Welcome to our blog post on IT Managed Services Industry Statistics. In this post, we will delve into the latest trends, growth projections, and key insights shaping the IT managed services landscape. Stay tuned to uncover valuable statistics that will shed light on the current state and future outlook of this dynamic industry.
The Latest It Managed Services Industry Statistics Explained
The global IT managed services market is expected to reach around $354.8 billion by 2026, growing at a CAGR of 11.3%.
The statistic indicates that the global IT managed services market is projected to expand significantly, reaching approximately $354.8 billion by the year 2026, with a compound annual growth rate (CAGR) of 11.3%. This suggests a strong and sustained growth trend in the IT managed services industry over the forecast period. The increasing adoption of managed services by organizations looking to streamline their IT operations, improve efficiency, and reduce costs is expected to be a key driver behind this growth. Additionally, factors such as the growing complexity of IT environments, the rising demand for cloud-based services, and the need for specialized expertise in managing IT infrastructure are likely to contribute to the continued expansion of the market.
North America holds the highest share in the IT managed services market at 30.9% in 2020.
The statistic indicates that in 2020, North America accounted for the largest portion of the market for IT managed services, holding a share of 30.9%. This means that nearly one-third of the total market for IT managed services was generated in North America during that year, making it the leading region in terms of market presence and activity in this industry. This statistic suggests that North America is a key player in the IT managed services market, likely due to the presence of advanced technology infrastructure, a strong demand for IT services, and a large number of businesses utilizing managed services to support their operations.
By 2026, the healthcare industry’s use of IT managed services is expected to reach around $35.9 billion.
This statistic indicates that the healthcare industry’s adoption of IT managed services is projected to substantially grow by the year 2026, with an estimated value of $35.9 billion. As technology continues to play an increasingly integral role in the healthcare sector, organizations are recognizing the benefits of leveraging IT managed services to improve operational efficiency, enhance data security, and streamline patient care delivery. This anticipated growth signifies a significant investment by healthcare providers in outsourcing IT management and support services to specialized firms, allowing them to focus on core healthcare functions while benefiting from technological advancements and expertise. The increasing utilization of IT managed services underscores the industry’s commitment to harnessing innovative solutions to enhance overall healthcare delivery and patient outcomes.
56% of companies have partnered with a managed service provider for their IT needs.
The statistic indicates that a majority of companies, specifically 56%, have chosen to partner with a managed service provider (MSP) to fulfill their IT needs. This implies that these companies have opted to outsource their IT services to a specialized third-party provider rather than handling them in-house. Partnering with an MSP can offer various benefits such as cost savings, access to specialized expertise, improved scalability, and enhanced focus on core business activities. The high percentage of companies opting for this approach suggests a growing trend towards leveraging external IT resources to meet organizational technology requirements effectively.
The Managed IT Services Providers (MSPs) are anticipated to grow at a compound annual rate (CAGR) of 12.5% from 2020 to 2025.
The statistic stating that Managed IT Services Providers (MSPs) are expected to grow at a compound annual growth rate (CAGR) of 12.5% from 2020 to 2025 indicates the predicted average annual growth rate over the five-year period. This means that the industry is projected to expand significantly over the specified timeframe. The CAGR provides a smooth representation of the growth rate, accounting for both upward and downward fluctuations, and it is often used to assess the sector’s performance and potential opportunities for investment and market expansion. This forecast suggests a positive outlook for MSPs, reflecting the increasing demand for outsourced IT services and the evolving technological landscape driving the industry’s growth in the coming years.
Over 70% of IT firms are considering a move to Managed Services.
The statistic ‘Over 70% of IT firms are considering a move to Managed Services’ indicates that a substantial majority of IT companies are contemplating transitioning from traditional in-house IT management to outsourced Managed Services. This suggests a growing trend within the industry where businesses are recognizing the benefits of outsourcing their IT functions to specialized service providers for improved efficiency, cost savings, and access to advanced expertise. The high percentage of firms considering this move highlights a significant shift in IT management strategies towards leveraging external resources and expertise to meet the evolving technological demands of the business landscape.
Managed IT services will account for 25% of all IT spending by 2025.
This statistic indicates that by the year 2025, Managed IT services are projected to constitute a significant portion, specifically 25%, of total IT spending. This suggests a growing trend towards organizations outsourcing their IT support and services to specialized providers rather than managing them in-house. The rise of Managed IT services could be driven by factors such as cost-effectiveness, access to specialized expertise, scalability, and the increasing complexity of IT environments. This statistic highlights the importance of Managed IT services in the evolving IT landscape and the shift towards more efficient and strategic management of technology resources by businesses.
41% of large organizations consider network services as the most important managed service for their business.
The statistic states that 41% of large organizations prioritize network services as the most crucial managed service for their business operations. This suggests that a significant portion of large companies place heavy emphasis on the reliability, efficiency, and security of their network infrastructure to support their day-to-day operations and strategic objectives. This prioritization of network services highlights the vital role that technology plays in the operational success of organizations, particularly in today’s increasingly digital and interconnected business environment. By focusing on ensuring the quality of their network services, these organizations are likely aiming to optimize communication, data transfer, and overall connectivity to support productivity, collaboration, and competitiveness in their respective industries.
Approximately 40% of SMEs reported increased efficiency as a reason for choosing to use an MSP.
The statistic ‘Approximately 40% of SMEs reported increased efficiency as a reason for choosing to use an MSP’ indicates that a significant proportion of small and medium-sized enterprises (SMEs) have identified improved operational productivity as a key driver in their decision to partner with a managed service provider (MSP). This suggests that SMEs are looking to leverage external expertise and resources to streamline their business operations, enhance efficiency, and ultimately drive growth. By outsourcing certain functions to an MSP, these businesses are likely aiming to reduce costs, increase scalability, and access specialized skills that can help them stay competitive in their respective industries.
The average net profit margin for MSPs is around 18%, with top-performing companies achieving over 30%.
The statistic indicates that the average net profit margin for Managed Service Providers (MSPs) is approximately 18%, suggesting that MSPs, on average, earn 18 cents of profit for every dollar of revenue generated. Furthermore, it highlights that top-performing MSPs are able to achieve even higher levels of profitability, with some companies realizing net profit margins exceeding 30%. This implies a significant variance in performance within the MSP industry, with top performers having more efficient operations and cost management strategies that enable them to achieve superior financial results compared to the industry average. Overall, the statistic underscores the importance of effective business practices in driving profitability within the MSP sector and the potential for companies to differentiate themselves through financial performance.
The IT managed services market in the Asia Pacific region is expected to witness the fastest growth during the forecast period of 2019–2026.
The statistic indicates that the IT managed services market in the Asia Pacific region is projected to experience the most rapid expansion compared to other regions over the forecast period spanning from 2019 to 2026. This suggests a significant increase in demand for IT managed services within the Asia Pacific, driven by factors such as technological advancements, digital transformation efforts, increasing adoption of cloud services, and the growing need for outsourcing IT functions to specialized service providers. The region’s dynamic business landscape, emerging economies, and increasing awareness of the benefits of managed services are likely contributing to this anticipated growth, making it a promising market for IT service providers in the coming years.
Managed cloud services are expected to nearly double in market size by 2022, becoming a $116.2 billion worldwide opportunity.
The statistic indicates that the market size for managed cloud services is projected to almost double by the year 2022, reaching a value of $116.2 billion globally. This growth suggests a significant increase in the demand for managed cloud services, which are IT services delivered over the internet by a third-party provider. Businesses are increasingly turning to managed cloud services to outsource their infrastructure management, data storage, and other IT needs, as it offers benefits such as scalability, cost-efficiency, and enhanced security. The expanding market size reflects the growing reliance on cloud technology for businesses of all sizes and industries, highlighting the continued shift towards cloud-based solutions in the global business landscape.
Approximately one-third of MSPs view the evolving landscape of security threats as an opportunity for growth.
The statistic that approximately one-third of Managed Service Providers (MSPs) view the evolving landscape of security threats as an opportunity for growth suggests that a significant portion of MSPs recognize the increasing demand for cybersecurity services as a potential area for business expansion and development. This indicates a proactive attitude among a subset of MSPs who see the growing threat environment as a way to differentiate themselves in the marketplace and offer specialized security solutions to clients. These MSPs may be investing in expanding their cybersecurity capabilities, offering innovative services, and positioning themselves as trusted partners in helping businesses navigate complex security challenges. Ultimately, this statistic highlights the strategic mindset of a portion of MSPs who are leveraging the changing security landscape as a growth opportunity.
Bundled service offerings are the most popular, with 68% of MSPs providing this option to their clients.
The statistic indicates that bundled service offerings are highly prevalent among Managed Service Providers (MSPs), with 68% of them offering this option to their clients. Bundled services typically involve combining multiple IT solutions and services into a single package for clients, offering them convenience and potentially cost savings. The high adoption rate of bundled service offerings suggests that many MSPs recognize the benefits of providing integrated solutions to their clients. By offering bundled services, MSPs can streamline their service delivery, enhance customer satisfaction, and potentially increase their revenue by providing a comprehensive solution that meets the diverse needs of their clients.
The security segment in IT managed services is projected to exhibit a CAGR of 19.7% through 2027.
The statistic indicates that the security segment within the IT managed services industry is expected to experience a Compound Annual Growth Rate (CAGR) of 19.7% over the period spanning from the current year to 2027. This projection suggests a substantial and consistent growth trend in the demand for security-related services within the IT managed services sector. It implies that organizations are likely to increasingly prioritize and invest in security solutions and services to protect their data, systems, and networks. This high growth rate underscores the importance of security in the ever-evolving landscape of technology and highlights the potential opportunities for businesses operating within this segment to capitalize on the growing market demand for robust security offerings in the coming years.
66% of organizations that use managed services reported significant reductions in IT-related downtime.
The statistic ‘66% of organizations that use managed services reported significant reductions in IT-related downtime’ indicates that a substantial majority of organizations experience tangible benefits in terms of reduced IT-related downtime when utilizing managed services. This suggests that outsourcing IT functions to managed service providers can result in improved system reliability, proactive maintenance, and swift issue resolution. By leveraging the expertise and support provided by managed service providers, organizations can minimize disruptions in their IT infrastructure, leading to increased operational efficiency, productivity, and cost savings. This statistic underscores the importance and effectiveness of adopting managed services for addressing and mitigating IT downtime challenges within organizations.
Conclusion
Through analyzing the latest statistics in the IT Managed Services industry, it is evident that the sector is experiencing significant growth and shaping the future of technology management. These statistics provide valuable insights into the current trends and key factors driving the industry forward, making it an essential area for businesses to stay informed and competitive.
References
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