Managed Infrastructure Service Market Trends and Forecast
The future of the global managed infrastructure service market looks promising with opportunities in the telecom & IT, BFSI, consumer goods and retail, manufacturing, healthcare and life science, education, and energy markets. The global managed infrastructure service market is expected to grow with a CAGR of 9.9% from 2025 to 2031. The major drivers for this market are the growing focus on improving business continuity & data security and the increasing demand for cost-efficient it solutions.
Lucintel forecasts that, within the service type category, remote system management & monitoring will remain the largest segment over the forecast period.
Within the end use category, telecom & IT is expected to witness the highest growth.
In terms of region, North America will remain the largest region over the forecast period.
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Emerging Trends in the Managed Infrastructure Service Market
The managed infrastructure service market is undergoing a rapid transformation, driven by increasing IT complexity, the rise of cloud computing, and the growing need for agility and cost optimization. Organizations are increasingly relying on managed service providers (MSPs) to handle their IT infrastructure, allowing them to focus on core business functions. Emerging trends are shaping the future of this market, leading to more sophisticated, automated, and cloud-centric managed services. These trends are impacting how organizations design, deploy, and manage their IT infrastructure, driving innovation and creating new opportunities for MSPs. The market is becoming increasingly competitive, with MSPs differentiating themselves through specialized expertise, advanced technologies, and flexible service models.
• Rise of Cloud-Native Managed Services: The increasing adoption of cloud-native technologies like containers and serverless computing is driving the demand for specialized managed services. MSPs are developing expertise in managing cloud-native applications and infrastructure, offering services such as container orchestration, microservices management, and serverless operations. This trend is enabling organizations to fully leverage the benefits of cloud-native architectures.
• Increased Automation and AI: Automation and Artificial Intelligence (AI) are transforming the delivery of managed services. MSPs are using automation tools to streamline routine tasks, such as monitoring, patching, and incident response. AI is being used for predictive analytics, anomaly detection, and proactive problem resolution. This trend is improving efficiency, reducing costs, and enhancing the overall quality of managed services.
• Emphasis on Cybersecurity and Compliance: With the increasing number of cyber threats and stricter regulatory requirements, cybersecurity and compliance are becoming critical aspects of managed services. MSPs are offering managed security services, including threat detection, vulnerability management, and security incident response. This trend is helping organizations protect their IT infrastructure and data from cyberattacks and ensure compliance with industry regulations.
• Focus on DevOps and Agile Practices: The adoption of DevOps and Agile methodologies is driving the demand for managed services that support these practices. MSPs are offering managed DevOps services, including continuous integration and continuous delivery (CI/CD) pipeline management, infrastructure as code (IaC) management, and agile project management. This trend is enabling organizations to accelerate their software development and deployment processes.
• Serverless and Edge Computing Management: The emergence of serverless computing and edge computing is creating new opportunities for MSPs. They are developing expertise in managing serverless functions and edge devices, offering services such as function deployment, performance monitoring, and security management. This trend is enabling organizations to leverage the benefits of these emerging technologies.
These emerging trends are reshaping the managed infrastructure service market by driving the development of more specialized, automated, and cloud-centric managed services. The focus on cloud-native technologies, AI, cybersecurity, DevOps, and serverless/edge computing is transforming how organizations manage their IT infrastructure. These trends are creating new opportunities for MSPs to offer innovative solutions and help their clients achieve greater agility, efficiency, and security. The market is becoming increasingly competitive, with MSPs differentiating themselves through specialized expertise and advanced technologies.
Recent Development in the Managed Infrastructure Service Market
The managed infrastructure service market is experiencing rapid evolution, driven by cloud adoption, increasing IT complexity, and the need for cost optimization. Organizations are increasingly relying on managed service providers (MSPs) to handle their IT infrastructure, freeing internal teams to focus on strategic initiatives. Recent developments are characterized by a shift towards cloud-centric services, automation, and enhanced security. The market is becoming increasingly competitive, with MSPs offering specialized solutions and innovative service models to attract clients. These advancements are transforming how IT infrastructure is managed and delivered.
• Hybrid and Multi-Cloud Management: Many organizations are adopting hybrid and multi-cloud strategies, creating a demand for managed services that can seamlessly integrate and manage diverse cloud environments. MSPs are developing expertise in managing workloads across different cloud platforms, offering unified management tools and services. This allows businesses to optimize costs and avoid vendor lock-in.
