Global Cloud-Based Managed Services Market to See Steady Growth Until 2020

Technavio has released its latest market study about the global cloud-based managed services market and it seems the prognosis is positive. Much like the company’s report on WebRTC markets earlier in the year, managed services can expect significant growth in the years ahead, with an expected CAGR of nearly 20 percent during the forecast period.

The report, titled “Global Cloud-based Managed Services Market 2016-2020,” offers in-depth analysis of the market in terms of revenue and emerging market trends. Based on application and for the purposes of the report, the global cloud-based managed services market is classified into segments like cloud-based managed security services, cloud-based managed mobility services, cloud-based managed hosting services and more.

According to Technavio, the top three segments are: Cloud-based managed security services, cloud-based managed mobility services, and cloud-based managed hosting services. Indeed, the cloud-based managed security services segment led the market in 2015, accounting for 24.3 percent of the space. This segment is expected to maintain its growth rate over the forecast period.

“With the rise in the use of mobile data security services, cloud-based security services have become an inseparable part of growing organizations,” said Amit Sharma, a lead analyst at Technavio for cloud computing. “The market remains an attractive space for cloud service providers to expand their product offerings.”

“For organizational data security, companies are more concerned about data encryption, which has become a new area of growth. However, data encryption is a complex process. Cloud-based email security, identity and access management, and web-based security services remain the most sought offering from leading vendors in the market,” added Sharma.

The cloud-based managed mobility services segment was the fastest-growing in 2015, accounting for 22.6 percent of the market. Meanwhile, the cloud-based managed hosting services segment accounted for 16.7 percent of the market last year.

As for vendors, Cisco, HP, IBM and NTT (News - Alert) Data were all identified as top players in the overall cloud-based managed services market.