U.S. Managed Services Market

U.S. Managed Services Market Size and Share:

The U.S. managed services market size was valued at USD 69.9 Billion in 2024. Looking forward, IMARC Group estimates the market to reach USD 171.7 Billion by 2033, exhibiting a CAGR of 10.5% from 2025-2033. The market is primarily driven by the considerable rise in the number of remote workers requiring secure IT infrastructure, the growing adoption of AI for efficiency and cybersecurity, and the increasing utilization of industry-specific services tailored to meet challenges in various end-use sectors such as retail, healthcare, and logistics.​​​​​​​

The market in the United States is primarily driven by the augmenting demand for cost optimization, as organizations focus on cutting costs without compromising on efficiency. With managed services providers (MSPs) offering flexible solutions that reduce expenses including wages, perks, and infrastructure spending, businesses are increasingly outsourcing their IT and operational needs. This trend allows organizations to access specialized expertise, streamline workflows, and enhance productivity, all while maintaining financial control and scalability. Businesses can benefit from outsourcing IT operations by gaining access to specialized knowledge, cutting-edge technologies, and round-the-clock monitoring while saving on expenses. This allows for improved distribution of resources towards primary goals while maintaining consistency and effectiveness. As companies aim to manage cost control and creativity simultaneously, the need for managed services is increasing.

The growing threat of cyberattacks is amplifying the demand for managed services in the United States. Check Point reports a 56% year-over-year rise in cyberattacks, with U.S. organizations facing 1,300 weekly attacks on average in a 2024 report. Education and research saw the highest rates at 2,239 weekly attacks, doubling from the prior year, while healthcare rose 110% to 2,170 weeklies. Utilities experienced a 234% rise, averaging 1,339 attacks. Managed services providers (MSPs) are addressing the growing demand for advanced security solutions by offering services like continuous monitoring, threat detection, and incident response. The rising complexity of data protection regulations, including GDPR and CCPA, has led businesses to seek MSPs for expertise in ensuring compliance. This demand is driven by the need to avoid legal penalties and maintain consumer trust in a highly regulated environment.

U.S. Managed Services Market Trends:

Considerable Growth in the Demand for Industry-Specific Managed Services

Industry-focused managed services are increasingly prominent as organizations demand customized solutions to address sector-specific challenges. Managed service providers (MSPs) are tailoring offerings for industries such as retail, healthcare, and logistics, enabling businesses to optimize operations and meet unique needs. Logistics firms, for instance, benefit from supply chain optimization and IoT device management to streamline operations. On December 4, 2023, AT&T announced its initiative to lead U.S. Open RAN deployment, targeting 70% of wireless traffic on open-capable platforms by 2026. Partnering with Ericsson, the USD 14 billion, five-year plan leverages Ericsson’s U.S.-based 5G Smart Factory to deliver flexible, high-performance, and sustainable networks. This approach not only enhances AT&T’s 5G and broadband capabilities but highlights how industry-specific managed services drive innovation, cost efficiency, and competitive advantages for businesses.

Widespread Adoption of Artificial Intelligence (AI)

The U.S. managed services market is being transformed by Artificial Intelligence (AI), leading to a substantial increase in growth and creativity. AI-driven technology allows for predictive analysis, automated supervision, and preemptive problem-solving, enhancing effectiveness and service provision. MSPs employ artificial intelligence for detecting anomalies, optimizing workflows, and delivering personalized customer experiences, which leads to reduced need for human involvement and faster response times. AI enhances cybersecurity by detecting immediate threats and improving risk management. With the implementation of digital solutions by companies, AI-driven managed services are providing the ability to handle intricate IT infrastructures, guaranteeing uninterrupted operations, cost effectiveness, and cutting-edge service approaches.

Rapid Expansion of Remote Work Environments

The growth of remote work is significantly impacting the overall IT industry needs, thereby fueling the demand for MSPs on a global scale. According to the U.S. Career Institute, 75 Million U.S. employees, or 56% of the non-self-employed workforce, have jobs suited to remote work, as their roles are largely individual, and information driven. Currently, 16% of U.S. companies operate fully remotely, with this figure expected to rise. Among employees, 65% prefer fully remote roles, 32% favor hybrid setups, and only 3% prefer exclusively on-site work. Businesses need robust IT infrastructures to support remote teams, ensuring seamless collaboration and secure data access. Managed services providers (MSPs) enable this shift by offering solutions such as cloud platforms, VPNs, and endpoint security management, helping organizations optimize bandwidth, secure sensitive information, and maintain productivity in flexible, scalable environments.

U.S. Managed Services Market Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the U.S. managed services market, along with forecasts at the country and regional levels from 2025-2033. The market has been categorized based on type, deployment mode, enterprise size, and end use.

Analysis by Type:

• Managed Infrastructure
• Managed Data Center
• Managed Security
• Managed Communications
• Managed Network
• Managed Mobility
   

Managed infrastructure services play a crucial role in the US managed services industry, allowing companies to uphold and enhance their IT systems. By offloading infrastructure management to external providers, companies improve productivity, reduce downtime, and concentrate on main goals. MSPs provide services such as hardware upkeep, system updates, and emergency response to guarantee strong and adaptable IT setups. These services are especially advantageous for organizations implementing sophisticated technologies.