• Serverless Computing Management: The rise of serverless computing is creating new opportunities for MSPs. They are developing specialized services for managing serverless functions, including deployment, monitoring, and security. This allows organizations to focus on application development without managing underlying infrastructure. Serverless management is becoming a key differentiator for MSPs.
• AI-Powered Automation: Artificial intelligence (AI) and machine learning are being integrated into managed services to automate routine tasks, predict potential issues, and optimize infrastructure performance. AI-powered tools can analyze data, identify anomalies, and proactively address problems, improving efficiency and reducing downtime. AI is transforming IT operations and enhancing service delivery.
• Enhanced Security Services: With the increasing sophistication of cyberattacks, security is a top priority for organizations. MSPs are offering advanced security services, including threat detection, vulnerability management, and security incident response. Managed security services are becoming essential for protecting IT infrastructure and data.
• Focus on Edge Computing Management: The growth of edge computing is creating new challenges and opportunities for MSPs. They are developing expertise in managing edge devices and infrastructure, offering services such as device provisioning, remote monitoring, and security management. Edge computing management is a growing segment of the managed services market.
These recent developments are significantly impacting the managed infrastructure service market by driving the adoption of more agile, secure, and cost-effective IT solutions. The focus on hybrid/multi-cloud management, serverless computing, AI-powered automation, enhanced security, and edge computing is transforming how organizations manage their IT infrastructure. These advancements are enabling businesses to focus on innovation and drive digital transformation.
Strategic Growth Opportunities in the Managed Infrastructure Service Market
The managed infrastructure service market is experiencing rapid growth, driven by increasing IT complexity, cloud adoption, and the need for cost optimization. Organizations are increasingly relying on managed service providers (MSPs) to handle their IT infrastructure, allowing them to focus on core business functions. This creates significant growth opportunities for MSPs across various applications. The market is becoming increasingly competitive, with MSPs specializing in niche areas and offering innovative service models. These opportunities are transforming how IT infrastructure is managed and delivered, leading to greater efficiency, security, and agility.
• Cloud Migration and Management: As organizations continue to migrate workloads to the cloud, there is a growing demand for managed services that can support cloud migration, deployment, and ongoing management. MSPs can help businesses assess their cloud readiness, migrate applications and data, and optimize cloud infrastructure for performance and cost. Cloud migration and management represent a significant growth opportunity for MSPs.
• DevOps and Container Management: The adoption of DevOps and containerization technologies is creating a need for specialized managed services. MSPs can help organizations implement and manage DevOps pipelines, container orchestration platforms, and microservices architectures. This allows businesses to accelerate software development and deployment cycles. Managed DevOps and container services are a high-growth area.
• Cybersecurity and Threat Management: With the increasing number and sophistication of cyberattacks, cybersecurity is a top priority for organizations. MSPs can offer managed security services, including threat detection, vulnerability management, security incident response, and compliance monitoring. Managed security services are a critical growth area for MSPs.
• Data Analytics and Business Intelligence: Organizations are increasingly relying on data analytics and business intelligence to gain insights and make informed decisions. MSPs can offer managed data analytics services, including data warehousing, data integration, data visualization, and business intelligence reporting. Managed data analytics services represent a significant growth opportunity.
• IoT and Edge Computing Management: The growth of the Internet of Things (IoT) and edge computing is creating new challenges and opportunities for MSPs. They can offer managed services for deploying, monitoring, and securing IoT devices and edge infrastructure. Managed IoT and edge computing services are a rapidly growing segment of the market.
These growth opportunities are significantly impacting the managed infrastructure service market by driving specialization and innovation. The increasing demand for cloud migration, DevOps, cybersecurity, data analytics, and IoT/edge computing management is creating a strong market for MSPs with specialized expertise. The convergence of these technologies is further accelerating the growth of the market, leading to the development of more comprehensive and integrated managed services. These opportunities are transforming how IT infrastructure is managed, enabling businesses to be more agile, secure, and data-driven.
