Cloud Managed Services Market

Market Overview:

The global cloud managed services market size reached US$ 53.2 Billion in 2023. Looking forward, IMARC Group expects the market to reach US$ 145.7 Billion by 2032, exhibiting a growth rate (CAGR) of 11.74% during 2024-2032. The growing adoption of cloud computing, rising focus on security and compliance, and increasing demand for real-time monitoring and identifying and addressing potential issues before they impact operations are some of the major factors propelling the market.

Cloud managed services refer to the delegation of various information technology (IT) tasks and responsibilities related to cloud infrastructure and applications to third-party service providers. They encompass a wide array of activities, including cloud deployment, monitoring, maintenance, security, data backup, and disaster recovery. It also involves managing virtualized infrastructure components, such as servers, storage, and networking resources. They are designed to handle the technical intricacies of cloud management, allowing organizations to focus on their core business objectives. They enable businesses to scale their cloud resources up or down depending on demand, ensuring optimal performance without overprovisioning.

At present, the increasing demand for cloud managed services as they ensure high availability and reliability through continuous monitoring, rapid issue resolution, and disaster recovery planning is impelling the growth of the market. Besides this, the rising adoption of cloud managed services, as they enable organizations to adhere to industry regulations and compliance standards by implementing necessary security controls, is contributing to the growth of the market. In addition, the growing focus on real-time monitoring, identifying, and addressing serious issues before they impact operations is offering a favorable market outlook. Apart from this, the increasing generation of large volumes of data due to the integration of the Internet of Things (IoT) is supporting the growth of the market. Additionally, the increasing demand for advanced security offerings encompassing threat monitoring, compliance management, and incident response is supporting the growth of the market.

Cloud Managed Services Market Trends/Drivers:

Growing adoption of cloud computing

The growing adoption of cloud computing activities among businesses to improve their operational efficiency is positively influencing the cloud managed services market. As organizations transition their workloads to the cloud, the complexity of managing various cloud resources, applications, and services increases. Cloud managed service providers offer expertise in managing this complexity, allowing businesses to focus on their core activities without getting bogged down by intricate technical details. They also offer cost benefits by optimizing cloud resource usage and help in monitoring resource utilization, scaling infrastructure as needed, and identifying opportunities to reduce unnecessary spending. They allow businesses to scale their resources up or down based on demand. This flexibility is crucial for organizations with fluctuating workloads, as it ensures that they only pay for the resources they actually use.

Rising focus on security and compliance

At present, the rising focus on security and compliance is positively influencing the market. Cloud managed service providers are offering advanced security measures, such as threat detection, intrusion prevention, data encryption, and vulnerability assessments. This enhanced security posture helps businesses safeguard their sensitive data and digital assets. Besides this, cloud managed service providers offer expertise in understanding and implementing various compliance requirements within the cloud environment, which helps businesses avoid potential legal and financial penalties. They also detect any abnormal activities or security breaches and take necessary actions to mitigate risks, minimizing downtime and data loss. Furthermore, they often conduct comprehensive risk assessments and implement risk mitigation strategies.

Increasing complexity of cloud environments

At present, the increasing complexity of cloud environments is exerting a significant positive impact on the cloud managed services market. Besides this, companies often lack in-house expertise to manage complex cloud configurations effectively. Cloud managed service providers bridge this expertise gap by offering specialized knowledge and skills. Moreover, the growing complexity of cloud setups necessitates specialized services to manage various components, such as networking, security, databases, and application optimization. Cloud managed service providers offer tailored solutions that address these complexities, leading to more efficient cloud operations. They help businesses scale their operations efficiently by optimizing resource allocation, ensuring high availability, and managing sudden spikes in demand.

Cloud Managed Services Industry Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the global cloud managed services market report, along with forecasts at the global, regional and country levels from 2024-2032. Our report has categorized the market based on service type, deployment model, organization size and vertical.

