DUBLIN--(BUSINESS WIRE)--The "Managed Services Market by Service Type (Managed Security, Managed Network, Managed Data Center and IT Infrastructure, and Managed Communication and Collaboration), Vertical, Organization Size, Deployment Type and Region - Global Forecast to 2025" report has been added to ResearchAndMarkets.com's offering.
The global managed services market is expected to grow from USD 223.0 billion in 2020 to USD 329.1 billion by 2025, at a CAGR of 8.1%
Factors that drive the market growth of the managed services market are lack of IT skilled professionals, and cost reduction and lower IT budgets to force enterprises to leverage managed services. The increasing pressure from statutory regulations across the globe is expected to act as a restraint to the market growth.
Small and medium-sized enterprises segment to grow at a higher CAGR during the forecast period
The IT spending in the SMEs segment is estimated to increase at a high rate. According to a study, the CAGR for IT spend by SMEs in Europe, the Middle East and Africa (EMEA) between 2018 and 2023 is expected to be 3.8%, as compared with 2.7% of the overall market. This rise is expected to give a boost to managed service providers, especially as smaller businesses move to the cloud, automate services, and explore advanced digital technologies. Hence, Managed Service Providers (MSPs )are focusing on the SMEs segment to acquire potential customers.
Banking, financial services and insurance vertical to hold the largest market share in 2020 in the managed services market
The BFSI vertical is a highly regulated vertical with a large number of compliances and regulations. Enterprises are highly charged for violation of these regulations. Hence, to avoid fines enterprises require managed services. Data encryption and secure back up are highly demanded by these enterprises, along with a full range of Backup and Disaster Recovery (BDR) solution, to meet federal compliance regulations. MSPs that specialize in BDR for financial services help these businesses protect sensitive information, mitigate downtime, and promote the overall business continuity.
Managed services market in APAC is projected to grow at the highest CAGR during the forecast period
The high growth of the market in APAC is attributed to high data breach cost or loss due to a cyberattack, lack of IT budget, and continuously increasing SMEs are driving the growth of the market. For instance, healthcare providers could suffer a loss of USD 23 million due to cyberattacks. SMEs lack IT budget and have high cloud adoption compared to large enterprises; thus, SMEs are opting for the managed services model at a high rate.
- Lack of It Skilled Professionals
- Cost Reduction and Lower It Budgets to Force Enterprises to Leverage Managed Services
- Increasing Pressure From Statutory Regulations Across the Globe
- High Cloud Adoption and Increasing Automation in It Environments
- Continuously Increasing Demand For Managed Services Among Small and Medium-Sized Enterprises
- Lack of Sales and Marketing Staff, Training, and Cybersecurity to Severely Affect the Growth of Managed Service Providers
- DXC Technology
- Dimension Data
- GTT Communications
- Happiest Minds
- Nokia Networks
- Century Link
For more information about this report visit https://www.researchandmarkets.com/r/2uvoc8