Cloud Managed Services Market Size to Surpass USD 420.70 Bn by 2033

Prathamesh

1 month ago

The global cloud managed services market size surpassed USD 121.10 billion in 2023 and is projected to cross around USD 420.70 billion by 2033, growing at a CAGR of 13.26% from 2024 to 2033.

Key Points

The North America cloud managed services market size reached USD 39.96 billion in 2023 and is projected to surpass around USD 138.83 billion by 2033.
North America held the largest share of 33% in the global cloud managed services market in 2023.
Asia Pacific is expected to experience significant growth in the coming years.
By service, the mobility segment dominated the market in 2023 and accounted revenue share of 38.3%.
By service, the network services segment is anticipated to grow at the fastest CAGR over the forecast period.
By deployment, the private segment held the largest market share of around 86.6% in 2023.
By deployment, over the forecast period, the public segment is estimated to grow at the fastest CAGR.
By vertical, the telecom & ITes segment dominated the market with revenue share of 20.7% in 2023.
By vertical, the government segment is anticipated to experience the fastest growth in the upcoming years.
By end use, the large enterprise segment has contributed market share of 80.7% in 2023.
By end use, the SME segment is projected to experience the highest growth rate during the forecast period.

Cloud Managed Services Market Size 2024 to 2033

The cloud managed services market is a rapidly growing industry driven by the increasing adoption of cloud computing across various business sectors. Cloud managed services involve outsourcing the management and maintenance of cloud infrastructure and services to third-party providers. This includes monitoring, security, data backup, disaster recovery, and other IT management functions.The cloud managed services market is expanding as businesses increasingly rely on cloud-based solutions for their operations. These services offer cost-effective and efficient management of IT resources, enabling companies to focus on their core competencies.

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Growth Factors:

The growth of the cloud managed services market is fueled by several factors, including the rise of digital transformation initiatives, the need for scalable and flexible IT solutions, and the growing awareness of cybersecurity threats. Additionally, the pandemic has accelerated the shift to remote work, further driving the demand for cloud managed services.

Region Insights: North America holds a significant share of the cloud managed services market due to the presence of major technology companies and a high adoption rate of cloud solutions. The Asia-Pacific region is also experiencing rapid growth, with countries like India and China investing heavily in cloud infrastructure and services.

Cloud Managed Services Market Scope

Report Coverage	Details
Growth Rate from 2024 to 2033	CAGR of 13.26%
Global Market Size in 2023	USD 121.10 Billion
Global Market Size in 2024	USD 137.16 Billion
Global Market Size by 2033	USD 420.70 Billion
Largest Market	North America
Base Year	2023
Forecast Period	2024 to 2033
Segments Covered	By Service Type, By Deployment, By End-user, and By Verticals
Regions Covered	North America, Europe, Asia-Pacific, Latin America, and Middle East & Africa

Cloud Managed Services Market Dynamics

Drivers:

Key drivers of the market include the need for efficient management of cloud resources, the ability to reduce operational costs, and the demand for improved IT security and compliance. Additionally, businesses are increasingly seeking to leverage cloud services for scalability and agility in their operations.

Opportunities:

Opportunities in the cloud managed services market include the expansion of services to support emerging technologies such as AI and IoT, as well as the development of specialized services for industries such as healthcare and finance. Providers can also explore offering multi-cloud and hybrid cloud management services.

Challenges:

Challenges in the market include ensuring data privacy and security, managing complex cloud environments, and staying compliant with regulatory requirements. Additionally, competition among service providers is intense, making differentiation a key factor for success in the market.

Cloud Managed Services Market Recent Developments

In April 2023, Sinch, a computer software company, joined forces with Synoptek, an IT service provider and Microsoft Gold partner. This strategic partnership enables Sinch to provide professional and managed Microsoft Teams Phone System services that are seamlessly integrated with Operator Connect or Direct Routing.
In April 2023, VMware, Inc., a cloud computing company, launched VMware Cross-Cloud managed services. These comprehensive offerings benefit partners and customers, empowering skilled partners to expand their managed services practices. The launch of VMware Cross-Cloud managed services facilitates growth, profitability, and recurring revenue for providers while also addressing the challenge of talent and skills gaps in multi-cloud environments.
In February 2022, IBM collaborated with SAP, a multinational software company. Together, the companies aim to deliver consulting and technology experience to make it easy for buyers to hold hybrid cloud access and move mission-critical workloads from SAP solutions to the cloud for organized and non-regulated enterprises.