Breakup by Service Type:

• Managed Network Services
• Managed Business Services
• Managed Security Services
• Managed Infrastructure Services
• Managed Mobility Services
• Managed Communication and Collaboration Services
   

Managed network services dominate the market

The report has provided a detailed breakup and analysis of the market based on the service type. This includes managed network services, managed business services, managed security services, managed infrastructure services, managed mobility services, and managed communication and collaboration services. According to the report, managed network services represented the largest segment.

Managed network services (MNS) refer to the outsourcing of network management and maintenance responsibilities to third-party service providers. These services encompass a wide range of network-related activities, including network design, implementation, monitoring, maintenance, security, and troubleshooting. Managed service providers collaborate with businesses to design cloud network architectures that align with their operational needs. They also help implement and configure the network components within cloud environments, ensuring optimal connectivity, load balancing, and resource allocation. They employ advanced tools to ensure consistent performance and suggest optimizations. Furthermore, MNS includes setting up firewalls, intrusion detection systems, and encryption mechanisms to protect data and applications and ensure that networks can scale up or down as demand fluctuates, optimizing resource usage and cost efficiency.

Breakup by Deployment Model:

• Private Cloud
• Public Cloud
   

Private cloud holds the largest share in the market

A detailed breakup and analysis of the market based on the deployment model have also been provided in the report. This includes private cloud and public cloud. According to the report, private cloud accounted for the largest market share.

A private cloud is a comprehensive and flexible computing environment dedicated to a single organization, ensuring enhanced data privacy, security, and control over resources. It offers exclusive use and customization options tailored to the specific needs of an organization. It enables businesses to efficiently allocate computing resources, scale applications, and manage workloads according to evolving requirements. Moreover, private cloud is favored by industries with rigorous data protection regulations or proprietary information concerns, as they offer a self-contained infrastructure that reduces the risks associated with sharing resources. It offers isolation from external users and organizations, providing enhanced security and privacy, which reduces the risk of data breaches and unauthorized access.

Breakup by Organization Size:

• Large Enterprises
• Small and Medium-sized Enterprises
   

Large enterprises hold the biggest share in the market

A detailed breakup and analysis of the market based on the organization size have also been provided in the report. This includes large enterprises and small and medium enterprises. According to the report, large enterprises accounted for the largest market share.

Large enterprises often require cloud managed services for a variety of reasons, as these services offer several benefits that can help optimize their operations and achieve their business goals. Cloud managed services offer specialized expertise in architecture design, deployment, maintenance, security, and ongoing monitoring. They enable large enterprises to free up their internal IT teams to focus on more strategic and core business initiatives. They help to improve overall efficiency and allow the company to concentrate on its primary objectives. They also provide continuous monitoring of cloud environments, enabling them to detect and address issues promptly. This round-the-clock support helps minimize downtime and ensures that critical systems are always operational.

Breakup by Vertical:

• Retail and Consumer Goods
• BFSI
• Telecom
• Government and Public Sector
• Healthcare and Lifesciences
• Manufacturing
• Energy and Utilities
• IT
• Others
   

Retail and consumer goods hold the maximum share in the market

A detailed breakup and analysis of the market based on the vertical has also been provided in the report. This includes retail and consumer goods, BFSI, telecom, government and public sector, healthcare and life sciences, manufacturing, energy and utilities, IT, and others. According to the report, retail and consumer goods accounted for the largest market share.

Retail businesses often experience fluctuations in demand based on seasons, promotions, and trends. Cloud managed services allow these businesses to easily scale their IT infrastructure up or down to accommodate changes in demand without the need for major upfront investments or complex infrastructure management. Cloud managed services operate on a pay-as-you-go model, which enables companies to pay for the resources they use. This eliminates the need for large capital expenditures on hardware and software, reducing overall IT costs. Moreover, retail and consumer goods companies deal with massive amounts of data, including customer information, sales data, inventory levels, and more. Cloud managed services provide powerful data storage, processing, and analytics capabilities that enable companies to gain important insights from their data, leading to better decision-making and personalized customer experiences.

