Imagine an industry so powerful that it's rocketing from a $340 billion behemoth today to over a trillion dollars in the next decade, fueled by a remarkable shift where nearly three-quarters of enterprises now outsource their IT management to experts.
Key Takeaways
- The global managed IT services market size was valued at USD 340.98 billion in 2023 and is projected to reach USD 647.19 billion by 2032, growing at a CAGR of 7.3% during the forecast period from 2024 to 2032.
- The managed services market is expected to grow from $293.40 billion in 2023 to $539.04 billion by 2030 at a CAGR of 9.1%.
- North America dominated the managed services market with a share of over 37.2% in 2023.
- In 2023, 68% of enterprises increased spending on managed IT services.
- Average annual revenue per managed service provider (MSP) was $5.2 million in 2023.
- Managed IT services generated 42% of total IT service provider revenue in 2023.
- 72% of enterprises outsource IT management to MSPs as of 2023.
- SMB adoption of managed IT services reached 65% in 2023, up from 55% in 2022.
- 91% of companies plan to increase use of managed services in next 2 years per 2023 survey.
- AI and automation are top trends, with 45% of MSPs integrating AI tools in services by 2023.
- Edge computing managed services expected to see 25% growth in adoption by 2025.
- Sustainability in managed IT services became a focus, with 60% of providers offering green IT solutions in 2023.
- North America holds 37% of global managed IT services market share in 2023.
- Asia Pacific managed services market expected to grow at 8.9% CAGR from 2024-2030.
- U.S. managed IT services market size was $120 billion in 2023.
The global managed IT services market is growing rapidly, led by cloud offerings and North American dominance.
Adoption Rates
- 72% of enterprises outsource IT management to MSPs as of 2023.
- SMB adoption of managed IT services reached 65% in 2023, up from 55% in 2022.
- 91% of companies plan to increase use of managed services in next 2 years per 2023 survey.
- 55% of mid-market firms fully rely on MSPs for cybersecurity in 2023.
- Adoption of cloud managed services hit 78% among enterprises in 2023.
- 48% of SMBs adopted managed print services by end of 2023.
- 67% of IT leaders report using at least one MSP in 2023.
- Network managed services adoption grew to 62% in telecom sector 2023.
- 74% of healthcare providers use managed IT services for compliance.
- Multi-vendor MSP adoption stands at 41% in enterprises 2023.
- 83% of organizations increased MSP partnerships post-2023.
- SMB managed backup services adoption at 70% in 2023.
- 59% of retail businesses adopted managed IT in 2023.
- Enterprise adoption of managed desktop services reached 52% in 2023.
- 69% of BFSI firms use managed security services as of 2023.
- Hybrid cloud managed services adopted by 66% of mid-sized firms 2023.
- 77% of IT decision-makers prioritize MSPs for scalability in 2023 survey.
- Managed services penetration in APAC SMBs hit 58% in 2023.
- 64% of manufacturing companies outsource IT to MSPs in 2023.
- Adoption rate of AI-driven managed services at 32% in 2023.
- 81% of enterprises renewed MSP contracts in 2023.
- Managed VoIP services adopted by 45% of SMBs in 2023.
- 76% of government agencies use managed IT services for 2023.
- Cloud migration managed services used by 71% of firms in 2023.
- 54% of energy sector adopted managed IT for IoT in 2023.
- 88% of surveyed MSP clients reported satisfaction leading to higher adoption.
- Zero-trust managed security adopted by 39% of enterprises in 2023.
Adoption Rates Interpretation
The statistics collectively paint a picture of an industry no longer merely being adopted, but confidently depended upon, as the overwhelming majority of businesses have pragmatically decided that managing their own IT is a fool's errand.
Key Trends
- AI and automation are top trends, with 45% of MSPs integrating AI tools in services by 2023.
- Edge computing managed services expected to see 25% growth in adoption by 2025.
- Sustainability in managed IT services became a focus, with 60% of providers offering green IT solutions in 2023.
- Shift to as-a-service models, with 70% of managed services delivered via subscription in 2023.
- Cybersecurity managed services demand surged 22% due to rising threats in 2023.
- Multi-cloud management services grew 18% as 91% of firms adopt multi-cloud strategies.
- Integration of 5G in managed network services emerged as key trend, boosting IoT management.
