various countries such as China and India. For instance, the IT & BPM sector has become one of India's most significant economic generators, substantially impacting its GDP and welfare. The IT sector generated 7.4% of India's GDP in FY22; by 2025, it is expected to account for 10% of its GDP. The Indian IT industry's revenue reached USD 227 billion in FY22, a 15.5% YoY growth, according to the National Association of Software and Service Companies (Nasscom). India was predicted to spend USD 110.3 billion on IT in 2023, up from an estimated USD 81.89 billion in 2021.
- One of the key factors contributing to the growth of managed infrastructure services in the Asia-Pacific region is the rapid digitization and technological advancements across various sectors. Enterprises are increasingly relying on advanced IT infrastructure to enhance operational efficiency, agility, and competitiveness. As a result, the need for specialized managed services that can ensure the optimal performance and security of these complex IT environments has become crucial.
- The region's adoption of cloud technologies also influences the Asia-Pacific managed infrastructure services market. As organizations migrate to the cloud for enhanced flexibility and scalability, managed infrastructure services extend to cloud-based infrastructure management, ensuring seamless integration between on-premises and cloud environments. This hybrid and multi-cloud approach allows businesses to optimize their IT resources while adapting to changing workloads and demands.
- Further, according to an MIT Technology publication, Singapore ranked highest on the Cloud Ecosystem Index 2022, with a score of 8.48, for cloud computing infrastructure worldwide. South Korea, Japan, Australia, and New Zealand were top-scoring Asia-Pacific nations with favorable ecosystems for cloud services in 2022. This recognition emphasizes the region's commitment to advancing its digital infrastructure, making it an attractive hub for cloud services and, by extension, managed infrastructure services.
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