Managed Application Services Market Size
| Study Period | 2019 - 2029 |
| Market Size (2024) | USD 11.13 Billion |
| Market Size (2029) | USD 12.21 Billion |
| CAGR (2024 - 2029) | 1.86 % |
| Fastest Growing Market | Asia Pacific |
| Largest Market | North America |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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Managed Application Services Market Analysis
The Managed Application Services Market size is estimated at USD 11.13 billion in 2024, and is expected to reach USD 12.21 billion by 2029, growing at a CAGR of 1.86% during the forecast period (2024-2029).
Demand for end-to-end application hosting services will increase in the forecast period. The managed application services allow the organization to outsource specific IT requirements to a third-party service provider. The companies can reduce costs, boost productivity, and enhance application performance without spending time on implementation, maintenance, and upgradation of their IT-related application. The increase in the adoption of smartphone devices and the implementation of IoT services in the organization will drive the market in the forecast period. Since the outbreak of COVID-19, the demand for cloud-based solutions has seen significant growth owing to remote working models being adopted by enterprises; however, various industries such as retail, manufacturing, BFSI, and others have seen a significant slump in their revenues in the past years.
- As customers have moved their workloads to the cloud, there is a growth in the usage of cloud-native architectures, particularly microservices. Microservice-based architectures help improve scalability and velocity, but implementing them can pose challenges. For many Java developers, Spring Boot and Spring Cloud have helped address these challenges, providing a robust platform with well-established patterns for developing and operating microservice applications. In the previous year, to help make it simpler to deploy and manage Spring Cloud applications, together with Pivotal, Microsoft created Azure Spring Cloud.
- Recently, VSHN announced Project Syn, the next generation Open Source managed services framework for DevOps and application operations on any infrastructure based on Kubernetes. Project Syn is a pre-integrated set of tools to provision, update backup, observe, and react or alert production applications on Kubernetes and in the cloud. It supports DevOps through complete self-service and automation with the help of containers, Kubernetes, and GitOps. Project Syn is about to become an Open Source project shortly. It consists of several components that bring the necessary features for running applications in production on Kubernetes, acting as an operations framework.
- During the previous year, AWS launched Amazon Managed Apache Cassandra Service, a scalable, highly available, and managed Apache Cassandra-compatible database service that enables the user to run the Cassandra workloads in the AWS Cloud utilizing the same Cassandra application code, Apache 2.0 licensed drivers, and tools that are used. With Managed Cassandra Service, there is no need to provision, patch, or manage servers and install, maintain, or operate the software. Tables could scale up and down automatically based on request traffic, with virtually unlimited throughput and storage. The user can manage access to the tables using AWS Identity and Access Management (IAM) and keep the applications running smoothly with integrated logging and monitoring.
- Information Technology spending in recent years is likely to fall as organizations trim investments in technology in the wake of the COVID-19 pandemic-led slowdown. However, enterprises and government agencies continue to invest in software and IT services, which is expected to stabilize the market. While short-term projects are getting stopped, the managed application services segment, which fetches significant revenue for service providers, has not been impacted by the outbreak. Recently, XenonStack offered a free 3-month Managed IT Support, Application Management, and Migration to the Cloud as part of their COVID-19 response plan program to anyone directly involved in relief initiatives like Healthcare, NGOs, and government bodies.
Managed Application Services Market Trends
IT and Telecom is Expected to Hold Major Share
- The IT and telecom sector is a significant market for managed application services due to the high rate of various technological adoptions, increased frequency of confirmation of the BYOD policy, and an increased need for high-end security due to the rapidly growing data among organizations. The telecom industry has observed extensive growth during the past few years. Telecommunication companies are constantly pressured to deliver innovative services at lower costs to retain their customers in the competitive market.
