United States (US) Managed Services Industry Size, Share, Analysis & Report (2025 - 2030)

United States (US) Managed Services Industry Analysis

The United States Managed Services Industry is expected to grow from USD 69.55 billion in 2025 to USD 116.25 billion by 2030, at a CAGR of 10.82% during the forecast period (2025-2030).

The managed services landscape in the United States is experiencing significant transformation driven by technological advancement and increasing digital complexity. According to the US Census Bureau, the presence of 33.2 million small enterprises in 2022, accounting for 99.9% of all firms, has created a massive demand for managed IT services as these businesses seek cost-effective solutions for their IT operations. The integration of emerging technologies like artificial intelligence, machine learning, and cloud computing has fundamentally altered how managed service providers (MSPs) deliver their solutions. This evolution has led to more sophisticated service offerings that combine automation, predictive analytics, and proactive maintenance capabilities.

The telecommunications and cybersecurity sectors are witnessing unprecedented growth within the managed services market. As of April 2023, 5G network access was available in 503 United States cities, the most of any country globally, creating new opportunities and challenges for managed service providers. The complexity of managing these advanced networks has led to increased demand for specialized expertise in network management, security, and optimization. Recent industry consolidation, exemplified by SonicWall's acquisition of Solutions Granted Inc. in November 2023, demonstrates the market's movement toward comprehensive service portfolios that combine traditional managed services with advanced security capabilities.

The federal government's increasing investment in IT infrastructure is reshaping the managed services industry. For fiscal year 2023, the US federal government allocated approximately USD 24.4 billion for major federal IT investments, highlighting the growing importance of managed services in public sector digital transformation. This substantial investment has catalyzed innovation in areas such as cloud services, cybersecurity, and digital infrastructure management. The market has responded with more sophisticated service offerings, particularly in areas of compliance, security, and cloud optimization.

The escalating threat of cybercrime has become a critical factor shaping the managed services market. According to Microsoft's projections, cybercrime is expected to cost the world USD 10.5 trillion annually by 2025, driving organizations to seek comprehensive managed security solutions. This trend is evidenced by significant market movements such as Dataprise's acquisition of RevelSec in July 2023 and Kyndryl's expansion of its managed security services portfolio in the same month. These developments reflect the industry's response to the growing demand for integrated security solutions within managed services offerings.

United States (US) Managed Services Industry Trends

Increasing Shift to Hybrid IT

The transition to hybrid IT environments has emerged as a fundamental driver of managed services growth in the United States. Internal operations and customer-facing functions are being transformed through hybrid IT capabilities, with businesses across industries recognizing the critical importance of these capabilities for their success in the digital era. According to the Bureau of Labor Statistics, the tech industry contributed approximately USD 1.8 trillion to the nation's total gross domestic product in 2021, representing about 9.3% of GDP, which has prompted the government to implement policies favoring IT sector development and hybrid adoption.

The United States leads in the bring-your-own-device (BYOD) culture, necessitating a shift toward hybrid cloud models that balance sensitive business information protection through private cloud while enabling broader application access through public cloud solutions. This trend has led to strategic developments in the market, such as VMware's introduction of Cross-Cloud managed services for hybrid and native public cloud and modern apps in April 2023. Similarly, Kyndryl's expansion of its services in July 2023 demonstrates the market's response to growing demand for comprehensive hybrid IT management solutions that can effectively detect, respond to, and recover from cyber threats while maintaining operational efficiency.

Improved Cost and Operational Efficiency

Cost optimization and operational efficiency have become paramount drivers in the adoption of managed IT services across the United States market. According to a CompTIA survey, approximately half of all businesses using MSPs have reduced their annual IT costs by up to 25%. This significant cost reduction is particularly impactful when considering that in-house network support technicians can cost over USD 100,000 per year, with total costs potentially doubling when including benefits, training, equipment, and other expenses. By partnering with MSPs, organizations can access necessary IT services for a fixed monthly fee while eliminating these additional expenses.

