Cloud Managed Services Market Size (2024 - 2029)

Cloud Managed Services Market Analysis

The cloud-managed services market is expected to grow at a CAGR of 16% over the forecast period. The increasing need for businesses to cut down operational and infrastructural costs involved in business processes is anticipated to drive the cloud-managed services demand.

• Outsourcing cloud services to third-party enables the organizations to focus on their core competencies, thereby enhancing overall productivity. The expanding data space created a higher demand for managed analytical and cloud storage services. Also, the increasing demand for reliability and scalability further elevates the need for these services, enabling enterprises to scale up their operations by providing custom-made offerings to the available services.
• As various organizations, such as American Red Cross, Netflix, and Rovio, are increasingly utilizing a wide array of Software-as-a-Service (SaaS) applications and various other cloud-based services, the demand for cloud-based managed security services is set to increase. Increasing penetration of mobile devices and the trend of BYOD in multiple organizations are also likely to drive the demand for this market, to manage these devices for utilization and security need. Around 67% of the workforce is expected to adopt their own devices, which may further drive the cloud-managed services market growth. However, concerns regarding cloud privacy are estimated to challenge the market's growth.
• The rapid adoption of cloud services drives cloud-managed services by enterprises across the world. Higher flexibility and the introduction of a 'pay as you go' model have enabled small & medium enterprises to emerge as the most promising consumers of cloud services. As a result, the cloud-managed services market is set to register high growth with the continually increasing cloud services adoption.
• Cloud-managed services involve numerous third parties outsourcing their skills, including infrastructures for web applications, virtualization, mobility, networks, endpoints, and databases. Thus, corporations may choose the cloud because sensitive business information may be exposed. MSPs assist companies in maintaining appropriate security and privacy protections for the data they deploy over the cloud. They guarantee consumers complete network security and encryption for added safety.
• Globally considered, COVID-19 altered how company operations function. The COVID-19 outbreak highlighted flaws in business models across industries, but it also provided chances for cloud-managed service providers to grow their clientele among businesses. Due to the pandemic's forced global lockdown and remote working, small and large businesses were compelled to prioritize digital transformation and heavily employ cloud services. Organizations find that switching to the cloud is more affordable and flexible.

Cloud Managed Services Industry Segmentation

Cloud Managed Services is outsourcing day-to-day IT management for cloud-based services and technical support to a third-party firm that automates and enhances your business operations. Internal IT departments only sometimes have the skills to monitor and manage a cloud environment effectively. More often than not, companies hire a third-party cloud-managed services provider to manage cloud security, computing, storage, network operations, application stacks, vendors, and more. The services provided by the cloud-managed services include managed network operations, cloud management, managed security actions, IT life cycle management, and application and mobility management.

The Cloud Managed Services Market is segmented by type (infrastructure service and network service), end-user industry (BFSI, IT & telecom, and retail), and geography (North America (US, Canada), Europe (Germany, UK, France, and rest of Europe), Asia Pacific (India, China, Japan, and Rest of Asia-Pacific), Latin America (Mexico, Brazil, and rest of Latin America), and Middle East & Africa (UAE, Saudi Arabia, and rest of Middle East & Africa)). The market sizes and forecasts are provided in value (USD million) for all the above segments.