Managed Services Market Size

Managed Services Market Size

Managed Services Market was valued at USD 244.1 billion in 2023 and is estimated to register a CAGR of over 11% between 2024 and 2032. The growing recognition of cloud computing's benefits is driving an uptick in the adoption of cloud-managed services.

By partnering with specialist service providers to manage and maintain their cloud platforms, applications, and infrastructure, businesses can focus on their core competencies. This approach leverages the expertise of managed service providers to optimize the cost, scalability, and performance of their cloud systems. As companies strive to modernize their IT infrastructure and embrace digital transformation initiatives, the demand for cloud-managed services is surging. This trend is propelling market growth, highlighting the strategic value of outsourcing cloud management to enhance operational efficiency and drive innovation.
 

For instance, in April 2024, SAS, a data and Artificial Intelligence (AI) specialist, expanded its SAS-hosted managed services to Amazon Web Services (AWS). This strategic addition to the SAS managed services portfolio gives customers more options for how they choose to deploy and manage their investments in industry-leading SAS technology and solutions.
 

The demand for managed services is significantly propelled by globalization and remote work trends, necessitating robust IT support for dispersed teams. As businesses expand globally, seamless cross-border communication and efficient IT infrastructure management become critical, driving the need for managed services. The shift toward remote work further highlights the importance of dependable cloud computing, cybersecurity, and network management systems to support distributed workforces effectively. Managed service providers offer flexible and scalable solutions that enable businesses to maintain operational stability, enhance productivity, and swiftly adapt to evolving work environments, regardless of geographical location.
 

A major challenge in the managed services industry is the shortage of qualified IT security specialists. As cyber threats become more complex and sophisticated, businesses are increasingly pressured to enhance their cybersecurity measures and protect their sensitive data and digital assets. Managed services offer a solution by providing access to advanced security tools, threat intelligence, and expert knowledge, enabling businesses to effectively detect, thwart, and address cyberattacks. Furthermore, the market growth is constrained by a shortage of skilled cybersecurity professionals. Companies struggle to find and retain employees capable of meeting their security needs, impeding the industry's ability to fully capitalize on the demand for robust cybersecurity solutions.