The efficiency gains through managed services are substantial and measurable. According to Cisco Systems, managed services reduce recurring in-house costs by 30-40% and increase efficiency by 50-60%. This is particularly relevant as network burden increases, with 95% of network changes still being performed manually, resulting in operational costs being 2-3 times higher than the network's value. The US government's recent National Cybersecurity Strategy emphasizes modernization and expanded use of cloud-based services, recognizing that the federal government spends more than USD 100 billion annually on information technology. The Government Accountability Office (GAO) has identified critical federal IT legacy systems requiring modernization, with the operation and maintenance of identified legacy systems collectively costing approximately USD 337 million, highlighting the significant potential for cost savings through managed services adoption.

Segment Analysis: By Deployment Type

Cloud Segment in US Managed Services Market

The cloud segment has emerged as the dominant force in the United States managed services market, commanding approximately 66% of the total market share in 2024. This segment's prominence is driven by the increasing adoption of managed cloud services that offer enhanced flexibility, scalability, and cost-effectiveness compared to traditional deployment models. Cloud-deployed managed services enable service providers to access, monitor, and remotely repair issues within the cloud environment, ensuring quick and efficient problem resolution through continuous monitoring. The shift towards managed cloud services is further accelerated by the increasing penetration of emerging technologies such as AI/ML, big data analytics, threat intelligence, and advanced automation platforms. The segment is expected to maintain its growth trajectory at nearly 11% CAGR from 2024-2029, driven by organizations' growing realization about the importance of saving money and resources by moving their data to the cloud instead of building and maintaining new data storage infrastructure.

On-premise Segment in US Managed Services Market

The on-premise deployment model continues to maintain its significance in the United States managed services market, particularly among organizations with specific security and compliance requirements. This deployment type is preferred by companies that require complete control over their data and infrastructure, especially in highly sensitive sectors such as government and healthcare. On-premise solutions offer enhanced control over data and significantly better threat protection compared to cloud deployments, making them crucial for enterprises with stringent security protocols. While this segment represents a smaller portion of the market, it remains essential for organizations that need to maintain their data within safe systems and require customized solutions aligned with their specific organizational processes and regulatory requirements.

Segment Analysis: By Type

Managed Infrastructure Segment in US Managed Services Market

The managed infrastructure services segment continues to dominate the US managed services market, commanding approximately 23% market share in 2024. This segment's leadership position is driven by the increasing complexity of IT infrastructure and organizations' need to modernize their technology stack. The adoption of digital transformation initiatives, mobility solutions, and cloud computing has resulted in infrastructure modernization becoming a critical priority for enterprises. Organizations are increasingly turning to managed infrastructure services to leverage expertise in automation solutions, big data management, and compliance with regulatory standards. The segment's growth is further supported by the rising investments in automation solutions across business verticals and cutting-edge services provided by vendors to comply with standard regulatory requirements.

Managed Security Segment in US Managed Services Market

The managed security services segment is emerging as the fastest-growing segment in the US managed services market, with an expected growth rate of approximately 13% during 2024-2029. This rapid growth is primarily driven by the increasing sophistication of cyber threats and the growing need for specialized security expertise. Organizations are increasingly recognizing the importance of robust security measures, particularly in light of the rising number of DDoS attacks and data breaches across multiple industries. The segment's growth is further accelerated by the adoption of cloud-based security services, zero-trust security frameworks, and the increasing demand for comprehensive threat detection and response capabilities. The convergence of networking and security in the context of digital transformation is also contributing to the segment's expansion, as organizations seek integrated solutions to protect their increasingly complex IT environments.

Remaining Segments in US Managed Services Market

The other segments in the US managed services market, including managed network services, managed data center services, managed communication services, and managed mobility services, each play crucial roles in providing comprehensive IT solutions. The managed network services segment is particularly significant in enabling organizations to optimize their network infrastructure and implement software-defined networking solutions. Managed data center services are becoming increasingly important as organizations seek to optimize their data center operations and implement cloud-based solutions. The managed communication services segment focuses on unified communications and collaboration solutions, while managed mobility services address the growing need for mobile device management and BYOD policies. Together, these segments create a robust ecosystem of managed services that cater to diverse organizational needs across various industries.

