Managed It Infrastructure Service Market Overview
As per MRFR analysis, the Managed IT Infrastructure Service Market Size was estimated at 78.3 (USD Billion) in 2022.
The Managed IT infrastructure Service Market Industry is expected to grow from 89.61(USD Billion) in 2023 to 230.5 (USD Billion) by 2032. The Managed It Infrastructure Service Market CAGR (growth rate) is expected to be around 10.2% during the forecast period (2024 - 2032).
Key Managed It Infrastructure Service Market Trends Highlighted
The cloud computing shift, the rising demand for efficient IT infrastructure management, and the increase in cyber threats drive the growth of managed IT infrastructure services. Organizations seek cost-effective, scalable, and secure IT solutions that managed services provide. The integration of artificial intelligence and machine learning technologies in managed IT infrastructure improves efficiency, automates tasks, and enhances security. The convergence of cloud-based services, software-defined networking, and edge computing creates opportunities for managed service providers to deliver integrated and comprehensive solutions. Furthermore, organizations' need for compliance and regulatory adherence drives the demand for managed IT infrastructure services that ensure data protection, privacy, and security.
Figure1: Managed IT Infrastructure Service Market, 2018 - 2032 (USD Billion)
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Managed IT infrastructure Service Market Drivers
Growing Adoption of Cloud and Managed Services
The increasing adoption of cloud computing and managed services is a major driver of growth in the Managed IT Infrastructure Service Market Industry. Organizations are increasingly moving their IT infrastructure to the cloud to take advantage of the benefits of scalability, flexibility, and cost savings. This has led to a growing demand for managed IT infrastructure services as organizations look to outsource the management of their cloud-based infrastructure to specialized providers.Managed IT infrastructure services can help organizations improve the efficiency and effectiveness of their IT operations while also reducing costs. In addition, the growing adoption of managed services is also being driven by the need for organizations to focus on their core competencies and to reduce the complexity of their IT operations. This trend is expected to continue in the coming years as organizations increasingly look to managed IT infrastructure services to help them meet their business objectives.
Increasing Demand for Security and Compliance
The increasing demand for security and compliance is another major driver of growth in the Managed IT Infrastructure Service Market Industry. Organizations are facing a growing number of security threats, including cyberattacks, data breaches, and ransomware attacks. This has led to a growing demand for managed IT infrastructure services that can help organizations to improve their security posture and to meet compliance requirements. Managed IT infrastructure services can help organizations to implement and manage security measures, such as firewalls, intrusion detection systems, and anti-malware software.They can also help organizations to conduct security audits and to respond to security incidents. This trend is expected to continue in the coming years, as organizations increasingly look to managed IT infrastructure services to help them to protect their data and assets.
Evolving Regulatory Landscape
The evolving regulatory landscape is also a major driver of growth in the Managed IT Infrastructure Service Market Industry. Governments around the world are increasingly implementing regulations that require organizations to protect the privacy and security of personal data. This has led to a growing demand for managed IT infrastructure services that can help organizations comply with these regulations. Managed IT infrastructure services can help organizations implement and manage data protection measures, such as data encryption, access controls, and data backup and recovery.They can also help organizations to conduct data privacy audits and to respond to data breaches. This trend is expected to continue in the coming years as governments continue to implement new regulations to protect personal data.
Managed It Infrastructure Service Market Segment Insights
Managed It Infrastructure Service Market Service Type Insights
In terms of service type, the Managed IT Infrastructure Service Market is segmented into Cloud Infrastructure Management, Data Center Infrastructure Management, End-User Computing Management, Network Infrastructure Management, and Security Infrastructure Management. Among these, Cloud Infrastructure Management held the largest market share in 2023, accounting for approximately 35.6% of the global revenue. This dominance is attributed to the increasing adoption of cloud-based solutions by enterprises seeking scalability, cost-effectiveness, and flexibility in their IT infrastructure.
Data Center Infrastructure Management is projected to exhibit the highest CAGR of 14.2% during the forecast period, driven by the growing demand for efficient and reliable data center operations. Network Infrastructure Management is another significant segment, with a market share of 22.1% in 2023. The rising complexity of network environments and the need for proactive monitoring and management are fueling the growth of this segment. End-user computing Management and Security Infrastructure Management are also expected to witness steady growth, supported by the increasing use of endpoint devices and the growing concerns over cybersecurity threats, respectively.
Figure2: Managed IT Infrastructure Service Market, By Service Type, 2023 & 2032 (USD billion)
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Managed It Infrastructure Service Market Deployment Model Insights
The Managed IT Infrastructure Service Market segmentation by deployment model can be segmented into On-Premises, Cloud, and Hybrid. The Cloud segment is expected to hold the largest market share in 2023, owing to the increasing adoption of cloud-based solutions by enterprises.
The Hybrid segment is expected to grow at the highest CAGR during the forecast period as enterprises look to combine the benefits of both on-premises and cloud-based solutions. The On-Premises segment is expected to account for a significant market share as enterprises continue to invest in on-premises infrastructure to maintain control over their data and applications.