Businesses that deal with extensive data storage and processing require essential managed data center services. MSPs offer services such as data transfer, backup, and live monitoring to guarantee smooth functionality and maximum uptime. These services help businesses decrease operational expenses, improve security, and maximize resource usage. The increasing use of cloud-based systems and the growing need for data-driven decision-making are driving the demand for managed data center services.

Managed security services play a vital role in the market by meeting the important demand for strong cybersecurity. Managed service providers provide services such as monitoring for threats, identifying vulnerabilities, and managing compliance in order to safeguard businesses against evolving cyber threats. These services are crucial for industries including BFSI, healthcare, and government, where data breaches can result in serious repercussions. Organizations bolster their defenses and maintain focus on strategic goals by delegating security management to external parties.

Managed communications services help companies simplify their communication systems, such as voice, video, and unified communications platforms. MSPs offer complete management from start to finish, guaranteeing dependability and capacity for companies. These services render collaboration easier and increase productivity, especially in remote and hybrid work settings. The rising use of advanced communication tools including VoIP and video conferencing is still fueling the need for managed communications services.

Managed network is crucial to guaranteeing dependable and effective connectivity throughout business activities. MSPs provide services such as network monitoring, optimization, and troubleshooting to ensure smooth operations. Due to the increase in remote work and IoT, businesses are depending more on managed network services to manage higher bandwidth needs and guarantee safe data transmission. These services play a crucial role in improving operational performance and ensuring business continuity.

Managed mobility services meet the increasing demand for secure and effective management of mobile devices in corporate settings. MSPs offer services including setting up devices, updating security, and managing remotely to assist a mobile workforce. These services help businesses increase efficiency while also maintaining data security and compliance. Managed mobility services are essential for organizations undergoing digital transformation due to the growing dependence on mobile technologies.

Analysis by Deployment Mode:

• On-premises
• Cloud-based
   

In the market, on-premises managed services are still essential, especially for businesses that place a high priority on data protection and management. These solutions serve sectors including government, healthcare, and BFSI that need to adhere to stringent regulatory requirements. On-premises deployments are supported by managed services providers (MSPs) through sophisticated cybersecurity, uptime assurance, and infrastructure optimization. Customized solutions that smoothly connect with current systems help businesses satisfy specific organizational needs and preserve operational efficiency.

Cloud-based managed services are increasingly opting for managed services in order to obtain affordable IT solutions and enhance their competitive advantage. MSPs are vital for managing cybersecurity, cloud services, and IT infrastructure due to constraints in internal resources. Managed services allow small and medium enterprises to improve productivity, adjust to technological progress, and guarantee business operation without interruption. By delegating IT requirements, these companies can concentrate on expansion and use innovative solutions usually available to bigger companies.

Analysis by Enterprise Size:

• Large Enterprises
• Small and Medium-sized Enterprises
   

Large enterprises use these solutions to maintain operational efficiency and manage intricate IT infrastructures, making them major contributors to the managed services market in the US. Large enterprises depend on managed services providers (MSPs) for advanced cybersecurity, cloud management, and compliance support given their extensive networks and massive data volumes. These businesses gain from scalable solutions that simplify processes, cut expenses, and allow for a greater emphasis on key business goals as digital transformation projects expand.

Small and medium-sized enterprises (SMEs) are increasingly adopting managed services to access cost-effective IT solutions and improve their competitive edge. Limited in-house resources render MSPs essential for managing cybersecurity, cloud services, and IT infrastructure. Managed services enable SMEs to enhance efficiency, adapt to technological advancements, and ensure business continuity. By outsourcing IT needs, these businesses can focus on growth while leveraging advanced solutions typically accessible only to larger organizations.

Analysis by End Use:

• IT and Telecommunication
• BFSI
• Healthcare
• Entertainment and Media
• Retail
• Manufacturing
• Government
• Others
   

The IT and telecommunication sector dominates the U.S. managed services market as organizations increasingly adopt managed services to handle complex IT infrastructures and ensure robust cybersecurity. The rapid growth of cloud computing and data-driven technologies further drives demand. Managed services providers (MSPs) enable telecom companies to scale operations efficiently while maintaining uptime and regulatory compliance, making them critical partners in this highly competitive and technology-intensive industry.

The BFSI sector heavily relies on managed services to streamline operations, mitigate risks, and ensure compliance with changing regulations. Banks and financial institutions utilize managed IT services for secure data handling, fraud prevention, and advanced analytics. The increasing focus on digital transformation and customer experience enhancement further amplifies demand for MSPs, enabling BFSI companies to stay competitive in a technology-driven financial landscape.

The healthcare industry in the United States is a key adopter of managed services, leveraging them for secure data storage, telemedicine platforms, and electronic health record (EHR) management. MSPs play a crucial role in ensuring compliance with healthcare regulations such as HIPAA. Additionally, as healthcare providers expand their digital capabilities, managed services enable them to maintain operational efficiency while focusing on improving patient care and outcomes.

