Managed Services Market 2030: How Regulatory Changes Are Impacting Europe

The global managed services market was valued at approximately USD 299.01 billion in 2023 and is projected to grow at a compound annual growth rate (CAGR) of 13.6% from 2023 to 2030. Managed services are instrumental in reducing downtime, eliminating redundancy, and offering tailored value-added services, such as application testing, service catalog development, and expert consultancy. The growth of the market is supported by the use of multiple monitoring tools and the management of various layers of infrastructure, often handled by specialized, isolated teams. Additionally, businesses worldwide are increasingly migrating to cloud platforms and adopting managed IT services to streamline their infrastructure and reduce costs, which is further driving the demand for these services. Professional and managed services are enabling enterprises to keep pace with digital transformation, allowing them to compete more effectively and efficiently. To capture a larger share of this expanding market, key players in the industry are focusing on developing innovative managed services specifically designed for enterprise businesses.

Companies in the managed services market are also forming strategic partnerships to enhance their service offerings. These collaborations help improve security, ensure compliance, and boost overall business performance. A notable example is the partnership between Sinch, a Microsoft Operator Connect partner, and Synoptek, announced in April 2023. This partnership aims to deliver managed and professional services for the Microsoft Teams Phone System, integrating with either direct routing or operator connect to improve communication and collaboration capabilities. Several factors are fueling the market’s growth, including improved operational efficiency through a sharper focus on core competencies, reduced operational costs, and the increased use of cloud-based technologies like automation, the Internet of Things (IoT), blockchain, and cloud computing. These advancements are contributing to the growing demand for managed services across industries.

Gather more insights about the market drivers, restrains and growth of the Managed Services Market

Regional Insights

North America Managed Services Market Trends
North America led the global managed services market in 2022, accounting for over 32.0% of the market share. The increasing number of technology startups and the continued adoption of enterprise resource planning (ERP), customer relationship management (CRM), and cloud services are expected to be key drivers of demand for managed services in the region from 2023 to 2030. As companies in North America increasingly rely on these technologies for operational efficiency and business growth, the demand for managed services to support and optimize these systems is projected to rise significantly.

Asia Pacific Managed Services Market Trends
The Asia Pacific region is anticipated to experience the fastest growth in the managed services market, with a compound annual growth rate (CAGR) of 14.6% from 2023 to 2030. Several factors are driving this growth, including the increasing adoption of cloud-based solutions and higher investments in data security. Additionally, the rising expenditure on advanced technologies—such as cloud computing, automation, and artificial intelligence—by organizations in the region is expected to further propel the market. Moreover, the growing government emphasis on digitalization and the expansion of IT companies, particularly in countries like India and those in the ASEAN (Association of Southeast Asian Nations) bloc, will fuel demand for managed services.

China Managed Services Market Trends
The managed services market in China is projected to grow at a CAGR of 14.0% from 2023 to 2030. The Chinese government’s support for emerging technologies such as the Internet of Things (IoT), cloud computing, and artificial intelligence is driving the rapid expansion of cloud infrastructure in the country. This is further boosting the adoption of Software as a Service (SaaS) models, which in turn is fueling the demand for managed services to support these technologies. As China continues to advance in digital infrastructure, the need for comprehensive managed services will continue to rise.

Japan Managed Services Market Trends
Japan’s managed services market is expected to grow at a robust CAGR of 15.1% from 2023 to 2030. The country is witnessing increasing adoption of advanced technology solutions aimed at improving business operations and overall efficiency. With businesses gradually embracing next-generation technologies like AI, cloud computing, and automation, the demand for managed services to facilitate these transitions is expected to rise. Japan’s strong technology infrastructure and demand for high-quality, scalable managed services are opening new opportunities in the market.

India Managed Services Market Trends
India is forecast to experience the highest growth in the managed services market in the Asia Pacific region, with a CAGR of 15.7% from 2023 to 2030. The rapid expansion of India’s IT industry, along with aggressive investments from leading technology companies like Google, IBM, and Microsoft, is expected to drive the growth of the managed services market. The country’s booming tech ecosystem, combined with its focus on digital transformation, will significantly contribute to the demand for managed IT services, cybersecurity, cloud solutions, and other managed offerings.

