North America Managed Services Market Size (2024 - 2029)

North America Managed Services Market Analysis

The North America Managed Services Market size is estimated at USD 66.80 billion in 2024, and is expected to reach USD 108.24 billion by 2029, growing at a CAGR of 10.13% during the forecast period (2024-2029).

The North America Managed Services Market size is estimated at USD 66.80 billion in 2024, and is expected to reach USD 108.24 billion by 2029, growing at a CAGR of 10.13% during the forecast period (2024-2029).

• The North American market is growing due to the changing landscape of IT infrastructure, especially in small and medium enterprises (SMEs), which continually focus 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 a physical server with a virtualized environment. This reduced the company's cost by around 15% and delivered 95% uptime.
• According to Solarwinds, in North America, server and storage hardware, endpoint devices, and networking gear solution offerings dominate among MSPs, especially in the United States. Though managed security offerings may be lacking, most solution providers offer security point products in network and endpoint hardware and software.
• In the region, companies are integrating IT solutions tailored to business needs by providing a full assessment of the IT environment and delivering the solutions needed to solve complex business challenges at every stage of the business lifecycle. For instance, Managed Solution, a US company, integrated technical skillsets and the required resources to discover challenges, diagnose problem areas, and custom design, deliver, and execute a comprehensive technology roadmap based on needs, making customers more secure, compliant, and efficient.
• Although managed services offer various benefits, 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 a belief in the providers' business relationship. In case of any failure by providers to sustain in the competitive market, 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.
• The COVID-19 pandemic increased the number of organizations working remotely in the United States. According to ALM Media Properties LLC, an estimated 58% of American knowledge workers work remotely. This number is increasing by more than 30% from pre-COVID-19 averages and dwarfs previous figures that reported roughly 7% of the US' 140 million civilian employees worked from home. This mass exodus from the conventional workplace has been a welcome shift in many organizations' employer expectations and telework policies.

North America Managed Services Industry Segmentation

Managed service is the practice of outsourcing, on a proactive basis, certain processes and functions intended to improve operations and cut expenses. It simplifies IT operations, increases user satisfaction, and improves service quality while reducing operating costs. Managed services options range from short-term post-go-live assistance to long-term application operations.

The North American managed services market is segmented by deployment (on-premise and cloud), type (managed data center, managed security, managed communications, managed network, managed infrastructure, and managed mobility), enterprise size (small enterprises, medium enterprises, and large enterprises), end-user vertical (BFSI, IT and telecom, healthcare, entertainment and media, retail, manufacturing, government, and other end-user verticals), and country.