The US Managed Services Market stood at USD 118.32 billion in 2025, and is forecasted to rise further to USD 329.30 billion by 2035, at a CAGR of 10.92%. The fast-paced migration towards the cloud, the escalating enterprise preference for cybersecurity and AI-driven management of IT infrastructure have been identified as the key growth factors in this regard. In addition, the Europe Managed Services Market is projected to be valued at USD 102.46 billion in 2025, rising to USD 286.18 billion in 2035, with a CAGR of 10.81%.
Austin, May 26, 2026 (GLOBE NEWSWIRE) — According to SNS Insider, The Managed Services Market size was valued at USD 373.94 Billion in 2025 and is expected to reach USD 1083.90 Billion by 2035, growing at a CAGR of 11.37% over 2026–2035.
The Managed Services Market is registering high growth due to increased adoption of cloud computing and hybrid IT infrastructure, along with rising complexities in global IT infrastructures. Enterprises are choosing managed services providers in order to minimize operational expenditure, monitor their infrastructure round-the-clock, and enhance their capabilities in dealing with cyber-attacks.
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Segmentation Analysis:
By Service Type, Managed IT Infrastructure Services Segment Led the Market; Managed Security Services (MSS) Segment to Grow with the Fastest CAGR Globally
Managed IT Infrastructure Services emerged as the leading segment, generating around 28.34% of revenues in 2025, owing to high prevalence of outsourcing IT management activities, surging demand for constant infrastructure monitoring services, and rising adoption of cloud migration and network optimization solutions. Managed Security Services (MSS) will experience highest growth rate during 2026–2035, owing to growing cybersecurity risks, ransomware threats, and rising compliance mandates in BFSI, healthcare, and government verticals.
By Deployment Model, On-Premise Segment Led the Market; Cloud-Based Managed Services Segment to Grow with the Fastest CAGR Globally
On-Premise Managed Services represented the largest market share of 44.15% in 2025 owing to heavy reliance on legacy infrastructure, data residency issues, and usage of localized data center within enterprises. Cloud-Based Managed Services are expected to witness highest growth during 2026–2035, driven by rapid migration to cloud technologies, adoption of multi-cloud strategies, and need for scalable subscription-based IT services.
By Organization Size, Large Enterprises Segment Led the Market; SMEs Segment to Grow with the Fastest CAGR Globally
Large Enterprises segment will lead with approximately 58.24% market share in 2025 owing to complicated IT architecture, higher cybersecurity needs, and IT outsourced processes. Small & Medium Enterprises (SMEs) will be the fastest-growing segments with CAGR during 2026–2035 owing to increasing digitization trends, available cloud-based managed services, and scalability of IT solutions without any in-house technical complexity.
By End-Use Industry, BFSI Segment Led the Market; Healthcare & Life Sciences Segment to Grow with the Fastest CAGR Globally
BFSI segment will account for approximately 26.24% market share in 2025 owing to high needs for secure, compliant, and continuous monitoring of IT environment. Healthcare & Life Sciences will be the fastest-growing segment with CAGR during 2026–2035 owing to increasing digitization, growth of EHR, and high needs for secure patient management systems.
By Service Provider Type, Pure-Play MSPs Segment Led the Market; Hyperscalers Segment to Grow with the Fastest CAGR Globally
Pure Play MSPs segment led the market with approximately 32.51% market share in 2025 owing to vendor-neutral nature, technological expertise, and customized services across multi-vendor IT ecosystems. Hyperscalers (Cloud Service Providers) will be the fastest-growing segment with CAGR during 2026-2035 owing to ecosystem expansion, AI-managed platforms, and enterprise’s move towards cloud-native service delivery models.
Regional Insights:
In North America, the market share in 2025 was 37.12% due to mature IT enterprise, initial adoption of cloud technology, and having leading MSP and hyperscaler players in the market. The largest market share holder in this region is the U.S. owing to huge digital transformation and cybersecurity investments made by enterprises.
The U.S. continues to be the major player within the market, thanks to its advanced level of IT outsourcing, presence of many MSP leaders and hyperscale companies, and fast pace of enterprise digitalization using cloud-first and hybrid IT approaches. Increasing cyber security challenges, enterprise digital transformation, and cost optimization are among other drivers.
The fastest-growing region is Asia Pacific, where the CAGR is 12.36% during 2026–2035 due to growing digital transformation, adoption of cloud technology, and IT outsourcing ecosystem. China, India, Japan, and Southeast Asia are among the major contributors in terms of market share growth due to enterprise modernization and infrastructure of hyperscalers.
