Managed Services Market - Growth, Trends, COVID-19 Impact, and Forecasts (2021 - 2026)

The Global Managed Services Market (henceforth, referred to as the market studied) was valued at USD 152. 05 billion in 2020, and it is expected to reach USD 274. 20 billion by 2026, registering a CAGR of 11.

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New York, March 02, 2021 (GLOBE NEWSWIRE) -- Reportlinker.com announces the release of the report "Managed Services Market - Growth, Trends, COVID-19 Impact, and Forecasts (2021 - 2026)" - https://www.reportlinker.com/p06028469/?utm_source=GNW
2%, during the forecast period (2021-2026).

Since the outbreak of COVID-19, the demand for cloud-based solutions has seen a significant growth owing to remote working models being adopted by enterprises; however, various industries such as retail, manufacturing, BFSI, and others have seen a significant slump in their revenues during 2020. As MSPs offer services to enterprises operating in such industries, they have also seen a decline in revenues and growth.

- Enterprises and government organizations across the world are moving from test environments to place more of their work-critical workloads and compute instances into the cloud. Further, owing to the rapidly increasing adoption of IoT, cloud, and Big Data analytics across multiple organizations as a major part of their digital transformation strategy, the burden on the data centers is also increasing. This is leading to the growth of the market.
- The managed services, for cloud, IoT platforms, containers, DevOps, and Big Data, are expected to hold tremendous potentials for managed service providers during the forecast period. Additionally, according to Cisco, 46% of network devices are likely to be machine-to-machine or IoT, by 2020, which are vulnerable to attacks.
- The market studied is expected to witness a high demand for managed mobility and information services. There has been a tremendous shift in focus towards the managed services and their applications for both the short and long-term strategic decisions. It is estimated that successful deployment of managed services will help in reducing IT cost by 25-45% and will also increase the operational efficiency by 45-65%.
- Additionally, over the past few years, organizations have been actively amending their strategies to get the maximum benefit out of managed services. For instance, in the past years it has been observed that organizations are increasingly focusing on the reduction of cost by cutting down the number of suppliers and reducing the payment size. As a result, the demand for bundled services has gained immense traction in the market over the discrete offerings.
- Cloud is expected to command a prominent share of the market and even grow at a faster rate owing to the cost and operational benefits offered by the deployment mode is expected to shift the trend away from the on- premise deployment model over the forecasted period. For instance, according to the study by NTT Ltd, over half of the respondents (52%) mentioned that the cloud would have the most transformational impact on their organization’s business operations.

Key Market Trends
Manufacturing is Expected to hold a Significant Market Share

- In the current technology-driven business environment, big data stands as one of the primary drivers of productivity and efficiency for manufacturers. With the high rate of adoption of sensors and connected devices, and the enabling of M2M communication, there has been a massive increase in the data points that are generated in the manufacturing industry.
- Industries are pitching hard and fast to switch to a “smart industry”, where data generation and visualization can become real-time. The evolution of analytics, from descriptive to predictive, has made the industry aware of the benefits that it can reap from this volume of data. The motto of the manufacturing industry is moving toward a metrics-based industry, which can improve decision making, based on the data-driven use of statistics.
- With the concept of Industry 4.0 influencing production establishments in the manufacturing industry, the amount of data produced from the manufacturing industry has snowballed, as they have been able to create data from each process point, varying from temperature, pressure, humidity, stress, strain, and quality, among multiple others.
- There are several applications in the field of semiconductors, consumer electronics, and the automotive industry, where manufacturers have to monitor numerous variables to ensure the quality of end products, wherein Big Data analytics has emerged as an effective solution to the traditional methods.
- As most of the small and medium manufacturing industries are more concentrated on the hardware equipment and lack expertise in software solutions, they are outsourcing these big data analytic solutions. Outsourcing of software services is further reducing their expenditure. This trend of outsourcing of other software services, such as field service management and ERP would boost the market for managed services, during the forecast period.

Asia Pacific is Expected to be the Fastest Growing Market

- The digital transformation has become a top priority in China and it is moving at a rapid pace, as a greater number of companies are implementing formal strategies to support their efforts. China Telecom has mentioned that in 2013, cloud computing was only worth 3% of China’s enterprise IT market, and it is expected to grow up to 20% by 2020.
- The managed service providers in China are focusing on reducing security risks and optimize operations for the end users by keeping up with the latest technologies. The managed services market is majorly offered by the telecommunication companies in the country.
- Further, The Indian IT and IT-enabled services industry is the dominating source for most of the countries worldwide, which accounted for over 55% of the global services sourcing businesses in 2018 (IBEF). Indian IT and IT-enabled services companies have set up over 1,000 global delivery centers in about 80 countries across the world. Also, the business process management sectors account for 32% of the revenue in the Indian IT market.
- Additionally, banking sector in India is experiencing a colossal change due to the rapid evolution of technology in their vertical, which led to the adoption of cloud computing services by these organizations for addressing their issues. Further, the managed storage providers in the country are investing in developing an integrated cloud storage platform dedicated to the BFSI sector. For instance, in August 2018, ESDS introduced Banking Community Cloud, which offers all the cloud-based services to the organizations in the sector for addressing issues, like security, compliance, and service norms

Competitive Landscape
The managed services market is consolidated, as it is dominated by major players. Some of the major players in the market are Cisco Systems Inc.?, IBM Corporation, Microsoft Corporation, Fujitsu Ltd, and Wipro Ltd, among others. The market players are forming strategic collaborations with a view to enhance their market presence.

- March 2020 - Infosys and IBM announced a partnership to help business enterprises accelerate their digital transformation activity using the IBM cloud services. This collaboration may help the enterprises transition, modernize, and transform their workflows and applications with IBM cloud services. This may help the enterprises that are operating in highly regulated industries, like BFSI, healthcare, and other industries.

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