The Global Managed Services Market is Expected to Reach a Valuation of USD 311.32 Billion by 2027

DUBLIN, Feb. 21, 2022 /PRNewswire/ -- The "Global Managed Services Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)" report has been added to ResearchAndMarkets.com's offering.

The global managed services market was valued at USD 161.37 billion in 2021, and it is expected to reach USD 311.32 billion by 2027, registering a CAGR of 12.44% during the period of 2022-2027 (henceforth, referred to as the forecast period).

SMBs are expected to be the driving factors that are positively impacting the market growth, as more and more SMBs are looking to outsource non-core activities. According to Datto, on average, MSPs report a client base of 122 clients, and about 60% of the MSP's clients have between 1-150 employees; also, only 5% of the MSPs reported clients with over 500 employees.

Key Highlights

• Managed services offer various benefits that are proven to positively impact the development of the organization that adopts such services as they can focus on their core expertise. It is estimated that successful deployment of managed services will help in reducing IT cost by 25-45% and will also increase the operational efficiency by 45-65%. Also, 25% of organizations said downtime costs averaged between USD 301,000 and USD 400,000 per hour (source: Intelligent Technical Solutions).
• Moreover, the year 2022 will be all about application deployments matched to the speed of development. The application maintenance and support services will be pivotal to the managed services in IT. Application performance monitoring (APM), for instance, will imbibe a quick feedback mechanism for developers. Front-end monitoring (for studying user behavior), ADTD (for application discovery, tracing, and diagnostics), and AIOps analytics (for detecting application lifecycle patterns and anomalies) will all be parts of APM. These solutions will help the DevOps team to analyze business problems better. It will cut down on their mean time to repair (MTTR).
• With industry requirements, standards, and consumer needs changing by the day, businesses are now seeking result-based outcomes. They require possession of pre-defined or expected criteria documented clearly, in real-time. The MSP will now be seen using advanced analytics and reporting to state the impact of technologies implemented and present factual data.
• Further, the Blockchain and IoT technologies are set to create better opportunities for the managed services providers, as these organizations require expertise to implement these technologies. To get a hold of these opportunities and stay relevant and keep up with the competition, the managed services providers are increasingly acquiring essential skillsets for these, among other innovative technologies, like AR, VR, and AI.
• Since the outbreak of COVID-19, the demand for cloud-based solutions has seen significant growth owing to remote working models being adopted by enterprises. As more IT decision-makers look to take advantage of modern cloud environments, they're increasingly running into longer project runways and the need for bigger budgets. In fact, nearly half (48%) of the United States and the United Kingdom IT decision-makers say the average length of time it takes them to complete a single multi-cloud application migration successfully is 1-2 months (source: Wanclouds).

Key Market Trends

Manufacturing is Expected to Hold a Significant Market Share

• In the current technology-driven business environment, big data stands as one of the primary drivers of productivity and efficiency for manufacturers. With the high rate of adoption of sensors and connected devices and the enabling of M2M communication, there has been a massive increase in the data points that are generated in the manufacturing industry.
• Industries are pitching hard and fast to switch to a "smart industry," where data generation and visualization can become real-time. From descriptive to predictive, the evolution of analytics has made the industry aware of the benefits that it can reap from this volume of data. The motto of the manufacturing industry is moving toward a metrics-based industry, which can improve decision-making based on the data-driven use of statistics.
• With the concept of Industry 4.0 influencing production establishments in the manufacturing industry, the amount of data produced from the manufacturing industry has snowballed, as they have been able to create data from each process point, varying from temperature, pressure, humidity, stress, strain, and quality, among multiple others.
• There are several applications in the field of semiconductors, consumer electronics, and the automotive industry, where manufacturers have to monitor numerous variables to ensure the quality of end products, wherein big data analytics has emerged as an effective solution to the traditional methods.
• As most of the small and medium manufacturing industries are more concentrated on hardware equipment and lack expertise in software solutions, they are outsourcing these big data analytic solutions.
• Outsourcing the software services is further reducing their expenditure. This trend of outsourcing other software services, such as field service management and ERP, would boost managed services during the forecast period.

Asia Pacific is Expected to be the Fastest Growing Market

• The digital transformation has become a top priority in the country and moving at a rapid pace, as a greater number of companies are implementing formal strategies to support their efforts. In January 2021, China's State Council released a proposal to help the digital economy flourish throughout the 14th Five-Year Plan period (2021-2025). According to the plan, China's digital transformation of industries will reach a new level by 2025, while digital public services will become more inclusive, and the digital economy governance structure will visibly improve.
• The managed service providers in China are focusing on reducing security risks and optimizing operations for the end-users by keeping up with the latest technologies. The managed services market is majorly offered by the telecommunication companies in the country. Also, these companies are strategically acquiring companies offering managed services to gain more market share.
• Further, the banking sector in India is experiencing a colossal change due to the rapid evolution of technology in their vertical, which led to the adoption of cloud computing services by these organizations for addressing their issues. Further, the managed storage providers in the country are investing in developing an integrated cloud storage platform dedicated to the BFSI sector.
• Moreover, the ongoing extensive investments by the Indian government toward physical infrastructures, like smart cities, are expected to create more opportunities for the deployment of managed services, like data storage, security, and network management, in the country. Currently, the Indian smart cities program is focused on transforming 100 cities.
• In January 2022, KPMG India and Qualys have announced a partnership to add Qualys solutions to KPMG's Managed Security service. KPMG's industry-leading and globally recognized cybersecurity services in India will be combined with Qualys' world-class cybersecurity innovations to enable enterprises to protect their network, applications, endpoints, and cloud workloads from security vulnerabilities, provide visibility, and ensure compliance.
• Whereas, with the service industry taking up the largest portion of its GDP, Japan has much to share in the area of managing the service industry. Japan has always been a market-oriented economy and represents the second most developed economy in the world. Currently, the country is focusing on the manufacturing sectors, including the production of hybrid vehicles, robotics, and optical instruments.

Competitive Landscape

The Managed Services Market is consolidated, as major players dominate it. Some of the major players in the market are:

• Fujitsu Ltd
• Cisco Systems Inc.
• IBM Corporation
• AT&T Inc.
• HP Development Company LP
• Microsoft Corporation
• Verizon Communications Inc.
• Dell Technologies Inc.
• Nokia Solutions and Networks
• Deutsche Telekom AG
• Rackspace Inc.
• Tata Consultancy Services Limited
• Citrix Systems Inc.
• Wipro Ltd
• NSC Global Ltd
• Telefonaktiebolaget LM Ericsson

For more information about this report visit https://www.researchandmarkets.com/r/d0tut5

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SOURCE Research and Markets