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Rising Cloud Complexity, Cybersecurity Threats, and Enterprise IT Outsourcing to Drive Market Expansion Globally
The growth of Managed Services Market can be attributed to growing complexities associated with hybrid and multi-cloud environments, which compel businesses to continuously monitor, automate, and optimize their IT infrastructure. Rising cybersecurity risks, along with stringent compliance, is leading businesses towards the adoption of managed security services and threat management systems powered by artificial intelligence. Further, lack of expertise in the field of IT and rising costs of maintenance of infrastructure are driving companies to outsource their IT processes through managed service providers.
Major Players Analysis Listed in the Managed Services Market Report:
- IBM Corporation
- Accenture plc
- Cisco Systems Inc.
- Microsoft Corporation
- Amazon Web Services (AWS)
- Google Cloud (Alphabet Inc.)
- Hewlett Packard Enterprise (HPE)
- Dell Technologies Inc.
- DXC Technology Company
- Tata Consultancy Services (TCS)
- Infosys Limited
- Wipro Limited
- Capgemini SE
- Atos SE
- Fujitsu Limited
- NTT Ltd.
- Kyndryl Holdings Inc.
- Cognizant Technology Solutions
- Oracle Corporation
- HCLTech (HCL Technologies Ltd.)
Recent Developments:
- 2026: Kyndryl expanded its global managed infrastructure services portfolio by launching new AI-powered network and workplace recovery solutions, enabling enterprises to improve resilience, automate IT operations, and strengthen hybrid infrastructure management across large-scale enterprise environments.
- 2026: Cisco Systems enhanced its managed network services offering by integrating advanced intent-based networking and AI-driven observability tools, improving real-time network performance optimization and reducing enterprise downtime across distributed IT environments.
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Exclusive Sections of the Report (The USPs):
- MANAGED IT INFRASTRUCTURE PERFORMANCE METRICS – evaluates uptime, scalability, and efficiency of outsourced IT environments across industries.
- CYBERSECURITY & MANAGED SECURITY OPERATIONS METRICS – analyzes threat detection efficiency, ransomware mitigation, and compliance-driven security performance.
- CLOUD AND HYBRID IT MANAGEMENT METRICS – assesses adoption of multi-cloud orchestration, workload distribution, and cloud optimization strategies.
- IT OUTSOURCING & COST OPTIMIZATION METRICS – examines cost reduction benefits, operational efficiency gains, and enterprise outsourcing trends.
- AI-DRIVEN IT OPERATIONS METRICS – evaluates automation in monitoring, predictive maintenance, and intelligent incident resolution systems.
- COMPETITIVE LANDSCAPE & MSP ECOSYSTEM EXPANSION METRICS – analyzes strategic positioning of MSPs, hyperscalers, and telecom providers in global managed services delivery.
Managed Services Market Report Scope
| Report Attributes | Details |
| Market Size in 2025 | USD 373.94 Billion |
| Market Size by 2035 | USD 1083.90 Billion |
| CAGR | CAGR of 11.37% From 2026 to 2035 |
| Base Year | 2025 |
| Forecast Period | 2026-2035 |
| Historical Data | 2022-2024 |
| Key Segments | • By Service Type: Managed IT Infrastructure Services, Managed Security Services (MSS), Managed Data Center Services, Managed Cloud Services, Managed Mobility Services, Others • By Deployment Model: On-Premise Managed Services, Cloud-Based Managed Services, Hybrid Managed Services • By Organization Size: Large Enterprises, Small & Medium Enterprises (SMEs), Others • By End-Use Industry: BFSI, IT & Telecom, Healthcare & Life Sciences, Retail & E-commerce, Government & Public Sector, Manufacturing, Energy & Utilities, Others • By Service Provider Type: Pure-Play MSPs, Telecom & Network Providers, Cloud Service Providers (Hyperscalers), System Integrators & IT Consulting Firms |
| Regional Analysis/Coverage | North America (US, Canada), Europe (Germany, UK, France, Italy, Spain, Russia, Poland, Rest of Europe), Asia Pacific (China, India, Japan, South Korea, Australia, ASEAN Countries, Rest of Asia Pacific), Middle East & Africa (UAE, Saudi Arabia, Qatar, South Africa, Rest of Middle East & Africa), Latin America (Brazil, Argentina, Mexico, Colombia, Rest of Latin America). |
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