Managed Services Market
Managed Services Market by Service Type (Managed IT Infrastructure & Data Center Service, Managed Network Service, Managed Security Service, Managed Communication & Collaboration Service, Managed Mobility, Managed Information) - Global Forecast to 2031
OVERVIEW
Source: Secondary Research, Interviews with Experts, MarketsandMarkets Analysis
The managed services market is projected to reach USD 705.22 billion by 2031, registering a compound annual growth rate (CAGR) of 8.9%. Market growth is driven by the increasing complexity of hybrid IT environments, rising cybersecurity threats, growing enterprise cloud adoption, and the need for scalable, cost-efficient IT operations. Managed services enable organizations to improve infrastructure availability, optimize network performance, strengthen cybersecurity resilience, and reduce operational burden through outsourced IT management. Enterprises are increasingly adopting managed infrastructure, managed security, managed network, and managed communication services to support digital transformation initiatives and maintain business continuity across distributed operating environments.
Market Size and Forecast:
- Market Size Value in 2025: USD 412.72 Billion
- Market Size Value in 2026: USD 460.59 Billion
- Revenue Forecast in 2031: USD 705.22 Billion
- Growth Rate: CAGR of 8.9 % from 2026 to 2031
- Data available from 2020 to 2031
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US Managed Services Market
- Market size USD 128.07 Billion 2025
- Market forecast USD 162.52 billion in 2030
- Market Growing at a CAGR of 4.9%
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Latin America Managed Services Market
- Market size USD 24.64 billion in 2025
- Market forecast USD 33.94 billion in 2030
- Market Growing at a CAGR of 6.6%
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Europ Managed Services Market
- Market size USD 95.60 billion in 2025
- Market forecast USD 123.06 billion in 2030
- Market Growing at a CAGR of 5.2%
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Asia Pacific Managed Services Market
- Market size USD 97.66 billion in 2025
- Market forecast USD 137.38 billion in 2030
- Market Growing at a CAGR of 7.1%
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Saudi Arabia Managed Services Market
- Market size USD 5.12 billion in 2025
- Market forecast USD 7.83 billion in 2030
- Market Growing at a CAGR of 8.2%
KEY TAKEAWAYS
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BY REGIONThe North American managed services market accounted for the largest market share of 39.1% in 2025.
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BY SERVICE TYPEBy service type, the managed IT infrastructure and data center service segment accounted for the largest market share in 2026.
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BY DEPLOYMENT TYPEBy deployment type, the on-premises segment is expected to dominate the market in terms of market share in 2026.
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BY VERTICALBy vertical, the BFSI segment will grow at the highest CAGR of 9.9% during the forecast period.
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COMPETITIVE LANDSCAPE - KEY PLAYERSSeveral companies are emerging as key players in the managed services market, including IBM, Accenture, and Microsoft.
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COMPETITIVE LANDSCAPE - STARTUPS/SMEsDataprise, Atera, and Magna5 are innovators. These companies are improving managed services workflows to address today's organizational needs.
Advanced capabilities such as AI-driven monitoring, predictive analytics, automated incident response, and cloud orchestration are further enhancing service efficiency and operational visibility. Rising demand for remote workforce support, multi-cloud management, regulatory compliance, and continuous infrastructure monitoring is accelerating managed service adoption across industries. In addition, increasing investments in cloud-based managed platforms, security operations centers (SOCs), and automation-led service delivery models, particularly across North America and the Asia Pacific, are contributing significantly to the growth of the managed services market.
TRENDS & DISRUPTIONS IMPACTING CUSTOMERS' CUSTOMERS
The managed services market is undergoing a significant transformation as enterprises shift from traditional infrastructure-focused outsourcing toward cloud-native, security-driven, and AI-enabled managed service models. Earlier revenue generation was primarily driven by managed infrastructure services, managed network services, managed data center services, and managed workplace services. However, future revenue growth is increasingly expected to come from advanced offerings such as managed cloud services, managed security services, managed detection & response, managed identity & access management, and managed SD-WAN and SASE services. This transition is being accelerated by new use cases, rapid cloud adoption, AI-driven operations, evolving cybersecurity requirements, and an increase in ecosystem partnerships and acquisitions across the managed services industry.