- Remote work drove 35% increase in managed endpoint services in 2023.
- Predictive analytics in MSPs rose to 50% usage for proactive maintenance in 2023.
- Blockchain for secure managed services adopted by 15% of providers in 2023.
- DevOps managed services market expanded rapidly with agile adoption.
- Hyperautomation trend saw 40% MSPs incorporating RPA and AI.
- Managed detection and response (MDR) services grew 30% in 2023.
- Low-code/no-code platforms integrated into 25% of managed app dev services.
- Quantum-safe cryptography emerging in managed security trends for 2024.
- 55% of MSPs focused on customer experience optimization via AI in 2023.
- Managed services for digital transformation accounted for 28% growth.
- Rise of managed SaaS optimization services, used by 62% enterprises.
- IoT managed services surged 27% with edge processing demands.
- Zero-touch provisioning became standard in 35% network managed services.
- Generative AI integration in MSP helpdesks reduced tickets by 40%.
- Managed services for ESG compliance grew 19% in Europe 2023.
- Container orchestration managed services like Kubernetes at 48% adoption.
- Shift to outcome-based pricing in 22% of managed service contracts.
- Managed VR/AR services emerging for training, 12% provider investment.
Key Trends Interpretation
Managed IT providers are busily assembling a tech toolkit for the modern age, rapidly adding AI to automate tasks and secure the cloud's edge, all while trying to be green, bill predictably, and fix problems before you even notice them—truly, the Swiss Army knife of business is now a subscription service.
Market Size & Growth
- The global managed IT services market size was valued at USD 340.98 billion in 2023 and is projected to reach USD 647.19 billion by 2032, growing at a CAGR of 7.3% during the forecast period from 2024 to 2032.
- The managed services market is expected to grow from $293.40 billion in 2023 to $539.04 billion by 2030 at a CAGR of 9.1%.
- North America dominated the managed services market with a share of over 37.2% in 2023.
- The cloud managed services segment accounted for over 45% of the managed IT services market revenue in 2023.
- Managed IT services market in Asia Pacific is projected to register the fastest CAGR of 8.5% from 2024 to 2030.
- The global managed services market size was estimated at USD 271.2 billion in 2022 and expected to grow at a CAGR of 7.8% from 2023 to 2030.
- IT infrastructure segment led the managed services market with a share of 35.4% in 2023.
- The managed services market is anticipated to grow by USD 200 billion from 2024-2028, accelerating at a CAGR of 7.4%.
- Europe managed services market is projected to grow at a CAGR of 6.8% during 2024-2032.
- SMBs segment in managed IT services is expected to grow at the highest CAGR of 8.2% from 2023 to 2030.
- The managed security services market size is projected to grow from USD 30.6 billion in 2023 to USD 60.3 billion by 2028 at a CAGR of 14.5%.
- Global managed IT services spending reached $389 billion in 2022.
- Managed services market in Latin America expected to grow at CAGR of 9.5% from 2024-2030.
- The network managed services segment held a market share of 22% in 2023.
- Worldwide managed services market projected to reach $500 billion by 2027.
- Managed IT services in healthcare sector growing at 9.8% CAGR through 2030.
- The overall managed services market revenue grew 12% YoY in 2023.
- BFSI vertical accounted for 25.3% share in managed services market in 2023.
- Managed services market in MEA region to grow at 10.2% CAGR from 2024-2032.
- Desktop management services segment valued at $15 billion in 2023.
- The managed IT services market is forecasted to expand at a CAGR of 11.2% from 2023 to 2033, reaching USD 1,162.8 billion.
- Public cloud services in managed IT expected to grow at 15% CAGR to 2028.
- Managed print services market size was $45.67 billion in 2023.
- Telecom managed services market to reach $120 billion by 2030 at 7% CAGR.
- Managed services adoption drove 18% increase in IT outsourcing market in 2023.
- The managed IT services market in India projected to grow at 12.5% CAGR to 2030.
- Hybrid cloud managed services segment to grow fastest at 9.7% CAGR.
- Global managed network services market valued at $85.2 billion in 2022.
- Managed services market for retail sector expected to hit $50 billion by 2028.
- The managed services industry saw a 10.5% growth rate in Q4 2023.
