Global Europe Managed Services Market Report 2019: Market was Valued at USD 66.14 Billion in 2018, and is Projected to be Worth USD 148.74 Billion by 2024
DUBLIN, Nov. 8, 2019 /PRNewswire/ -- The "Europe Managed Services Market - Growth, Trends, and Forecast (2019 - 2024)" report has been added to ResearchAndMarkets.com's offering.
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The European managed services market was valued at USD 66.14 billion in 2018, and it is projected to be worth USD 148.74 billion by 2024, registering a CAGR of 14.1% during the period of 2019-2024.
Although Western Europe is the growth hub for managed hosting and colocation in Europe, Eastern Europe is witnessing growth with cloud and hosting technology trends. Moreover, server virtualization technology is also gaining traction, with managed hosting customers investing in managed virtualized servers, instead of dedicated physical servers in the traditional hosting model.
-- Increasing shift to hybrid IT is driving the market. The IoT solutions,
which connect hardware devices, embedded software, communication
services, and managed services, offer smart communication environments,
such as smart transportation, smart homes, and smart healthcare.
According to a report by Tata Consultancy Services (published in 2019),
which features a survey of about 3,764 IoT decision-makers in the
enterprise organizations, the European companies are planning to invest
about 0.4% of their revenues on IoT initiatives. This factor is expected
to lead to a considerable transformation in business.
-- Improved cost and operational efficiency is driving the market. The
managed services offer several benefits that include the reduction of
CapEx and OpEx. This factor enables users to make use of all emerging
technologies. A survey conducted by Ericsson to understand the impact of
midmarket managed services on SMEs indicates that about 68% of the SMBs
in Europe agreed to have improved their bottom line with the help of
managed services that include lowering IT costs, provision of
performance predictability, user experience and cost and maintenance of
the lean business environment.
-- Integration and regulatory issues and reliability concerns is
restraining the market to grow. According to a survey conducted by
IoT-European Platforms Initiative (IoT-EPI), about half of the 575 IT
and IoT decision-makers in the region indicated that they face the
problem of lack of skills for the IoT-related tasks. About 38% of the
IoT adopters cited complexity/technical challenges in using IoT as a
barrier to further the adoption of IoT. The existing cloud and managed
services' complexities and the lack of resources pose challenges to the
market's growth.
Scope of the Report
The emergence of managed services is aiding in meeting the needs of a wide variety of businesses throughout Europe. In the region, the telecommunication providers are focusing on security services, owing to the European regulations. Furthermore, the region has a strong automotive and manufacturing sector and in addition, emerging applications, like cloud-based solutions, are expected to do significantly well during the forecast period.
Key Market Trends
Cloud Holds the Significant Share in The Market
-- Cloud deployment type of the managed services is expected to hold a
significant share in the market, owing to the added benefits, such as
cost-saving, accessibility, scalability, and centralized service.
According to Cloud Computing, by 2023, Western Europe is expected to
hold 20% of the share of the global public cloud service market.
-- The region holds a significant rate of adoption of cloud. For instance,
according to the report on Global Cloud Index' by Cisco Systems in 2018,
the Central and Eastern Europe lead all the regions in terms of average
fixed upload speeds of 18.8 Mbps.
-- According to Eurostat's data, in 2018, 68% of enterprises in Europe used
cloud computing for the storage of files in electronic form on a cloud
and 38% for the financial or accounting software applications. The
British firms are the sixth biggest consumers of cloud in Europe, with
41.9% of the organizations adopting some form of cloud services,
compared to the average of 26%.
-- Due to the recent turnaround and growth in cloud services in the region,
many cloud service providers are investing in building cloud
capabilities in Europe. For instance, Accengage, a CRM and Marketing
service provider, announced the opening of its EU cloud site. The new
cloud site is built on Google's cloud platform data centers located in
the European Union.
Managed Security Account for Significant Market Share
-- An increasing threat of data theft and cybercrimes has compelled the
organizations to opt for advanced services that can deliver monitoring
and management of security assets, detection, and prevention, and
threat-intelligence research.
-- According to the Mnemonic, an MSS (managed security service) vendor, it
is witnessing a rapid increase in the demand for high-end managed
services all over Europe. Furthermore, the company states that
organizations are witnessing the volume of threats on a daily basis and
have few resources to keep up with the rapidly changing threat
landscape.
