Market Trends of United States Managed Services Industry
Cloud to Witness Significant Market Growth
- Cloud-based managed services offer flexibility and scalability, empowering service providers to remotely access, monitor, and resolve issues within the cloud environment. Furthermore, market data shows that the adoption of technologies like AI/ML, big data analytics, threat intelligence, and advanced automation platforms is propelling this transition to cloud-based services. Market players are launching innovative and collaborative services in response to industry trends.
- For example, in November 2023, SonicWall, a global cybersecurity provider, acquired Solutions Granted Inc. (SGI), a Managed Security Service Provider (MSSP) catering to hundreds of Managed Service Providers (MSPs). This acquisition bolsters SonicWall's commitment to its partners. It expands its portfolio to include US-based Security Operations Center services (SOCaaS), Managed Detection and Response (MDR), and other tailored managed services for MSPs and MSSPs.
- The IT and Telecom sector holds a significant market share in the cloud-managed services industry. For the 2023 fiscal year, the US federal government allocated around USD 24.4 billion for major federal IT investments, where cloud-managed services are gaining traction in the United States due to their ability to streamline IT operations, bolster security, and offer scalable solutions, thereby reflecting a steady market growth rate.
- These services facilitate remote management and maintenance of cloud infrastructure, which enables businesses to focus on their core objectives while leveraging external expertise, thereby fostering industry growth. The demand for managed services is set to rise as cloud adoption continues to surge, fostering innovation and efficiency in the digital realm.
Understand The Key Trends Shaping This Market
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IT and Telecom to be the Largest End-user Vertical
- The telecom industry in the United States has a strong demand for managed security services and is identified as one of the major significant industry trends. This is primarily due to the telecom companies' handling of vast volumes of sensitive data, including customer information and network infrastructure details, making them prime targets for cyberattacks. Additionally, the complexity of telecom networks and the evolving nature of cyber threats necessitate specialized expertise for effective protection.
- With the advent of 5G networks, the focus has shifted to ensuring end users' security and quality experiences, a shift highlighted in the industry overview of telecom-managed services. According to VIAVISION, as of April 2023, 5G network access was available in 503 United States cities, the most of any country globally, and this requires a significant shift in managing and optimizing networks, moving away from the traditional technology-centric approach. As a result, there is a rising demand for telecom-managed services to aid in this transition, contributing to market growth.
- In July 2023, Dataprise, a leading provider of managed IT, cybersecurity, and cloud solutions, acquired RevelSec, a Texas-based security managed service provider. This acquisition expands Dataprise's national presence and enhances its vertical expertise while providing RevelSec clients access to a broader range of services from Dataprise.
- According to the market report, managed infrastructure holds a significant market share, driven by innovations like IoT, AI, and edge computing, which necessitate advanced network infrastructure. Managed services play an important role in facilitating the adoption of these technologies.
