Managed IT Service Providers Market to Observe Strong Development by 2021
Posted by Harsh on January 8th, 2020
The global market for managed IT services reached 9.1 billion in 2016. This market is estimated to reach 6.5 billion in 2021 from 6.7 billion in 2017 at a compound annual growth rate (CAGR) of 11.5% for 2017-2021.
Report Scope:
This research report covers the overall global managed IT services market and categorizes it by geographies and by service type. Service types include infrastructure services, network services, security services and other services.
Get Sample Copy Of The Report@ https://www.trendsmarketresearch.com/report/sample/12212
Report Includes:
- An overview of the global market for managed IT services.
- Analyses of global market trends, with data from 2012 through 2016, estimates for 2017, and projections of compound annual growth rates (CAGRs) through 2022.
- Characterization and quantification of the market potential for managed IT services by region and product.
- Evaluation of the market by segments such as infrastructure services, network services, security services, and other services.
- Discussion of market drivers, restraints, and trends affecting the market.
- Profiles of the major companies in the industry, including: IBM, DXC Technology, Fujitsu Ltd., Atos, Deutsche Telekom, Tata Consultancy Services(TCS), Huawei Technologies Co. Ltd, Cisco Systems Inc.
Summary
This report analyzes the market for global managed IT services. A managed IT service is any type of IT task or service offered by an outside contractor. A managed services provider (MSP), which is generally an information technology (IT) services provider, manages and assumes responsibility for providing a defined set of services to its clients based on their specific needs.
Managed IT services are classified based on the type of service being offered by an enterprise. It is segmented into infrastructure services, network services, security services and other services. However, most of the managed IT service providers offer all these services and there is some overlap between segments. For instance, infrastructure tasks might be clubbed into network services as they are network- related infrastructure services.
The global managed IT services in 2016 is estimated to be around 9.1 billion. During 2017-2021 the global managed IT services market is expected to grow at a CAGR of 11.5%, to reach 6.5 billion by the year 2021. Increasing digitization and improving economic growth prospects are expected to drive the demand for managed IT services in the future. In particular to rising demand for managed IT services from small and medium enterprises and the emerging markets such as China and India.
Banking, financial services and insurance (BFSI) was the largest customer group for managed IT Services in 2016, accounting for 32% of the market. This was followed by the government and public, telecoms and IT, and healthcare segments. The total revenues from banking, financial services, and insurance were .5 billion in 2016. The market importance of the banking, financial services, and insurance segment can be attributed to those end users’ focus on core competencies, risk reduction, improved cost reduction, customer relations, and improved regulatory compliance. High share of government sector is due to its high reliance on outside contractors to maintain IT infrastructure to focus on its core competencies which has led to high growth in this customer segment.
In 2016, the US managed IT services accounted for 37.2% of the market, followed by Europe and Asia Pacific with23.7% and 20.0% of the market respectively. High share of USA market size can be attributed to demand for managed services such as dedicated cloud and data center services. This is also due to high adoption of technology and digitization compared to other regions across the world which has led to high growth in this region.
The global managed IT services market is concentrated, with the leading three players having more than 50% of the market. IBM was the largest company with 24% of the market, followed by DXC with 15%, Fujitsu with 14%, Atos with 8% and Deutsche Telekom with 6%.
Most companies operating in the mid-level range are exclusively from a managed IT services background, unlike large players which are operating in multiple categories in the IT industry and are leveraging their economies of scale to position themselves as top players.
