Managed IT Infrastructure Services Market Size
| Study Period | 2019 - 2029 |
| Market Size (2024) | USD 117.57 Billion |
| Market Size (2029) | USD 183.57 Billion |
| CAGR (2024 - 2029) | 9.32 % |
| Fastest Growing Market | Asia Pacific |
| Largest Market | North America |
| Market Concentration | Low |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Managed IT Infrastructure Services Market Analysis
The Managed IT Infrastructure Services Market size is estimated at USD 117.57 billion in 2024, and is expected to reach USD 183.57 billion by 2029, growing at a CAGR of 9.32% during the forecast period (2024-2029).
- Companies struggling to strike a balance between ensuring their IT infrastructure functions at optimal performance levels and simultaneously managing the associated costs are increasingly hiring vendors offering infrastructure services. Managed infrastructure services help different industry verticals to focus only on their core business.
- These services are mostly being adopted in the IT industry, where cost optimization, emphasis on core competencies, and data security remain significant concerns. However, the recent proliferation of cloud-based technology and technological advancements is the major contributor to this trend.
- The proliferation of technologies like big data has further added to the need for outsourcing IT services. Companies can leverage the combination of both Big Data and the Cloud to provide scalable and cost-effective solutions. For example, Amazon's "Elastic Map Reduce" demonstrates how the power of cloud elastic computes is leveraged for big data processing.
- Further, the need to update outdated hardware is another major market driver. According to a survey conducted by Spice works Inc., 64% of the 700 companies involved in the study reported that the need to update outdated information technology (IT) infrastructure and security concerns are the major factors leading to high IT budgets.
Managed IT Infrastructure Services Market Trends
Technological Proliferation and Advancement of Cloud Based Technology Complement the Demand
- In the current market scenario, the increasing dependency on cloud services and infrastructure upgrading activities are the major factors driving the demand for managed IT infrastructure services. In fact, most of the infrastructure developments in the next few years are dedicated to supporting the increasing demand for cloud services.
- The landscape of IT infrastructure itself is changing rapidly. Traditional racks of servers stored in cages are quickly disappearing as more companies migrate most or all of their IT services and applications to the cloud. As a result, even investments in traditional IT infrastructure are expected to decline over the forecast period as companies increasingly invest in advanced cloud infrastructure.
- Moreover, according to the Cisco Global Cloud Index Report, more than 90 percent of all workloads will be cloud-based by this year. Global cloud traffic will represent 95 percent of total data center traffic. Whereas traditional data center workloads and compute instances are expected to decline during the same period. Historically, one server carried one workload and computed instance. But with increasing server computing capacity and virtualization, multiple workloads and compute instances per physical server are common in cloud architectures.
North America Region to Hold the Largest Market Share
- North America remains the largest market for managed IT infrastructure services because of the early adoption of technology and numerous IT data centers.
- North America has seen a dramatic increase in cloud migration over the years, mostly because of the region's strong IT infrastructure, laws, standards, and access to technological experience, among other factors. Additionally, the expansion of the cloud migration services market in North America has been aided by the existence of illustrious cloud firms like Amazon Web Services, IBM Corporations, Microsoft Corporation, Google, and Cisco Systems.
- The other factor is the high degree of automation and immense penetration of IT applications in several end-user industries, creating a constant demand for IT infrastructure services in the region.
Managed IT Infrastructure Services Industry Overview
The managed IT infrastructure services market is highly competitive due to the presence of many large and small players. The fragmented nature of the market is leading to acquisitions or a growing focus on niche segments as strategies to scale up. The continuously evolving nature of the services offered has made it imperative for all players to keep investing in new-age skills and technologies to stay relevant and ahead of the competition. This can only be achieved by hiring the right R&D talent and/or by acquiring any interesting start-ups that have the potential to disrupt the space. The major advantage that the smaller players have over the bigger ones is their ability to serve the local markets better because of the presence of their data centers locally. This forces bigger players to go for aggressive acquisitions to enhance their global footprint.
In August 2022, Dell Technology announced the launch of new infrastructure solutions, co-engineered with VMware, these new infrastructure solutions increase automation and performance for businesses adopting multi-cloud and edge strategies.
In March 2022, Verizon Communications Inc. announced the expansion of its 5G Ultra Wideband network to an expected 175 million people by year-end 2022. The company outlined several growth avenues, including 5G mobility, nationwide broadband, mobile edge computing (MEC), business solutions, the value market, and network monetization, with the expectation that these will help the company achieve service and other revenue growth.
Managed IT Infrastructure Services Market Leaders
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Fujitsu Limited
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Dell EMC (EMC Corporation)
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Verizon Communications Inc.
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Microsoft Corporation
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IBM Corporation
*Disclaimer: Major Players sorted in no particular order
Managed IT Infrastructure Services Market News
- February 2022: T-Mobile US and Deutsche Telekom launched a new T Challenge seeking Web3 development through 5G. The solutions created by these companies will leverage the power of 5G to bring Web3.