Managed It Infrastructure Service Market Organization Size Insights
The Managed IT Infrastructure Service Market is segmented by organization size into Small and Medium-sized Enterprises (SMEs) and Large Enterprises. In 2023, the SME segment accounted for approximately 42% of the Managed IT Infrastructure Service Market revenue, while the Large Enterprise segment accounted for the remaining 58%.
The SME segment is expected to grow at a faster CAGR during the forecast period, owing to the increasing adoption of cloud-based services and the need for cost-effective IT solutions. The Large Enterprise segment is also expected to grow, but at a slower pace, as these organizations have more complex IT infrastructure requirements.
Managed It Infrastructure Service Market Vertical Insights
The Managed IT Infrastructure Service Market is segmented by Vertical into Banking, Financial Services and Insurance (BFSI), Healthcare, Manufacturing, Retail, and Telecommunications. The BFSI segment has witnessed consistent growth due to the increasing need for managed IT services in the financial sector.
The BFSI sector relies heavily on IT infrastructure for operations such as customer relationship management, risk management, and data analysis. The Healthcare segment is another key vertical in the Managed IT infrastructure Service Market due to the rising adoption of electronic health records and the increasing focus on patient data security.The healthcare sector requires reliable and secure IT infrastructure to ensure the smooth functioning of critical systems such as patient monitoring, medical imaging, and electronic health records. The Manufacturing segment is also expected to contribute significantly to the growth of the Managed IT infrastructure Service Market. The increasing adoption of automation and robotics in manufacturing processes has led to a greater demand for managed IT services to ensure the seamless integration and management of IT infrastructure. The Retail segment is another growing vertical in the Managed IT infrastructure Service Market due to the increasing adoption of e-commerce and the need for robust IT infrastructure to support online operations.The retail sector requires reliable and scalable IT infrastructure to handle high volumes of transactions, manage customer data, and ensure a seamless shopping experience. The Telecommunications segment is a key vertical in the Managed IT infrastructure Service Market due to the increasing demand for managed IT services to support the deployment and management of complex telecommunications networks. The telecommunications sector requires reliable and secure IT infrastructure to ensure the smooth functioning of voice, data, and video services.
Managed It Infrastructure Service Market Managed Service Provider (MSP) Type Insights
The Managed IT Infrastructure Service Market is segmented by Managed Service Provider (MSP) Type into In-House MSPs and Third-Party MSPs. In 2023, the In-House MSPs segment held a larger market share, accounting for approximately 55% of the global market revenue.
The Third-Party MSPs segment is expected to grow at a faster CAGR during the forecast period, reaching a market size of USD 365.23 billion by 2032. In-house MSPs are typically employed by large enterprises and organizations to manage their IT infrastructure internally. This segment benefits from having direct control over IT operations, enabling better customization and alignment with business objectives.However, In-House MSPs may face challenges in scaling their services and keeping up with the latest technological advancements. Third-party MSPs, on the other hand, provide IT infrastructure management services to multiple clients, offering flexibility and expertise. This segment is expected to witness significant growth due to the increasing adoption of cloud-based services and the need for specialized skills in managing complex IT environments. Third-party MSPs can leverage economies of scale and invest in advanced technologies to deliver cost-effective and innovative solutions.
Managed It Infrastructure Service Market Regional Insights
The Managed IT Infrastructure Service Market segmentation by region offers insights into the growth dynamics of various geographic regions. North America is anticipated to hold the largest market share over the forecast period, with a significant revenue contribution. The presence of numerous large enterprises, government agencies, and technology hubs in the region drives the demand for managed IT infrastructure services. Europe is projected to witness substantial growth due to government initiatives to promote digital transformation and the increasing adoption of cloud-based services.APAC is expected to emerge as a rapidly growing region, driven by the rising IT spending in developing economies like India and China. South America and MEA are projected to exhibit steady growth, with increasing investments in infrastructure and technology adoption fueling market expansion.
Figure3: Managed IT Infrastructure Service Market, By Regional, 2023 & 2032 (USD billion)
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Managed IT infrastructure Service Market Key Players And Competitive Insights
Major players in the Managed IT infrastructure Service Market industry are continuously investing in research and development to enhance their service offerings and gain a competitive edge. Leading Managed IT infrastructure Service Market players are focusing on developing innovative solutions that address the evolving needs of their customers. The Managed IT infrastructure Service Market development is driven by the increasing adoption of cloud computing, big data, and the Internet of Things (IoT). Managed It Infrastructure Service Market Competitive Landscape is expected to remain highly competitive in the coming years, with major players vying for market share.Tata Consultancy Services (TCS) is a leading provider of Managed IT infrastructure market services. The company offers a comprehensive suite of services that includes infrastructure management, cloud services, security services, and application management. TCS has a strong global presence and serves a wide range of customers, including large enterprises, mid-sized businesses, and government organizations.IBM is another major player in the Managed IT infrastructure Service Market industry. The company offers a range of services that include infrastructure management, cloud services, security services, and consulting services. IBM has a strong focus on innovation and is constantly developing new solutions to meet the needs of its customers. The company has a global presence and serves a wide range of customers, including large enterprises, mid-sized businesses, and government organizations.
