Managed IT Infrastructure Services Market Size and Share
Market Overview
| Study Period | 2019 - 2030 |
|---|---|
| Market Size (2025) | USD 128.53 Billion |
| Market Size (2030) | USD 200.68 Billion |
| Growth Rate (2025 - 2030) | 9.32% CAGR |
| Fastest Growing Market | Asia Pacific |
| Largest Market | North America |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order Image © Mordor Intelligence. Reuse requires attribution under CC BY 4.0. |
|
Managed IT Infrastructure Services Market Analysis by Mordor Intelligence
The managed IT infrastructure services market size stands at USD 128.53 billion in 2025 and is forecast to reach USD 200.68 billion by 2030, expanding at a 9.32% CAGR over 2025-2030. Growing demand is closely tied to cloud-first mandates, AI-driven automation that lowers operating overhead, and an acute shortage of advanced infrastructure talent. Enterprises use managed partners to modernize networks and data centers, accelerate edge deployments for Industry 4.0, and adopt green-data-center practices that satisfy emerging ESG scorecards. The managed IT infrastructure services market now functions as a strategic enabler of digital transformation, shifting relationships from cost-arbitrage toward business-outcome contracts. Competition is intensifying as global system integrators, telecom carriers, and cloud-native specialists converge on platform-based, automation-rich offerings.
Key Report Takeaways
- By service category, managed network services held 34.1% of the managed IT infrastructure services market share in 2024, while edge infrastructure management is advancing at an 11.5% CAGR through 2030.
- By enterprise size, large enterprises accounted for 61.3% of the managed IT infrastructure services market size in 2024, whereas small and medium enterprises are projected to expand at a 9.4% CAGR to 2030.
- By deployment model, cloud deployments commanded 67.5% of the managed IT infrastructure services market size in 2024, but hybrid approaches are forecast to grow at a 10.7% CAGR between 2025-2030.
- By end-user industry, IT and Telecommunication led with 26.1% revenue share in 2024; healthcare is set to post the fastest 9.7% CAGR through 2030.
- By geography, North America dominated with 34.7% market share in 2024, while Asia Pacific is projected to deliver the highest 10.3% CAGR to 2030.
Global Managed IT Infrastructure Services Market Trends and Insights
Drivers Impact Analysis
| Driver | (~) % Impact on CAGR Forecast | Geographic Relevance | Impact Timeline |
|---|---|---|---|
| Cost optimisation through outsourcing | +2.1% | North America, Europe, global scope | Medium term (2-4 years) |
| Cloud and hybrid-first transformation wave | +2.8% | Global, led by North America, strong in Asia-Pacific | Long term (≥ 4 years) |
| IT-skills shortage in advanced infrastructure ops | +1.9% | Global, acute in North America and Europe | Long term (≥ 4 years) |
| AI-driven hyper-automation lowers MTTR | +1.4% | North America and Europe early, and Asia-Pacific following | Medium term (2-4 years) |
| Edge infrastructure surge in Industry 4.0 | +1.2% | APAC manufacturing hubs, expanding worldwide | Long term (≥ 4 years) |
| Green-datacentre mandates and ESG scorecards | +0.8% | Europe leading, global adoption | Long term (≥ 4 years) |
| Source: Mordor Intelligence | |||
Cost Optimisation Through Outsourcing
Enterprises are replacing labour-arbitrage contracts with outcome-based partnerships that funnel savings into innovation programs. Managed vendors provide predictable operating expenses, freeing CIO budgets for AI pilots and product digitization. CFO stewardship now benchmarks partners on uptime, resiliency, and experience scores rather than invoice line items. These dynamics reaffirm the managed IT infrastructure services market as a lever for value creation rather than a cost-cutting commodity.
Cloud and Hybrid-First Transformation Wave
Cloud migration has matured into workload placement optimisation across multicloud estates. Enterprises mix hyperscaler, colocation, and edge footprints to satisfy latency, sovereignty, and TCO goals. The expanded Oracle Database@Azure program—now in 24 additional regions—underscores how joint service catalogs mitigate lock-in and achieve policy compliance.[1]Oracle Corp., “Microsoft and Oracle Expand Partnership to Satisfy Global Demand for Oracle Database@Azure,” oracle.com Providers able to engineer and operate these interwoven fabrics win larger, longer contracts that elevate the managed IT infrastructure services market.