Managed Infrastructure Service Market Driver and Challenges
The managed infrastructure service market is experiencing significant growth, driven by a complex interplay of technological advancements, economic pressures, and evolving business needs. Organizations are increasingly seeking external expertise to manage their IT infrastructure, allowing them to focus on core business functions and accelerate digital transformation. However, the market also faces challenges related to security concerns, talent shortages, and the need for continuous innovation. These drivers and challenges are shaping the evolution of the managed infrastructure service market, influencing its growth trajectory and creating both opportunities and obstacles for service providers and their clients. Understanding these dynamics is crucial for success in this rapidly changing landscape.
The factors responsible for driving the managed infrastructure service market include:
1. Increasing IT Complexity: IT environments are becoming increasingly complex, with organizations adopting hybrid and multi-cloud strategies, incorporating new technologies like containers and serverless computing, and dealing with a growing volume of data. This complexity is driving the demand for managed services as organizations struggle to keep pace with the latest technologies and manage their diverse IT infrastructure effectively.
2. Focus on Core Business: Organizations are increasingly focusing on their core business functions and outsourcing non-core activities, including IT infrastructure management. Managed services allow organizations to free up internal IT resources, enabling them to focus on strategic initiatives and innovation. This focus on core business is a key driver for market growth.
3. Cost Optimization: Managed services can help organizations optimize IT spending by reducing capital expenditures, improving operational efficiency, and leveraging the expertise of specialized service providers. The ability to control and reduce IT costs is a major driver for adopting managed infrastructure services.
4. Cloud Adoption: The rapid adoption of cloud computing is driving the demand for managed services that can support cloud migration, deployment, and ongoing management. Organizations need help navigating the complexities of cloud environments, optimizing cloud spending, and ensuring security and compliance in the cloud.
5. Digital Transformation: Organizations are undergoing digital transformation initiatives, requiring agile and scalable IT infrastructure. Managed services can help organizations accelerate their digital transformation journeys by providing the expertise and support needed to implement new technologies and modernize their IT infrastructure.
Challenges in the managed infrastructure service market are:
1. Security Concerns: Outsourcing IT infrastructure management raises security concerns about data privacy, access control, and vulnerability management. Organizations need to trust their managed service providers to protect their sensitive data and ensure the security of their IT systems. Security is a major concern for organizations considering managed services.
2. Talent Shortages: The IT industry is facing a shortage of skilled professionals, making it difficult for organizations to find and retain qualified IT staff. Managed service providers can help bridge this skills gap by providing access to a pool of experienced IT professionals. However, MSPs themselves face challenges in attracting and retaining talent.
3. Continuous Innovation: The IT landscape is constantly evolving, requiring managed service providers to continuously innovate and adapt their service offerings. MSPs need to invest in new technologies, develop new expertise, and refine their service models to stay competitive and meet the evolving needs of their clients. Continuous innovation is essential for success in this dynamic market.
The managed infrastructure service market is experiencing strong growth driven by increasing IT complexity, focusing on core business, cost optimization, cloud adoption, and digital transformation. However, challenges related to security, talent shortages, and the need for continuous innovation must be addressed for sustained market growth. Overcoming these challenges will unlock the full potential of managed infrastructure services, enabling organizations to achieve greater agility, efficiency, and security in their IT operations. A balanced approach to addressing drivers and challenges will shape the marketÄX%$%Xs future.
List of Managed Infrastructure Service Companies
Companies in the market compete on the basis of product quality offered. Major players in this market focus on expanding their manufacturing facilities, R&D investments, infrastructural development, and leverage integration opportunities across the value chain. With these strategies managed infrastructure service companies cater increasing demand, ensure competitive effectiveness, develop innovative products & technologies, reduce production costs, and expand their customer base. Some of the managed infrastructure service companies profiled in this report include-
• IBM
• Fujitsu
• Cisco
• Accenture
• Atos
• DXC Technology
• AT&T
• Ericsson
• Cognizant
• Dell Technologies
Managed Infrastructure Service Market by Segment
The study includes a forecast for the global managed infrastructure service market by service type, end use, and region.