Source: Secondary Research, Interviews with Experts, MarketsandMarkets Analysis
MARKET DYNAMICS
Level
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AI-Ops-driven automation enabling outcome-based managed services
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Hyperscaler co-sell ecosystems accelerating cloud outsourcing
Level
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Shortage of skilled workforce in cloud, cybersecurity, and AI operations
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Limited visibility and control concerns among enterprises
Level
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AI infrastructure and GenAI operations services expansion
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FinOps and cloud cost optimization services expansion
Level
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Balancing cost efficiency with SLA performance expectations
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Multi-cloud integration and interoperability complexity
Source: Secondary Research, Interviews with Experts, MarketsandMarkets Analysis
Driver: AI-Ops-driven automation enabling outcome-based managed services
AIOps-driven automation is expected to drive the managed services market as enterprises shift from reactive IT support to outcome-based service models focused on uptime, faster resolution, cost efficiency, and service reliability. This factor refers to the use of artificial intelligence, machine learning, analytics, and automation in IT operations platforms to detect anomalies, correlate events, predict failures, automate remediation, and optimize infrastructure performance in real time. As enterprises expand across hybrid and multi-cloud environments, IT ecosystems become highly distributed and dynamic, making traditional monitoring approaches inefficient and resource-intensive.
Restraint: Shortage of skilled workforce in cloud, cybersecurity, and AI operations
A shortage of skilled workers in cloud, cybersecurity, and AI operations is expected to restrain the managed services market, as service providers face challenges scaling advanced service delivery. This factor refers to the limited availability of professionals with expertise in cloud architecture, zero-trust security, AIOps, and site reliability engineering. As enterprises adopt hybrid cloud, AI-driven operations, and advanced security frameworks, demand for specialized talent is increasing faster than supply. Service providers rely on skilled resources to deliver high-value services such as managed detection and response, cloud optimization, AI infrastructure management, and advanced threat monitoring.
Opportunity: AI infrastructure and GenAI operations services expansion
AI infrastructure and GenAI operations services are expected to create significant opportunities in the managed services market as enterprises accelerate adoption of generative AI, large language models, and data-intensive workloads. This factor refers to the growing need for specialized infrastructure, including GPU-based compute, high-performance storage, and scalable cloud environments required to train, fine-tune, and deploy AI models. Managing these environments involves complex tasks such as workload orchestration, model monitoring, data pipeline management, and cost optimization, which many enterprises are not equipped to handle internally. Vendors such as NVIDIA and Amazon Web Services are enabling AI ecosystems through GPU-as-a-service, AI platforms, and integrated development environments, allowing service providers to deliver managed AI infrastructure and operations services.
Challenge: Balancing cost efficiency with SLA performance expectations
Balancing cost efficiency with SLA performance expectations is expected to challenge the managed services market as enterprises demand high service reliability while maintaining strict cost control. This factor refers to the increasing pressure on service providers to deliver continuous monitoring, high uptime, rapid incident response, and advanced capabilities such as AIOps, security operations, and real-time observability, while keeping pricing competitive. As managed services become critical to enterprise IT operations, expectations around performance, availability, and response time continue to rise.
MANAGED SERVICES MARKET: COMMERCIAL USE CASES ACROSS INDUSTRIES
| COMPANY | USE CASE DESCRIPTION | BENEFITS |
|---|---|---|
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DXC helps O-I Glass create a modern technology experience for employees | Enhanced system reliability and reduced downtime for a more seamless IT experience, employees can easily access workplace services and IT support, improving overall operational efficiency. Ongoing technology refresh and security services led to a 35% reduction in IT costs |
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WaFd migrated 80% of workloads to the cloud in one year | WaFd migrated 80% of its workloads within one year, significantly speeding up the cloud transition process. AWS Managed Services handled routine operational tasks, freeing up WaFd's internal teams to focus on innovation and business growth. With AWS managing backups and infrastructure, WaFd’s teams could dedicate more time to building new customer applications |
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DNB’s stunning success with intent-based operations | Achieved greater than 99.8% network uptime through AI-based automation and predictive analytics, a 500% reduction in alarm counts within six months, enhancing network stability and efficiency, and customer complaint resolution time improved by 90% due to automated corrective actions |
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Empowering SMBs with affordable MSP solutions | Ingenuity to solve complex client challenges when moving to the cloud, capability to establish fiber connectivity within 30 days or less, cost efficiencies that enable the creation of additional service bundles |
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Zachry Corporation boosts IT agility | Freed the IT team from routine tasks to concentrate on strategic initiatives, reduced expenses by avoiding data center maintenance costs, gained access to specialized SAP and VMware expertise |
Logos and trademarks shown above are the property of their respective owners. Their use here is for informational and illustrative purposes only.
