Managed Services Market Outlook:
Managed Services Market size was valued at USD 380.33 billion in 2025 and is likely to cross USD 1.27 trillion by 2035, registering more than 12.8% CAGR during the forecast period i.e., between 2026-2035. In the year 2026, the industry size of managed services is estimated at USD 424.14 billion.
The primary growth driver of the managed services market is the increasing demand for businesses to optimize their IT infrastructure and operations while focusing on core competencies. Businesses seek to reduce IT operational costs by outsourcing tasks like network management, cybersecurity, and cloud operations to managed service providers (MSPs). Managed services help organizations transition from capital expenditures (CapEx) to predictable operational expenditures (OpEx), improving budget planning.
Moreover, the shift to cloud-based solutions is driving the need for managed cloud services, including migration, maintenance, and optimization. As of May 2024, about 94% of all companies across the world use cloud computing in their operations. Enterprises require MSPs to manage multi-cloud and hybrid environments for seamless integration and scalability. MSPs play a key role in supporting the deployment and management of emerging technologies like IoT, AI, and edge computing.
