Managed Service Providers Market CAGR to be at 20.1% from 2025 to 2029 | $846.87 Billion Industry Revenue by 2029
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The Business Research Company’s Managed Service Providers Global Market Report 2025 - Market Size, Trends, And Global Forecast 2025-2034
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What Is The Projected Market Size & Growth Rate Of The Managed Service Providers Market?
The market size for managed service providers has seen remarkable growth in recent years, expanding from $337.60 billion in 2024 to an estimated $406.74 billion in 2025, which represents a compound annual growth rate (CAGR) of 20.5%. Factors contributing to this historic growth include the increasing intricacy of IT infrastructures, higher demand for economical IT management, swift adoption of cloud computing, escalating cybersecurity threats, the expansion of remote working environments, the necessity for constant system supervision and upkeep, and the widespread use of data-centered business operations.
We expect a substantial surge in the managed service providers market size in the upcoming years, projected to reach $846.87 billion by 2029 with a CAGR of 20.1%. The boost in this period is a result of increased AI and automation in IT operations, demand for managing cloud-native and hybrid infrastructure, enhanced emphasis on cybersecurity and compliance services, growth of remote and distributed work systems, increase in data analytics and IoT integration necessities, and increasing dependency on managed DevOps and application services, along with a transition to subscription-based IT consumption models. Innovations in AI-powered service automation, adoption of predictive analytics for proactive issue resolution, embracing of cloud-native and edge computing technologies, improved remote monitoring and management skills, and deployment of unified service management platforms will trend in this period.
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What Is The Crucial Factor Driving The Global Managed Service Providers Market?
We expect a substantial surge in the managed service providers market size in the upcoming years, projected to reach $846.87 billion by 2029 with a CAGR of 20.1%. The boost in this period is a result of increased AI and automation in IT operations, demand for managing cloud-native and hybrid infrastructure, enhanced emphasis on cybersecurity and compliance services, growth of remote and distributed work systems, increase in data analytics and IoT integration necessities, and increasing dependency on managed DevOps and application services, along with a transition to subscription-based IT consumption models. Innovations in AI-powered service automation, adoption of predictive analytics for proactive issue resolution, embracing of cloud-native and edge computing technologies, improved remote monitoring and management skills, and deployment of unified service management platforms will trend in this period.
Who Are The Emerging Players In The Managed Service Providers Market?
Major players in the Managed Service Providers Global Market Report 2025 include:
• Accenture plc
• International Business Machines Corporation (IBM)
• NTT DATA Corporation
• Fujitsu Limited
• Capgemini SE
• CDW Corporation
• Cognizant Technology Solutions Corporation
• Infosys Limited
• SHI International Corp.
• DXC Technology Company
What Are The Key Trends Shaping The Managed Service Providers Industry?
Leading organizations in the managed service providers market are shifting their focus towards creating unified, AI-integrated, and cloud-based platforms. The aspiration is to boost automation of services, cybersecurity measures, and operational efficiency in multi-client atmospheres. A unified platform empowered by artificial intelligence amalgamates different IT operations into a single system, making operations more efficient through automation and smart management. In 2025, for instance, ManageEngine, a prominent American IT management software firm, introduced MSP Central. This unified platform aims to improve the efficiency and scalability of managed service providers (MSPs). The platform merges service delivery, device management, threat control, and infrastructure supervision into a unique, AI-enhanced interface. It comes with a cloud-native architecture, and it supports multi-tenancy, role-based access, and integration with Zoho and other third-party tools. It's instrumental features comprise RMM, PSA, advanced server supervision, and endpoint security. MSP Central is aimed at diminishing operational intricacy, increasing technician productivity, and lending a hand to MSPs in delivering secure, seamless IT services, while reducing tool fragmentation.
What Segments Are Covered In The Managed Service Providers Market Report?
The managed service providers market covered in this report is segmented –
1) By Service Provider Type: Managed Network Service Providers, Managed Security Service Providers, Managed Cloud Service Providers, Managed IT Service Providers
2) By Deployment Mode: On-Premises, Cloud
3) By Organization Size: Small And Medium-Sized Enterprises (SMEs), Large Enterprises
4) By End-User: Banking, Financial Services, And Insurance (BFSI), Healthcare, Information Technology (IT) And Telecommunications, Retail, Manufacturing, Government, Other End Users
Subsegments:
1) By Managed Network Service Providers: SD-WAN, MPLS Or WAN Services, LAN Or WLAN Management, VPN And Remote-Access Services, Network Monitoring And Performance Management, Voice Or VoIP And UC Management, Network Equipment Provisioning And Maintenance, Network Consulting And Integration
2)By Managed Security Service Providers: Security Operations Center (SOC) As A Service, Managed Detection And Response (MDR), Firewall Or IDS-IPS Management, Endpoint Detection And Response (EDR), Identity And Access Management (IAM), Vulnerability Management And Pen Testing, Threat Intelligence And Hunting, Compliance, SIEM And Log Management, Data Loss Prevention (DLP) And Encryption
3) By Managed Cloud Service Providers: IaaS Management, PaaS Management, SaaS Management And Integration, Cloud Migration And Onboarding, Multi-Cloud Or Hybrid Cloud Management, Cloud Security (CSPM Or CASB), Cost Optimization Or FinOps, Backup And Disaster Recovery For Cloud, Container Or Kubernetes Management
4) By Managed IT Service Providers: IT Helpdesk Or Service Desk (NOC), Desktop Or Endpoint Management (MDM), Server And Infrastructure Management, Patch And Update Management, Managed Backup And Disaster Recovery, IT Asset Lifecycle Management, Application Management And Maintenance, ITSM Or Process Management, Compliance And Policy Management
View the full managed service providers market report:
https://www.thebusinessresearchcompany.com/report/managed-service-providers-global-market-report
Which Region Is Projected To Hold The Largest Market Share In The Global Managed Service Providers Market?
In the Managed Service Providers Global Market Report 2025, North America emerged as the leading region in the market for the year 2024. The report projects the fastest growth to be seen in the Asia-Pacific region during the forecast period. The report covers several regions including, Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, and Africa.
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