Market Size of Europe Managed Services Industry
Study Period | 2019 - 2029 |
Base Year For Estimation | 2023 |
Market Size (2024) | USD 52.09 Billion |
Market Size (2029) | USD 100.04 Billion |
CAGR (2024 - 2029) | 13.94 % |
Market Concentration | Low |
Major Players*Disclaimer: Major Players sorted in no particular order |
Need a report that reflects how COVID-19 has impacted this market and its growth?
Europe Managed Services Market Analysis
The Europe Managed Services Market size is estimated at USD 52.09 billion in 2024, and is expected to reach USD 100.04 billion by 2029, growing at a CAGR of 13.94% during the forecast period (2024-2029).
- Factors such as the growing adoption of cloud services, growth in cloud diversification, and the willingness of IT companies to minimize capital expenditure and make the most of their IT budgets continue to drive the growth of the studied market.
- Artificial technology and cloud management address various functional business requirements and managed services and assist with the efficient operation of the organization at a low cost without sacrificing the caliber of the work produced. The key market participants are making investments in the creation of new items and the diversification of their product offerings. They are also conducting research and development efforts to provide dependable and affordable services. For instance, in August 2022, Nomura Research Institute, Ltd. (NRI), a leading provider of system solutions and consulting services and system solutions, launched a dedicated managed services room at the NRI Europe Denmark Branch in order to enhance its system for providing managed services in Europe.
- The European region is among the leading automotive manufacturing markets. In recent years, the automotive industry has entered into a period of radical change, with the vehicles being produced expected to be connected, autonomous, shared on-demand, and electric. The emergence of autonomous driving will have challenges, including huge data volumes required for training AI and real-time decision-making systems. Service providers, like Fujitsu, offer solutions that will decrease data volumes and manage them in a distributed fashion, where only the relevant data is collected.
- Furthermore, major players are setting up public cloud setups in Europe to empower businesses. For instance, Microsoft recently announced its plans to deliver two new cloud regions in Germany to equip more organizations and companies in Europe and worldwide to transform them digitally with public cloud solutions. These new regions will offer Microsoft Azure, Office 365, and Dynamics 365 full functionality features, enterprise-grade security, and other features to help customers meet compliance and regulatory requirements.
- Additionally, IoT has forced companies to re-evaluate how customers access information and develop a strategy to best reach them. Millions of new gadgets connect to the Internet every year, making it practically impossible to understand the already complex landscape and the integration challenges and cyber threats provided by many channels. Hence, managed service providers can improve security for each tier of the IoT ecosystem at this point, enabling firms to harness IoT for innovation and stay on the cutting edge of technology by providing qualified resources and round-the-clock support services.
- However, despite the managed services providing excellent benefits, the specific challenges, like reliability concerns, may obstruct the market's growth over the forecast period. The process of hiring an MSP to host critical business infrastructure involves the belief that the providers' business may endure the relationship with them. In case of any failure by the providers to sustain the competition in the market, the enterprises relying upon them may have to entirely replace web hosting, emails, calendars, and other critical pieces of infrastructure, without which it is not possible to conduct business.
- Moreover, the pandemic has also revealed gaps in organizations' disaster recovery plans (DRP) and business continuity plans (BCP). Most of these plans could not address the pandemic, forcing organizations to scramble to transition their IT infrastructure to accommodate a distributed and remote workforce. The pandemic highlighted the importance of monitoring technology and services in detecting security incidents before they cause operational risk. Hence, the post-COVID period is anticipated to drive growth opportunities in the European managed services market.
Europe Managed Services Industry Segmentation
The emergence of managed services is aiding in meeting the needs of a wide variety of businesses throughout Europe. In the region, the telecommunication providers are focusing on security services, owing to European regulations. Furthermore, the region has a strong automotive and manufacturing sector, and in addition, emerging applications, like cloud-based solutions, are expected to do significantly well during the forecast period.
