The global managed services market is expected to grow from USD 223.0 billion in 2020 to USD 329.1 billion by 2025, at a Compound Annual Growth Rate (CAGR) of 8.1%
NEW YORK, April 17, 2020 /PRNewswire/ -- Lack of IT skilled professionals, and cost reduction and lower IT budgets to force enterprises to leverage managed services.
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The global managed services market is expected to grow from USD 223.0 billion in 2020 to USD 329.1 billion by 2025, at a Compound Annual Growth Rate (CAGR) of 8.1% during the forecast period. Factors that drive the market growth of the managed services market are lack of IT skilled professionals, and cost reduction and lower IT budgets to force enterprises to leverage managed services. The increasing pressure from statutory regulations across the globe is expected to act as a restraint to the market growth.
Small and medium-sized enterprises segment to grow at a higher CAGR during the forecast period
The IT spending in the SMEs segment is estimated to increase at a high rate. According to a study, the CAGR for IT spend by SMEs in Europe, the Middle East and Africa (EMEA) between 2018 and 2023 is expected to be 3.8%, as compared with 2.7% of the overall market. This rise is expected to give a boost to managed service providers, especially as smaller businesses move to the cloud, automate services, and explore advanced digital technologies. Hence, Managed Service Providers (MSPs )are focusing on the SMEs segment to acquire potential customers.
Banking, financial services and insurance vertical to hold the largest market share in 2020 in the managed services market
The BFSI vertical is a highly regulated vertical with a large number of compliances and regulations.Enterprises are highly charged for violation of these regulations.
Hence, to avoid fines enterprises require managed services.Data encryption and secure back up are highly demanded by these enterprises, along with a full range of Backup and Disaster Recovery (BDR) solution, to meet federal compliance regulations.
MSPs that specialize in BDR for financial services help these businesses protect sensitive information, mitigate downtime, and promote the overall business continuity.
Managed services market in APAC is projected to grow at the highest CAGR during the forecast period
The high growth of the market in APAC is attributed to high data breach cost or loss due to a cyberattack, lack of IT budget, and continuously increasing SMEs are driving the growth of the market.For instance, healthcare providers could suffer a loss of USD 23 million due to cyberattacks.
SMEs lack IT budget and have high cloud adoption compared to large enterprises; thus, SMEs are opting for the managed services model at a high rate.
In-depth interviews were conducted with the Chief Executive Officers (CEOs), Chief Marketing Officers (CMO), Vice Presidents (VPs), Managing Directors (MDs), technology and innovation directors, and related key executives from various key companies and organizations operating in the managed services market.
-- By Company - Tier 1-48%, Tier 2-37%, and Tier 3-15%
-- By Designation - Managers-34%, CXOs-40%, and Executives-26%
-- By Region - North America-42%, Europe-31%, APAC-16%, RoW - 11%
The managed services market comprises major providers, such as IBM (US), Cisco (US), Fujitsu (Japan), Accenture (Ireland), Atos (France), DXC Technology (US), AT&T (US), Ericsson (Sweden), Cognizant US), HCL (India), TCS (India), Infosys (India), Dimension Data (South Africa), NTT (Japan), GTT Communications (US), Happiest Minds Technologies (India), Rackspace (US), Huawei (China), Nokia (Finland), and CenturyLink (US).The study includes the in-depth competitive analysis of these key players in the managed services market with their company profiles, recent developments, and key market strategies.
The study includes an in-depth competitive analysis of these key players in the managed services market with their company profiles, recent developments, and key market strategies.
Research Coverage
The managed services market revenue is primarily classified into revenues from solutions and services. The market is also segmented on the service type, organization size, deploymen type, vertical and region.
Key benefits of the report
The report would help the market leaders/new entrants in this market with the information on the closest approximations of the revenue numbers for the overall managed services market and the subsegments.This report would help stakeholders understand the competitive landscape and gain insights to better position their businesses and plan suitable go-to-market strategies.
The report would also help stakeholders understand the pulse of the market and provide them with information on the key market drivers, restraints, challenges, and opportunities.
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