Segment Analysis: By Enterprise Size

Large Enterprise Segment in US Managed Services Market

Large enterprises continue to dominate the US managed services market, commanding approximately 58% market share in 2024. These organizations are increasingly leveraging IT managed services to handle their complex IT infrastructures, particularly focusing on cloud computing, cybersecurity, and digital transformation initiatives. Large enterprises tend to opt for managed services from integrated service providers, especially large managed service provider companies, as these providers offer superior technology support, minimal downtime, robust security, and cutting-edge network solutions that are vital for maintaining uninterrupted business processes. The adoption of emerging technologies like BYOD, big data analytics, AI, and ML environments are major drivers for large enterprises to rely on MSPs as they focus on accelerating their operations in the digital transformation era. These organizations particularly value the comprehensive service offerings, including 24/7 support, proactive monitoring, and specialized expertise that help them maintain their competitive edge while optimizing operational costs.

SME Segment in US Managed Services Market

The Small and Medium Enterprise (SME) segment is experiencing remarkable growth in the US managed services market, with an expected growth rate of approximately 13% during 2024-2029. This accelerated growth is primarily driven by SMEs' increasing recognition of the cost-effectiveness and operational benefits of managed services. These organizations are actively seeking ways to access enterprise-grade IT capabilities without the burden of maintaining extensive in-house IT departments. The adoption of cloud-based solutions is particularly strong among SMEs, as it allows them to focus on their core competencies rather than invest their limited capital in network infrastructure. Managed service providers are responding to this trend by developing specialized offerings tailored to SME requirements, including scalable solutions, flexible payment models, and comprehensive support services. The segment's growth is further fueled by the rising awareness of cybersecurity threats and the need for professional IT management, making managed services an increasingly attractive option for resource-constrained SMEs looking to maintain competitive advantages in their respective markets.

Segment Analysis: By End User Vertical

IT & Telecom Segment in US Managed Services Market

The IT and Telecom sector maintains its dominant position in the US managed services market, commanding approximately 28% of the total market share in 2024. This leadership position is driven by the sector's increasing focus on modernizing IT service management and bridging the gap between on-premise and cloud-based IT solutions. The segment's strength is further reinforced by the rapid deployment of 5G networks, which has created complex infrastructure management needs requiring reliable, secure, and robust connections. Organizations in this sector are increasingly leveraging managed services to handle the growing complexity caused by the implementation of new technologies, diverse service requirements, and the need for enhanced security measures. The adoption of hybrid integration and management solutions, coupled with strategic partnerships among leading IT service providers, has further solidified this segment's market leadership.

Healthcare Segment in US Managed Services Market

The healthcare segment is emerging as the fastest-growing vertical in the US managed services market, with projections indicating a robust growth rate of approximately 13% during 2024-2029. This exceptional growth is primarily driven by the increasing adoption of cloud-based healthcare systems and mobile applications, which require sophisticated data management solutions and remote access capabilities. The sector's growth is further accelerated by the emphasis on patient privacy regulations and the need for rights-based security implementations through digital document management. Healthcare organizations are increasingly turning to managed services to organize medical records, prevent medical errors, and ensure compliance with regulatory requirements. The convergence of IT services with medical fields, particularly in areas like IoT utilization and connected sensors, is creating new opportunities for managed service providers to deliver innovative solutions that enhance healthcare service delivery and improve patient care outcomes.

Remaining Segments in End User Vertical

The US managed services market encompasses several other significant verticals including BFSI, retail, entertainment and media, manufacturing, and government sectors. The BFSI sector is particularly notable for its focus on digital transformation and the need for enhanced security measures in financial operations. The retail segment is driven by the growing adoption of e-commerce managed services and unified communications solutions. The entertainment and media vertical is characterized by increasing digitalization and multi-platform content consumption needs. The manufacturing sector is focusing on automation and IoT integration, while the government sector emphasizes secure data management and operational efficiency. Each of these segments contributes uniquely to the market's dynamics, with varying requirements for security, compliance, operational efficiency, and digital transformation initiatives.