IT-Skills Shortage in Advanced Infrastructure Ops
High demand for Kubernetes platform engineers, site-reliability architects, and observability specialists has widened the talent gap. MSPs offset scarcity with 24×7 command centers, skill academies, and AI copilots that reduce manual toil. Clients increasingly treat MSP benches as an extension of internal teams, driving recurring revenue streams. The shortage therefore directly lifts contract volumes across the managed IT infrastructure services market.[2] Kyndryl Ltd., “Kyndryl to Modernize and Manage Canara Bank’s IT Operations,” kyndryl.com
AI-Driven Hyper-Automation Lowers MTTR
Predictive analytics now pre-empt incidents, while auto-remediation scripts restore services within minutes. A leading Asian bank cut outage minutes by deploying a managed AIOps stack that monitors 111.9 million customer accounts. As hyper-automation becomes table stakes, MSPs differentiate by embedding domain-specific AI and secure data pipelines. Quicker mean-to-recovery cements the managed IT infrastructure services market as an operational risk-mitigation partner.
Restraints Impact Analysis
| Restraint | (~) % Impact on CAGR Forecast | Geographic Relevance | Impact Timeline |
|---|---|---|---|
| Security and privacy concerns | −1.8% | Regulated industries worldwide | Short term (≤ 2 years) |
| Vendor lock-in and integration complexity | −1.2% | Legacy-heavy enterprises globally | Medium term (2-4 years) |
| Escalating power/cooling OPEX for MSPs | −0.9% | High-energy-cost regions | Long term (≥ 4 years) |
| Data-sovereignty/geopolitical fragmentation | −0.7% | Europe, China, emerging worldwide | Long term (≥ 4 years) |
| Source: Mordor Intelligence | |||
Security and Privacy Concerns
Financial services and healthcare boards scrutinise managed deals for threat exposure and compliance posture. HIPAA requires robust Business Associate Agreements, layered encryption, and audit trails before workloads leave hospital campuses.[3]Lakeridge IO, “HIPAA for Managed Service Providers,” lakeridge.io Extended due diligence lengthens sales cycles and can delay revenue realisation, tempering near-term growth for the managed IT infrastructure services market.
Vendor Lock-in and Integration Complexity
Proprietary management planes impede portability between providers, raising exit costs. Clients, therefore, demand open APIs and reference architectures that ease migration. The launch of a platform-agnostic service catalog by a global provider illustrates the strategic pivot toward neutrality to assuage lock-in fears. Until standards mature, integration pain will continue to restrain some buyers within the managed IT infrastructure services market.
Segment Analysis
By Service Category: Network Services Drive Market Leadership
In 2024, managed network services accounted for 34.1% of total revenue, making connectivity optimisation the biggest contributor to overall demand. Enterprises continue to modernise SD-WAN and zero-trust architectures to support hybrid work and latency-sensitive SaaS. Parallel growth in edge orchestration at an 11.5% CAGR mirrors rising sensor density and real-time analytics across factories. The managed IT infrastructure services market rewards vendors that merge campus, branch, cloud, and edge monitoring into single observability stacks.
Network modernisation also anchors higher-value cross-selling. Once circuits and routers fall under an MSP’s remote management, adjacent services such as SASE gateways, firewall-as-a-service, and AI-based traffic optimisation follow. Virtualisation, storage, and server management maintain steady demand as legacy hardware is rationalised, but margins trend lower due to commoditisation. By contrast, cloud infrastructure management is ascending on the back of multicloud finops, security posture management, and AI workload tuning. Providers that package these layers in integrated blueprints will capture outsized wallet share as the managed IT infrastructure services market matures.
Note: Segment shares of all individual segments available upon report purchase
By Enterprise Size: SME Adoption Accelerates Market Expansion
Large enterprises delivered 61.3% of 2024 billings, reflecting complex multiregional estates needing 24×7 oversight. However, SMEs now post a 9.4% CAGR to 2030, benefitting from subscription pricing that obviates data-center buildouts. Cloud marketplaces and self-service portals let a 500-employee retailer spin up managed firewalls, backups, and observability within hours.
The resulting democratization fuels net-new logo growth inside the managed IT infrastructure services market. For MSPs, SME onboarding drives volume efficiency, though ARPU remains lower than with global accounts. Economies of scale thus hinge on automation and AI chatbots that minimise manual ticket handling while preserving SLA adherence. As consumption models evolve, flexible term lengths and modular bundles will remain decisive in winning SME contracts.
