US Managed Services Market Overview:
United States Managed Services Market Size was valued at USD 53.5 Billion in 2022. The United States Managed Services market industry is projected to grow from USD 59.1 Billion in 2023 to USD 132.4 Billion by 2032, exhibiting a compound annual growth rate (CAGR) of 10.60% during the forecast period (2024 - 2032). The major market drivers include the pivotal role of Managed Service Providers (MSPs) in safeguarding the Internet of Things (IoT) ecosystem and fostering innovation. Additionally, the increasing prevalence of remote workers and heightened productivity emphasize the significance of managed services in facilitating the evolving work environment.
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
US Managed Services Market Trends
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Changing landscape of IT infrastructure and increasing demand for work-from-home are driving the market growth
The United States Managed Services market CAGR is expanding due to the changing landscape of IT infrastructure and increasing demand for work-from-home. Managed services enable businesses to concentrate on their core competencies while enhancing operational efficiency and reducing operating costs. The US market is experiencing growth driven by the evolving landscape of IT infrastructure, particularly in small and medium enterprises (SMEs) that prioritize outsourcing cybersecurity solutions. For example, KPaul Properties LLC, an emerging manufacturer and distributor of IT supplies in the US, partnered with Fujitsu to transition from a physical server to a virtualized environment.
This move reduced costs by approximately 15% and ensured 95% uptime. As businesses rebound from the pandemic, many IT leaders in the US are expanding their adoption and implementation of innovative technologies to foster innovation. The focus is on proactively identifying issues before they lead to significant disruptions. Firms are enhancing desktop and data security, managing devices, saving time, bolstering security measures, administering applications, and implementing business continuity and disaster recovery strategies to safeguard their most critical assets through effective managed services.
The demand for work-from-home solutions post-COVID-19 is anticipated to drive the market further. For instance, according to the 2022 Zippia survey, as of 2022, 26% of US employees worked remotely. By 2025, an estimated 36.2 million American employees are projected to work remotely. Approximately 40% of workers reported higher productivity while working from home during the pandemic, and 16% of US enterprises have transitioned to fully remote operations.
Remote employment opportunities now constitute 15% of all job openings in the United States. As remote work becomes more prevalent, businesses are increasingly in need of managed services that enable effortless access to corporate networks and applications from diverse locations. This encompasses solutions like virtual private networks (VPNs), cloud-based collaboration platforms, and remote desktop solutions, all designed to enhance employees' efficiency while working from home. Thus, driving the United States Managed Services market revenue.
United States Managed Services Market Segment Insights:
United States Managed Services Deployment Type Insights
The United States Managed Services market segmentation, based on Deployment Type, includes On-premise and Cloud. The on-premise segment dominated the market. Many businesses have embraced on-premise deployment due to its independence from internet connectivity and its flexibility for customizing software to align with client business processes. On-premise implementation enhances operational efficiency and establishes centralized control centers within organizations, facilitating effective coordination of project management tasks and business operations.
Figure 1: United States Managed Services Market, by Deployment Type, 2023 & 2032 (USD Billion)
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
United States Managed Services Type Insights
The United States Managed Services market segmentation, based on Type, includes Managed Data Centers, Managed Security, Managed Communications, Managed Networks, Managed Infrastructure, and Managed Mobility. The managed data center category generated the most income. The growth of the managed data center segment is anticipated as advanced technology continues to be integrated into both existing and emerging corporate infrastructures. Leveraging managed data center services can enhance operational efficiency, promote business automation, and bolster business management within a hybrid IT framework.
United States Managed Services Enterprise Size Insights
The United States Managed Services market segmentation, based on Enterprise Size, includes Small and Medium Enterprises and Large Enterprises. The large enterprises category generated the most income. Major businesses deal with extensive volumes of data, necessitating effective local and remote accessibility and maintenance.
Moreover, these enterprises are progressively adopting managed security services to oversee and safeguard their corporate data security. The rising incidence of cyberattacks, coupled with limited infrastructure for breach detection, has propelled managed security services to become the most sought-after service among businesses throughout the region. A cyberattack or data breach within a large corporation in APAC could lead to significant losses. Key sectors driving market growth include retail and consumer goods, healthcare, manufacturing, and telecom & IT.
United States Managed Services End-user Vertical Insights
The United States Managed Services market segmentation, based on End-user Vertical, includes BFSI, IT and Telecom, Healthcare, Entertainment and Media, Retail, Manufacturing, and Government. The IT and telecom category generated the most income. The IT and telecom sector represents a significant market for managed services due to the rapid adoption of various technologies, increasing implementation of BYOD policies for enhanced business operations, and heightened demand for top-tier security amidst escalating data volumes within organizations.
In recent years, the telecom industry has experienced notable growth, driven by the constant pressure on telecommunication firms to offer innovative services at reduced costs to maintain competitiveness in the market. The advent of 5G technology, boasting data speeds up to 20 times faster than 4G and a tenfold increase in network connection density, presents substantial opportunities for economic growth, innovation, and enhanced customer experiences.