- According to the SD-WAN Managed Services recent survey, 64% of the surveyed network and IT managers plan to add an SD-WAN managed service in the upcoming years. This is because the end-users believe it will deliver better security, improved cloud application performance, and flexible management. This demand is encouraging IT and Telcom service providers to purchase hardware, software, and regular administration of their networks from a third party. Many SD-WAN-managed service providers are differentiating themselves with a wide range of security offerings.
- According to Hazlecast Infinity Data report in collaboration with Intel, IT decision-makers identified cloud application performance (40%) as the number one opportunity to unlock profits, with financial services (49%), telecommunications (42%), and e-commerce (40%) ranking it the highest among verticals surveyed. However, security (97%) and performance (90%) were the top challenges when migrating to the cloud.
- In the previous year, Hazelcast announced the availability of Hazelcast Cloud Enterprise on Amazon Web Services (AWS), a low-latency deployment of Hazelcast software as a managed service designed to improve the performance, security, and ease of management of cloud-based applications. Featuring built-in protection and a cloud-agnostic architecture, Hazelcast Cloud Enterprise exceeds the speed, scale, safety, and high availability capabilities of existing commoditized cloud data storage services for large-scale enterprise deployments.
North America is Expected to Hold Major Share
- The North American Managed Application Services market is growing due to the changing IT infrastructure landscape, especially in small and medium enterprises (SMEs), continually focusing on outsourcing cybersecurity solutions. For instance, Kpaul Properties LLC, one of the emerging manufacturers and distributors of IT supplies in the United States, onboarded FUJITSU to replace physical servers with a virtualized environment. This has reduced the company's cost by 15% and delivered 95% uptime. With the speedy acceleration of modern technology and the need for streamlined IT functions, an increasing number of businesses in the region find the best way to keep pace with MSP.
- Besides, Canada is witnessing a high rise in the application of multi-Cloud environments and increased adoption of automation. In the region, Cloud, mobile, and social technologies demand that businesses take a proactive approach toward IT security, thus boosting the demand for deploying robust managed services that would deliver in all security management layers. Unified Communications as a Service and related Contact Center as a Service market represent a business opportunity for managed service providers. This is because emerging players offer innovative cloud-based solutions, which require a minimum investment and are easy to deploy.
- Recently, Rackspace, an American-managed Cloud computing company, announced that it has agreed to acquire Onica, an Amazon Web Services (AWS) Partner Network (APN) Premier Consulting Partner and AWS Managed Service Provider. This acquisition brings Onica's innovative professional services capabilities, including strategic advisory, architecture, engineering, and application development, to the Rackspace portfolio, complementing its existing managed cloud services capabilities. Rackspace's hybrid cloud portfolio enables enterprises to leverage various technical enhancements, from IT security to software development.
- In the previous year, Infosys unveiled the Infosys Live Enterprise Suite in Phoenix, Arizona, a comprehensive set of platforms, solutions, and digital services that helps enterprises to accelerate their digital innovation journey. The user can embrace the best innovations across cloud providers and build a cloud-agnostic application stack through the Infosys Polycloud Platform. The platform provides a backplane that abstracts the public and private clouds, enabling a standard interface and catalog to select, provision, move and manage platform and application services workloads across the enterprise.
Managed Application Services Industry Overview
The competition within the managed application services market is high among the market players without any specific dominating player. The competition results are based on the enterprise's best features of high quality and services at a reasonable price. Some significant players in the market are IBM Corporation, HCL Technologies Limited, WIPRO Limited, Fujitsu Ltd., and others. Some of the recent trends in the market are as follows:
- May 2022 - Microsoft launched a new managed service category known as Microsoft Security Experts. The service provides organizations with assistance from external security experts who can perform threat hunting and managed detection and response tasks. For businesses, the service enables on-site security teams to supplement their capabilities with assistance from off-site Microsoft experts.
- February 2022 - IBM partnered with SAP (NYSE: SAP) to provide technology and consult experts to help clients embrace a hybrid cloud approach and migrate mission-critical workloads from SAP solutions to the cloud in regulated and non-regulated industries. As part of the RISE with an SAP offering, IBM is the first partner to provide cloud infrastructure and technical managed services.