The Europe managed services market is segmented by deployment (on-premise and cloud), by type (managed data center, managed security, managed communications, managed networks, managed infrastructure, and managed mobility), by enterprise size (small and medium enterprises and large enterprises), by end-user vertical (BFSI, manufacturing, healthcare, retail), and country (United Kingdom, Germany, France, and Rest of Europe). The market sizes and forecasts are provided in terms of value (USD) for all the above segments.
By Deployment | |
On-premise | |
Cloud |
By Type | |
Managed Data Center | |
Managed Security | |
Managed Communications | |
Managed Network | |
Managed Infrastructure | |
Managed Mobility |
By Enterprise Size | |
Small and Medium Enterprises | |
Large Enterprises |
By End-user Vertical | |
BFSI | |
Manufacturing | |
Healthcare | |
Retail | |
Other End-user Verticals |
By Country | |
United Kingdom | |
Germany | |
France | |
Rest of Europe |
Europe Managed Services Market Size Summary
The managed services market in Europe is experiencing significant growth, driven by the increasing adoption of cloud services and the need for businesses to optimize their IT budgets. Companies are increasingly relying on managed service providers (MSPs) to enhance operational efficiency and reduce costs without compromising on quality. The market is characterized by the integration of advanced technologies such as artificial intelligence and cloud management, which address various business needs and support the efficient operation of organizations. Key players in the market are investing in research and development to offer reliable and cost-effective services, with initiatives like the establishment of dedicated managed services rooms and the expansion of cloud regions to support digital transformation across Europe. The automotive industry's shift towards connected and autonomous vehicles further propels the demand for managed services, as providers offer solutions to manage large data volumes and ensure seamless integration with IoT devices.
The European managed services market is also witnessing a surge in demand for hybrid cloud solutions, driven by the need for businesses to leverage both public and private cloud benefits. The rise of IoT and the increasing complexity of data management have prompted organizations to seek expert knowledge and security services from MSPs. The pandemic has highlighted the importance of robust disaster recovery and business continuity plans, further boosting the market's growth prospects. Additionally, the growing cyber security threats have led to increased investments in managed security services, with providers offering comprehensive solutions to protect critical business infrastructure. The market is fragmented, with major players like Fujitsu, IBM, and Cisco dominating the landscape, while new partnerships and collaborations continue to shape the competitive dynamics. As European businesses increasingly rely on digital transformation, the demand for managed services is expected to continue its upward trajectory, providing opportunities for innovation and growth.
Europe Managed Services Market Size - Table of Contents
-
1. MARKET INSIGHTS
-
1.1 Market Overview
-
1.2 Value Chain Analysis
-
1.3 Industry Attractiveness - Porter's Five Forces Analysis
-
1.3.1 Threat of New Entrants
-
1.3.2 Bargaining Power of Buyers/Consumers
-
1.3.3 Bargaining Power of Suppliers
-
1.3.4 Threat of Substitute Products
-
1.3.5 Intensity of Competitive Rivalry
-
-
-
2. MARKET SEGMENTATION
-
2.1 By Deployment
-
2.1.1 On-premise
-
2.1.2 Cloud
-
-
2.2 By Type
-
2.2.1 Managed Data Center
-
2.2.2 Managed Security
-
2.2.3 Managed Communications
-
2.2.4 Managed Network
-
2.2.5 Managed Infrastructure
-
2.2.6 Managed Mobility
-
-
2.3 By Enterprise Size
-
2.3.1 Small and Medium Enterprises
-
2.3.2 Large Enterprises
-
-
2.4 By End-user Vertical
-
2.4.1 BFSI
-
2.4.2 Manufacturing
-
2.4.3 Healthcare
-
2.4.4 Retail
-
2.4.5 Other End-user Verticals
-
-
2.5 By Country
-
2.5.1 United Kingdom
-
2.5.2 Germany
-
2.5.3 France
-
2.5.4 Rest of Europe
-
-
Europe Managed Services Market Size FAQs
How big is the Europe Managed Services Market?
The Europe Managed Services Market size is expected to reach USD 52.09 billion in 2024 and grow at a CAGR of 13.94% to reach USD 100.04 billion by 2029.
What is the current Europe Managed Services Market size?
In 2024, the Europe Managed Services Market size is expected to reach USD 52.09 billion.