- July 2022: Google Cloud and Deutsche Telekom announced a new partnership to define a joint roadmap for the telecommunications industry by bringing the power of the cloud closer to mobile and connected devices at the edge of Deutsche Telekom's network.
Managed IT Infrastructure Services Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Assumptions & Definitions
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS
4.1 Market Overview
4.2 Introduction to Market Dynamics
4.3 Market Drivers
4.3.1 Cost Optimization with the Adoption of Managed Services
4.3.2 Technological Proliferation and Advancement of Cloud Based Technology will Act as a Driver
4.4 Market Restraints
4.4.1 Concerns Over Security and Privacy will Act as a Restraint
4.5 Industry Value Chain Analysis
4.6 Industry Attractiveness - Porter's Five Force Analysis
4.6.1 Threat of New Entrants
4.6.2 Bargaining Power of Buyers/Consumers
4.6.3 Bargaining Power of Suppliers
4.6.4 Threat of Substitute Products
4.6.5 Intensity of Competitive Rivalry
5. MARKET SEGMENTATION
5.1 By Service Category
5.1.1 Virtualization
5.1.2 Networking
5.1.3 Storage
5.1.4 Servers
5.2 By Enterprise Size
5.2.1 Small & Medium Enterprises
5.2.2 Large Enterprises
5.3 By Deployment
5.3.1 On-premises
5.3.2 Cloud
5.4 By End-User
5.4.1 IT & Telecommunication
5.4.2 Retail
5.4.3 Transportation & Logistics
5.4.4 BFSI
5.4.5 Manufacturing
5.4.6 Other End-Users
5.5 Geography
5.5.1 North America
5.5.2 Europe
5.5.3 Asia-Pacific
5.5.4 Latin America
5.5.5 Middle East & Africa
6. COMPETITIVE LANDSCAPE
6.1 Company Profiles
6.1.1 Fujitsu Ltd.
6.1.2 CSS Corp Pvt Ltd.
6.1.3 Dell EMC (EMC Corporation)
6.1.4 IBM Corporation
6.1.5 Alcatel-Lucent SA (Nokia Corporation)
6.1.6 Microsoft Corporation
6.1.7 Verizon Communications Inc.
6.1.8 Citrix Systems Inc.
6.1.9 Tata Consultancy Services Limited
6.1.10 Deutsche Telekom AG
- *List Not Exhaustive
7. INVESTMENT ANALYSIS
8. MARKET OPPORTUNITIES AND FUTURE TRENDS
Managed IT Infrastructure Services Industry Segmentation
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.
| By Service Category | |
| Virtualization | |
| Networking | |
| Storage | |
| Servers |
| By Enterprise Size | |
| Small & Medium Enterprises | |
| Large Enterprises |
| By Deployment | |
| On-premises | |
| Cloud |
| By End-User | |
| IT & Telecommunication | |
| Retail | |
| Transportation & Logistics | |
| BFSI | |
| Manufacturing | |
| Other End-Users |
| Geography | |
| North America | |
| Europe | |
| Asia-Pacific | |
| Latin America | |
| Middle East & Africa |
Managed IT Infrastructure Services Market Research FAQs
How big is the Managed IT Infrastructure Services Market?
The Managed IT Infrastructure Services Market size is expected to reach USD 117.57 billion in 2024 and grow at a CAGR of 9.32% to reach USD 183.57 billion by 2029.
What is the current Managed IT Infrastructure Services Market size?
In 2024, the Managed IT Infrastructure Services Market size is expected to reach USD 117.57 billion.
Who are the key players in Managed IT Infrastructure Services Market?
Fujitsu Limited, Dell EMC (EMC Corporation), Verizon Communications Inc., Microsoft Corporation and IBM Corporation are the major companies operating in the Managed IT Infrastructure Services Market.
Which is the fastest growing region in Managed IT Infrastructure Services Market?
Asia Pacific is estimated to grow at the highest CAGR over the forecast period (2024-2029).
Which region has the biggest share in Managed IT Infrastructure Services Market?
In 2024, the North America accounts for the largest market share in Managed IT Infrastructure Services Market.
What years does this Managed IT Infrastructure Services Market cover, and what was the market size in 2023?
In 2023, the Managed IT Infrastructure Services Market size was estimated at USD 107.55 billion. The report covers the Managed IT Infrastructure Services Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Managed IT Infrastructure Services Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Managed IT Infrastructure Services Industry Report
Statistics for the 2024 Managed IT Infrastructure Services market share, size and revenue growth rate, created by Mordor Intelligenceā¢ Industry Reports. Managed IT Infrastructure Services analysis includes a market forecast outlook to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
Managed IT Infrastructure Services Report Snapshots