The entertainment and media sector benefits significantly from managed services, particularly in managing high-volume digital content and ensuring seamless streaming capabilities. MSPs provide essential support for scalable IT infrastructure, cybersecurity, and cloud-based storage. As consumer demand for on-demand content grows, managed services help media companies optimize their operations and maintain competitive advantages in an increasingly digital-first market.

Retail businesses across the U.S. increasingly depend on managed services to improve customer experiences and streamline supply chain operations. MSPs support retailers by managing IT infrastructure, integrating e-commerce platforms, and ensuring data security. The rise in digital payment solutions and personalized shopping experiences further fuels demand for managed services, enabling retailers to adapt to changing consumer expectations efficiently.

The manufacturing sector leverages managed services to enhance automation, improve operational efficiency, and ensure system security. MSPs provide critical support for IoT integration, supply chain management, and predictive maintenance. As manufacturers adopt advanced technologies such as AI and robotics, managed services play an essential role in maintaining robust IT systems and meeting compliance requirements.

Government agencies in the U.S. rely on managed services to modernize legacy systems, improve cybersecurity, and enhance operational efficiency. MSPs assist in managing large-scale data and implementing secure IT solutions to protect sensitive information. With an increasing focus on digital transformation and citizen services, managed services help governments deliver efficient, technology-driven solutions while addressing evolving security challenges.

Regional Analysis:

• Northeast
• Midwest
• South
• West
   

The Northeast holds a prominent role in the U.S. managed services market due to its dense network of financial hubs and technology-focused industries. Businesses in the region adopt managed services to streamline IT operations, enhance cybersecurity, and meet regulatory compliance needs. The presence of numerous Fortune 500 companies and startups further drives demand for tailored solutions, with a strong emphasis on digital transformation and infrastructure management.

The Midwest witnessed steady growth in the managed services market, primarily driven by its manufacturing, healthcare, and logistics sectors. Companies increasingly rely on managed services providers (MSPs) to optimize operations, reduce costs, and implement cybersecurity measures. The region’s rising adoption of cloud technologies and automation further fuels the need for managed solutions, making MSPs integral to improving efficiency and maintaining compliance.

The South emerged as a leader in the market, bolstered by rapid economic expansion and a thriving business ecosystem. Key sectors such as energy, healthcare, and retail rely on MSPs for scalable IT infrastructure and advanced technology adoption, such as AI and cloud computing. The region's focus on disaster recovery and remote work solutions strengthens its market position, reflecting growing demand for tailored managed services.

The West plays a dynamic role in the managed services market, driven by its robust technology sector and innovative startups. The need for scalable IT solutions, data analytics, and advanced cybersecurity drives adoption in the region. Silicon Valley significantly influences market trends, while other states prioritize managed cloud services to support their growing tech ecosystems, ensuring ongoing expansion of the managed services market.

Competitive Landscape:

The U.S. managed services market is highly competitive, with global IT leaders, regional players, and startups offering diverse solutions. Companies differentiate through advanced technologies such as AI, edge computing, and zero-trust security. Strategic acquisitions and partnerships drive growth, as seen in the expanded alliance between CrowdStrike and Google Cloud on May 9, 2024. This collaboration integrates CrowdStrike’s Falcon platform with Google Cloud’s Security Operations platform to enhance Mandiant’s Incident Response (IR) and Managed Detection and Response (MDR) services, delivering advanced multi-cloud threat protection. Tailored solutions for industries such as retail and logistics, coupled with rising demand for hybrid cloud models, continue to foster innovation and market expansion.

The report provides a comprehensive analysis of the competitive landscape in the U.S. managed services market with detailed profiles of all major companies.

Latest News and Developments:

• August 07, 2024: Zones has been recognized as a "Rising Star" in managed services in the 2024 ISG Provider Lens report for the U.S. Public Sector. This acknowledgment highlights Zones' expertise in private and hybrid cloud, data center services, and its specialized solutions for state, local, education (SLED), and federal clients. The ZonesCloud platform offers secure, scalable cloud management with cost accountability and advanced automation. As certified partners of Azure, AWS, and Google Cloud, Zones delivers comprehensive managed services tailored to public sector needs.

• January 30, 2024: Accenture completed its acquisition of Navisite, enhancing its managed services capabilities for IT and cloud infrastructure modernization in North America. The acquisition, adding 1,500 employees and over 400 cloud engineers with 2,000+ certifications, strengthens Accenture’s Infrastructure Engineering practice. Navisite’s expertise spans multiple cloud providers, enterprise applications, and digital technologies, serving industries such as healthcare, manufacturing, and business services. This move aligns with Accenture’s strategy to accelerate cloud transformations and build robust digital cores for clients.
   

U.S. 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 U.S. managed services market from 2019-2033.
• The research study provides the latest information on the market drivers, challenges, and opportunities in the U.S. managed services market.
• Porter's Five Forces analysis assists 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 U.S. 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.