Among the three major telecommunications operators in the United States, T-Mobile leads in 5G coverage as of March 2021, with its network spanning 1.6 million square miles. During the same period, AT&T and Verizon covered 0.7 million and 0.4 million square miles, respectively. Given the intricate and competitive landscape, there is widespread demand for managed services among operators to navigate these complexities effectively.
United States Managed Services Country Insights
Managed services play a vital role in the United States, offering essential support and solutions to businesses across diverse sectors and sizes. By outsourcing their IT management and operations to specialized service providers, companies can streamline processes, cut costs, and concentrate on their core competencies. In the US healthcare sector, for instance, managing IT infrastructure and ensuring compliance with rigorous regulations can be exceedingly complex and resource-intensive.
Consequently, many healthcare providers and organizations are turning to managed service providers (MSPs) to efficiently handle critical IT tasks. For instance, in December 2022, Carle Health, an integrated health system based in Illinois, partnered with Health Catalyst, a healthcare data and analytics technology company, to enhance its analytics capabilities and elevate patient care. Under the five-year agreement, Carle Health will benefit from an all-access technology subscription and managed services encompassing analytics, data management, reporting, and project management. MSPs in this domain offer a range of services, including electronic health record (EHR) management, data backup and recovery, cybersecurity, and compliance support.
United States Managed Services Key Market Players & Competitive Insights
Leading market players are constantly providing increased and enhanced offerings, which will help the United States Managed Services market grow even more. Market participants are also undertaking a variety of strategic activities to expand their footprint, with important market developments including new product launches, contractual agreements, mergers and acquisitions, higher investments, and collaboration with other organizations. To expand and survive in a more competitive and rising market climate, the United States Managed Services industry must offer cost-effective items.
Major players in the United States Managed Services market are attempting to increase market demand by investing in research and development operations, including Fujitsu Limited, Cisco Systems Inc., IBM Corporation, AT&T Inc., HP Development Inc., Microsoft Corporation, Verizon Communications Inc., Dell Technologies Inc., Rackspace Inc., Tata Consultancy Services Limited, Citrix Systems Inc., Wipro Ltd.
Key Companies in the United States Managed Services market include
United States Managed Services Industry Developments
July 2023: Netskope, a prominent provider of Secure Access Service Edge (SASE), announced a fresh collaboration with Wipro Limited to deliver robust cloud-native Managed Secure Access Service Edge (SASE) and Managed Zero Trust Network Access (ZTNA) services to Wipro's expansive global enterprise client base.
June 2023: Wipro Limited, a leading technology consulting and services company, unveiled a managed private 5G-as-a-service solution in partnership with Cisco. This innovative offering enables enterprise customers to enhance their business outcomes by seamlessly integrating private 5G with their existing WAN/LAN/Cloud infrastructure.
United States Managed Services Market Segmentation:
United States Managed Services Deployment Type Outlook
United States Managed Services Type Outlook
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Managed Data Center
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Managed Security
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Managed Communications
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Managed Network
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Managed Infrastructure
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Managed Mobility
United States Managed Services Enterprise Size Outlook
United States Managed Services End-user Vertical Outlook
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BFSI
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IT and Telecom
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Healthcare
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Entertainment and Media
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Retail
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Manufacturing
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Government
| Report Attribute/Metric |
Details |
| Market Size 2022 |
USD 53.5 Billion |
| Market Size 2023 |
USD 59.1 Billion |
| Market Size 2032 |
USD 132.4 Billion |
| Compound Annual Growth Rate (CAGR) |
10.60% (2024-2032) |
| Base Year |
2023 |
| Market Forecast Period |
2024-2032 |
| Historical Data |
2019-2022 |
| Market Forecast Units |
Value (USD Billion) |
| Report Coverage |
Revenue Forecast, Market Competitive Landscape, Growth Factors, and Trends |
| Segments Covered |
Deployment Type, Type, Enterprise Size, and End User vertical, and Region |
| Countries Covered |
United States |
| Key Companies Profiled |
Fujitsu Limited, Cisco Systems Inc., IBM Corporation, AT&T Inc., HP Development Inc., Microsoft Corporation, Verizon Communications Inc., Dell Technologies Inc., Rackspace Inc., Tata Consultancy Services Limited, Citrix Systems Inc., Wipro Ltd |
| Key Market Opportunities |
Growing preference for advanced technology services |
| Key Market Dynamics |
Growing demand for cloud computing and IT security services Growing number of technology start-ups and the continued adoption of ERP, CRM, and cloud services |
Frequently Asked Questions (FAQ) :
The United States Managed Services market size was valued at USD 59.1 Billion in 2023.
The market is projected to grow at a CAGR of 10.60% during the forecast period, 2024-2032.
The key players in the market are Fujitsu Limited, Cisco Systems Inc., IBM Corporation, AT&T Inc., HP Development Inc., Microsoft Corporation, Verizon Communications Inc., Dell Technologies Inc., Rackspace Inc., Tata Consultancy Services Limited, Citrix Systems Inc., Wipro Ltd.
The Managed Data Center category dominated the market in 2023.
The IT and Telecom category had the largest share of the market.
