by The global cloud managed services market size was estimated at USD 121.10 billion in 2023 and is projected to rake around USD 420.70 billion by 2033, growing at a CAGR of 13.26% from 2024 to 2033.
Key Points
- The North America cloud managed services market size reached USD 39.96 billion in 2023 and is projected to surpass around USD 138.83 billion by 2033.
- North America held the largest share of 33% in the global cloud managed services market in 2023.
- Asia Pacific is expected to experience significant growth in the coming years.
- By service, the mobility segment dominated the market in 2023 and accounted revenue share of 38.3%.
- By service, the network services segment is anticipated to grow at the fastest CAGR over the forecast period.
- By deployment, the private segment held the largest market share of around 86.6% in 2023.
- By deployment, over the forecast period, the public segment is estimated to grow at the fastest CAGR.
- By vertical, the telecom & ITes segment dominated the market with revenue share of 20.7% in 2023.
- By vertical, the government segment is anticipated to experience the fastest growth in the upcoming years.
- By end use, the large enterprise segment has contributed market share of 80.7% in 2023.
- By end use, the SME segment is projected to experience the highest growth rate during the forecast period.
The cloud managed services market is witnessing rapid growth fueled by the increasing adoption of cloud technologies across various industries. Organizations are leveraging cloud managed services to outsource the management of their cloud infrastructure, applications, and platforms, allowing them to focus on their core business operations while benefiting from scalability, agility, and cost-efficiency offered by cloud solutions.
Growth Factors:
Several factors are driving the growth of the cloud managed services market, including the rising demand for hybrid and multi-cloud environments, the need for seamless migration and integration services, and the growing complexity of managing cloud environments. Additionally, the proliferation of IoT devices, big data analytics, and AI applications are creating new opportunities for cloud managed service providers to offer specialized solutions and expertise.
Region Insights:
Regionally, North America dominates the cloud managed services market, driven by the presence of major cloud service providers, technological advancements, and the adoption of cloud-first strategies by enterprises. However, Asia Pacific is expected to experience significant growth due to increasing digital transformation initiatives and the emergence of cloud-native startups and enterprises in the region.
Cloud Managed Services Market Scope
| Report Coverage | Details |
| Growth Rate from 2024 to 2033 | CAGR of 13.26% |
| Global Market Size in 2023 | USD 121.10 Billion |
| Global Market Size in 2024 | USD 137.16 Billion |
| Global Market Size by 2033 | USD 420.70 Billion |
| Largest Market | North America |
| Base Year | 2023 |
| Forecast Period | 2024 to 2033 |
| Segments Covered | By Service Type, By Deployment, By End-user, and By Verticals |
| Regions Covered | North America, Europe, Asia-Pacific, Latin America, and Middle East & Africa |
Cloud Managed Services Market Dynamics
Drivers:
Key drivers driving the cloud managed services market include the need for organizations to reduce IT infrastructure costs, enhance operational efficiency, and improve business agility. Additionally, the shift towards remote work models and the need for secure and compliant cloud solutions are driving demand for managed services that offer advanced security, compliance, and performance monitoring capabilities.
Opportunities:
Opportunities in the cloud managed services market abound for providers offering specialized services such as managed security, data analytics, and application performance management. Moreover, the growing demand for industry-specific cloud solutions in sectors such as healthcare, finance, and manufacturing presents lucrative opportunities for cloud managed service providers to tailor their offerings to meet specific industry requirements.
Challenges:
Despite the opportunities, challenges such as data privacy concerns, regulatory compliance issues, and the shortage of skilled cloud professionals pose significant hurdles for cloud managed service providers. Moreover, competition from hyperscale cloud providers and the need to differentiate services amidst a crowded market landscape require providers to continually innovate and invest in technology and talent to stay competitive.
Read Also: Defibrillators Market Size to Rake USD 15.80 Billion by 2033
Cloud Managed Services Market Recent Developments
- In April 2023, Sinch, a computer software company, joined forces with Synoptek, an IT service provider and Microsoft Gold partner. This strategic partnership enables Sinch to provide professional and managed Microsoft Teams Phone System services that are seamlessly integrated with Operator Connect or Direct Routing.
- In April 2023, VMware, Inc., a cloud computing company, launched VMware Cross-Cloud managed services. These comprehensive offerings benefit partners and customers, empowering skilled partners to expand their managed services practices. The launch of VMware Cross-Cloud managed services facilitates growth, profitability, and recurring revenue for providers while also addressing the challenge of talent and skills gaps in multi-cloud environments.
- In February 2022, IBM collaborated with SAP, a multinational software company. Together, the companies aim to deliver consulting and technology experience to make it easy for buyers to hold hybrid cloud access and move mission-critical workloads from SAP solutions to the cloud for organized and non-regulated enterprises.
Cloud Managed Services Market Companies
- IBM Corporation
- Cisco Systems, Inc.
- Telefonaktiebolaget LM Ericsson
- Verizon
- Accenture
- NTT DATA Corporation
- Huawei Technologies Co., Ltd.
- Fujitsu
- CHINA HUA XIN
- CenturyLink
- Trianz
Segments Covered in the Report
By Service Type
- Business
- Network
- Security
- Datacenter
- Mobility
By Deployment
- Public
- Private
By End-user
- SMEs
- Large Enterprises
By Verticals
- Telecom & ITes
- Government
- BFSI
- Retail & Consumer
- Healthcare
- Manufacturing & Automotive
- Others
By Geography
- North America
- Europe
- Asia-Pacific
- Latin America
- Middle East and Africa
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