Cloud Managed Services Market by End-user and Geography - Forecast and Analysis 2022-2026

The cloud-managed services market share is expected to increase to USD 52.62 billion from 2021 to 2026, and the market’s growth momentum will accelerate at a CAGR of 10.37%.

This cloud-managed services market research report provides valuable insights on the post COVID-19 impact on the market, which will help companies evaluate their business approaches. Furthermore, this report extensively covers cloud-managed services market segmentation by end-user (large enterprise and small and medium enterprise) and geography (North America, Europe, APAC, South America, and Middle East and Africa). The cloud-managed services market report also offers information on several market vendors, including Accenture Plc, ALE International, Alphabet Inc., Amazon.com Inc., Atos SE, Capgemini Service SAS, Cisco Systems Inc., Cloudticity LLC, Cognizant Technology Solutions Corp., DXC Technology Co., Fujitsu Ltd., HCL Technologies Ltd., Hewlett Packard Enterprise Co., Huawei Technologies Co. Ltd., Infosys Ltd., International Business Machines Corp., Lumen Technologies Inc., NEC Corp., NTT DATA Corp., Telefonaktiebolaget LM Ericsson, and Verizon Communications Inc. among others.

What will the Cloud Managed Services Market Size be During the Forecast Period?

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Cloud Managed Services Market: Key Drivers, Trends, and Challenges

The rising adoption of cloud computing services is notably driving the cloud-managed services market growth, although factors such as the data privacy and security risk in cloud-based services may impede the market growth. Our research analysts have studied the historical data and deduced the key market drivers and the COVID-19 pandemic impact on the cloud-managed services industry. The holistic analysis of the drivers will help in deducing end goals and refining marketing strategies to gain a competitive edge.

Key Cloud Managed Services Market Driver

• One of the key factors driving growth in the cloud-managed services market is the rising adoption of cloud computing services.
• The introduction of cloud computing has enhanced and simplified IT management and maintenance capabilities. 
• Cloud computing eliminates the need for users to update and maintain IT infrastructure.
• Organizations worldwide are adopting cloud-based managed services to cut costs associated with managing enterprise IT infrastructure. Also, with cloud computing services, end-users can concentrate more on core organizational activities rather than on managing applications.
• The cloud computing model helps enterprises in easy integration with third-party applications, which are hosted outside the enterprise firewall.
• The cloud has evolved as an ideal model platform and integration fabric for many enterprise applications with configuration flexibility, choice of access mechanisms, and integrated security. Such factors are expected to increase the adoption of cloud computing services, which will propel the growth of the global cloud-managed services market.

Key Cloud Managed Services Market Trend

• The increased adoption of BYOD policy is a cloud-managed services market trend that is expected to have a positive impact in the coming years.
• Enterprise mobility has gained ground in the corporate world in response to employees' preferences to use their smartphones, tablets, and portable computers at work.
• BYOD demands specific management and IT service delivery frameworks to guarantee electronically secure and productive work environments.
• The major focus of companies is to provide the right mobile devices to their employees. Thus, the implementation of the BYOD policy is an emerging trend among various enterprises globally.
• The growth in BYOD will result in an increase in the number of operating systems and mobile devices such as iOS, Android, Windows, smartphones, and tablets in the company that can access secure computer networks.
• To implement the BYOD program successfully, vendors are offering solutions to provide an environment where the workforce of an organization can use their personal devices through robust internet connectivity infrastructure. Such factors are expected to fuel the growth of the cloud-managed services market.

Key Cloud Managed Services Market Challenge

• The data privacy and security risk in cloud-based services will be a major challenge for the cloud-managed services market during the forecast period.
• Data privacy and security risk are major barriers to the adoption of cloud-based managed services in organizations, especially in the public cloud.
• Cloud infrastructure is based on many patchworks of open-source code, which can bring flaws to cloud systems. The public cloud infrastructure is more affected due to the glitches in source codes, as public clouds are multi-tenant that can affect various applications running in the cloud environment.
• Cyber-attackers can easily gain access to cloud-based data storage systems, as cloud-based infrastructure is based on open architecture and shared resources.
• The ease in procuring and accessing cloud services can also give users the ability to scan, identify, and exploit loopholes and vulnerabilities in a system. These factors, in turn, are expected to hamper the growth of the market in focus.

This cloud-managed services market analysis report also provides detailed information on other upcoming trends and challenges that will have a far-reaching effect on the market growth. The actionable insights on the trends and challenges will help companies evaluate and develop growth strategies for 2022-2026.

Parent Market Analysis

Technavio categorizes the global cloud-managed services market as a part of the global data processing and outsourced services market within the global IT services market. Our research report has extensively covered external factors influencing the parent market growth potential in the coming years, which will determine the levels of growth of the cloud-managed services market during the forecast period.

Who are the Major Cloud Managed Services Market Vendors?

The report analyzes the market’s competitive landscape and offers information on several market vendors, including:

 

• Accenture Plc
• ALE International
• Alphabet Inc.
• Amazon.com Inc.
• Atos SE
• Capgemini Service SAS
• Cisco Systems Inc.
• Cloudticity LLC
• Cognizant Technology Solutions Corp.
• DXC Technology Co.
• Fujitsu Ltd.
• HCL Technologies Ltd.
• Hewlett Packard Enterprise Co.
• Huawei Technologies Co. Ltd.
• Infosys Ltd.
• International Business Machines Corp.
• Lumen Technologies Inc.
• NEC Corp.
• NTT DATA Corp.
• Telefonaktiebolaget LM Ericsson
• Verizon Communications Inc.