Breakup by Region:

• North America
  • United States
  • Canada
• Asia-Pacific
  • China
  • Japan
  • India
  • South Korea
  • Australia
  • Indonesia
  • Others
• Europe
  • Germany
  • France
  • United Kingdom
  • Italy
  • Spain
  • Russia
  • Others
• Latin America
  • Brazil
  • Mexico
  • Others
• Middle East and Africa
   

North America exhibits a clear dominance, accounting for the largest cloud managed services market share

The report has also provided a comprehensive analysis of all the major regional markets, which include North America (the United States and Canada); Asia Pacific (China, Japan, India, South Korea, Australia, Indonesia, and others); Europe (Germany, France, the United Kingdom, Italy, Spain, Russia, and others); Latin America (Brazil, Mexico, and others); and the Middle East and Africa. According to the report, North America accounted for the largest market share.

North America held the biggest market share due to increasing cloud computing activities among the companies to improve their operational efficiency. Besides this, the rising popularity of outsourcing various integral company responsibilities is contributing to the growth of the market. In addition, increasing difficulties faced by companies to recruit and retain cloud experts are propelling the growth of the market. Apart from this, the rising digitization of business operations to reduce the occurrence of manual errors is offering a favorable market outlook.

Asia Pacific is estimated to expand further in this domain due to the increasing focus of businesses on their core competencies. Moreover, the rising emergence of e-commerce businesses is bolstering the growth of the market.

Competitive Landscape:

Key market players are expanding their service portfolios to cover a wider range of cloud platforms, technologies, and solutions. They are also focusing on delivering hybrid and multi-cloud management solutions. Top companies are integrating artificial intelligence (AI) and automation to enhance efficiency, reduce human error, and improve the overall quality of services. They are also investing in advanced security solutions to protect client data and applications and ensure compliance with industry regulations. They are also assisting clients in optimizing their cloud spending by offering cost management tools, monitoring, and recommendations for resource allocation and usage.

The report has provided a comprehensive analysis of the competitive landscape in the market. Detailed profiles of all major companies have also been provided. Some of the key players in the market include:

• Accenture plc
• Atos SE
• Cisco Systems, Inc.
• DXC Technology
• Fujitsu Limited
• Google LLC (Alphabet Inc.)
• HCL Technologies
• Hewlett Packard Enterprise 
• International Business Machines Corporation
• Infosys Limited
• NEC Corporation (AT&T Inc.)
• NTT DATA Corporation (Nippon Telegraph and Telephone Corporation)
• Wipro Limited

Recent Developments:

• In 2022, Accenture plc announced its acquisition of Sentia in the Netherlands, Bulgaria, and Belgium, which added more than 300 cloud specialists to Accenture Cloud First, improving its capabilities and offerings.
• In August 2023, International Business Machines Corporation announced the extension of its partnership with Microsoft to assist joint clients in accelerating the deployment of generative AI and delivering a novel offering that will innovate their business processes.
• In November 2022, Atos SE announced the extension of its Nimbix Federated Supercomputing offer with Europe by integrating Discoverer, a EuroHPC JU supercomputer managed by Consortium “Petascale Supercomputer Bulgaria”.

Cloud Managed Services Market Report Scope:

Key Benefits for Stakeholders:

• IMARC’s report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the cloud managed services market from 2018-2032.
• The research study provides the latest information on the market drivers, challenges, and opportunities in the global cloud managed services market.
• The study maps the leading, as well as the fastest-growing, regional markets. It further enables stakeholders to identify the key country-level markets within each region.
• Porter's five forces analysis assist stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the cloud managed services industry and its attractiveness.
• Competitive landscape allows stakeholders to understand their competitive environment and provides an insight into the current positions of key players in the market.