Imagine a single industry that's projected to swell from a staggering $275.6 billion to over $435 billion by 2030, fueled by a relentless wave of digital transformation and businesses outsourcing everything from cloud management to cybersecurity.
Key Takeaways
- The global managed services market size was valued at USD 275.6 billion in 2022 and is projected to grow to USD 435.2 billion by 2030, exhibiting a CAGR of 5.9% from 2023 to 2030.
- Managed services market in North America accounted for over 38% of the global revenue share in 2022.
- The cloud managed services segment dominated the market with a revenue share of 42.1% in 2022.
- 68% of enterprises have adopted managed services as of 2023.
- 45% of SMBs outsource IT management to MSPs in 2023 survey.
- Cloud managed services adoption rate reached 72% among large enterprises in 2023.
- Average annual revenue per MSP client is $145,000 in 2023.
- Managed services providers average gross margin of 52% in 2023.
- Top 10 MSPs generated $25.6 billion in revenue in 2022.
- North America holds 39% of global managed services revenue.
- Asia Pacific managed services market share 25% in 2023, fastest growing at 9.1% CAGR.
- Europe managed services revenue $110B in 2022.
- 75% of managed services trends driven by AI integration by 2025.
- Edge computing managed services to grow at 22% CAGR.
- Zero trust managed security adopted by 48% of enterprises in 2023.
The global managed services market is large, growing rapidly, and dominated by cloud offerings.
Adoption and Usage
- 68% of enterprises have adopted managed services as of 2023.
- 45% of SMBs outsource IT management to MSPs in 2023 survey.
- Cloud managed services adoption rate reached 72% among large enterprises in 2023.
- 55% of organizations increased managed security services usage post-2022 cyber incidents.
- Hybrid cloud managed services adopted by 61% of IT leaders in 2023.
- 78% of companies plan to expand managed services partnerships in next 2 years.
- Adoption of managed detection and response (MDR) services up 40% YoY in 2023.
- 52% of European firms use managed services for compliance.
- Global adoption of managed mobility services at 35% in enterprises.
- 67% of healthcare providers rely on managed IT services.
- Rise in managed services adoption among retailers to 49% in 2023.
- 73% of Fortune 500 companies use multi-vendor managed services.
- Managed services penetration in APAC manufacturing at 41%.
- 59% increase in AI-driven managed services adoption since 2021.
- 64% of financial institutions adopted managed compliance services.
- SMB managed services adoption forecast to hit 60% by 2025.
- 81% of enterprises report higher satisfaction with MSPs over in-house IT.
- Managed services for DevOps adopted by 38% of software firms.
- 70% of telcos shifted to managed network services.
- Energy sector adoption of managed services at 44% globally.
Adoption and Usage Interpretation
The numbers clearly show that while businesses once saw managed services as a handy scalpel for specific tasks, they are now wielding them as a strategic Swiss Army knife to stitch together everything from their cloud ambitions and security gaps to their compliance headaches, all while realizing their in-house teams were trying to fix a jet engine with a wrench.
Emerging Trends and Technologies
- 75% of managed services trends driven by AI integration by 2025.
- Edge computing managed services to grow at 22% CAGR.
- Zero trust managed security adopted by 48% of enterprises in 2023.
- Multicloud management services demand up 35%.
- Sustainability-focused managed services rising 28%.
- 5G managed network services projected to $50B by 2027.
- Ransomware defense via managed services up 60% adoption.
- AIOps in managed services used by 42% of large firms.
- Quantum-safe managed security emerging, 15% pilot programs.
- Managed services for IoT devices to hit 1B connections managed by 2025.
- Hyperautomation trends boost managed RPA services 40%.
- Blockchain managed services niche growing at 55% CAGR.
- Digital twins in managed manufacturing services up 30%.
- Managed DevSecOps platforms adopted by 55% devs.
- Green data center managed services demand surges 25%.
- Predictive analytics in MSPs used by 67% for maintenance.
- Managed XaaS models to dominate 80% by 2026.
- VR/AR managed services for training growing 45%.
- Autonomous operations in managed IT at 20% implementation.
- Federated learning for privacy in managed AI services emerging.
- Cybersecurity mesh architecture managed by 35% MSPs.
- Managed services for metaverse infrastructure pilots at 12%.
- Composable apps trend in managed development 28% growth.
- Managed carbon tracking services for ESG up 50%.
- Neuromorphic computing managed pilots begin in 2023.
Emerging Trends and Technologies Interpretation
The tech world is getting both smarter and more paranoid, with everyone frantically automating, securing, and greening their digital kingdoms before the next AI or hacker has a new idea.
Market Size and Growth
- The global managed services market size was valued at USD 275.6 billion in 2022 and is projected to grow to USD 435.2 billion by 2030, exhibiting a CAGR of 5.9% from 2023 to 2030.
- Managed services market in North America accounted for over 38% of the global revenue share in 2022.