- Moreover, as clients consider hybrid cloud strategies, moving the workloads and applications that are the backbone of their enterprise operations necessitates a highly secure and reliable cloud environment. With the launch of the IBM supplier option for RISE with SAP, clients have the tools to help accelerate the migration of their on-premise SAP software workloads to IBM Cloud, backed by industry-leading security capabilities.
- In addition, IBM is launching a new program called BREAKTHROUGH with IBM for RISE with SAP, which includes a portfolio of solutions and consulting services to help accelerate and amplify the journey to SAP S/4HANA Cloud. The solutions and services, built on a flexible and scalable platform, use intelligent workflows to streamline operations. They offer an engagement model that aids in the planning, execution, and support of holistic business transformation. Clients are also given the option and flexibility to migrate SAP solution workloads to the public cloud with the help of deep industry expertise.
Managed Application Services Market Leaders
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HCL Technologies Limited
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Fujitsu Ltd.
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IBM Corporation
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Virtustream, Inc.
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Wipro Limited
*Disclaimer: Major Players sorted in no particular order
Managed Application Services Market News
- June 2022 - AWS Managed Services (AMS) Accelerate a new cloud operations offering that assists customers in achieving operational excellence regardless of their cloud journey. Accelerate can run any workload on Amazon Web Services (AWS) while giving customers complete access to all AWS services. AWS services such as AWS Systems Manager, Amazon CloudWatch, Amazon GuardDuty, and AWS Config are used by Accelerate for operations and security.
- Moreover, these services are less expensive than other commercial alternatives and can be integrated into existing enterprise processes. Customers can be production-ready in days as a result of this. Customers can get support 24 hours a day, seven days a week from a team of cloud experts who bring AWS best practices, experience, and operational processes at scale.
- February 2022 - "Let's create," IBM's new integrated global platform was launched. "Let's create" reflects IBM's current vision, strategy, and purpose. It reaffirms the company's commitment to innovation and collaboration to create long-term value for clients and partners while assisting them in addressing their most pressing business issues. 'Let's create' is an invitation to IBM's clients and partners to collaborate on data-driven solutions that automate, modernize, secure, and transform organizations worldwide by leveraging IBM's hybrid cloud and artificial intelligence (AI) technology, as well as our consulting expertise.
Managed Application Services Market Report - Table of Contents
1. INTRODUCTION
- 1.1 Study Deliverables
- 1.2 Study Assumptions
- 1.3 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS
- 4.1 Market Overview
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4.2 Market Drivers
- 4.2.1 Increased demand for end-to-end application hosting
- 4.2.2 The requirement to improve and secure critical business applications
- 4.2.3 Increase in the level of application infrastructure
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4.3 Market Restraints
- 4.3.1 Security risks associated with application data
- 4.4 Value Chain / Supply Chain Analysis
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4.5 Porters 5 Force Analysis
- 4.5.1 Threat of New Entrants
- 4.5.2 Bargaining Power of Buyers/Consumers
- 4.5.3 Bargaining Power of Suppliers
- 4.5.4 Threat of Substitute Products
- 4.5.5 Intensity of Competitive Rivalry
- 4.6 PESTLE Analysis
5. MARKET SEGMENTATION
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5.1 Organization Size
- 5.1.1 Small & Medium-scale Enterprises
- 5.1.2 Large Enterprises
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5.2 End-user Verticals
- 5.2.1 BFSI
- 5.2.2 Retail & E-Commerce
- 5.2.3 IT & Telecom
- 5.2.4 Manufacturing
- 5.2.5 Healthcare
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5.3 Geography
- 5.3.1 North America
- 5.3.1.1 United States
- 5.3.1.2 Canada
- 5.3.1.3 Mexico
- 5.3.1.4 Rest of North America
- 5.3.2 Europe
- 5.3.2.1 Germany
- 5.3.2.2 United Kingdom
- 5.3.2.3 France
- 5.3.2.4 Russia
- 5.3.2.5 Spain
- 5.3.2.6 Rest of Europe
- 5.3.3 Asia Pacific
- 5.3.3.1 India
- 5.3.3.2 China
- 5.3.3.3 Japan
- 5.3.3.4 Rest of Asia Pacific
- 5.3.4 South America
- 5.3.4.1 Brazil
- 5.3.4.2 Argentina
- 5.3.5 Middle East
- 5.3.5.1 United Arab Emirates
- 5.3.5.2 Saudi Arabia
- 5.3.5.3 Rest of Middle East
6. COMPETITIVE LANDSCAPE
- 6.1 Vendor Market Share
- 6.2 Mergers & Acquisitions
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6.3 Company Profiles
- 6.3.1 Fujitsu Limited
- 6.3.2 IBM Corporation
- 6.3.3 HCL Technologies Limited
- 6.3.4 Wipro Limited
- 6.3.5 VIRTUSTREAM INC.
