#ScalabilitySolutions

[market-insider]

Managed Services Market Future Outlook: Analyzing Size, Share, and Growth Patterns

The global managed services market size is projected to reach USD 731.08 billion by 2030, according to a new study conducted by Grand View Research, Inc. The market is anticipated to grow at a CAGR of 13.6% from 2023 to 2030. Strengthening profit margins, which cater efficiently to the needs of dynamic business environments, and improvements in operational efficiency are also expected to contribute to the growth of the market. Benefits associated with managed services implementation, such as a significant reduction in IT operational expenses and increased organizational efficiency, are also anticipated to drive market growth.

Managed services help reduce recurring in-house IT expenditures by ensuring the IT infrastructure is running at optimal efficiency at all times while also automating business operations. This subsequently allows organizations to effectively achieve their business objectives, especially pertaining to strengthening the bottom line and increasing profitability. These initiatives also help various end-users, such as expert-led architectural design reviews, public sector, and government organizations to address unique digital transformation and accelerate cloud adoption.

For instance, in July 2023, MongoDB, Inc., a developer of the data platform, announced MongoDB Atlas for the public sector, an initiative that enables government agencies and public sector organizations to develop modern, data-driven applications that better serve end-users at MongoDB.local for government solutions platform. As part of the new initiative, public sector organizations can access tailored technology partnerships, expert-led architectural design reviews, and specific data to provide tailored technology training.

Several businesses encountered challenges due to the COVID-19 pandemic, and managed services providers (MSPs) were no exception. Organizations globally opted for managed services to ensure operational efficiency amid lockdowns being implemented across various nations due to coronavirus. Organizational spending on new automation initiatives gradually slowed down during the pandemic.

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Managed Services Market Report Highlights

In terms of solution, the managed security segment is anticipated to register the fastest CAGR of 14.7% over the forecast period owing to the adoption of managed security services in end-use industries. This segment offers various benefits such as security monitoring & management, email threat management, restoral management & backups, and support & maintenance management, among others

In terms of managed information services, the business support systems segment is anticipated to register the fastest CAGR of 14.2% from 2023 to 2030. The increasing adoption of business support system services such as business analysis, database integration, demand management service, and project management in end-use industries is anticipated to propel the growth of the segment over the forecast period

In terms of deployment, the on-premise segment dominated the market in 2022 with a revenue share of 64.4%. Numerous organizations have adopted the on-premise mode of deployment as it does not require an internet connection and allows easy customization of software to suit the business process requirements of clients

Based on enterprise size, the small & medium enterprises (SMEs) segment is anticipated to register the fastest CAGR of 14.3% from 2023 to 2030. Increasing government initiatives through various digital SME campaigns globally is expected to drive the growth of the SME segment over the forecast period

In terms of end-use, the healthcare segment is anticipated to register the fastest CAGR of 14.7% over the forecast period. Several healthcare organizations are opting for managed services to protect patient data and secure monetary transactions, thereby contributing to the segment's growth

In terms of region, North America held the largest market share in 2022 with a revenue share of over 30%. The rising number of multinational companies (MNCs) in North America bodes well for the regional market growth

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We have segmented the global managed services market based on solution, managed information service (MIS), deployment, enterprise size, end use, and region.

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