- The cloud managed services segment dominated the market with a revenue share of 42.1% in 2022.
- IT infrastructure managed services segment is expected to register the fastest CAGR of 6.5% from 2023 to 2030.
- The BFSI sector held the largest market share of 18.4% in managed services in 2022.
- Global managed services market expected to reach $511.05 billion by 2028, growing at a CAGR of 7.9% from 2021.
- Security services segment in managed services projected to grow at highest CAGR of 8.9% during forecast period.
- SMBs segment anticipated to grow at higher CAGR of 8.6% in managed services market.
- Asia Pacific managed services market to grow at CAGR of 9.3% from 2021 to 2028.
- Managed network services held largest market size of USD 92.3 billion in 2020.
- Worldwide managed services market size reached $357.70 billion in 2023.
- Managed services revenue in Europe forecasted to hit $120 billion by 2025.
- U.S. managed services market valued at $112.4 billion in 2023.
- CAGR of managed services in healthcare sector at 7.2% through 2027.
- Global managed services market to expand at 8% CAGR from 2023-2030.
- Managed security services market size USD 30.6 billion in 2022, to USD 65.1 billion by 2027 at CAGR 16.4%.
- Managed services market in Latin America expected to grow from $15.2B in 2023 to $28.7B by 2030.
- Telecom managed services segment to witness CAGR of 6.8% globally.
- Managed services for SMEs projected to reach $180B by 2026.
- Overall IT managed services market CAGR 7.5% from 2022-2028.
- Global managed services market size was valued at USD 275.6 billion in 2022 and is projected to grow to USD 435.2 billion by 2030, exhibiting a CAGR of 5.9% from 2023 to 2030.
- Managed services market in North America accounted for over 38% of the global revenue share in 2022 due to high adoption of cloud computing.
- The cloud managed services segment dominated the market with a revenue share of 42.1% in 2022 driven by scalability benefits.
- IT infrastructure managed services segment is expected to register the fastest CAGR of 6.5% from 2023 to 2030 owing to digital transformation.
- The BFSI sector held the largest market share of 18.4% in managed services in 2022 because of stringent regulatory needs.
Market Size and Growth Interpretation
Despite North America's current dominance, the explosive, security-driven growth in every other sector and region suggests the global managed services market is essentially a loud, unanimous corporate vote to stop trying to fix our own IT.
Regional Distribution
- North America holds 39% of global managed services revenue.
- Asia Pacific managed services market share 25% in 2023, fastest growing at 9.1% CAGR.
- Europe managed services revenue $110B in 2022.
- U.S. dominates with 35% global share in managed services.
- China managed services market to reach $85B by 2027.
- India MSP market growing at 15% CAGR, valued at $12B in 2023.
- UK managed services penetration highest in Europe at 62%.
- Latin America managed services market $18.5B in 2023.
- Germany holds 28% of European managed services revenue.
- Japan managed services market size $35B, CAGR 6.2%.
- MEA region managed services growth at 10.5% CAGR to 2028.
- Brazil MSP market leader in LatAm with $6.2B revenue.
- Australia managed services at AUD 15B in 2023.
- France managed services adoption 55%, revenue €20B.
- Singapore hub for APAC managed services, $8B market.
- Canada managed services market $25B CAD.
- South Africa growing at 12% CAGR in managed services.
- Mexico managed services $4.5B, up 11% YoY.
- Netherlands 70% enterprise adoption rate.
- Middle East oil & gas drives 22% regional growth.
Regional Distribution Interpretation
While North America still rules the managed services kingdom, the explosive growth and massive potential in Asia Pacific and other regions are making it an increasingly crowded and competitive global throne.
Revenue and Financials
- Average annual revenue per MSP client is $145,000 in 2023.
- Managed services providers average gross margin of 52% in 2023.
- Top 10 MSPs generated $25.6 billion in revenue in 2022.
- Recurring revenue accounts for 85% of MSP income streams.
- Managed security services average contract value $250,000 annually.
- MSP market ARPU growth of 12% YoY in North America.
- Global MSP industry revenue projected at $400B by 2025.
- Cost savings from managed services average 30-40% for clients.
- Managed services EBITDA margins for leaders at 22%.
- Annual spend on managed IT services per enterprise $1.2M.
- MSSP revenue growth at 15.2% CAGR to 2028.
- SMB MSP average revenue $2.5M per firm in 2023.
- Managed cloud services generate 45% of total MSP revenue.
- Pricing model shift: 65% MSPs use per-user pricing at $120/user/month.
- Top MSPs report 18% net profit margins.
- Managed services ROI averages 5.6x for adopters.
- Enterprise managed services spend up 14% to $180B in 2023.
- Average MSP churn rate 8.2% leading to revenue stability.
- Security managed services revenue $42B in 2023.
Revenue and Financials Interpretation
In a world where every digital headache comes with a monthly fee, the managed services industry thrives by transforming client anxiety into a recurring revenue stream with margins so plump they’d make a venture capitalist blush.
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