Managed Application Services Market Size (2024 - 2029)

The Managed Application Services Market is projected to experience growth due to increasing demand for end-to-end application hosting services, which allow organizations to outsource IT requirements, thereby reducing costs and enhancing productivity. The market's expansion is driven by the rising adoption of smartphone devices and IoT services, alongside a significant shift towards cloud-based solutions prompted by remote working models. Despite a general decline in IT spending due to the pandemic, the managed application services segment remains robust, supported by continued investments from enterprises and government agencies.

Market Size of Managed Application Services Industry

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Managed Application Services Market Summary
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

Managed Application Services Market 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 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
Europe
Germany
United Kingdom
France
Russia
Spain
Rest of Europe
Asia Pacific
India
China
Japan
Rest of Asia Pacific
South America
Brazil
Argentina
Middle East
United Arab Emirates
Saudi Arabia
Rest of Middle East
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Managed Application Services Market Size Summary

The managed application services market is poised for steady growth over the forecast period, driven by the increasing demand for end-to-end application hosting services. Organizations are increasingly outsourcing specific IT requirements to third-party service providers, allowing them to reduce costs, enhance productivity, and improve application performance without the burden of managing implementation, maintenance, and upgrades. The proliferation of smartphone devices and the integration of IoT services within organizations are significant factors propelling market expansion. The COVID-19 pandemic has further accelerated the adoption of cloud-based solutions, as remote working models became the norm, although certain industries like retail and manufacturing experienced revenue declines. The shift towards cloud-native architectures, particularly microservices, is gaining traction, with platforms like Spring Boot and Spring Cloud facilitating this transition. Innovations such as Azure Spring Cloud and Project Syn are enhancing the deployment and management of applications, while services like Amazon Managed Apache Cassandra are simplifying database management in the cloud.

The North American managed application services market is experiencing growth due to the evolving IT infrastructure landscape, especially among small and medium enterprises focusing on outsourcing cybersecurity solutions. The region is witnessing a rise in multi-cloud environments and automation adoption, driving demand for robust managed services. Companies like Rackspace and Infosys are expanding their offerings through strategic acquisitions and innovative platforms, respectively. The competition in the market is intense, with major players like IBM, HCL Technologies, and Fujitsu vying for market share by offering high-quality services at competitive prices. Recent trends include the launch of new managed service categories and partnerships aimed at facilitating hybrid cloud strategies and enhancing security and operational excellence. These developments underscore the market's dynamic nature and the ongoing evolution of managed application services to meet the growing demands of enterprises.

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Managed Application Services Market Size - Table of Contents

  1. 1. MARKET DYNAMICS

    1. 1.1 Market Overview

    2. 1.2 Market Drivers

      1. 1.2.1 Increased demand for end-to-end application hosting

      2. 1.2.2 The requirement to improve and secure critical business applications

      3. 1.2.3 Increase in the level of application infrastructure

    3. 1.3 Market Restraints

      1. 1.3.1 Security risks associated with application data

    4. 1.4 Value Chain / Supply Chain Analysis

    5. 1.5 Porters 5 Force Analysis

      1. 1.5.1 Threat of New Entrants

      2. 1.5.2 Bargaining Power of Buyers/Consumers

      3. 1.5.3 Bargaining Power of Suppliers

      4. 1.5.4 Threat of Substitute Products

      5. 1.5.5 Intensity of Competitive Rivalry

    6. 1.6 PESTLE Analysis

  2. 2. MARKET SEGMENTATION

    1. 2.1 Organization Size

      1. 2.1.1 Small & Medium-scale Enterprises

      2. 2.1.2 Large Enterprises

    2. 2.2 End-user Verticals

      1. 2.2.1 BFSI

      2. 2.2.2 Retail & E-Commerce

      3. 2.2.3 IT & Telecom

      4. 2.2.4 Manufacturing

      5. 2.2.5 Healthcare

    3. 2.3 Geography

      1. 2.3.1 North America

        1. 2.3.1.1 United States

        2. 2.3.1.2 Canada

        3. 2.3.1.3 Mexico

        4. 2.3.1.4 Rest of North America

      2. 2.3.2 Europe

        1. 2.3.2.1 Germany

        2. 2.3.2.2 United Kingdom

        3. 2.3.2.3 France

        4. 2.3.2.4 Russia

        5. 2.3.2.5 Spain

        6. 2.3.2.6 Rest of Europe

      3. 2.3.3 Asia Pacific

        1. 2.3.3.1 India

        2. 2.3.3.2 China

        3. 2.3.3.3 Japan

        4. 2.3.3.4 Rest of Asia Pacific

      4. 2.3.4 South America

        1. 2.3.4.1 Brazil

        2. 2.3.4.2 Argentina

      5. 2.3.5 Middle East

        1. 2.3.5.1 United Arab Emirates

        2. 2.3.5.2 Saudi Arabia

        3. 2.3.5.3 Rest of Middle East

Managed Application Services Market Size FAQs

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.

In 2024, the Managed Application Services Market size is expected to reach USD 11.13 billion.

Managed Application Services Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)