BANGALORE, India, April 29, 2020 /PRNewswire/ -- Managed services refer to a third-party IT contractor otherwise known as a managed service provider(MSP), handling some or all of the IT needs of a company. The managed services involve outsourcing the responsibility of a range of functions and processes to a third-party MSP to run, maintain, and improve operations. This practice helps cut cost and enhance overall efficiency. Managed Service Providers create an SLA with their clients. Managed Services SLA determines the quality of service the company can expect, and how the performance can be evaluated.
The global Managed Services Market size is projected to grow from USD 178.5 billion in 2019 to USD 309.4 billion by 2025, at a CAGR of 9.6% over the forecast period.
Adopting managed services is intended to be an effective way of keeping up-to-date on technology, getting access to expertise and resolving cost, service quality and risk-related issues. The technology components of many SMBs and large companies have been shifted to the cloud, MSPs (managed service providers) are increasingly facing the cloud computing challenges.
TRENDS INFLUENCING THE MANAGED SERVICE MARKET SIZE
Enterprises and government agencies around the world shift from test environments to bring more of their work-critical workloads into the cloud and compute instances. Furthermore, the pressure on the data centers is also growing due to the increasingly rising adoption of IoT, cloud and Big Data analytics across various companies as a major part of their digital transformation strategy. This is contributing to the growth of managed service market size.
Growing demand for Cloud is expected to fuel adoption. In addition, security issues, coupled with the application of IT functions to take control of enterprise networks and IT infrastructure, are expected to have a positive impact on development.
Managed service providers help businesses mitigate their initial infrastructure investment by offering network monitoring, cloud, data center management, security and mobility services. This feature of managed service is expected to increase its adoption.
Managed services help increase productivity in processes, reduce operational costs and help companies concentrate on core competencies. They help to automate the distribution and allocation of capital in order to improve overall productivity and operating efficiency. Banks and other financial institutions adopt managed services to tackle numerous issues such as market and regulatory change, technological change, and talent shortages. This widespread adoption among organizations from different verticals is expected to boost the managed service market size.
Managed Service Providers (MSPs) help businesses identify their business plans by holding variables in perspective such as the available sources, consumer preferences and industry needs. This in turn is expected to build growth opportunities for the MSPs during the forecast period.
The controlled data center service and controlled IT network services segment are expected to hold a major market share during the forecast period.
Based on the region, North America is estimated to have the largest market share during the forecast period due to the growing acceptance of the recurring revenue model in the country. The US and Canada are expected to be the largest revenue contributors to the North American market for managed services. Adopting managed services provides benefits, such as improved reliability and performance, enhanced security enforcement and expanded flexibility.
Asia Pacific is forecast to witness significant growth over the forecast period. Implementation of cloud-based solutions and increased data protection investments among several companies in the region are expected to contribute significantly to the growth. Increasing investment is also expected to lead to growth due to the introduction of innovations, such as cloud-based technology for their business development. Growing investment in SMEs by emerging economies like China and India is expected to further fuel the growth of the demand for managed services.
The global Cloud Managed Services market size was USD 28.520 Billion in 2019 and is forecast to hit USD 50.080 billion by the end of 2026, at a CAGR of 8.3 percent in 2021-2026.
Increasing emphasis on mobility coupled with a need to focus on core business functions, would drive the growth of cloud managed service market size. The demand for scalability and reliability will also increase demand for the services, as it will enable businesses to scale up and down their operations by providing custom-made solutions to the services available.
The Managed Security Services Market size is projected to be USD 40.97 billion by 2022, growing at a CAGR of 16.6 percent in the 2016-2022 forecast period.
The demand for the managed security services market is gaining momentum, as data protection is becoming a major concern. The business knowledge network constantly faces advanced threats from various organizations. Leading industry players in the managed security services sector are developing hi-tech and more secure solutions to protect companies from these attacks. Therefore, product launch is the most anticipated approach pursued by the leading players in the industry.
During the forecast period, North America is expected to hold a significant share of the global AWS Managed Services market. Business growth in the area stems mainly from the rapid adoption of AWS in the region's multiple industry verticals.
This study focuses on AWS Managed Services Market outlook, growth potential, key industry and key players. The study aims to present the growth of Managed Services Software in North America, Europe, China, Japan, Southeast Asia, India and Central & South America.
The growth of IoT-managed services market size is heavily dependent on IoT being adopted by industries. The factors driving the global IoT-managed services market are the industry-wide adoption of IoT, growing managed cloud service, among others, increasing government spending in projects such as smart cities.
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