Europe Managed Services Market Trends
In Europe, the managed services market is growing steadily at a CAGR of 13.2% from 2023 to 2030. SaaS providers in Europe, particularly those deploying cloud-based solutions, are increasingly turning to managed services to ensure compliance with regulations like the European Data Protection Directive (1995) and the General Data Protection Regulation (GDPR). These regulations, along with the growing importance of data security, are driving the demand for managed services in Europe. As businesses face increasing pressure to meet stringent data protection requirements, the managed services market in Europe will continue to expand.

U.K. Managed Services Market Trends
The managed services market in the United Kingdom is experiencing substantial growth, with a projected CAGR of 13.4% from 2023 to 2030. The U.K. is emerging as one of the leading markets for managed services in Europe, driven by a high concentration of small and medium-sized enterprises (SMEs) and the increasing adoption of cloud-based services. As SMEs seek to optimize operations and reduce costs, the demand for managed services is expected to grow, particularly in areas such as IT infrastructure management, cloud services, and data security.

Germany Managed Services Market Trends
Germany’s managed services market is forecast to grow at a CAGR of 14.3% from 2023 to 2030. The country, known for its strong engineering, automotive, and manufacturing sectors, presents significant potential for the adoption of managed services. As these industries increasingly adopt digital technologies and modern IT infrastructure, there will be growing demand for managed services to support their digital transformation efforts. Managed services are particularly crucial for Germany’s large enterprises looking to scale operations and manage complex IT ecosystems efficiently.

France Managed Services Market Trends
The managed services market in France is expected to see strong growth from 2023 to 2030. The continued digitalization of industries and the increasing demand for cloud computing and IT security services are key factors contributing to the expansion of the managed services market in France. Additionally, the growing investments in telecommunications, IT services, infrastructure outsourcing, and wireline voice services are expected to further drive demand for managed services during the forecast period.

Middle East & Africa Managed Services Market Trends
The managed services market in the Middle East and Africa (MEA) region is expected to experience significant growth, with a CAGR of 14.1% from 2023 to 2030. Governments across the MEA region are implementing initiatives to promote the adoption of emerging technologies such as business analytics and cloud computing. Both public and private sectors in the region are increasingly adopting cloud-based technologies to improve business efficiencies, which is driving the demand for managed services. Additionally, the increasing need for cybersecurity and data management solutions is expected to contribute to market growth.

Saudi Arabia Managed Services Market Trends
The managed services market in Saudi Arabia is anticipated to grow significantly from 2023 to 2030. As Saudi Arabia continues to expand its IT industry and push for greater digitalization, the demand for managed services to ensure seamless information flow and secure digital environments is increasing. The country’s growing emphasis on maintaining robust cybersecurity and optimizing IT infrastructure will continue to create opportunities for managed service providers in the region.

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Key Companies & Market Share Insights

Some of the key players operating in the market include Accenture, International Business Machines Corporation, and Cisco Systems, Inc.

Accenture provides various infrastructure-managed services that include hosting, migrating, and managing the client’s infrastructure. It also helps clients streamline the human-centric experiences to optimize the physical workspace and support workforce collaboration.
Cisco Systems, Inc. offers managed services to protect the clients’ end-point devices and provides actionable insights to the clients to assist them in making data-driven decisions to maximize business profitability.

ScalePad Software Inc., Atera Networks Ltd., and ARYAKA NETWORKS, INC. are some of the emerging market participants in the managed services market.

ARYAKA NETWORKS, INC. offers managed services for secure remote access, cloud migration, last mile connectivity, and to improve the performance of dynamic IP applications.
ScalePad Software Inc. specializes in managing the client’s IT assets and improving the performance of the endpoint devices. It also assists clients in adhering to security compliance and strengthening the cybersecurity of the IT infrastructure.

Managed Services Companies