Report Predicts Robust Growth for Managed Services to 2025

MSP TODAY NEWS

Report Predicts Robust Growth for Managed Services to 2025

By Tracey E. Schelmetic

What’s ahead for the managed services market? Significant growth exceeding eight percent between now and 2025, according to a new report published by research aggregator MarketsandMarkets. According to the report, entitled "Managed Services Market by Service Type (Managed Security, Managed Network, Managed Data Center and IT Infrastructure, and Managed Communication and Collaboration), Vertical, Organization Size, Deployment Type and Region,” the global managed services market is predicted to grow from $223 billion in 2020 to $329.1 billion in 2025. The numbers are based on interviews with executives from supply-side companies, including CEOs, CMOs, vice presidents, managing directors and technology directors.

Companies today are suffering from a lack of skilled IT professionals as well as budget cutting, which is forcing enterprises to turn to managed services. At the same time that budgets are being cut and hiring is down, these same companies are adding digital technologies to their work processes – including data analytics and artificial intelligence – which is adding to demand for managed services. Companies in different vertical sectors, including IT, healthcare, retail, banking, manufacturing, and education, are all eager to leverage AI and analytics to improve their operations.

The growth will be most notable among larger companies, according to the report, since they’re eager to make the most of their premise-based investments.

“Managed services on-premises allow enterprises to hand over the complete system management to experts, ensuring maximum performance and availability of the existing data center investments,” according to the report’s authors. “Large enterprises might have the necessary resources, but face issues when it comes to the deployment type, due to the variety of solutions and applications available.”

In a regional breakdown, North America is predicted to dominate global managed services, and the region will also see more adoption of managed services than any other world region. The U.S. and Canada are expected to be the major revenue contributors in the North American Managed Services Market.

To learn more about how managed service providers (MSPs) can help your business, make plans to attend MSPEXPO, part of the #TECHSUPERSHOW series. MSPEXPO has been designed to help service providers understand how they can drive more recurring revenue, increase the valuation of their companies, grow their networks and deliver better customer service. It will also help companies looking for MSP partners to understand how MSPs can help them grow. The show will take place from February 9th to 12th, 2021, in Miami Beach, Florida. For more information or to register, visit the show website.  




Edited by Maurice Nagle

MSPToday Contributor

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