GITNUX MARKETDATA REPORT 2024

Managed Service Providers Industry Statistics

The Managed Service Providers industry is expected to continue growing steadily, with an increasing demand for services driven by the adoption of cloud computing and digital transformation initiatives among businesses.

Highlights: Managed Service Providers Industry Statistics

  • In 2020, the managed services market was worth $152.45 billion globally.
  • The global managed services market is expected to grow at a compound annual growth rate (CAGR) of 8.1% from 2021 to 2028.
  • In 2019, North America had the largest share of the managed services market, highlighting the region's early acceptance of the technology.
  • By 2023, small to medium-sized enterprises (SMEs) are projected to be the fastest-growing segment in the managed services industry.
  • In 2020, managed services for IT Infrastructure accounted for the largest market share of about 32%.
  • 64% of organizations use some form of managed IT services.
  • In 2019, the telecommunications vertical held the largest market share in the managed services sector.
  • Cloud-based managed services are expected to grow at the most considerable CAGR of 12.8% between 2019 and 2026.
  • 52% of managed services providers report that cybersecurity is the top concern for their clients
  • In 2020, Managed network services were a $52.7 billion market worldwide.
  • By 2026, the global managed security services market is expected to reach $58 billion.
  • There are more than 75,000 managed service providers (MSPs) partnering with IT vendors worldwide.

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The Latest Managed Service Providers Industry Statistics Explained

In 2020, the managed services market was worth $152.45 billion globally.

The statistic stating that the managed services market was worth $152.45 billion globally in 2020 reflects the total revenue generated by companies providing managed IT services, cloud services, cybersecurity services, and other related offerings on a global scale during that specific year. This figure highlights the substantial size and significance of the managed services sector, indicating a growing trend towards outsourcing IT functions to specialized service providers. The substantial market value further emphasizes the increasing reliance of businesses across various industries on managed services to efficiently manage their technology infrastructure and operations, driving continued growth and investment in this sector.

The global managed services market is expected to grow at a compound annual growth rate (CAGR) of 8.1% from 2021 to 2028.

This statistic indicates that the global managed services market is projected to expand steadily over the period of 2021 to 2028, with a compound annual growth rate (CAGR) of 8.1%. This growth rate represents the annual growth rate at which the market is expected to increase during this timeframe. A CAGR is a useful measure for evaluating the consistent annual growth of a market or business over multiple years, providing a compound annualized rate that smooths out fluctuations and gives a more accurate picture of the overall growth trend. In this case, the forecasted growth rate of 8.1% suggests a positive outlook for the global managed services sector in the coming years, highlighting opportunities for companies operating in this market to expand and thrive.

In 2019, North America had the largest share of the managed services market, highlighting the region’s early acceptance of the technology.

The statistic indicates that in 2019, North America held the largest portion of the managed services market, demonstrating the region’s leadership and adoption of this technology-driven service model. This dominance suggests that North American businesses have been quick to recognize the value and benefits of managed services, such as enhanced efficiency, cost savings, and access to specialized expertise. The region’s early acceptance of managed services reflects a proactive approach towards leveraging technology to improve operational effectiveness and maintain a competitive edge in an increasingly digital business landscape. This trend underscores North America’s position as a key player in the global managed services industry and serves as an indicator of the region’s innovation and readiness to embrace new technologies for business growth and success.

By 2023, small to medium-sized enterprises (SMEs) are projected to be the fastest-growing segment in the managed services industry.

This statistic suggests that small to medium-sized enterprises (SMEs) are expected to experience the highest rate of growth within the managed services industry by the year 2023. It indicates that SMEs are increasingly recognizing the value and benefits of outsourcing their IT and other operational functions to managed service providers. The projected growth in this segment underscores the trend of SMEs seeking to optimize their operations, enhance their technological capabilities, and drive efficiencies by leveraging external expertise and services. This growth projection highlights the potential for significant opportunities for managed service providers catering to the needs of SMEs in the coming years.

In 2020, managed services for IT Infrastructure accounted for the largest market share of about 32%.

In 2020, the statistic indicates that managed services for IT infrastructure held the largest market share, representing approximately 32% of the industry. This suggests that a significant portion of organizations opted to outsource the management of their IT infrastructure to third-party providers last year. Managed IT services can encompass a range of functions such as network monitoring, security management, data backup, and technical support, allowing businesses to offload the responsibilities and complexities of maintaining their IT systems internally. The fact that this sector held the largest market share highlights the increasing reliance and preference of companies to leverage external expertise and resources for their IT needs, potentially due to factors such as cost-efficiency, expertise, scalability, and focus on core business activities.

64% of organizations use some form of managed IT services.

