IT Managed Services Market Size, Share, Growth, and Industry Growth, By Type (Cloud-Based and On-Premise), By Application (BFSI, Retail, Logistics, Healthcare and Lifesciences, Government, IT and Telecom and Other), Regional Forecast To 2031

Updated On: 01 April 2024

IT Managed Services Market REPORT OVERVIEW

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The global IT managed services market size was USD 219140 million in 2021 and market is projected to touch USD 509910.7 million by 2031, at a CAGR of 8.8% during the forecast period.

The product includes outsourcing management functions to a third party to enhance business functioning. The introduction of cloud-based technologies and their technological propagation have led to IT managed services. As it supports companies in operational efficiency and reducing business’s operating expenses. Moreover, on premise software is installed directly onto the organizations computers and servers on the other hand, cloud software is hosted on the servers of the business and is accessible through a web browser.

Furthermore, IT managed services help companies enhance operational efficiency, minimize operating expenditure while allowing them to focus more productively on main objectivities. IT managed services provide ideal resource distribution channels and consequently helping in improvement of overall profitability and operational competence. Scalable infrastructure and flexible managed services models are mainly easing it for companies to react to technological advances. These factors are anticipated to drive the market's growth in the foreseeable future.

COVID-19 Impact: Companies Switching to Cloud Services Boosts IT Managed Services Market

Outbreak of COVID-19 affected the world economy harshly, forced uncountable companies to acknowledge huge budget cuts and immediate planning rapidly. Moreover, several enterprises adopted usage of cloud applications for storing of data and this growth provided the cloud systems to flip its services for keeping up with the increased load. As the world continued to fight through COVID-19 affects, companies began the enabling of remote working for their employees. Government agencies and private industries shifted to cloud based services, as to overcome the restrictions upon travel and manage workloads. This factor had driven the demand growth of the market during the COVID-19 conditions.

RECENT TRENDS

"Increasing Demand of Cloud Based Security Services Aids Market Sales"

A steadfast increase of key players adopting cloud based services is setting a trend, as strengthening of IT’s foundation against cyber threats drives companies for adoption of IT managed services in their business structure. Various companies in private and government sectors focus is on adopting these safety system as, the security systems overcome the evolving cyber threats by consisting features of intrusion detection and enhanced firewalls. Businesses are demanding cloud based security services as it is catering to rising security needs therefore, boosting market sales will be noticed because companies would want to keep up with latest industry trends.

IT Managed Services Market SEGMENTATION

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• By Types 

Based on type, the market is classified into cloud based and on premise IT managed services.

• By Application

Based on application, the market is categorized into BFSI, retail, logistics, healthcare and life sciences, government, IT and telecom and other.

DRIVING FACTORS

"Artificial Intelligence Adoption in Industries Augments IT Managed Service Market Growth"

The IT managed services introduced artificial intelligence (AI), to increase productivity across various sectors in technology driven environments.  The strategy allows employees to comb through data from personal devices to increase productivity and efficiency of the workforce, as work is provided with flexibility and accountability. Market growth is recorded as this urged organizations to deploy this feature into the existing systems and increasing the demand for this type of IT service also, creating a friendly working environment. Furthermore, this resulted in increased smart gadgets among the workforce as laptops, tablets and smartphones because it raises the criteria of data integrity and can be monitored by businesses. Overall benefitting, the growth of the IT managed services market share.

"Demand of On Premise Hosting in Healthcare Sector Fuels Market Growth"

Health care sectors contain of sensitive information as medical records, financial details and contact information. Through on premise IT managed services type, all hardware and documents are hosted directly at the site itself in the hospital’s database. Healthcare industry regulations claim that companies host servers on site to enhance data security. Furthermore, personal data is stored locally and less susceptible to any breaches, as on premise hosting enforces a stronger and reliable internal network. Majorly healthcare and financial sectors would show a rising demand for this type of service, rising the IT managed services market growth.

RESTRAINING FACTORS

"Scarcity of IT Professionals Impedes Market Growth"

The deficiency of IT security professionals is majorly the limitation for market growth, as it restricts the company’s ability to meet their cybersecurity needs. This opens up the possibility of frequent cyber threats, as it is constantly evolving and is on the rise. A professional to control the advanced security systems to eliminate cyber threats, is a growing requirement with the market. Moreover, the demand is not met for the cyber security professionals which limits market growth.

IT Managed Services Market REGIONAL INSIGHTS

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"North America Holds Leading Market Position"

North America is accounted as the dominating region in the IT managed services market and is anticipated to hold its position as leader for the foreseeable future, as its captured maximum market share in terms of revenue. This region holds its position because of rising adoption of IT services within small and medium sized companies, to prevent cyber security breaches. Furthermore, in this region emerging companies take help of these IT services for the provision of IT budgets.

KEY INDUSTRY PLAYERS

"Key Market Players Aim for Reinforcing their Market Position"

The market is led by industry players who hold the largest share percentage in the global market. Furthermore, these players are focused on offering services to drive the market growth by improving the user experience. By providing inbuilt cyber security in laptops and tablets, as they become safer to operate and create a foundation for innovations in the market. Also, concentrating on activities of research and development of the product to best fit the users and use cost efficient strategies to minimize expenditure.

List of Market Players Profiled

• IBM (U.S.)
• Accenture (Ireland)
• Cognizant (U.S.)
• Rackspace (U.S.)
• SAS Institute (U.S.)
• Presidio (U.S.)
• CenturyLink (U.S.)
• Unisys (U.S.)
• Sapiens International (Israel)
• Cisco (U.S.)
• Marco Technologies (U.S.)
• Jade Global (U.S.)
• Dell EMC (U.S.)
• DXC Technology (U.S.)

Industry Development

April 2021: Rackspace technology announced an investment in Platform9, to generate Rackspace managed platform. These two companies vision is to get products, technology together, which is overlooked upon a unified multi cloud database.

REPORT COVERAGE

This report provides an in depth analysis of the market, as it highlights key factors as leading companies, product and industry trends and developments. The market growth forecasts for the current and future term are included in the research, also explaining why one region dominates over the rest of the global market is the aim of the regional study. Moreover, the report concludes how the mentioned factors have contributed to the market growth.