United States Managed Services Market Size
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| Market Size (2024) | USD 62.76 Billion |
| Market Size (2029) | USD 104.90 Billion |
| CAGR (2024 - 2029) | 10.82 % |
| Market Concentration | Low |
Major Players
*Disclaimer: Major Players sorted in no particular order |
United States Managed Services Market Analysis
The United States Managed Services Market size is estimated at USD 62.76 billion in 2024, and is expected to reach USD 104.90 billion by 2029, growing at a CAGR of 10.82% during the forecast period (2024-2029).
- Managed services comprise outsourcing specific IT functions or processes to third-party providers, aiming to streamline operations and reduce costs. This approach enhances service quality, operational efficiency, and customer satisfaction while lowering expenses.
- Market research indicates that the soaring number of Internet of Things (IoT) devices has heightened the demand for managed IoT services, emphasizing the need to secure, monitor, and optimize these connected devices. In response, IT infrastructure providers are collaborating on IoT solutions.
- Hybrid IT combines on-premise infrastructure with cloud-based solutions. The rise of the Internet of Things (IoT) has prompted organizations to rethink their customer engagement strategies. Managed service providers (MSPs) play a crucial role in bolstering security within the IoT ecosystem, ensuring robust protection.
- Relatively speaking, managed services are known to be cost-effective and efficient, as compared to in-house services in the US, as they enable organizations to focus on their core competencies while outsourcing the non-core areas.In the US managed services market outlook, the integration of diverse technologies and adherence to industry regulations often pose challenges. Companies must navigate a web of standards and legal requirements, impacting the implementation and operation of managed services.
- The initial days of the COVID-19 pandemic and subsequent lockdowns caused a temporary dip in demand as businesses focused on survival and delayed non-essential investments. This led to a delay in implementing managed services contracts. However, the surge in remote work highlighted the need for security, cloud migration, collaboration tools, and networking, creating opportunities for industry growth among Managed Service Providers (MSPs).
United States Managed Services Industry Trends
Cloud to Witness Significant Market Growth
- Cloud-based managed services offer flexibility and scalability, empowering service providers to remotely access, monitor, and resolve issues within the cloud environment. Furthermore, market data shows that the adoption of technologies like AI/ML, big data analytics, threat intelligence, and advanced automation platforms is propelling this transition to cloud-based services. Market players are launching innovative and collaborative services in response to industry trends.
- For example, in November 2023, SonicWall, a global cybersecurity provider, acquired Solutions Granted Inc. (SGI), a Managed Security Service Provider (MSSP) catering to hundreds of Managed Service Providers (MSPs). This acquisition bolsters SonicWall's commitment to its partners. It expands its portfolio to include US-based Security Operations Center services (SOCaaS), Managed Detection and Response (MDR), and other tailored managed services for MSPs and MSSPs.
- The IT and Telecom sector holds a significant market share in the cloud-managed services industry. For the 2023 fiscal year, the US federal government allocated around USD 24.4 billion for major federal IT investments, where cloud-managed services are gaining traction in the United States due to their ability to streamline IT operations, bolster security, and offer scalable solutions, thereby reflecting a steady market growth rate.
- These services facilitate remote management and maintenance of cloud infrastructure, which enables businesses to focus on their core objectives while leveraging external expertise, thereby fostering industry growth. The demand for managed services is set to rise as cloud adoption continues to surge, fostering innovation and efficiency in the digital realm.
IT and Telecom to be the Largest End-user Vertical
- The telecom industry in the United States has a strong demand for managed security services and is identified as one of the major significant industry trends. This is primarily due to the telecom companies' handling of vast volumes of sensitive data, including customer information and network infrastructure details, making them prime targets for cyberattacks. Additionally, the complexity of telecom networks and the evolving nature of cyber threats necessitate specialized expertise for effective protection.
- With the advent of 5G networks, the focus has shifted to ensuring end users' security and quality experiences, a shift highlighted in the industry overview of telecom-managed services. According to VIAVISION, as of April 2023, 5G network access was available in 503 United States cities, the most of any country globally, and this requires a significant shift in managing and optimizing networks, moving away from the traditional technology-centric approach. As a result, there is a rising demand for telecom-managed services to aid in this transition, contributing to market growth.