-- The incidents, such as enterprise-level cyber attacks and international
cyber warfare, have increased the awareness of cybersecurity threats,
and are expected to fuel the demand for managed security services in the
region. For instance, The increasing malicious cyber activity (like
WannaCry) affected the United Kingdom the most. With the increased
internet of things (IoT) devices, the vulnerability and exposure to
diverse cyber attacks are growing. At the end of 2018, the United
Kingdom experienced 237 DDoS attacks per month during Q3 2017, an
increase by 90%, compared to Q1 2017.
-- The MSSP' are strengthening their presence in the Europe region. For
instance, in May 2019, Orange Business Services, an MSS provider,
announced a collaboration with Investcorp to acquire 100% of SecureLink
on an enterprise value worth EUR 515 million. SecureLink, based in
Netherlands, is one of the largest cybersecurity services providers in
Europe, with the presences in Sweden, the United Kingdom, Germany,
Belgium, the Netherlands, Denmark, and Norway. Due to the increasing
number of data breaches, this acquisition will support the company to
accelerate its presence in the European cybersecurity industry.
Competitive Landscape
The Europe managed services market is fragmented as market studied is dominated by international players which have a strong client base in the market. Additionally, in order to sustain in the market and retain their clients, companies are employing powerful competitive strategies. Thus, intensifying competitive rivalry in the market. Key players are Fujitsu Ltd, IBM Corporation, Cisco Systems, etc. Recent developments in the market are -
-- Aug 2019 - The Vodafone Business and IBM venture announced that they
have signed an eight-year deal with National Express, a UK-based
transport provider with services in eight countries. The agreement
covers the provision of cloud and digital services that will underpin
National Express digital-first approach to use the latest technologies
to raise its customer and safety standards, drive efficiencies, and grow
its business.
-- May 2019 - Cisco announced its plans to open a new Cisco Center of
Excellence and Co-Innovation center, focusing on privacy and
cybersecurity, located in Milan, Italy. The center will be part of the
company's global network of Co-Innovation Centers.
Key Topics Covered:
1 INTRODUCTION
1.1 Study Deliverables
1.2 Study Assumptions
1.3 Scope of the Study
2 RESEARCH METHODOLOGY
3 EXECUTIVE SUMMARY
4 MARKET DYNAMICS
4.1 Market Overview
4.2 Introduction to Market Drivers and Restraints
4.3 Market Drivers
4.3.1 Increasing Shift to Hybrid IT
4.3.2 Improved Cost and Operational Efficiency
4.4 Market Restraints
4.4.1 Integration and Regulatory Issues and Reliability Concerns
4.5 Value Chain Analysis
4.6 Industry Attractiveness - Porter's Five Force Analysis
5 MARKET SEGMENTATION
5.1 By Deployment
5.1.1 On-premise
5.1.2 Cloud
5.2 By Type
5.2.1 Managed Data Center
5.2.2 Managed Security
5.2.3 Managed Communications
5.2.4 Managed Network
5.2.5 Managed Infrastructure
5.2.6 Managed Mobility
5.3 By Enterprise Size
5.3.1 Small and Medium Enterprises
5.3.2 Large Enterprises
5.4 By End-User Vertical
5.4.1 BFSI
5.4.2 Manufacturing
5.4.3 Healthcare
5.4.4 Retail
5.4.5 Other End-user Verticals
5.5 Country
5.5.1 United Kingdom
5.5.2 Germany
5.5.3 France
5.5.4 Rest of Europe
6 COMPETITIVE LANDSCAPE
6.1 Company Profiles
6.1.1 Fujitsu Ltd
6.1.2 Cisco Systems Inc.
6.1.3 IBM Corporation
6.1.4 AT&T Inc.
6.1.5 HP Development Company LP
6.1.6 Microsoft Corporation
6.1.7 Verizon Communications Inc.
6.1.8 Dell Technologies Inc.
6.1.9 Nokia Solutions and Networks
6.1.10 Deutsche Telekom AG
6.1.11 Tata Consultancy Services Limited
6.1.12 Citrix Systems Inc.
6.1.13 Wipro Ltd
6.1.14 NSC Global Ltd
6.1.15 Telefonica Europe PLC
7 INVESTMENT ANALYSIS
8 MARKET OPPORTUNITIES AND FUTURE TRENDS
For more information about this report visit https://www.researchandmarkets.com/r/7cp2ko
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