Global Managed Services Market Size, Trend & Opportunity Analysis Report, by Service (Managed Information Services), Enterprise Size (SMEs, Large Enterprises), and Forecast, 2024–2035

Market Definition and Introduction

The global managed services market was valued at USD 335.37 billion in 2024 and is anticipated to reach USD 1,530.68 billion by 2035, expanding at a CAGR of 14.8% during the forecast period (2024–2035). Managed services, which had therefore only worked at the lower level, either in support or as part of a larger solution in the past, have since gained strategic prominence as facilitators of digital transformation, agility, and competitive differentiation. Today, organisations that are trying to grapple with an ever-growing, complex technology ecosystem of cloud adoption, cybersecurity mandates, and compliance pressure are increasingly demanding the outsourcing of their IT infrastructure and operations to specialised service providers. Although facing severe skill shortages, SMEs look to managed service providers (MSPs) for driving efficiencies and reducing IT overheads, while large enterprises are using them for streamlining their complex global operations.

The accelerating penetration of hybrid cloud and edge computing solutions is increasingly pushing enterprises to partner with managed services providers that ensure optimisation of costs and maximum security, resilience, and compliance on their digital platforms. Beyond this, managed services have attained critical importance in sectors such as banking, healthcare, and government, thus widening the market, where services have to be highly customised, scalable, and compliant to industry standards. With the ever-increasing cyber threats, disjointed IT strategies are becoming untenable for companies, and in the provisioning of fully integrated, proactive, and cost-effective solutions, MSPs fill in the gap.

IT investment paradigms across enterprises worldwide are transitioning from capital-intensive models to subscription-based scenarios, a dramatic transformation that has fuelled the managed services agenda. This shift is consistent with the corporate disposition that seeks operational agility, predictable costs associated with IT, and resilience in business continuity. Further propelling the growth trajectory would be the wave of digitalisation sweeping through emerging economies, as they employ managed services to leapfrog into globally competitive industries. Consequently, the market is more than just an outsourcing option; it is seen as a very important partner-led transformation model for the organisations that are navigating the ever-evolving digital-first economy.

Recent Developments in the Industry

Global IT leaders expand cybersecurity-centric managed services to meet rising ransomware and data breach threats.

IBM Corporation extended its managed security portfolio in 2024 with the release of AI-driven cyber defence solutions that help enterprises mitigate advanced targeted cyberattacks, proactively integrating real-time threat intelligence into the enterprise network.

Strategic partnerships reshape the managed cloud services landscape through joint offerings.

Accenture PLC, at the start of 2025, allied with Microsoft Azure to provide industry-specific managed cloud platforms for healthcare and financial services with a focus on compliance, cost management, and end-to-end resilience.

Big investments help create regional managed service hubs to accelerate digital transformation.

Cisco Systems Inc. announced, in 2024, it would earmark USD 1.2 billion for establishing innovation hubs for managed services across the Asia-Pacific region, supporting enterprises migrating towards 5G-enabled ecosystems and cloud-native architectures.

Mergers and acquisitions reinforce portfolios and diversify service models for global clients.

In late 2023, Fujitsu Limited enhanced cloud management and enterprise IT outsourcing capabilities by acquiring a European managed infrastructure specialist, aimed at scaling hybrid workplace models for enterprises.

Product launches accelerate the adoption of hybrid cloud and edge-focused services.

In 2025, Tata Consultancy Services (TCS) launched the Cognitive Edge Services platform, providing enterprises with an AI-managed service to optimise edge computing workloads, automate resource allocation and ensure low-latency delivery.

Regulatory updates drive MSPs to adapt compliance-driven managed solutions.

In 2024, the new European Union legislation on digital sovereignty made it possible for Capgemini SE to deploy regulatory-compliant managed data centre services with strict data residency requirements for clients operating in regulated industries.

Market Dynamics

The rising adoption of managed services globally is fuelled by ongoing digital transformation initiatives cutting across industries.

