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The managed IT infrastructure services market size is estimated to grow by USD 51.2 billion at a CAGR of 8.51% between 2023 and 2028. The market is experiencing significant growth due to the increasing adoption of cloud-based solutions. According to recent market research, the global managed IT infrastructure services market is projected to reach a value of USD 203.2 billion by 2023, with managed security services being a key offering. This growth can be attributed to the rising investments by various industry verticals to deploy new technologies and solutions for enhanced security and compliance. Companies are recognizing the importance of managed security services to mitigate cyber threats and protect their digital assets. The adoption of advanced technologies such as artificial intelligence, machine learning, and automation is further driving the growth of the managed security services market.
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The market is witnessing significant growth in the IT industry as businesses seek to optimize their IT operations and focus on core competencies. Managed infrastructure services refer to outsourced services that enable organizations to manage their IT infrastructure, including data centers, servers, storage, and networking, among others. Cloud-based technology is a major driver of this market, with the increasing adoption of cloud services for cost savings, flexibility, and scalability. Big Data and Elastic Map Reduce are also key areas of focus, as businesses look to extract insights from their data to make informed decisions. Outdated hardware and the need for cybersecurity and data protection are major challenges driving the demand for managed infrastructure services. Dell Technology and VMware are major players in this market, offering solutions for both on-premises and cloud deployments. Mobile edge computing, Fortinet, Artificial Intelligence, and ARM Hub are emerging trends in the Managed Infrastructure Services market. Security-as-a-service, automation, and AI-driven solutions are also gaining popularity, as businesses look to enhance their security posture and streamline their IT operations. SMEs are also increasingly adopting managed infrastructure services, as they offer cost savings and access to advanced technologies that may not be feasible for them to implement in-house. The deployment model, whether on-premises or cloud, is a critical consideration for businesses when choosing a managed infrastructure services provider. Cybersecurity remains a top priority, with data protection being a key concern for organizations across industries. Our researchers analyzed the data with 2023 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
The rising adoption of cloud-based managed security services (MSS) is notably driving market growth. The global technology market is witnessing a significant shift towards managed IT infrastructure services, particularly in the realm of IT data centers. This trend is being driven by the increasing adoption of cloud migration and the need to adhere to evolving laws and standards. As start-ups and multinational corporations continue to invest in IT applications and R&D talent, ensuring the security of their digital assets becomes a top priority. Managed security services (MSS) are increasingly being adopted to safeguard against cyber threats, which are becoming more sophisticated and prevalent in both commercial and government sectors. In response, managed service providers (MSPs) are innovating to offer advanced cloud-based security solutions, capable of detecting and preventing email viruses, DDOS attacks, and other cyber intrusions. Major technology vendors are also investing in 5G Ultra Wideband and edge strategies to enhance the security and performance of their managed services. For instance, IBM Corp. recently announced new cloud-based security services to help businesses protect their critical data and applications. Thus, such factors are driving the growth of the market during the forecast period.
The increasing demand for low-cost IT infrastructure is the key trend in the market. The technology landscape has witnessed a substantial increase in IT infrastructure spending among organizations to accommodate the expanding use of IT data centers and applications. This trend is driven by the need to comply with laws and standards, as well as to foster innovation through Research and Development (R&D) talent and start-ups. With the ongoing shift towards cloud migration, multicloud strategies, and edge computing, 5G Ultra Wideband, and other advanced technologies are becoming essential for businesses. Cloud migration offers significant cost savings through reduced operational expenses (OPEX), as opposed to the high capital expenditures (CAPEX) required for maintaining traditional IT infrastructure. Cloud backup and recovery solutions, in particular, can help organizations save on annual operating costs, with cloud storage costing nearly 4 cents per gigabyte, compared to the internal power consumption and maintenance costs of storing data on-premises. Thus, such trends will shape the growth of the market during the forecast period.
The lack of IT security professionals is the major challenge that affects the growth of the market. The global market is experiencing significant growth due to the increasing adoption of advanced technologies such as Cloud migration, 5G Ultra Wideband, and Edge strategies in IT data centers. However, one of the significant challenges impeding market expansion is the scarcity of IT and cybersecurity professionals. This shortage can hinder enterprises from adhering to IT laws and standards, making them susceptible to cyberattacks, resulting in potential data loss and reputational damage. To mitigate this issue, there is a pressing need for cybersecurity training and the development of R&D talent. The surge in cybersecurity threats necessitates the implementation of robust security measures, particularly in the areas of multicloud environments and IT applications. Start-ups and established organizations alike are investing in cybersecurity solutions to address the skills gap and safeguard their digital assets. As technology continues to evolve, the importance of cybersecurity will only grow, making it a crucial area of focus for businesses and service providers alike. Hence, the above factors will impede the growth of the market during the forecast period.
The market forecasting report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth analysis strategies.
Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
Accenture Plc - The company offers managed IT infrastructure services for cloud continuum.