MARKET ECOSYSTEM
The ecosystem of the managed services market includes SIs, OEMs, network connectivity providers, MSPs, and end users. The system integrators design, build, synthesize, and implement applications tailored to customer/user requirements. SIs test and authenticate different solutions to determine suitability before integration. SI vendors have a strong client base and provide their solutions through direct channels and partner networks. OEMs include companies that provide servers and networking & storage capabilities to managed service providers and SIs. They provide different hardware components necessary for developing applications used by SIs.
Logos and trademarks shown above are the property of their respective owners. Their use here is for informational and illustrative purposes only.
MARKET SEGMENTS
Source: Secondary Research, Interviews with Experts, MarketsandMarkets Analysis
Managed Services Market, By Service Type
The managed services market includes managed security services, managed network services, managed IT infrastructure & data center services, managed communications & collaboration services, managed mobility services, and managed information services. Demand is driven by rising cyber threats, hybrid and multi-cloud adoption, the expansion of remote work, regulatory compliance, and increasing IT infrastructure complexity.
Managed Services Market, By Deployment Type
Based on deployment mode, the managed services market is segmented into on-premise and cloud. On-premises managed services support enterprises that require greater control over infrastructure, data security, regulatory compliance, and mission-critical workloads in private IT environments. Cloud-based managed services support scalable infrastructure management, remote monitoring, cloud security, backup, disaster recovery, and application operations across hybrid and multi-cloud environments. Demand is driven by growing cloud migration, rising cybersecurity risks, increasing infrastructure complexity, and the need for predictable IT operating costs.
Managed Services Market, By Vertical
The managed services market spans verticals including BFSI, healthcare and life sciences, telecommunications, retail and consumer goods, government and public sector, energy and utilities, manufacturing, media and entertainment, technology, and other segments such as real estate and water treatment. Each vertical leverages managed service providers to reduce IT complexity, strengthen cybersecurity posture, accelerate cloud adoption, and meet sector-specific regulatory obligations, enabling organizations to redirect engineering capacity toward innovation and core operational outcomes.
REGION
Asia Pacific to be the fastest-growing region in the global managed services market during the forecast period.
Asia Pacific is one of the fastest-growing regions for managed services globally, driven by rapid enterprise digitalization, expanding cloud infrastructure investment, and a widening IT talent gap, compelling organizations across the region to outsource critical IT management and security functions to specialized providers. The region's diversity in digital maturity, regulatory environments, and industry structures creates a heterogeneous demand landscape, where developed markets such as Japan, South Korea, and Australia are transitioning toward advanced, AI-driven managed services models, while high-growth markets such as India, China, and Southeast Asia are building foundational managed services adoption on the back of accelerating cloud migration and infrastructure modernization programs.
MANAGED SERVICES MARKET: COMPANY EVALUATION MATRIX
IBM (Key Player) offers managed services across hybrid cloud, infrastructure, application management, security, network operations, and enterprise IT modernization. Its managed services portfolio focuses on operating complex enterprise environments through automation, AIOps, observability, cloud migration support, resiliency, and security operations. IBM is well-positioned to serve large enterprises that require hybrid cloud governance, mainframe modernization, workload management, compliance support, and industry-specific managed operations.