Key Companies in the Managed It Infrastructure Service Market Include
Managed IT infrastructure Service Market Industry Developments
The Managed IT Infrastructure Service Market is projected to reach a valuation of USD 665.15 billion by 2032, expanding at a CAGR of 12.86% from 2024 to 2032. This growth is attributed to the rising adoption of cloud-based services, increasing demand for managed security services, and the need for businesses to optimize IT infrastructure. Recent developments include the growing popularity of AI-powered managed services, the emergence of edge computing solutions, and the increasing demand for managed services from small and medium-sized businesses. Key market players are focusing on strategic partnerships, acquisitions, and product innovations to gain a competitive edge.
Managed It Infrastructure Service Market Segmentation Insights
Managed It Infrastructure Service Market Service Type Outlook
- Cloud Infrastructure Management
- Data Center Infrastructure Management
- End-User Computing Management
- Network Infrastructure Management
- Security Infrastructure Management
Managed It Infrastructure Service Market Deployment Model Outlook
Managed It Infrastructure Service Market Organization Size Outlook
- Small and Medium-sized Enterprises (SMEs)
- Large Enterprises
Managed It Infrastructure Service Market Vertical Outlook
- Banking, Financial Services and Insurance (BFSI)
- Healthcare
- Manufacturing
- Retail
- Telecommunications
Managed It Infrastructure Service Market Managed Service Provider (MSP) Type Outlook
- In-House MSPs
- Third-Party MSPs
Managed It Infrastructure Service Market Regional Outlook
- North America
- Europe
- South America
- Asia Pacific
- Middle East and Africa
| Report Attribute/Metric |
Details |
| Market Size 2022 |
78.3(USD Billion) |
| Market Size 2023 |
89.61(USD Billion) |
| Market Size 2032 |
230.5(USD Billion) |
| Compound Annual Growth Rate (CAGR) |
10.2% (2024 - 2032) |
| Report Coverage |
Revenue Forecast, Competitive Landscape, Growth Factors, and Trends |
| Base Year |
2023 |
| Market Forecast Period |
2024 - 2032 |
| Historical Data |
2019 - 2023 |
| Market Forecast Units |
USD Billion |
| Key Companies Profiled |
Wipro, Atos, Cisco, Tata Consultancy Services, DXC Technology, IBM, Synnex, HCL Technologies, Fujitsu, Capgemini, CDW, Cognizant, Infosys, NTT, Tech Mahindra |
| Segments Covered |
Service Type, Deployment Model, Organization Size, Vertical, Managed Service Provider (MSP) Type, Regional |
| Key Market Opportunities |
Cloud Migration Adoption Increasing Demand for Remote Infrastructure Management Growing Focus on Cybersecurity Rise in Data Center Consolidation Smart City and Industrial IoT Growth |
| Key Market Dynamics |
1 Rising Cloud Adoption2 Digital Transformation3 Growing Cybersecurity Concerns4 Increasing IT Complexity |
| Countries Covered |
North America, Europe, APAC, South America, MEA |
Frequently Asked Questions (FAQ) :
The Managed IT Infrastructure Service Market is expected to reach USD 89.61 billion in 2023 and is projected to grow at a CAGR of 10.2% to reach USD 230.5 billion by 2032.
North America and Europe are the dominant regions in the Managed IT Infrastructure Service Market, accounting for a significant share of the global market. The Asia Pacific region is expected to witness substantial growth due to the increasing adoption of cloud computing and digital transformation initiatives.
Managed IT Infrastructure Services are widely used in various industries, including BFSI, healthcare, manufacturing, retail, and government. These services help organizations optimize their IT infrastructure, improve efficiency, and reduce costs.
Major players in the Managed IT Infrastructure Service Market include IBM, Cisco, Hewlett Packard Enterprise, Dell Technologies, and NTT Ltd. These companies offer a comprehensive range of services, including cloud computing, data center management, and network management.
The growth of the Managed IT Infrastructure Service Market is driven by several factors, including the increasing adoption of cloud computing, the need for improved IT efficiency, and the rising demand for specialized IT skills.
The Managed IT Infrastructure Service Market faces challenges such as security concerns, data privacy regulations, and the shortage of skilled IT professionals.
Opportunities for growth in the Managed IT Infrastructure Service Market include the expansion of cloud computing, the adoption of new technologies such as artificial intelligence and machine learning, and the increasing demand for managed security services.
The Managed IT Infrastructure Service Market is expected to grow at a CAGR of 12.86% from 2024 to 2032.
Key factors influencing the growth of the Managed IT Infrastructure Service Market include the increasing adoption of cloud computing, the need for improved IT efficiency, and the rising demand for specialized IT skills.
What are the major segments of the Managed IT Infrastructure Service Market?
