Managed Services Market Analysis

Deployment (On-Premise and Hosted)

By 2037, on-premise segment is set to hold managed services market share of more than 67.6%. The on-premise segments play a crucial role in driving market growth, particularly in industries and regions where data security, compliance, and control over IT infrastructure are paramount. Industries like finance, healthcare, and government often require sensitive data to be stored and managed on-premise to comply with stringent local regulations. On-premise solutions allow organizations to maintain complete control over their security protocols, reducing vulnerabilities associated with cloud environments.

The on-premise segment remains significant, particularly in regions like Asia Pacific, including Japan, where regulatory compliance and data sovereignty are prioritized. While cloud adoption is growing, the on-premise managed services market segment is expected to continue growing at a steady pace due to its relevance in critical and regulated industries.

Enterprise Size [Small & Medium Enterprises (SMEs) and Large Enterprises]

By enterprise size, the large enterprises segment is poised to register a profitable revenue share in managed services market during the forecast period. Large enterprises operate across multiple geographies and industries, requiring scalable IT solutions to manage diverse operations. These organizations are frequent targets of cyberattacks, prompting them to invest in managed security services to safeguard sensitive information. Large enterprises account for 60% of the total managed IT services share.

Moreover, large organizations are increasingly adopting hybrid and multi-cloud environments, requiring expert management from MSPs. Over 70% of large enterprises globally are expected to adopt hybrid cloud solutions by 2025, with managed services playing a central role in managing these environments.

Our in-depth analysis of the managed services market includes the following segments:

Solution	Managed IT Infrastructure & Data Center Server Management Storage Management Managed Print Services Others Managed Network Managed Wi-Fi Managed LAN Managed VPN Managed WAN Network Monitoring Others Managed Mobility Application Management Device Life Cycle Management Managed Communication & Collaboration Managed Voice over Internet Protocol (VoIP) Managed Unified Communications as a Service (UCaaS) Others Managed Information Managed Operational Support Systems/Business Support Systems (OSS/BSS) Business Process Management Managed Security Managed Firewall Managed Vulnerability Management Managed Risk & Compliance Management Managed Antivirus/Antimalware Managed Encryption Managed Unified Threat Management Managed Security Information & Event Management (SIEM) Managed Intrusion Detection Systems/Intrusion Prevention Systems (IDS/IPS) Others Managed Backup and Recovery
Managed Information Service (MIS)	Business Process Outsourcing (BPO) Business Support Systems Project & Portfolio Management Others
Deployment	On-premise Hosted
Enterprise Size	Small & Medium Enterprises (SMEs) Large Enterprises
End use	BFSI Government Healthcare IT & Telecom Manufacturing Media & Entertainment Retail Others

Frequently Asked Questions (FAQ)

The global managed services market registered a valuation of USD 339.38 billion in 2024 and is poised to expand at a CAGR of 13.5% during the forecast period, i.e., 2025-2037.

The global managed services sector registered a profitable valuation of USD 339.38 billion in 2024 and is poised to register USD 1760.5 billion in 2037 expanding at a CAGR of 13.5% during the forecast period, i.e., 2025-2037.

The major players in the market are Atera Networks Ltd., Allegro MicroSystems, Inc., ARYAKA NETWORKS, INC., AT&T Inc., BMC Software, Inc., Broadcom, Cisco Systems, Inc. and others.

By deployment, the on-premise segment is poised to register the largest revenue share of 67.6% by 2037. The on-premise segments play a crucial role in driving market growth, particularly in industries and regions where data security, compliance, and control over IT infrastructure are paramount.

North America is poised to register the largest revenue share of 36.2% by the end of 2037. The market growth is driven by technological advancements, evolving business needs, and the increasing complexity of IT infrastructure.

Managed Services Market Analysis