- In July 2023, Dataprise, a leading provider of managed IT, cybersecurity, and cloud solutions, acquired RevelSec, a Texas-based security managed service provider. This acquisition expands Dataprise's national presence and enhances its vertical expertise while providing RevelSec clients access to a broader range of services from Dataprise.
- According to the market report, managed infrastructure holds a significant market share, driven by innovations like IoT, AI, and edge computing, which necessitate advanced network infrastructure. Managed services play an important role in facilitating the adoption of these technologies.
United States Managed Services Industry Overview
The United States managed services market overview is fragmented and is dominated by largest companies, such as Fujitsu Limited, Cisco Systems Inc., IBM Corporation, AT&T Inc., and HP Inc., among other companies that have a strong client base in the market. These players are constantly providing increased and enhanced offerings. Companies are employing powerful competitive strategies in order to survive in the market and retain their clients, thereby intensifying competitive rivalry in the market.
- February 2024 - Ubiquity partnered with Fujitsu to augment Last-Mile Digital Infrastructure Resilience. Ubiquity would utilize the Fujitsu Network Operations Center to support last-mile fiber broadband infrastructure in four major US markets. Fujitsu delivers Ubiquity with 24x7 managed network services from their carrier-class NOC in Texas.
- January 2024 - Cisco, in collaboration with Hitachi Vantara, the subsidiary of Hitachi Ltd specializing in data storage, infrastructure, and hybrid cloud management, unveiled Next-Gen hybrid cloud managed services. These services are specifically tailored to tackle the persistent data management hurdles faced by contemporary businesses. The joint solution, known as Hitachi EverFlex with Cisco Powered Hybrid Cloud, combines automation solutions and predictive analytics. It aims to equip organizations with a forward-looking toolkit for streamlined infrastructure management, cost optimization, and enhanced operational efficiency.
USA Managed Services Market Leaders
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Fujitsu Limited
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Cisco Systems Inc.
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IBM Corporation
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AT&T Inc.
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HP Inc.
*Disclaimer: Major Players sorted in no particular order
United States Managed Services Market News
- October 2023 - Rackspace Technology introduced Rackspace Managed Cloud (RMC), an all-inclusive service enabling customers to delegate their cloud environments' management and operations. This comprehensive solution is tailored for organizations utilizing platforms such as AWS, Azure, Google Cloud, Rackspace Private Cloud, and on-premises infrastructure.
- August 2023 - Verizon Business forged a strategic global alliance, designating HCLTech as its key collaborator for Managed Network Services (MNS) in networking deployments for global enterprise clients. This collaboration united two prominent players in the enterprise networking arena. By leveraging Verizon's robust networking prowess and HCLTech's renowned Managed Service expertise, this partnership is set to redefine the landscape of wireline service delivery for large-scale enterprise customers.
USA Managed Services Market Report - Table of Contents
1. INTRODUCTION
- 1.1 Study Assumptions and Market Definition
- 1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET INSIGHTS
- 4.1 Market Overview
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4.2 Industry Attractiveness - Porter's Five Forces Analysis
- 4.2.1 Bargaining Power of Suppliers
- 4.2.2 Bargaining Power of Buyers
- 4.2.3 Threat of New Entrants
- 4.2.4 Threat of Substitutes
- 4.2.5 Intensity of Competitive Rivalry
- 4.3 Industry Value Chain Analysis
- 4.4 Assessment of the Impact of COVID-19 on the Industry
5. MARKET DYNAMICS
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5.1 Market Drivers
- 5.1.1 Increasing Shift to Hybrid IT
- 5.1.2 Improved Cost and Operational Efficiency
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5.2 Market Challenges
- 5.2.1 Integration and Regulatory Issues and Reliability Concerns
6. MARKET SEGMENTATION
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6.1 By Deployment
- 6.1.1 On-premise
- 6.1.2 Cloud
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6.2 By Type
- 6.2.1 Managed Data Center
- 6.2.2 Managed Security
- 6.2.3 Managed Communications
- 6.2.4 Managed Network
- 6.2.5 Managed Infrastructure
- 6.2.6 Managed Mobility
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6.3 By Enterprise Size
- 6.3.1 Small and Medium Enterprises
- 6.3.2 Large Enterprises
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6.4 By End-user Vertical
- 6.4.1 BFSI
- 6.4.2 IT and Telecom
- 6.4.3 Healthcare
- 6.4.4 Entertainment and Media
- 6.4.5 Retail
- 6.4.6 Manufacturing
- 6.4.7 Government
- 6.4.8 Other End-user Verticals
7. COMPETITIVE LANDSCAPE
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7.1 Company Profiles*
- 7.1.1 Fujitsu Limited
- 7.1.2 Cisco Systems Inc.