 

This statistical study of the cloud-managed services market encompasses successful business strategies deployed by the key vendors. The cloud-managed services market is fragmented and the vendors are deploying growth strategies such as acquiring smaller vendors to expand their service portfolios, boost their market shares, and increase geographical reach to compete in the market.

Product Insights and News

• accenture.com = The company offers cloud-managed services that include cloud migration, Infrastructure Services, Data transformation, and cloud security.

• accenture.com = Through the North America segment, the company sells and delivers a full range of its services and capabilities to clients across North America.

To make the most of the opportunities and recover from post COVID-19 impact, market vendors should focus more on the growth prospects in the fast-growing segments, while maintaining their positions in the slow-growing segments.

The cloud-managed services market forecast report offers in-depth insights into key vendor profiles. The profiles include information on the production, sustainability, and prospects of the leading companies.

Cloud Managed Services Market Value Chain Analysis

Our report provides extensive information on the value chain analysis for the cloud-managed services market, which vendors can leverage to gain a competitive advantage during the forecast period. The end-to-end understanding of the value chain is essential in profit margin optimization and evaluation of business strategies. The data available in our value chain analysis segment can help vendors drive costs and enhance customer services during the forecast period.

Which are the Key Regions for Cloud Managed Services Market?

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36% of the market’s growth will originate from North America during the forecast period. The US is the key market for cloud-managed services in North America. Market growth in this region will be faster than the growth of the market in the European, MEA and South American regions.

The increasing cloud technology adoption among end-users such as SMEs and large enterprises for automating their business process, including data processing and outsourcing and Internet services will facilitate the cloud-managed services market growth in North America over the forecast period. This market research report entails detailed information on the competitive intelligence, marketing gaps, and regional opportunities in store for vendors, which will assist in creating efficient business plans.

COVID Impact and Recovery Analysis

The outbreak of COVID-19 had a devastating effect on the regional economy and on SMEs and large enterprises in 2020. It led to the imposition of strict lockdowns and a slowdown in the sales of most businesses in the region. Organizations started using digital solutions and other business management solutions to simplify their operations during the pandemic. For instance, in July 2020, Zim Integrated Shipping Services Ltd. extended its contract with Orange SA for cloud-based contact center and collaboration services, including network connectivity and audio and web conferencing. Thus, the expansion of remote working caused an increase in mobile attack surfaces such as data leakage, spyware, and phishing attacks dramatically.

What are the Revenue-generating End-user Segments in the Cloud Managed Services Market?

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The cloud-managed services market share growth by the large enterprise segment will be significant during the forecast period. The adoption of cloud-managed services by large enterprises is expected to decline during the forecast period. Despite the growing digital transformation, the rising adoption of bring your own device (BYOD), and increasing cyber threats, large enterprises are a little skeptical of outsourcing cloud-managed services. This is because enterprises that outsource security service tasks to third parties will have less control over their own security. 

This report provides an accurate prediction of the contribution of all the segments to the growth of the cloud-managed services market size and actionable market insights on post COVID-19 impact on each segment.

 

Cloud Managed Services Market Scope
Report Coverage	Details
Page number	120
Base year	2021
Forecast period	2022-2026
Growth momentum & CAGR	Accelerate at a CAGR of 10.37%
Market growth 2022-2026	$ 52.62 billion
Market structure	Fragmented
YoY growth (%)	7.83
Regional analysis	North America, Europe, APAC, South America, and Middle East and Africa
Performing market contribution	North America at 36%
Key consumer countries	US, China, Japan, Germany, and UK
Competitive landscape	Leading companies, Competitive strategies, Consumer engagement scope
Key companies profiled	Accenture Plc, ALE International, Alphabet Inc., Amazon.com Inc., Atos SE, Capgemini Service SAS, Cisco Systems Inc., Cloudticity LLC, Cognizant Technology Solutions Corp., DXC Technology Co., Fujitsu Ltd., HCL Technologies Ltd., Hewlett Packard Enterprise Co., Huawei Technologies Co. Ltd., Infosys Ltd., International Business Machines Corp., Lumen Technologies Inc., NEC Corp., NTT DATA Corp., Telefonaktiebolaget LM Ericsson, and Verizon Communications Inc.
Market dynamics	Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID 19 impact and recovery analysis and future consumer dynamics, Market condition analysis for the forecast period
Customization purview	If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized.

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What are the Key Data Covered in this Cloud Managed Services Market Report?

• CAGR of the market during the forecast period 2022-2026
• Detailed information on factors that will drive cloud-managed services market growth during the next five years
• Precise estimation of the cloud-managed services market size and its contribution to the parent market
• Accurate predictions on upcoming trends and changes in consumer behavior
• The growth of the cloud-managed services industry across North America, Europe, APAC, South America, and Middle East and Africa
• A thorough analysis of the market’s competitive landscape and detailed information on vendors
• Comprehensive details of factors that will challenge the growth of cloud-managed services market vendors

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