The dynamic, fast pace of digitalisation through manufacturing, healthcare, finance, and retail has created an exceptional demand for managed services. Companies can no longer manage vast, complex IT ecosystems internally; thus, outsourcing has become a necessity. MSPs complete the processes of cloud migration, implementation of advanced analytics, and scaling infrastructures, enabling companies to concentrate on core strategies while saving costs there.

Heavy dependence on cloud technologies further justifies the long-term reliance on managed services.

Operational challenges have been created through the adoption of clouds, with internal IT teams having difficulties managing the challenges posed. The involvement of managed service providers with 24/7 monitoring, optimisation, and compliance support enables enterprises to attain operational resilience. The increasing complexity of contracts around IaaS and SaaS further emphasises the requirement for managed solutions that simplify vendor management and guarantee hassle-free service delivery.

Cybersecurity vulnerabilities and regulatory requirements handicap autonomous IT operation, thus lifting outsourced services.

The worldwide wave of cyberattacks, coupled with the tightening of regulatory frameworks such as GDPR and HIPAA, has placed the issue of cybersecurity among the foremost concerns for enterprises. MSPs thus are able to come in with proactive threat detection, regulatory compliance audits, and incident response services, hence acting like a lifeline to enterprises trying to navigate through an ever-evolving threat landscape. The inability of enterprises to independently meet security and compliance demands further drives outsourcing.

Cost pressure and the shortage of talent are hurdles for enterprises, yet they strengthen the value propositions of MSPs.

Globally, the dearth of qualified IT professionals, coupled with rising expenses for IT infrastructure, has rendered outsourced managed services attractive alternatives. Companies grappling with unpredictable IT expenditures are increasingly opting for subscription-based managed services for predictable forecasting and scalability. MSPs thus provide the dual advantage of access to top-tier expertise without the burden of recruitment, rendering them pertinent partners in a talent-constrained ecosystem.

The further development of industry-specific managed services positions a new paradigm of competitive advantage.

The increasing demands for managed services tailored to verticals, such as healthcare data management, retail omnichannel integration, or financial risk analytics, are opening new revenue streams for MSPs. The companies that will offer bespoke solutions with respect to sector-specific compliance and operational models will dominate the niche markets, propelling overall growth for the industry.

Attractive Opportunities in the Market

Cybersecurity Resilience Demand – Rising ransomware threats increase reliance on AI-driven managed security solutions worldwide.
Hybrid Cloud Growth Surge – Multi-cloud and hybrid strategies propel the need for vendor-agnostic managed infrastructure platforms.
SME Digital Enablement – Small enterprises embrace cost-effective managed services to bypass internal IT complexities.
AI-Powered Automations – Intelligent automation transforms service delivery, enhancing efficiency, accuracy, and predictive maintenance.
Industry-Specific Solutions – Tailored managed services for healthcare, finance, and retail create competitive differentiation.
Regulatory Compliance Pressure – Stricter frameworks accelerate demand for compliance-focused managed IT and data services.
5G and Edge Expansion – Managed services around 5G-driven ecosystems foster ultra-low-latency and connected enterprise solutions.
Sustainability Integration – Eco-conscious managed data centres provide greener IT outsourcing models across industries.
Globalisation of Services – Cross-border operations require managed solutions that ensure continuity and data sovereignty.
M&A Consolidation Drive – Consolidation accelerates portfolio diversification and expands managed service capacity globally.

Report Segmentation

By Service: Managed Information Services (MIS)

By Enterprise Size: Small & Medium Enterprises (SMEs), Large Enterprises

By Region: North America (U.S., Canada, Mexico), Europe (UK, Germany, France, Spain, Italy, Spain, Rest of Europe), Asia-Pacific (China, India, Japan, Australia, South Korea, Rest of Asia-Pacific), LAMEA (Brazil, Argentina, UAE, Saudi Arabia (KSA), Africa Rest of Latin America)

Key Market Players

IBM Corporation, Accenture PLC, Cisco Systems Inc., Fujitsu Limited, Tata Consultancy Services (TCS), Wipro Limited, Atos SE, HCL Technologies, Capgemini SE, and DXC Technology.