The market research and growth report also includes detailed analyses of the competitive landscape of the market and information about key companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The small and medium enterprise segment is estimated to witness significant growth during the market forecast period. The IT infrastructure landscape is undergoing significant transformation as Managed Infrastructure Services gain traction in the IT industry. Cloud-based technology, such as Elastic Map Reduce, is driving this shift, enabling businesses to modernize their IT ecosystems and overcome the limitations of outdated hardware. Dell Technology and VMware are leading this charge with innovative solutions, including mobile edge computing and AI-driven services through the ARM Hub.
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The small and medium enterprise segment accounted for USD 48.30 billion in 2018. SMEs and large organizations alike are adopting cloud services, such as OTAVA, for their infrastructure needs due to the flexibility, quality, and cost optimization they offer. Cloud computing is also revolutionizing industry verticals by enabling service innovation and regulatory compliance. Security-as-a-service solutions from Fortinet and cybersecurity experts are addressing concerns around data protection and data security. Automation and deployment models, including on-premises and cloud, are key considerations for businesses looking to optimize their IT infrastructure. Core competencies in IT infrastructure management are essential for organizations to effectively navigate the complexities of the IT ecosystem and adapt to changing regulatory landscapes. Ultimately, the adoption of managed infrastructure services and cloud-based technology will continue to shape the future of the IT industry.
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North America is estimated to contribute 43% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.
The market is witnessing significant growth due to the increasing adoption of managed infrastructure services in the IT industry. Cloud-based technology, such as Big Data and Elastic Map Reduce, is driving this trend, enabling organizations to replace outdated hardware with more efficient cloud services. Dell Technology and VMware are key players in this space, offering solutions for data center modernization. Mobile edge computing is another emerging area, with Fortinet leading the way in security solutions. Artificial Intelligence (AI) is also transforming the IT ecosystem, with ARM Hub and AI-driven solutions becoming core competencies for many organizations. Security-as-a-service, provided by OTAVA and others, is a critical component of the IT services landscape, addressing cybersecurity and data protection concerns in regulatory landscapes. Automation and deployment models, such as on-premises and cloud, cater to the varying needs of SMEs and large organizations. Flexibility and cost optimization are key factors driving the adoption of managed infrastructure services across industry verticals. Quality and service innovation are essential to maintaining a competitive edge in the ever-evolving IT services market. Cloud computing continues to be a major scenario, with cost optimization and regulatory compliance being key challenges.
The market report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD billion " for the period 2024-2028, as well as historical data from 2018- 2022 for the following segments.
Managed infrastructure services refer to outsourced IT solutions that enable businesses to manage and optimize their IT infrastructure. In the rapidly evolving IT industry, organizations are increasingly turning to managed infrastructure services to stay competitive and efficient. One of the key drivers of this trend is the adoption of cloud-based technology, which offers flexibility, cost savings, and scalability. Big Data and Elastic Map Reduce are transforming IT ecosystems by enabling organizations to process and analyze vast amounts of data in real-time. Outdated hardware and on-premises data centers are being replaced by cloud services from industry leaders like Dell Technology and VMware. Mobile edge computing is another emerging trend, which brings computing power closer to the source of data generation, reducing latency and improving performance. Fortinet's security-as-a-service solutions provide an added layer of security to these new IT scenarios. Artificial Intelligence (AI) and automation are core competencies of managed infrastructure services, offering service innovation, quality, and cost optimization. OTAVA's AI-driven solutions enable organizations to streamline operations, enhance customer experience, and gain competitive advantage. Cybersecurity and data protection are critical concerns in the IT industry, with regulatory landscapes becoming increasingly complex. Managed infrastructure services provide robust solutions to address these challenges, ensuring compliance and data security. Industry verticals such as healthcare, finance, and retail are leveraging managed infrastructure services to meet their unique needs. Whether it's a Small or Medium-sized Enterprise (SME) or a Large Organization, managed infrastructure services offer the flexibility and cost savings to meet their IT requirements. In conclusion, managed infrastructure services are transforming the IT industry by offering cost optimization, flexibility, and security. With the adoption of cloud computing and emerging technologies like AI and automation, managed infrastructure services are set to play a pivotal role in the future of IT.
Market Scope |
|
Report Coverage |
Details |
Page number |
151 |
Base year |
2023 |
Historic period |
2018-2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 8.51% |
Market growth 2024-2028 |
USD 51.2 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
7.68 |
Regional analysis |
North America, Europe, APAC, South America, and Middle East and Africa |
Performing market contribution |
North America at 43% |
Key countries |
US, China, Germany, Japan, and UK |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Accenture Plc, AT and T Inc., Atos SE, Canon Inc., Cisco Systems Inc., Citrix Systems Inc., Cognizant Technology Solutions Corp., Dell Technologies Inc., DXC Technology Co., Fujitsu Ltd., Happiest Minds Technologies Ltd., Hewlett Packard Enterprise Co., International Business Machines Corp., Lenovo Group Ltd., Microsoft Corp., Tata Consultancy Services Ltd., Telefonaktiebolaget LM Ericsson, Toshiba Corp., Verizon Communications Inc., and Xerox Holdings Corp. |
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 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. |
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by End-user
7 Customer Landscape
8 Geographic Landscape
9 Drivers, Challenges, and Opportunity/Restraints
10 Competitive Landscape
11 Competitive Analysis
12 Appendix
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