Market Size & Growth Interpretation
The global managed IT services market is essentially a runaway train fueled by the universal dread of handling complex technology in-house, with North America firmly in the driver's seat, Asia Pacific rapidly stoking the engine, and everyone else desperately trying to buy a ticket before it leaves the station.
Regional Statistics
- North America holds 37% of global managed IT services market share in 2023.
- Asia Pacific managed services market expected to grow at 8.9% CAGR from 2024-2030.
- U.S. managed IT services market size was $120 billion in 2023.
- Europe managed services market valued at $95 billion in 2023.
- China managed IT services market projected to reach $80 billion by 2030.
- India saw 15% YoY growth in managed services adoption in 2023.
- UK MSP market revenue hit $25 billion in 2023.
- Latin America managed services CAGR forecasted at 10.1% to 2030.
- Germany leads Europe with 28% regional market share in managed IT.
- Japan managed services market growing at 7.5% CAGR through 2028.
- Middle East managed IT services valued at $15 billion in 2023.
- Australia SMB managed services penetration at 62% in 2023.
- Brazil managed services market expected to grow 11% annually to 2030.
- Canada IT outsourcing to MSPs reached 70% of enterprises in 2023.
- France managed security services market at $8 billion in 2023.
- Singapore hub for APAC managed services, 20% regional growth.
- South Africa managed IT market CAGR 9.8% from 2024-2030.
- Mexico telecom managed services dominant at 40% share.
- Nordic countries adoption rate 82% for cloud managed services.
- UAE digital transformation drove 25% MSP growth in 2023.
- Russia managed services resilient with 6% growth despite challenges.
- Indonesia SMB managed IT spending up 18% in 2023.
- Spain healthcare managed services at €4 billion in 2023.
- Saudi Arabia Vision 2030 boosted managed IT to $10 billion.
- Netherlands leads in managed sustainability services in EU.
Regional Statistics Interpretation
While North America currently wears the managed IT services crown with a 37% global share, the relentless and varied growth across every other region—from Asia-Pacific's steady climb to Latin America's sprint and India's explosive adoption—makes it clear the throne is about to become a very crowded and competitive piece of furniture.
Revenue & Financials
- In 2023, 68% of enterprises increased spending on managed IT services.
- Average annual revenue per managed service provider (MSP) was $5.2 million in 2023.
- Managed IT services generated 42% of total IT service provider revenue in 2023.
- The average contract value for managed IT services rose to $250,000 in 2023, up 15% YoY.
- MSPs reported an average profit margin of 18.7% in 2023.
- Recurring revenue accounted for 82% of MSP income in 2023.
- Global managed services revenue reached $395 billion in 2023, up 11% from 2022.
- SMBs spent an average of $45,000 annually on managed IT services in 2023.
- Enterprise managed IT spending averaged $1.2 million per organization in 2023.
- Managed security services revenue grew 20% YoY to $35 billion in 2023.
- Cloud managed services contributed 55% to total managed IT revenue in 2023.
- The average MSP billing rate increased to $150 per hour in 2023.
- 75% of MSP revenue came from managed services contracts longer than 3 years in 2023.
- IT infrastructure managed services revenue was $120 billion in 2023.
- Profit margins for managed print services averaged 22% in 2023.
- Telecom MSPs saw revenue growth of 14% in 2023, totaling $90 billion.
- Average churn rate for managed IT services clients was 8.2% in 2023.
- Managed services ARPU for enterprises reached $75,000 in 2023.
- 62% of IT budgets allocated to managed services in 2023 for mid-market firms.
- Revenue from managed network services hit $92 billion globally in 2023.
- MSPs with RMM tools saw 25% higher revenue per client at $60,000 average.
- Healthcare managed IT services revenue grew to $25 billion in 2023.
- Average cost savings from managed IT services was 28% of IT spend in 2023.
- Managed services pricing models shifted to 65% subscription-based in 2023.
- Retail sector managed IT revenue totaled $18 billion in 2023.
- Global MSP market revenue forecast to hit $600 billion by 2028.
- 85% of organizations using managed IT services reported ROI within 12 months in 2023.
Revenue & Financials Interpretation
The fact that businesses are pouring money into managed IT with such fervor that the market's nearly a half-trillion-dollar behemoth, all while MSPs quietly enjoy fat, recurring profit margins, proves that in the chaos of modern tech, paying for a steady hand is now the most sensible form of panic.
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