Source: Secondary Research, Interviews with Experts, MarketsandMarkets Analysis
KEY MARKET PLAYERS
- IBM (US)
- Accenture (Ireland)
- Microsoft (US)
- Cisco (US)
- Fujitsu (Japan)
- Google (US)
- TCS (India)
- Infosys (India)
- Capgemini (France)
- Cognizant (US)
MARKET SCOPE
| REPORT METRIC | DETAILS |
|---|---|
| Market Size in 2025 (Value) | USD 412.72 Billion |
| Market Size in 2026 (Value) | USD 460.59 Billion |
| Market Forecast in 2031 (Value) | USD 705.22 Billion |
| Growth Rate | CAGR of 8.9% during 2026-2031 |
| Years Considered | 2020-2031 |
| Base Year | 2025 |
| Forecast Period | 2026-2031 |
| Units Considered | Value (USD Million/Billion) |
| Report Coverage | Revenue forecast, company ranking, competitive landscape, growth factors, and trends |
| Segments Covered |
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| Regions Covered | North America, Europe, Asia Pacific, Middle East & Africa, Latin America |
WHAT IS IN IT FOR YOU: MANAGED SERVICES MARKET REPORT CONTENT GUIDE
DELIVERED CUSTOMIZATIONS
We have successfully delivered the following deep-dive customizations:
| CLIENT REQUEST | CUSTOMIZATION DELIVERED | VALUE ADDS |
|---|---|---|
| Leading Healthcare Service Provider (US) |
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Expands visibility of alternative providers, enabling clients to benchmark against niche competitors and identify disruptive partners |
| Telecom Operator Giant (Asia Pacific) |
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Accelerates rollout of advanced connectivity while lowering operational costs |
| Leading Manufacturing Firm (US) | Regional MSP Profiling: Identification of local and niche managed service providers with OT/IT integration capabilities | Provides cost-effective options with domain expertise, supporting digital transformation initiatives |
RECENT DEVELOPMENTS
- May 2026 : Cognizant launched Secure AI Services to help enterprises securely govern, monitor and scale agentic AI systems across enterprise environments. The offering combines AI lifecycle security, runtime monitoring, governance, compliance management and threat detection capabilities, strengthening Cognizant’s AI-first managed services portfolio for enterprise AI operations and cybersecurity transformation.
- April 2026 : IBM partnered with Arm to develop next-generation enterprise computing platforms optimized for AI and hybrid cloud workloads. This strengthens IBM’s managed IT infrastructure and data center services by enabling enterprises to deploy and manage high-performance, Arm-based workloads across hybrid environments, improving scalability, efficiency, and support for data-intensive applications.
- April 2026 : Infosys partnered with Harness to integrate Harness’s AI Software Delivery Platform into the Infosys Topaz Fabric. This managed service enables US engineering teams to automate software testing and delivery, reducing cloud costs by up to 60% and accelerating software release cycles.
Table of Contents
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Methodology
Secondary research was conducted to collect information useful for this technical, market-oriented, and commercial study of the managed services market. The next step involved validating these findings, assumptions, and sizing with industry experts across the value chain using primary research. Different approaches, including top-down and bottom-up methods, were employed to estimate the total market size. After that, the market breakup and data triangulation procedures were used to estimate the market size of the segments and subsegments of the managed services market.
Secondary Research
During the secondary research process, various secondary sources were consulted to identify and collect information relevant to the study. The secondary sources included annual reports, press releases, investor presentations of mobile forensics vendors, forums, certified publications, and whitepapers. The secondary research was mainly used to obtain key information about the industry’s supply chain, the total pool of key players, market classification and segmentation according to industry trends to the bottom-most level, regional markets, and key developments from both market- and technology-oriented perspectives, all of which were further validated by primary sources.
Primary Research
In the primary research process, various primary sources from both the supply and demand sides were interviewed to obtain qualitative and quantitative information for this report. The primary sources from the supply side included various industry experts, including chief executive officers (CEOs), vice presidents (VPs), marketing directors, technology and innovation directors, and related key executives from various key companies and organizations operating in the managed services market.
In the market engineering process, top-down and bottom-up approaches were extensively used, along with several data triangulation methods, to perform market estimation and forecasting for the overall market segments and subsegments listed in this report. Extensive qualitative and quantitative analysis was performed on the complete market engineering process to list key information/insights throughout the report.
After the complete market engineering process (including calculations for market statistics, market breakups, market size estimations, market forecasts, and data triangulation), extensive primary research was conducted to gather information and verify & validate the critical numbers arrived at. The primary research was also conducted to identify the segmentation types, industry trends, competitive landscape of managed services market players, and key market dynamics, such as drivers, restraints, opportunities, challenges, and key strategies.
Following is the breakup of the primary study:
Note: Tier 1 companies receive revenues higher than USD 10 billion; Tier 2 companies' revenues range between USD 1 and 10 billion; and Tier 3 companies' revenues range between USD 500 million and USD 1 billion.
Other designations include sales, marketing, and product managers.
Source: Industry Experts
To know about the assumptions considered for the study, download the pdf brochure
Market Size Estimation
Top-down and bottom-up approaches were employed to estimate and validate the size of the managed services market, as well as the size of various dependent sub-segments within the overall managed services market. The research methodology used to estimate the market size includes the following details: critical players in the market were identified through secondary research, and their market shares in the respective regions were determined through primary and secondary research. This entire procedure involved studying the annual and financial reports of the top market players, and extensive interviews were conducted with key industry leaders, including CEOs, VPs, directors, and marketing executives, to gather valuable insights.