By Deployment Model: Hybrid Strategies Reshape Infrastructure Approaches
Cloud-only estates represent 67.5% share today, yet hybrid architectures are scaling fastest at a 10.7% CAGR. Regulatory workloads, low-latency manufacturing apps, and data-sovereignty mandates keep critical systems on-premises or in dedicated colocation cages. MSPs therefore orchestrate policy engines that dynamically route traffic among private clusters, hyperscaler regions, and edge nodes.
This pivot cements the role of unified control planes, identity brokering, and cost-visibility dashboards across clouds. Enterprises value partners who combine certified experts for AWS, Azure, and Oracle with ITIL processes and local compliance expertise. On-premises footprints no longer stagnate; they integrate with managed Kubernetes distributions and NVMe-over-Fabrics to sustain legacy performance needs. The complexity lifts service intensity, expanding the managed IT infrastructure services market size for hybrid management offerings.
Note: Segment shares of all individual segments available upon report purchase
By End-User Industry: Healthcare Leads Digital Transformation Acceleration
IT and Telecommunication remained the top revenue contributor at 26.1% in 2024 as carriers outsource network lifecycle operations and OTT players offload CDN optimization. Yet healthcare’s 9.7% CAGR reflects robust investment in telemedicine, AI-assisted imaging, and secure interoperability among electronic health records. Providers seek MSPs possessing HIPAA attestation and real-time ransomware response capabilities.
BFSI, manufacturing, retail, and energy sectors show differentiated yet solid trajectories. Banks replace monolithic cores with cloud-ready microservices, requiring round-the-clock managed observability. Automotive and discrete manufacturing adopt edge orchestration to enable predictive maintenance and digital twins, boosting outsourced demand. Energy utilities modernise grid SCADA through managed private LTE and OT cybersecurity offerings. Such verticalisation strategies further enlarge the managed IT infrastructure services market opportunity set.
Geography Analysis
North America sustained 34.7% revenue share in 2024, reflecting early-mover maturity in workload outsourcing and stringent SLAs that favour outcome-based contracts. United States multinationals execute multi-year renewals covering cloud migration, AI co-development, and zero-trust enablement. Canadian firms prioritise hybrid platforms to ensure data residency, and Mexican manufacturers deploy managed campus networks aligned with Automotive-4.0 production lines. Vendor competition here is intense, driving consolidation among midsized MSPs and telecom-carrier captives.
Asia Pacific is projected to grow at 10.3% CAGR through 2030, the fastest regional pace inside the managed IT infrastructure services market. China’s state-incentivised digitisation funnels managed spend into smart-factory platforms. Japan’s enterprises experiment with private-cloud AI clusters to accelerate product innovation cycles, while India’s domestic startups adopt consumption-based managed Kubernetes clusters straight from the cloud. Australia, South Korea, and ASEAN-5 economies witness leapfrog uptake as businesses bypass legacy data centers and go straight to SaaS and managed edge nodes.
Competitive Landscape
The market now features three competitive strata. First, global system integrators bundle consulting, transformation, and managed run services, often via proprietary platforms that orchestrate multicloud and edge assets. Second, focused managed specialists such as telco-anchored MSPs leverage deep network IP to target connectivity, SASE, and IoT. Third, cloud-native challengers rely on serverless automation and AI to deliver low-touch, high-margin skeleton crews. Acquisition momentum remains brisk, with larger players buying AI-ops startups and regional boutiques to fill portfolio gaps and secure local delivery capacity.
Strategic differentiation tilts toward AI-assisted remediation, carbon-neutral hosting, and industry-specific templates that accelerate time-to-value. A five-year renewal between a global tyre manufacturer and its MSP underscores how clients prize joint-innovation roadmaps over vendor-of-record status. Multicloud alliances such as Oracle-Microsoft tighten competitive fences by embedding sticky co-engineered services deeper into customer estates. Meanwhile, investment consortia spearheaded by Microsoft and BlackRock pour billions into next-gen data-center capacity, reinforcing supply-chain advantages for hyperscale-aligned MSPs. Despite moderate consolidation, more than 200 regional providers hold niche footholds, sustaining healthy price-performance tension across the managed IT infrastructure services market.
Managed IT Infrastructure Services Industry Leaders
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Fujitsu Limited
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Verizon Communications Inc.
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Microsoft Corporation
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IBM Corporation
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Dell Technologies Inc.
- *Disclaimer: Major Players sorted in no particular order
Recent Industry Developments
- April 2025: Kyndryl launched AI Private Cloud services for business, offering end-to-end consulting and secure AI workload hosting for financial, healthcare, and manufacturing clients.