- 6.3.6 RACKSPACE INC.
- 6.3.7 CenturyLink, Inc.
- 6.3.8 DXC Technology Company
- 6.3.9 BMC Software, INC.
- 6.3.10 Mindtree Limited
- 6.3.11 Unisys Corporation
- *List Not Exhaustive
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
Managed Application Services Industry Segmentation
Managed Application Services (MAS) are defined as a service offering that leverages a managed service provider's expertise to manage an enterprise's critical applications efficiently. Managed application services provide companies and organizations with the necessary tools, resources, and knowledge. It can be used to implement system-to-system integrations, advanced reporting, new user training, business-efficiency customizations, and many other things. The research examines driven application service demand across key end-user segments, deployment type, geography, and the impact of COVID-19 on the overall managed application services market.
The market sizes and forecasts are provided in terms of value (USD million) for all the above segments.
| Organization Size | Small & Medium-scale Enterprises | |
| Large Enterprises | ||
| End-user Verticals | BFSI | |
| Retail & E-Commerce | ||
| IT & Telecom | ||
| Manufacturing | ||
| Healthcare | ||
| Geography | North America | United States |
| Canada | ||
| Mexico | ||
| Rest of North America | ||
| Geography | Europe | Germany |
| United Kingdom | ||
| France | ||
| Russia | ||
| Spain | ||
| Rest of Europe | ||
| Geography | Asia Pacific | India |
| China | ||
| Japan | ||
| Rest of Asia Pacific | ||
| Geography | South America | Brazil |
| Argentina | ||
| Geography | Middle East | United Arab Emirates |
| Saudi Arabia | ||
| Rest of Middle East |
Managed Application Services Market Research FAQs
How big is the Managed Application Services Market?
The Managed Application Services Market size is expected to reach USD 11.13 billion in 2024 and grow at a CAGR of 1.86% to reach USD 12.21 billion by 2029.
What is the current Managed Application Services Market size?
In 2024, the Managed Application Services Market size is expected to reach USD 11.13 billion.
Who are the key players in Managed Application Services Market?
HCL Technologies Limited, Fujitsu Ltd., IBM Corporation, Virtustream, Inc. and Wipro Limited are the major companies operating in the Managed Application Services Market.
Which is the fastest growing region in Managed Application Services Market?
Asia Pacific is estimated to grow at the highest CAGR over the forecast period (2024-2029).
Which region has the biggest share in Managed Application Services Market?
In 2024, the North America accounts for the largest market share in Managed Application Services Market.
What years does this Managed Application Services Market cover, and what was the market size in 2023?
In 2023, the Managed Application Services Market size was estimated at USD 10.93 billion. The report covers the Managed Application Services Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Managed Application Services Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Managed Application Services Industry Report
Statistics for the 2024 Managed Application Services market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Managed Application Services analysis includes a market forecast outlook to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
