Managed Services Market to Reach $511.03 Billion by 2029, Led by IBM, Accenture, Microsoft, Cisco, and Fujitsu

The global managed services market is expected to grow from $365.33 billion in 2024 to $511.03 billion by 2029 at a CAGR of 6.9%. The market is driven by increasing demand for managed IT infrastructure & data center services, managed network services, managed security services, managed communication & collaboration services, managed mobility, and managed information. IBM, Accenture, Microsoft, Cisco, and Fujitsu are the key players dominating the market. The managed detection & response segment in managed security services holds the highest CAGR during the forecast period.

The global managed services market is experiencing remarkable growth, projected to reach $511.03 billion by 2029, according to a recent report by MarketsandMarkets [1]. This expansion is driven by the increasing demand for managed IT infrastructure & data center services, managed network services, managed security services, managed communication & collaboration services, managed mobility, and managed information [1].

Businesses worldwide are seeking ways to optimize their operations by outsourcing crucial IT functions, such as security, network management, and infrastructure maintenance [1]. Managed services providers offer deep expertise in areas like cloud technology, data management, and IT support, enabling organizations to focus on their core operations while lowering operational risks and expenses [1].

The report highlights that the managed services market is poised for growth due to the increasing need for flexibility through scalable cloud solutions, improved system performance with smart analytics and automation tools, and enhanced real-time data processing with high-capacity computing power [1].

The managed security services segment, which includes managed detection & response, holds the highest compounded annual growth rate (CAGR) during the forecast period [1]. This growth can be attributed to the increasing number of cyber threats and the need for organizations to protect their digital assets [1].

Moreover, the managed communication & collaboration service segment, particularly managed Voice over Internet Protocol (VoIP), is expected to capture the highest CAGR during the forecast period [1]. VoIP services offer a dependable, cost-effective means for businesses to conduct voice communications over the internet, reducing traditional phone service expenses and increasing communication flexibility [1].

IBM, Accenture, Microsoft, Cisco, and Fujitsu are some of the key players dominating the managed services market [1]. These companies bring a wealth of expertise and resources to the table, enabling them to offer comprehensive managed services solutions to organizations worldwide [1].

References:
[1] MarketsandMarkets. (2023). Managed Services Market by Service Type - Global Forecast to 2029. Retrieved from https://www.marketsandmarkets.com/Market-Reports/managed-services-market-1141.html