- March 2025: Oracle and Microsoft expanded Oracle Database@Azure with new services and wider regional coverage, addressing demand for multicloud data platforms.
- November 2024: Kyndryl and Microsoft introduced mainframe modernisation and generative AI services to help enterprises migrate legacy workloads onto Microsoft Cloud.
- November 2024: Kyndryl opened an AI private cloud in Japan, supported by Dell Technologies and NVIDIA, to support strict data-residency requirements.
Global Managed IT Infrastructure Services Market Report Scope
IT infrastructure refers to the combination of hardware, software, network resources, and services required to operate an enterprise IT environment. IT infrastructure is usually internal to an organization and is deployed within the organization's premises. But with the evolution of the IT supply chain, enterprises are able to outsource their infrastructure requirements. In managed services, a third-party service provider manages an organization's in-house day-to-day IT infrastructure requirements, benefiting the global IT industry and helping them cut down several operation costs.
The managed IT infrastructure services market is segmented by services category (virtualization, networking, storage, and servers), enterprise size (small & medium enterprise and large enterprise), deployment (on-premise and cloud), end-user (IT& telecommunication, retail, transportation & logistics, BFSI, manufacturing, and other end-users), and geography (North America, Europe, Asia-Pacific, Latin America, and Middle East and Africa).
The market sizes and forecasts are provided in terms of value (USD million) for all the above segments.
| Virtualization |
| Networking |
| Storage |
| Servers |
| Cloud Infrastructure Management |
| Edge Infrastructure Management |
| Small and Medium Enterprises |
| Large Enterprises |
| On-premises |
| Cloud |
| Hybrid |
| IT and Telecommunication |
| BFSI |
| Manufacturing |
| Retail and E-commerce |
| Transportation and Logistics |
| Healthcare |
| Energy and Utilities |
| North America | United States |
| Canada | |
| Mexico | |
| South America | Brazil |
| Argentina | |
| Rest of South America | |
| Europe | Germany |
| United Kingdom | |
| France | |
| Italy | |
| Spain | |
| Russia | |
| Rest of Europe | |
| Asia-Pacific | China |
| Japan | |
| India | |
| South Korea | |
| Australia | |
| Rest of Asia-Pacific | |
| Middle East | Saudi Arabia |
| United Arab Emirates | |
| Turkey | |
| Rest of Middle East | |
| Africa | South Africa |
| Nigeria | |
| Kenya | |
| Rest of Africa |
| By Service Category | Virtualization | |
| Networking | ||
| Storage | ||
| Servers | ||
| Cloud Infrastructure Management | ||
| Edge Infrastructure Management | ||
| By Enterprise Size | Small and Medium Enterprises | |
| Large Enterprises | ||
| By Deployment Model | On-premises | |
| Cloud | ||
| Hybrid | ||
| By End-User Industry | IT and Telecommunication | |
| BFSI | ||
| Manufacturing | ||
| Retail and E-commerce | ||
| Transportation and Logistics | ||
| Healthcare | ||
| Energy and Utilities | ||
| Geographic Analysis | North America | United States |
| Canada | ||
| Mexico | ||
| South America | Brazil | |
| Argentina | ||
| Rest of South America | ||
| Europe | Germany | |
| United Kingdom | ||
| France | ||
| Italy | ||
| Spain | ||
| Russia | ||
| Rest of Europe | ||
| Asia-Pacific | China | |
| Japan | ||
| India | ||
| South Korea | ||
| Australia | ||
| Rest of Asia-Pacific | ||
| Middle East | Saudi Arabia | |
| United Arab Emirates | ||
| Turkey | ||
| Rest of Middle East | ||
| Africa | South Africa | |
| Nigeria | ||
| Kenya | ||
| Rest of Africa | ||
Key Questions Answered in the Report
What is the current value of the managed IT infrastructure services market?
The market is valued at USD 128.53 billion in 2025 and is set to grow to USD 200.68 billion by 2030.
Which region is growing fastest?
Asia Pacific shows the highest growth with a projected 10.3% CAGR through 2030, driven by large-scale digital-transformation programs.
Which service category leads revenue?
Managed network services hold the top position with 34.1% share in 2024, reflecting their foundational role in connectivity modernisation.
What industry vertical is expanding quickest?
Healthcare leads with a 9.7% CAGR as hospitals adopt telemedicine platforms, AI diagnostics, and secure cloud records.
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