- 7.1.3 IBM Corporation
- 7.1.4 AT&T Inc.
- 7.1.5 HP Inc.
- 7.1.6 Microsoft Corporation
- 7.1.7 Verizon Communications Inc.
- 7.1.8 Dell Technologies Inc.
- 7.1.9 Rackspace Technology Inc.
- 7.1.10 Tata Consultancy Services Limited
- 7.1.11 Citrix Systems Inc.
- 7.1.12 Wipro Limited
8. INVESTMENT ANALYSIS
9. FUTURE OF THE MARKET
** Subject To AvailablityUnited States Managed Services Industry Segmentation
Managed services are the practice of outsourcing specific tasks to streamline operations and reduce costs. It lowers operational expenses by streamlining IT operations, boosting customer satisfaction, and enhancing service quality. Options for managed services include everything from temporary post-go-live support to ongoing application maintenance.
The United States managed services market research is segmented by deployment type (on-premise and cloud), type (managed data center, managed security, managed communications, managed network, managed infrastructure, and managed mobility), enterprise size (small and medium enterprises and large enterprises), and end-user vertical (BFSI, IT and telecom, healthcare, entertainment, and media, retail, manufacturing, government, and other end-user verticals). The industry size and market forecasts are provided in terms of value (USD) for all the above-mentioned 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 |
| IT and Telecom | |
| Healthcare | |
| Entertainment and Media | |
| Retail | |
| Manufacturing | |
| Government | |
| Other End-user Verticals |
USA Managed Services Market Research FAQs
How big is the United States Managed Services Market?
The United States Managed Services Market size is expected to reach USD 62.76 billion in 2024 and grow at a CAGR of 10.82% to reach USD 104.90 billion by 2029.
What is the current United States Managed Services Market size?
In 2024, the United States Managed Services Market size is expected to reach USD 62.76 billion.
Who are the key players in United States Managed Services Market?
Fujitsu Limited, Cisco Systems Inc., IBM Corporation, AT&T Inc. and HP Inc. are the major companies operating in the United States Managed Services Market.
What years does this United States Managed Services Market cover, and what was the market size in 2023?
In 2023, the United States Managed Services Market size was estimated at USD 55.97 billion. The report covers the United States Managed Services Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the United States Managed Services Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
How is technology impacting the US Managed Services Market?
Technological advancements like Artificial Intelligence (AI), cloud computing, and the Internet of Things (IoT) are transforming service offerings, making them more efficient and scalable.
Managed IT Services in USA Industry Report
According to industry research, The United States managed services industry is undergoing a significant transformation, fueled by the evolving IT infrastructure landscape and a rising demand for remote work solutions, a shift driven by current market trends. This market growth is driven by Managed Service Providers (MSPs) who play a vital role in enhancing the Internet of Things (IoT) ecosystem, fostering innovation, and ensuring the security and efficiency of remote work environments. With the shift towards cloud-based and on-premise deployment models, businesses, especially small and medium enterprises, are increasingly outsourcing cybersecurity solutions to protect their operations effectively. These industry trends are boosting operational efficiency and flexibility across various sectors, including healthcare, IT, telecom, and government. As the industry adapts to current market trends, the focus on managed data centers, security, communications, and infrastructure management is intensifying, underlining the need for specialized services to support the complex IT environments and demand for advanced data management and security solutions. According to Mordor Intelligenceā¢ Industry Report, the market share, size, and market value growth rate of Managed IT Services in the US are on the rise, with detailed market analysis and forecasts available as a free market report PDF download, highlighting the potential and dynamics of the United States managed services industry.
