United States Managed Services Market Outlook
The managed services market in the United States has been experiencing significant growth in recent years, driven by several key factors. According to recent report by Expert Market Research (EMR), the United States managed services market size was valued at USD 23.34 billion in 2023 and is projected to reach USD 57.43 billion by 2032, growing at a compound annual growth rate (CAGR) of 10.4% between 2024 and 2032. This growth can be attributed to various factors, including the increasing adoption of cloud-based services, the need for cost-effective IT solutions, and the rising complexity of IT environments.
The Scope of Managed Services
Managed services encompass a broad spectrum of offerings, including but not limited to, infrastructure management, network monitoring, cybersecurity, cloud computing, and help desk support. By outsourcing these critical IT functions to specialized service providers, businesses can optimize their operations, enhance efficiency, and reduce operational costs. Moreover, managed services provide scalability and flexibility, allowing organizations to adapt to changing business requirements and technological advancements seamlessly.
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Market Dynamics Driving Growth
Several factors contribute to the growth of the United States managed services market:
- Increasing Complexity of IT Environments: With the proliferation of digital technologies and the adoption of cloud computing, businesses are grappling with increasingly complex IT infrastructures. Managed services providers offer expertise and resources to manage and optimize these environments effectively, ensuring seamless operations and minimal downtime.
- Focus on Core Competencies: In today’s competitive business landscape, companies are under pressure to innovate and differentiate themselves. By outsourcing non-core functions such as IT management to managed services providers, organizations can redirect their focus and resources towards strategic initiatives and value-added activities, driving business growth and profitability.
- Heightened Security Concerns: Cybersecurity threats continue to evolve in sophistication and frequency, posing significant risks to businesses of all sizes. Managed security services providers offer proactive monitoring, threat detection, and incident response capabilities to safeguard sensitive data and mitigate security risks, thereby addressing the growing security concerns among enterprises.
- Cost Optimization and Predictable Spending: Managed services offer a cost-effective alternative to traditional IT management models, allowing businesses to convert capital expenditures into predictable operational expenses. By outsourcing IT functions to managed services providers, organizations can achieve cost savings, improve budget predictability, and allocate resources more efficiently.
- Adoption of Cloud Computing: The widespread adoption of cloud computing has transformed the IT landscape, enabling businesses to access scalable infrastructure and applications on-demand. Managed cloud services providers offer expertise in cloud migration, management, and optimization, helping organizations leverage the full potential of cloud technology while ensuring security, compliance, and performance.
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United States Managed Services Market Segmentation
The market can be divided based on by Service Type, Deployment, Enterprise Size, End Use and Region.
Breakup by Service Type
- Managed IT Infrastructure and Data Centre
- Managed Network
- Managed Mobility
- Managed Communication and Collaboration
- Managed Information Service
- Managed Security
Breakup by Deployment
- On-premises
- Cloud
Breakup by Enterprise Size
- Small and Medium Enterprises
- Large Enterprises
Breakup by End Use
- BFSI
- Government
- Healthcare
- IT and Telecom
- Manufacturing
- Media and Entertainment
- Retail
- Others
Breakup by Region
- New England
- Mideast
- Great Lakes
- Plains
- Southeast
- Southwest
- Rocky Mountain
- Far West
Competitive Landscape
The United States managed services market is characterized by the presence of several prominent players, including both global IT giants and niche service providers. Some of the leading companies operating in the market include:
- IBM Corporation
- Cisco Systems Inc.
- AT&T Inc.
- Accenture plc
- Amazon Web Services, Inc.
- Fujitsu Limited
- HP Development Company, L.P.
- Verizon Communications, Inc.
- Telefonaktiebolaget LM Ericsson
- DXC Technology Company
- Rackspace Technology, Inc.
- Others
Future Growth Prospects and Emerging Trends
Looking ahead, the United States managed services market is poised for sustained growth, driven by emerging trends such as:
- Adoption of Artificial Intelligence (AI) and Machine Learning (ML) technologies to enhance service delivery, automate routine tasks, and improve operational efficiency.
- Expansion of managed services offerings to address niche markets and specialized industry verticals, including healthcare, education, and government.
- Integration of Internet of Things (IoT) platforms and solutions into managed services portfolios, enabling proactive monitoring and management of connected devices and sensors.
- Collaboration and partnerships between managed services providers and technology vendors to deliver end-to-end solutions that meet the evolving needs of customers.
- Focus on Managed Detection and Response (MDR) services to combat advanced cyber threats and enhance cybersecurity posture in an increasingly complex threat landscape.
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