Managed Infrastructure Service Market by Service Type [Value from 2019 to 2031]:
• Remote System Management & Monitoring
• Disaster Recovery & Business Continuity Service
• Information Security Audits & Assessment
• Others
Managed Infrastructure Service Market by End Use [Value from 2019 to 2031]:
• Telecom & IT
• BFSI
• Consumer Goods and Retail
• Manufacturing
• Healthcare and Life Sciences
• Education
• Energy
• Others
Managed Infrastructure Service Market by Region [Value from 2019 to 2031]:
• North America
• Europe
• Asia Pacific
• The Rest of the World
Country Wise Outlook for the Managed Infrastructure Service Market
The managed infrastructure service market is experiencing robust growth, driven by the increasing complexity of IT environments, the need for cost optimization, and the growing adoption of cloud computing. Organizations are increasingly relying on managed service providers (MSPs) to manage their IT infrastructure, allowing them to focus on core business activities. Recent developments include the rise of cloud-based managed services, the increasing use of automation and AI, and a greater focus on cybersecurity. The market is becoming increasingly competitive, with both established players and new entrants offering a wide range of managed services. The demand for specialized managed services, such as DevOps and container management, is also growing rapidly.
• United States: The US market is highly mature and competitive, with a strong focus on cloud-based managed services and advanced automation. Many US-based MSPs are offering comprehensive managed services for public cloud platforms like AWS, Azure, and GCP. There is also a growing emphasis on cybersecurity and compliance, with MSPs offering managed security services to protect against cyber threats. The US market is characterized by a high level of innovation and a strong demand for specialized managed services.
• China: The Chinese market is rapidly expanding, driven by the countryÄX%$%Xs growing economy and increasing adoption of cloud computing. Chinese MSPs are focusing on providing cost-effective managed services for local businesses. The government is also promoting the development of the managed services market, supporting the growth of local MSPs. The market is becoming increasingly competitive, with both domestic and international players vying for market share.
• Germany: The German market is characterized by a strong focus on data privacy and security, with MSPs offering managed services that comply with strict regulatory requirements. German companies are also increasingly adopting hybrid cloud strategies, creating a demand for managed services that can support both on-premises and cloud infrastructure. The market is witnessing a growing demand for specialized managed services, such as industrial IoT management.
• India: The Indian market is experiencing rapid growth, driven by the countryÄX%$%Xs large IT talent pool and increasing adoption of cloud computing. Indian MSPs are offering a wide range of managed services at competitive prices, catering to both domestic and international clients. The market is witnessing a growing demand for managed services for small and medium-sized businesses (SMBs).
• Japan: The Japanese market is characterized by a strong focus on quality and reliability, with MSPs offering highly reliable and secure managed services. Japanese companies are also increasingly adopting cloud computing, creating a demand for managed services that can support cloud migration and management. The market is witnessing a growing demand for managed services for specific industries, such as finance and healthcare.
Features of the Global Managed Infrastructure Service Market
Market Size Estimates: Managed infrastructure service market size estimation in terms of value ($B).
Trend and Forecast Analysis: Market trends (2019 to 2024) and forecast (2025 to 2031) by various segments and regions.
Segmentation Analysis: Managed infrastructure service market size by service type, end use, and region in terms of value ($B).
Regional Analysis: Managed infrastructure service market breakdown by North America, Europe, Asia Pacific, and Rest of the World.
Growth Opportunities: Analysis of growth opportunities in different service types, end uses, and regions for the managed infrastructure service market.
Strategic Analysis: This includes M&A, new product development, and competitive landscape of the managed infrastructure service market.
Analysis of competitive intensity of the industry based on Porter’s Five Forces model.
FAQ
Q1. What is the growth forecast for managed infrastructure service market?
Answer: The global managed infrastructure service market is expected to grow with a CAGR of 9.9% from 2025 to 2031.
Q2. What are the major drivers influencing the growth of the managed infrastructure service market?
Answer: The major drivers for this market are the growing focus on improving business continuity & data security and the increasing demand for cost-efficient it solutions.
Q3. What are the major segments for managed infrastructure service market?
Answer: The future of the managed infrastructure service market looks promising with opportunities in the telecom & IT, BFSI, consumer goods and retail, manufacturing, healthcare and life science, education, and energy markets.
Q4. Who are the key managed infrastructure service market companies?
Answer: Some of the key managed infrastructure service companies are as follows:
• IBM
• Fujitsu
• Cisco
• Accenture
• Atos
• DXC Technology
• AT&T
• Ericsson
• Cognizant
• Dell Technologies
Q5. Which managed infrastructure service market segment will be the largest in future?
Answer: Lucintel forecasts that remote system management & monitoring will remain the largest segment over the forecast period.
Q6. In managed infrastructure service market, which region is expected to be the largest in next 5 years?
Answer: North America will remain the largest region over the forecast period.
Q7. