Managed Services Market (2025 - 2030) Size, Share & Trends Analysis Report By Solution, Managed Information Service (MIS), By Deployment, By Enterprise Size (SME, Large Enterprises), By End Use, By Region, And Segment Forecasts

Managed Services Market Summary

The global managed services market size was estimated at USD 335.37 billion in 2024 and is projected to reach USD 731.08 billion by 2030, growing at a CAGR of 14.1% from 2025 to 2030. Managed services reduce downtime redundancy and provide customized value-added services such as application testing, service catalog building, and expert consultancy.

Multiple monitoring tools and several layers of infrastructure managed by isolated teams contribute to market growth. Furthermore, to streamline infrastructure and reduce costs, enterprises globally are migrating to the cloud platform and adopting managed IT services to optimize their infrastructure costs. Professional and managed services help enterprises compete with this digital transformation faster and more efficiently. Market players are focusing on unveiling innovative managed services for enterprise businesses to acquire a significant share of this potential market.

The companies operating in the managed services industry are establishing strategic partnerships to provide their cloud & infrastructure managed services to the client for increased security & compliance and enhanced business performance. For instance, in April 2023, Sinch, a Microsoft Operator Connect partner, announced a partnership with Synoptek to provide managed and professional services for the Microsoft Teams Phone System, which is integrated with direct routing or Operator Connect. Factors such as improving operational efficiency by focusing more effectively on core competencies, cutting operating expenses, and increasing the use of cloud-based technologies such as automation, IoT, blockchain, and cloud computing are driving market growth.

Moreover, managed services focusing on providing secure and customized IT solutions and end-to-end hosting applications are expected to drive market growth. For instance, in November 2022, UiPath, an automation software provider, extended its partnership with Neostella, an enterprise automation software provider, to offer managed services for the midmarket business segment. With this partnership, Neostella offers RPA-managed services based on customers' specific requirements and also eliminates requirements for up-front licensing.

Managed services involve outsourcing management functions to a third party to advance business operations. The introduction of cloud-based technologies and their technological proliferation have led to managed services. Managed services assist businesses in improving operational efficiency and cutting down companies' operating expenses. Moreover, an increasing preference for outsourcing management functions to cloud service providers and managed service providers is anticipated to drive the market's growth over the forecast period.

The adoption of cloud services has particularly increased as businesses remain keen on ensuring business scalability. Most companies are renewing their contracts with managed cloud service providers in anticipation of cloud migration becoming more common among enterprises and, in some cases, even gaining traction. Furthermore, businesses and organizations strongly emphasize adopting the latest technologies, such as machine learning and augmented reality, along with their existing IT infrastructure, as part of the efforts to encourage digital transformation.

As cyber threats become more prevalent, organizations are adopting managed security services (MSSs) into their business models. There is an increase in cyber threats in government sectors and enterprises. Thus, forcing managed service providers (MSPs) to develop advanced offerings that can detect and address cyber risks. For instance, in April 2023, Aeries Technology, a consulting and professional services provider, announced the launch of cyber security managed services. The new offering includes application security services; data security & privacy; identity & access management; cloud & infrastructure security; governance, risk, & compliance; security operations center services; enterprise security design & implementation; and audit & compliance certifications.

Solution Insights

The managed data center segment dominated the market for managed services and accounted for a revenue share of over 16.0% in 2024. The accelerated shift toward hybrid and multi-cloud environments drives segment growth. Many organizations are adopting hybrid models that combine on-premises infrastructure with private and public cloud services. Managed data centers play a crucial role in this ecosystem by acting as centralized hubs that enable seamless data exchange, application deployment, and workload management across diverse platforms. They also help organizations manage vendor relationships, optimize cloud resources, and ensure consistent performance and security across the entire IT stack.

The managed security segment is expected to register a significant CAGR during the forecast period. The need for continuous monitoring and rapid incident response is driving organizations toward managed security. Cyber threats are increasingly sophisticated and require 24/7 surveillance to prevent breaches or minimize damage. Managed security services provide around-the-clock operations via security operations centers (SOCs) that use AI-driven analytics, threat intelligence feeds, and automated response protocols to detect and contain threats in real-time. This constant vigilance is crucial, as the time taken to detect and respond to a breach often determines the extent of damage incurred.

Managed Information Service (MIS) Insights

The business process outsourcing (BPO) segment accounted for the largest revenue share of over 40.0% in 2024. The integration of automation and digital tools within BPO services is driving segment growth. Managed service providers are increasingly incorporating robotic process automation (RPA), artificial intelligence (AI), analytics, and cloud-based solutions into their offerings. These technologies enable faster, more accurate processing of high-volume tasks and allow businesses to gain real-time insights into performance. As a result, outsourcing no longer means just labor arbitrage. It means gaining access to technology-driven process optimization, which leads to better outcomes and enhanced decision-making.

The business support systems segment is expected to register a significant CAGR of 14.8% during the forecast period. The shift toward cloud-based BSS platforms further supports the growth of this segment. Many organizations are moving away from traditional, on-premises systems in favor of flexible, cloud-native BSS solutions offered as managed services. This transition provides not only scalability and faster time-to-market but also continuous updates, stronger data security, and better compliance with regulations like GDPR or industry-specific data protection standards. Managed service providers can ensure smooth migration and long-term management of these platforms, minimizing disruption and risk.

Deployment Insights

Based on deployment, the on-premise segment led the managed services market with the largest revenue share of over 51.0% in 2024. This growth can be attributed to the increasing use of mobile devices and advancements in information-sharing technologies. Cloud-based managed services solutions allow end use industries effective and efficient ways to adapt to evolving markets. Simultaneously, increasing private and public investments in cloud-based technology are anticipated to create a lucrative environment for segment growth in the forecast period.

On-premise deployment is expected to register a significant growth rate during the forecast period. On-premises solutions offer high-level data security, which makes end users companies easily adopt with various government regulations. Similarly, various on-premises managed services solutions offer businesses better control over their sensitive data. However, end use companies are focusing on implementing cloud-based managed services solutions owing to their diverse subscription plans and low operating costs. This is expected to restrict the market growth in the forecast period.

Enterprise Size Insights

The large enterprise segment led the market with the largest revenue share of over 60.0% in 2024. Global expansion and business diversification are contributing to this trend. Large enterprises often operate in multiple countries, each with their own regulatory environment, market dynamics, and technological infrastructure. Managing IT operations across such diverse environments can be highly complex. Managed service providers offer region-specific knowledge and compliance support, enabling enterprises to standardize operations while ensuring local relevance. They also help deploy and manage global IT projects more efficiently, supporting growth strategies and entering new markets without unnecessary delays or operational risks.

The SMEs segment is expected to grow at the fastest CAGR over the forecast period. The growing complexity of cybersecurity threats is a crucial factor influencing the demand for managed services among SMEs. With the rise of ransomware, phishing, and data breaches, small and medium businesses, often with minimal or outdated security protocols, have become prime targets for cybercriminals. Managed security services offer real-time threat detection, firewall and antivirus management, compliance reporting, and employee training, helping SMEs build a more secure IT environment. Importantly, MSPs also help SMEs meet industry-specific data protection regulations, which are particularly relevant for businesses in healthcare, finance, and retail.

End Use Insights

The BFSI segment led the market with the largest revenue share of over 19.0% in 2024. The increasing use of data analytics and AI in financial services is boosting reliance on managed services. BFSI firms are leveraging real-time data to enhance fraud detection, customer experience, risk management, and investment strategies. Managed service providers enable this by offering the infrastructure and expertise required to deploy big data platforms and AI tools effectively. They assist in data integration across silos, maintain data quality, and ensure that analytics platforms operate optimally, helping financial firms extract meaningful insights without incurring high IT maintenance overheads.

The healthcare segment is expected to grow at the fastest CAGR over the forecast period. The growing demand for telemedicine and remote patient care is driving the segment's growth. With more healthcare interactions happening digitally, hospitals and clinics need robust IT infrastructure that ensures high availability, low latency, and secure access for remote consultations, diagnostics, and monitoring. Managed services enable the deployment and maintenance of such infrastructure, including cloud-based platforms, virtual desktop environments, and secure communication networks. MSPs also offer 24/7 support, which is essential for maintaining continuous patient services and minimizing disruptions in care delivery.

Regional Insights

North America Managed Services Market Trends

North America dominated the managed services industry with a revenue share of over 33.0% in 2024. The widespread adoption of cloud computing contributes to market expansion in North America. As companies transition from on-premises infrastructure to hybrid or fully cloud-based environments, the need for continuous cloud management, optimization, and support becomes vital. Managed cloud services are in high demand to help enterprises migrate workloads, manage multi-cloud environments, and ensure performance and scalability. The presence of major cloud service providers like AWS, Microsoft Azure, and Google Cloud in North America further accelerates the trend, with MSPs often forming partnerships with these giants to deliver integrated, value-added services.

U.S. Managed Services Market Trends

The U.S. dominated the managed services industry in 2024. Technological innovation and the need for specialized expertise drive market growth in the U.S. As technologies like artificial intelligence (AI), machine learning (ML), and the Internet of Things (IoT) gain traction, businesses require MSPs with deep technical expertise to manage, integrate, and optimize these technologies. MSPs provide the necessary infrastructure and expertise to help businesses implement and manage these advanced technologies, offering them a competitive edge in their respective markets.

Europe Managed Services Industry Trends

The Europe managed services industry is anticipated to grow at a CAGR of 13.7% from 2025 to 2030. The rising need for enhanced cybersecurity across Europe, especially given the growing volume and sophistication of cyberattacks, is driving the market growth. The European Union's General Data Protection Regulation (GDPR) has heightened the importance of data protection and privacy, further motivating businesses to prioritize cybersecurity. The rise in ransomware attacks, phishing scams, and data breaches across sectors like healthcare, banking, and government has prompted companies to seek the expertise of MSPs who specialize in cybersecurity services. Managed security services, such as threat detection, incident response, and security monitoring, are essential for helping businesses meet compliance standards and protect sensitive data. MSPs also offer 24/7 security monitoring and proactive threat intelligence, which are vital in the face of evolving cyber threats.

The UK managed services market held a major revenue share in 2024. The expanding demand for multi-cloud and hybrid cloud environments is contributing to the market growth in the UK. Many businesses are shifting from a single cloud provider to multi-cloud or hybrid cloud strategies to avoid vendor lock-in, optimize performance, and improve data redundancy. This shift presents significant challenges in terms of managing multiple cloud platforms, ensuring seamless integration, and maintaining security across different environments. Managed service providers are well-positioned to support these complex multi-cloud and hybrid cloud architectures, offering services that streamline cloud integration, ensure cross-platform compatibility, and maintain a high level of security.

The managed services market in Germany is expected to witness a high growth rate during the forecast period. The growing demand for digital transformation in Germany is also driving the market growth. As the country's industries, particularly manufacturing, automotive, and healthcare, undergo digital transformation, businesses are increasingly relying on advanced technologies such as the Internet of Things (IoT), artificial intelligence (AI), and machine learning (ML) to stay competitive. However, the integration and management of these technologies require specialized expertise, which many businesses lack internally. Managed service providers are playing a crucial role in helping German companies implement and optimize these emerging technologies. MSPs offer a range of services, including IoT device management, AI-driven analytics, and automation, allowing businesses to focus on innovation while leaving the technical complexities to the experts.

The France managed services market is expected to grow at a significant CAGR during the forecast period. The continued digitalization and, subsequently, the growing demand for cloud computing and IT security services are driving the adoption of managed services. Furthermore, the aggressive investments businesses are making in telecommunications and IT services, infrastructure outsourcing services, and wireline voice services are expected to drive the demand for managed services from 2025 to 2030.

Asia Pacific Managed Services Market Trends

The Asia Pacific managed services industry is anticipated to rise as the fastest-growing regional market at a CAGR of 15.1%. Several firms in the Asia Pacific region are predicted to contribute substantially to the market's growth throughout the forecast period by implementing cloud-based solutions and boosting data security investments. Furthermore, rising spending due to organizations' adoption of cutting-edge technologies, such as cloud-based technology and advanced technology for company development, is expected to contribute to market growth. Further, shifting government focus towards digitalization and proliferation of IT companies is expected to propel market growth in India and ASEAN countries.

China managed services market held a major revenue share of the Asia Pacific region in 2024. In China, the government is supporting the adoption of IoT, cloud computing, and other emerging technologies, which is driving the rollout of cloud computing infrastructure across the country and, subsequently, the popularity of the SaaS delivery model, thereby driving the demand for managed services in the market.

The managed services market in India is anticipated to witness a high growth rate during the forecast period. The rapid growth of the Indian IT industry and the aggressive investments of leading IT companies, such as Google, International Business Machines Corporation, and Microsoft Corporation in India, are expected to fuel the growth of the market for managed services in the country.

The managed services market in Japan is expected to grow at a significant CAGR during the forecast period. In Japan, the development and adoption of advanced technology solutions and services for improving business efficiency are gradually gaining traction. The growing preference for advanced technology services is expected to open new opportunities for the growth of the managed service market in the country.

Middle East & Africa (MEA) Managed Services Industry Trends

The MEA managed services industry is expected to grow at a significant CAGR from 2025 to 2030. Initiatives being pursued by the governments across the MEA to encourage the adoption of emerging technologies, such as business analytics and cloud computing, and subsequently, the aggressive adoption of cloud-based technologies by both governments and corporates in the region is expected to drive the regional market growth.

The Saudi Arabia managed services market is anticipated to grow significantly during the forecast period. In Saudi Arabia, the continued growth of the IT industry and the subsequent need to maintain a uniform flow of information and develop a secure cyber environment are opening new opportunities for the adoption of managed services.

Key Companies & Market Share Insights

Some of the key players operating in the market include Accenture; BMC Software, Inc.; and HP Development Company, L.P.

• Accenture is a global professional services company that has a comprehensive portfolio in strategy, consulting, digital, technology, and operations. Accenture Managed Services are designed to help organizations increase agility, reduce costs, enhance scalability, and improve service delivery. Through these services, clients can shift from reactive problem-solving to proactive, strategic operations with the help of automation, analytics, and artificial intelligence (AI). This enables companies to focus more on their core business objectives while Accenture ensures operational excellence. Accenture operates in more than 120 countries and serves clients across a broad spectrum of industries, including banking, healthcare, energy, public services, consumer goods, and technology.

• BMC Software, Inc. is an enterprise software solutions company specializing in IT service management (ITSM), IT operations management (ITOM), automation, and digital transformation. The company's managed services encompass a broad spectrum of solutions, including application service provisioning, business process management, and data storage and management services. BMC's offerings are tailored to meet the unique needs of each client, ensuring that IT systems are aligned with business goals and capable of adapting to changing demands.​

ARYAKA NETWORKS, INC. and Atera Networks Ltd.are some of the emerging participants in the target market.

• Aryaka Networks, Inc. offers fully managed network and security services. Specializing in Software-Defined Wide Area Networking (SD-WAN) and Secure Access Service Edge (SASE) solutions, Aryaka offers a cloud-first approach to enterprise connectivity. At the core of Aryaka's offerings is its Unified SASE as a Service platform, which seamlessly integrates networking and security functionalities. This includes services such as SD-WAN, WAN optimization, next-generation firewall (NGFW), secure web gateway (SWG), intrusion prevention system (IPS), and cloud access security broker (CASB). By converging these services, Aryaka enables organizations to simplify their IT infrastructure, enhance security postures, and improve application performance across distributed environments.  

Key Managed Services Company Insights

The market has a consolidated competitive landscape featuring several global and regional players. Industry players are undertaking strategies such as new developments related to product launches, product updates, partnerships, mergers & acquisitions, and collaborations to survive the highly competitive environment and expand their business footprints.

Recent Developments

• In October 2023, technology services provider Logicalis launched an Intelligent Connectivity suite that includes solutions such as SASE, SSE, SD-WAN, and Private 5G powered by Cisco Systems, Inc. This will enable Logicalis customers to access digitally managed services developed using Cisco technology and supported by the Logicalis Digital Fabric Platform.

• In September 2023, communications & technology solution provider Cloud5 Communications launched its new managed services division. The division is designed to support the IT-related requirements & challenges in various markets, such as the hospitality industry, student housing, and senior living, among others. This division will assist consumers in efficiently managing IT operations, technology infrastructures, and security.

• In May 2023, Alfar Capital and Walter Capital Partners completed the acquisition of MSP Corp, a managed IT service provider in Canada. The MSP Corp would merge with Groupe Access, an MSP of IT and cybersecurity solutions. The acquisition would help the company to deliver cutting-edge solutions and strengthen its position in Canada.

• In January 2023, Rackspace Technology, a multi-cloud technology solutions provider, launched Rackspace Technology Modern Operations, a managed service for the public cloud for customers across Azure, AWS, and GCP. The service will provide benefits including 24x7x365 managed support, cloud expertise, cloud resiliency, and innovation with cloud services, which help the company’s customers manage complex cloud environments.

Managed Services Market Report Scope

Global Managed Services Market Report Segmentation

This report forecasts revenue growth at the global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2018 to 2030. For this study, Grand View Research has segmented the global managed services market report based on solution, managed information service (MIS), deployment, enterprise size, end use, and region:

• Solution Outlook (Revenue, USD Billion, 2018 - 2030)

  • Managed Data Center

  • Managed Network

  • Managed Mobility

  • Managed Infrastructure

  • Managed Backup and Recovery

  • Managed Communication

  • Managed Information

  • Managed Security

• Managed Information Service (MIS) Outlook (Revenue, USD Billion, 2018 - 2030)

  • Business Process Outsourcing (BPO)

  • Business Support Systems

  • Project & Portfolio Management

  • Others

• Deployment Outlook (Revenue, USD Billion, 2018 - 2030)

  • Hosted

  • On-Premise

• Enterprise Size Outlook (Revenue, USD Billion, 2018 - 2030)

  • Small & Medium Enterprises (SMEs)

  • Large Enterprises

• End Use Outlook (Revenue, USD Billion, 2018 - 2030)

  • BFSI

  • Government

  • Healthcare

  • IT & Telecommunication

  • Manufacturing

  • Media & Entertainment

  • Retail

  • Others

• Regional Outlook (Revenue, USD Billion, 2018 - 2030)

  • North America

    • U.S.

    • Canada

    • Mexico

  • Europe

    • U.K.

    • Germany

    • France

  • Asia Pacific

    • China

    • India

    • Japan

    • Australia

    • South Korea

  • Latin America

    • Brazil

  • Middle East & Africa

    • UAE

    • Saudi Arabia

    • South Africa