All percentage splits and breakdowns were determined using secondary sources and verified through primary sources. All possible parameters that affect the market covered in this research study were accounted for, viewed in extensive detail, verified through primary research, and analyzed to get the final quantitative and qualitative data. This data was consolidated and added to detailed inputs and analysis from MarketsandMarkets.
Managed Services Market: Top-Down and Bottom-Up Approach
Data Triangulation
The market was split into several segments and subsegments after arriving at the overall market size using the market size estimation processes explained above. The data triangulation and market breakup procedures were employed, wherever applicable, to complete the overall market engineering process and arrive at the exact statistics of each market segment and subsegment. The data was triangulated by studying various factors and trends from both the demand and supply sides.
Market Definition
Managed services refer to the outsourcing of enterprise IT management, monitoring, maintenance, and support functions to specialized third-party providers under predefined service-level agreements (SLAs). These services help organizations improve operational efficiency, strengthen cybersecurity, reduce IT complexity, and ensure the continuous availability of critical business systems. Managed service providers deliver services across infrastructure and data center management, network operations, managed security, communication and collaboration, mobility, and information management. The increasing adoption of hybrid IT environments, cloud computing, AI-driven monitoring, and automation technologies is accelerating enterprises' reliance on managed services. Organizations across BFSI, telecom, healthcare, manufacturing, retail, and government sectors increasingly adopt managed services to optimize IT performance, reduce operational costs, improve scalability, and access specialized technical expertise while supporting digital transformation and business continuity initiatives.
The managed services market is structured across multiple segmentation layers to reflect evolving enterprise outsourcing requirements and operational priorities. By service type, the market includes managed IT infrastructure services, managed network services, managed security services, managed communication & collaboration services, managed information services, and managed mobility services. Deployment modes include on-premises and cloud-based managed services, with cloud deployment gaining strong adoption due to scalability, automation, centralized management, and improved remote service delivery efficiency. By organization size, the market covers large enterprises and SMEs, as organizations increasingly outsource IT management to improve cost efficiency, access specialized expertise, and manage complex digital infrastructure environments. By vertical, the market includes BFSI, telecommunications, technology (IT & ITeS), healthcare & life sciences, retail & consumer goods, manufacturing, government & public sector, energy & utilities, media & entertainment, and others. Among these verticals, BFSI, telecom, and technology account for significant market adoption due to increasing cybersecurity investments, complex multi-cloud environments, large-scale network management requirements, and continuous demand for high service uptime and digital infrastructure optimization.
Key Stakeholders
- Managed Service Providers
- Managed Network Security Service Provider
- Managed Mobility Service Provider
- Managed IT Infrastructure & Data Center Service Provider
- Managed Information Service Provider
- Managed Communication & Collaboration Service Provider
Report Objectives
- To define, describe, and forecast the managed service market based on service type, organization size, deployment type, vertical, and region
- To forecast the market size of the five major regional segments: North America, Europe, Asia Pacific, the Middle East & Africa, and Latin America
- To strategically analyze the market subsegments with respect to individual growth trends, prospects, and contributions to the total market
- To provide detailed information related to the major factors influencing market growth (drivers, restraints, opportunities, and challenges)
- To strategically analyze macro and micro markets with respect to growth trends, prospects, and their contribution to the overall market
- To analyze industry trends, patents and innovations, and pricing data related to the market
- To analyze the opportunities in the market for stakeholders and provide details of the competitive landscape for major players
- To profile key players in the market and comprehensively analyze their market share/ranking and core competencies
- To track and analyze competitive developments, such as mergers & acquisitions, product developments, and partnerships & collaborations in the market
Available customizations:
With the given market data, MarketsandMarkets offers customizations based on company-specific needs. The following customization options are available for the report:
Geographic Analysis
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Further breakup of the Asia Pacific market into countries contributes to the rest of the regional market size.
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Further breakup of the North American market into countries contributes to the rest of the regional market size.
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Further breakup of the Latin American market into countries contributing to the rest of the regional market size
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Further breakup of the Middle East & African market into countries contributing to the rest of the regional market size
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Further breakup of the European market into countries contributes to the rest of the regional market size
Company Information
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Detailed analysis and profiling of additional market players (up to 5)
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