Report Aspects

Base Year: 2024
Historic Years: 2022, 2023, 2024
Forecast Period: 2024-2035
Report Pages: 293

Dominating Segments

The growing complexity in the IT ecosystems of large enterprises and all the compliance demands make them take the front-row seat in Managed Services markets.

In their extensive debt obligations across multiple countries, large companies have historically adopted and continue to adopt managed services primarily for their IT infrastructure, requiring complicated and continuous support that the internal staff would not be able to meet. They leverage scalability, global reach, and service models. Banks, pharmaceutical companies, or even the telecommunication industry become very dependent on these services to make compliance easier, to mitigate the risk of cyber breaches, and to enable uninterrupted business operations. Subscription models allow a predictable budget followed by outsourcing acquisition, while a global MSP partnership allows them to have improved vendor consolidation and efficiency gains.

Managed services catch on with SMEs as the scenario for rapid market advancement across emerging markets.

Managed Services are now taking rapid strides among SMEs. Historically, these have been the low adopters of outsourced IT, but are, at present, one of the fastest-growing markets. Owing to restricted budgets, insufficient skills and heightened competitive pressures, SMEs have been discovering the cost-effective solutions offered by MSPs as a source of IT management. For those SMEs that cannot afford an in-house IT department, solutions hosted by the cloud and cybersecurity bundles have been very attractive, while flexible digital workplaces are very appealing for all. The demand for quick subscription-based managed services has been piqued, with the avalanche of e-commerce, fintech start-ups, and small-scale manufacturers coming into the picture. As business models become increasingly digital-first, great prospects emerge in the Asia-Pacific and Latin American regions for SMEs.

Managed Information Services leads the pack in the areas of service categories, which tie enterprise digital transformation efforts under themselves.

The MIS forms the foundation upon which the managed services landscape is built; it provides indispensable capabilities from data management and analytics to optimisation of infrastructure and, thus, supply. It is through MIS that organisations leverage to align and integrate IT operations with their strategic objectives and cross-functional data for decision-making efficiencies. As the footprint of an enterprise increases, the complexity involved in the management of information systems becomes, at best, untenable internally, thus resulting in dependence on MSPs. The more sophisticated, advanced MIS solutions that include AI and machine learning will change how companies forecast where the market is going, automate manual work, and improve efficiencies. Thus, this segment will continue to maintain its supremacy, given the strategic importance across different industries.

Key Takeaways

Large Enterprise Dominance – Complex global IT infrastructures cement large enterprises as primary managed service adopters.
SME Growth Acceleration – SMEs drive strong adoption as cost-efficient managed services mitigate internal IT gaps.
MIS Core Role – Managed Information Services underpin digital transformation through advanced analytics and optimisation.
Cloud Dependency Surge – Hybrid and multi-cloud reliance propels demand for scalable, managed cloud ecosystems.
Cybersecurity Imperative – Escalating threats ensure cybersecurity-focused managed services remain indispensable.
Regulatory Influence – Compliance-driven outsourcing shapes MSP offerings, especially in finance and healthcare.
AI and Automation – AI-infused services redefine predictive monitoring, efficiency, and workload optimisation.
Regional Momentum – Asia-Pacific and LAMEA expand fastest, driven by industrialisation and digital ecosystems.
M&A Activity Intensifies – Consolidation strengthens provider portfolios and global delivery capabilities.
Sustainability Push – Green managed services gain traction through energy-efficient, low-carbon IT infrastructures.

Regional Insights

North America's dominance in managed services stems from advanced IT infrastructure and early digital adoption.

Underpinning the managed services market in North America are mature IT ecosystems, high digital penetration, and a strong base of multinational corporations. From among the crowd, the U.S.A. is an innovation leader in cybersecurity, cloud, and AI-driven managed services. Regulatory frameworks about data security and compliance encourage outsourcing, while high labour costs render managed services more attractive than in-house management. Demand from healthcare, finance, and government illustrates the importance of MSPs in assuring resilience, compliance, and digital transformation.

Europe fosters managed services creation with innovation in sustainability and compliance.

