Market Trends in Global IT Managed Services Market
- Siemens acquired CD-Adapco, a NY based company offering global engineering simulation with software solutions that would help Siemens to plan and manage growth in engineering sector all over the world. The organization formerly known as Siemens Healthcare (as August 2016) rebranded themselves as “Healthineers” to offer a public stock as the company moves into German Healthcare business.
- Dell Technologies launched advanced and innovative laptop named XPS 13 2-in-1 that is fast enough to complete multi tasks at a single time and equipped with the latest processor.
- IBM introduced an innovative hybrid cloud for enterprises, thus increasing the limits of technology.
Market Overview
Riding on the back of growing need of advanced connected devices, the IT industry has been booming tremendously in recent years. Further, the applications of IT in almost every home and commercial electronic device are estimated to showcase remarkable growth in IT industry in near future. Additionally, the spiked adoption of smart and connectivity devices will further increase the transfer and collection of information that will raise the demand for IoT platforms and other IT related managed services. On the other hand, the IT Managed Services ecosystem is rising in developed countries which have led the market players to focus towards the advancement in connectivity services. The demand for IT managed services is believed to remain high in upcoming years. These factors are believed to supplement the expansion of the global market of IT managed services market with a CAGR of 8.38% during the period 2016-2023. Furthermore, the global IT managed services market is expected to account USD 262.5 Billion by the end of 2023 from USD 149.41 Billion in 2016.
Growth Highlights based upon Regional Platform during 2016-2023
The global market of IT Managed Services is segmented by regions into North America, Latin America, Europe, Asia-Pacific and Middle East and Africa. The North-America region has dominated the overall IT managed services market with a market share of 30.7% in 2016 where the U.S. dominated the overall North-America market due to well established sectors and rapid adoption of IT infrastructure in various companies. The North America IT managed services market is believed to grow with significant pace over the forecast period owing to the presence of huge players of IT managed services in the region.
On the other hand, Asia-Pacific region is one of the most opportunistic regions for the IT managed services players and is expected to dominate the overall IT managed services market by the end of 2023 by expanding at a CAGR of 9.80% during the forecast period. Further, the rapid pace of digitalization in various end-use sectors including healthcare, education, banking and others is one of the major factor which are driving the IT managed service industry growth in the Middle East & Africa region.
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Market Segmentation Synopsis
By Type of Services
The global IT managed services market has been segmented by services type into data center & network management, desktop management, server management, IMAC (Install, Move, Add, Change), IT maintenance and IT hardware support services, out of which, the data center & network management services dominated the overall IT managed services market around the globe by reaching market size of USD 44.7 Billion in 2016 and is further believed to behold its dominant position in the market by the end of 2023 owing to the positive growth of tech savvy population and growing demand for managed services due to the increasing number of connectivity devices across the globe. Followed by the data center & network management services, the server management services held the second largest market share in 2016, whereas the install, move, add, change (IMAC) segment is estimated to expand with highest CAGR over the forecast period owing to the growing demand for IMAC services in various IT companies in developing regions that are adding or upgrading their existing infrastructure.
By End-Use Application
The global IT managed services market is divided by end-use applications into large enterprises and small & medium-sized enterprises. Among these segments, the large enterprises segment garnered the highest market share in terms of revenue in 2016 and is believed to hold its positive growth by the end of 2023. In addition to that, the large enterprises segment is anticipated to observe Y-O-Y growth rate of 8.59% in 2023. Further, the small & medium-sized enterprises are predicted to grow with highest CAGR in IT managed services market during the forecast period.
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By End-User
The global IT managed services market is divided by end-users into BFSI, IT & ITeS, education sector, manufacturing sector, healthcare sector, retail industry and others. The IT & ITeS sector dominated the global IT managed services market by holding the largest valuation of USD 38.4 Billion in 2016 and is believed to behold its dominant position by the end of 2023. The second highest revenue contributor in the market is BFSI, trailed by the retail sector which is estimated to reach market share of 16.80% in 2023. Further, the popularity of healthcare services through smart devices and telemedicine services among the population is increasing the user base across the globe. Factors such as these combined with gaining traction of data center and network management services are believed to hone the growth of the healthcare sector in the IT managed services market around the globe.
The study further incorporates Y-O-Y Growth, demand & supply and forecast future opportunity in North America (United States, Canada), Latin America (Brazil, Mexico, Argentina, Rest of LATAM), Europe (U.K., Germany, France, Italy, Spain, Hungary, BENELUX [Belgium, Netherlands, Luxembourg], NORDIC [Norway, Denmark, Sweden, Finland], Poland, Russia, Rest of Europe), Asia-Pacific (China, India, Japan, South Korea, Malaysia, Indonesia, Taiwan, Hong Kong, Australia, New Zealand, Rest of Asia-Pacific), Middle East and Africa (Israel, GCC [Saudi Arabia, UAE, Bahrain, Kuwait, Qatar, Oman], North Africa, South Africa, Rest of Middle East and Africa).
Market Drivers & Challenges
Growth Indicators
The global IT managed services market is thriving on the back of the technological advancements in internet connectivity. The rapid adoption of smart infrastructure in corporates, transportation and other sectors are enhancing the employee productivity which is further increasing the demand for IT managed services in numerous end user applications. Furthermore, the deployment of advanced connectivity systems in corporates are providing ease to the businesses to manage the services owing to the recent wave of network enhancements (e.g., ongoing LTE deployments, small cell networks). Additionally, the advancement in well-established IT companies along with emergence of large scale IT companies in growing nations due to the adoption of business process automation to operate efficiently is also believed to aid the growth of the global IT managed services market in near future.
Barriers
The security of credentials is a major challenge for the IT managed service industry owing to the growing rate of cybercrime. In addition to that, the hackers are looking for more ways to strike critical infrastructure, such as power grids, hydroelectric dams and chemical plants among many others. The rising hacking incidents, lack of high end security and less trust on application based services amongst people are the key factors which are curbing the growth of IT managed services market.
Top Featured Companies Dominating the Market
Some of the affluent industry leaders in the global IT managed services market are Siemens Corporation, Dell Technologies, IBM Corporation, Alcatel Lucent, Microsoft Corporation, Cisco Systems Inc., Hewlett Packard Enterprise and Accenture.
Accenture PLC, a global professional services company which provides strategy, consulting, digital, technology and operations services acquired various technology and consulting companies that enhanced the product portfolio of the company so as to provide better services to their clients with practical innovations in connectivity combined with the IT Managed Services to transform business processes and enable new operating models. The company is focusing towards the evolving technologies to cater their business clients to run their business with efficiency and high end-connectivity. The developing technologies include digital, cloud and security-related offerings, which are continuously evolving due to the technological developments such as artificial intelligence, automation, blockchain and Internet of Things.
Moreover, other key and niche players are working towards the expansion of product portfolio along with investing in high quality R&D to develop highly engineered and innovative technologies in order to gain competitive edge in the global IT managed services market.