The statistic that 64% of organizations use some form of managed IT services indicates a significant trend towards outsourcing IT functions and resources. Managed IT services typically involve a third-party provider handling various aspects of an organization’s IT infrastructure, such as network monitoring, security management, data backup, and technical support. This high adoption rate suggests that organizations are recognizing the benefits of leveraging specialized expertise and technology to enhance their operational efficiency, reduce costs, improve security, and ensure reliable IT performance. By outsourcing IT services, organizations can focus on their core business activities while having peace of mind that their IT needs are being effectively managed by experienced professionals.

In 2019, the telecommunications vertical held the largest market share in the managed services sector.

In 2019, the telecommunications vertical held the largest market share in the managed services sector. This statistic indicates that among various industry sectors utilizing managed services, the telecommunications industry had the highest proportion of the market. Managed services involve outsourcing the responsibility for maintaining and managing certain functions, such as IT infrastructure or network security, to a third-party service provider. The fact that the telecommunications vertical had the largest market share suggests that this industry significantly relied on managed services to support and enhance their operations. This could be attributed to the complex nature of telecommunications technology and the need for specialized expertise in managing and maintaining their networks and services effectively.

Cloud-based managed services are expected to grow at the most considerable CAGR of 12.8% between 2019 and 2026.

The statistic indicates that the market for cloud-based managed services is projected to experience a Compound Annual Growth Rate (CAGR) of 12.8% from 2019 to 2026. This growth rate suggests a significant increase in demand for cloud-based managed services over the forecast period. The CAGR of 12.8% implies that the market size is expected to more than double by 2026 compared to 2019. Factors driving this growth could include the increasing adoption of cloud computing technologies by businesses, the shift towards digital transformation, the need for scalable and flexible IT solutions, and the benefits of outsourcing IT management to external service providers. Overall, the statistic highlights the expanding market opportunities and the growing importance of cloud-based managed services in the IT industry.

52% of managed services providers report that cybersecurity is the top concern for their clients

This statistic of 52% indicates that a majority of managed services providers are noticing a significant shift in client priorities towards cybersecurity as the top concern. This data suggests that businesses are increasingly recognizing the importance of protecting their sensitive data and information from cyber threats. As cybersecurity threats continue to evolve and become more sophisticated, clients are turning to managed services providers to help them implement robust security measures and safeguards. This statistic underscores the growing importance of cybersecurity in the business landscape and emphasizes the need for organizations to prioritize and invest in cybersecurity solutions to mitigate potential risks and protect their digital assets.

In 2020, Managed network services were a $52.7 billion market worldwide.

In 2020, the global market for Managed network services amounted to $52.7 billion, indicating the total revenue generated from businesses providing managed network services such as network monitoring, security, maintenance, and optimization on behalf of clients. This statistic highlights the significant demand for outsourcing network management functions, as businesses seek to enhance their efficiency, security, and reliability of network operations. The size of the market reflects the scale at which organizations are willing to invest in external expertise to manage their complex network infrastructures, suggesting a continued reliance on managed services providers to support their IT needs.

By 2026, the global managed security services market is expected to reach $58 billion.

The statistic indicates that the global managed security services market is projected to grow significantly over the next several years, with an anticipated value of $58 billion by 2026. This suggests a growing demand for managed security services worldwide, as organizations seek to protect their digital assets from evolving cyber threats. The expected growth reflects the increasing awareness and importance of cybersecurity in the modern business landscape, as well as the need for specialized expertise and services to combat cyber risks effectively. This statistic highlights the continued evolution and expansion of the managed security services industry, driven by the ever-increasing threat landscape and the need for robust cybersecurity solutions.

There are more than 75,000 managed service providers (MSPs) partnering with IT vendors worldwide.

The statistic that there are more than 75,000 managed service providers (MSPs) partnering with IT vendors worldwide indicates a significant and widespread trend in the information technology industry. Managed service providers are organizations that offer various IT services and support to businesses, allowing them to outsource their technology needs. This high number of MSPs partnering with IT vendors showcases the growing demand for outsourcing IT services and the increasing reliance on external expertise to manage complex IT infrastructures and systems. The collaboration between MSPs and IT vendors highlights the ecosystem of partnerships that exist in the industry, where vendors provide technology solutions to service providers who, in turn, deliver these solutions to end clients. The sheer volume of MSPs involved in such partnerships underscores the competitive nature of the market and the need for businesses to leverage external IT expertise to stay competitive and innovative in today’s technology-driven world.

References

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How we write our statistic reports:

We have not conducted any studies ourselves. Our article provides a summary of all the statistics and studies available at the time of writing. We are solely presenting a summary, not expressing our own opinion. We have collected all statistics within our internal database. In some cases, we use Artificial Intelligence for formulating the statistics. The articles are updated regularly.

See our Editorial Process.

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