Europe’s market growth is driven by strict regulations such as GDPR and increasing demand for sustainable IT outsourcing. Enterprises across the UK, Germany, and France are investing in eco-friendly managed services while the MSPs revolutionise data centres toward environmentally friendly practices. The region's focus on digital sovereignty and secure, compliant IT infrastructures has bolstered mainstream adoption for managed services. Industry-specific solutions, especially in healthcare and financial services, are further fuelling demand, helped by Europe's emphasis on data privacy and regulatory compliance.

Asia-Pacific emerges as the fastest-growing hub for managed services deployment.

Rapid growth is being propelled by Asia-Pacific, led by booming SMEs, broad cloud infrastructure, and large-scale digitalisation programs in China, India, and South Korea. Demand for cost-effective managed services will be accelerated by the explosion of start-ups and government investments in IT infrastructure. Adoption from the telecom, retail, and manufacturing sectors is increasingly driving the shift among enterprises to upgrade their IT without incurring sizeable internal costs. Asia-Pacific offers significant long-term growth opportunities with a mix of global technological players and local MSPs operating in the managed services space.

LAMEA drives its adoption through digital transformation and SME ecosystem proliferation.

Managed services gain traction for digital transformation, especially in the newest startups of LATAM and the neighbouring cities of Dubai and Abu Dhabi. Brazil and the UAE are fast becoming hotspots for government programs aimed at digital readiness. SMEs in these regions are rapidly adopting managed cloud and cybersecurity services to maintain competitiveness. Managed services are also filling talent gaps and ensuring regulatory compliance in sectors including banking and retail. The prospects of infrastructure development in combination with strategic MSP partnerships give a fair outlook for long-term growth for these regions, thereby positioning LAMEA to be a contributor in its own right to the upward spiral of global growth.

Core Strategic Questions Answered in This Report

Q. What is the expected growth trajectory of the managed services market from 2024 to 2035?

The global managed services market is projected to grow from USD 335.37 billion in 2024 to USD 1,530.68 billion by 2035, registering a CAGR of 14.8%. This expansion is driven by digital transformation initiatives, rising cybersecurity threats, and increasing adoption of subscription-based IT outsourcing models.

Q. Which key factors are fuelling the growth of the managed services market?

Several key factors are propelling market growth:

Increasing demand for cloud migration and hybrid IT optimisation
Escalating cybersecurity threats requiring proactive managed security services
Rising adoption of subscription-based and cost-efficient IT models
Growing SME reliance on outsourced IT for competitiveness
Industry-specific compliance driving tailored managed service offerings

Q. What are the primary challenges hindering the growth of the managed services market?

Major challenges include:

Shortage of skilled IT professionals in both client and provider ecosystems
Rising complexity in multi-cloud and hybrid IT management
High initial investment for advanced managed service platforms
Regulatory hurdles in cross-border data and digital sovereignty laws
Persistent cybersecurity threats are creating reputational risks for MSPs

Q. Which regions currently lead the managed services market in terms of market share?

North America currently leads the managed services market due to mature IT adoption, regulatory-driven demand, and strong cybersecurity innovation. Europe closely follows with compliance-focused and eco-friendly service adoption, while Asia-Pacific stands as the fastest-growing region.

Q. What emerging opportunities are anticipated in the managed services market?

The market is ripe with new opportunities, including:

AI-driven automation across service delivery models
Expansion of managed services into SME and emerging markets
Growth of eco-friendly and sustainable outsourcing solutions
Rising adoption of industry-specific managed services
Evolution of edge and 5G-enabled managed ecosystems

Key Benefits for Stakeholders

The report offers a quantitative assessment of market segments, emerging trends, projections, and market dynamics for the period 2024 to 2035.
The report presents comprehensive market research, including insights into key growth drivers, challenges, and potential opportunities.
Porter's Five Forces analysis evaluates the influence of buyers and suppliers, helping stakeholders make strategic, profit-driven decisions and strengthen their supplier-buyer relationships.
A detailed examination of market segmentation helps identify existing and emerging opportunities.
Key countries within each region are analysed based on their revenue contributions to the overall market.
The positioning of market players enables effective benchmarking and provides clarity on their current standing within the industry.
The report covers regional and global market trends, major players, key segments, application areas, and strategies for market expansion. Show more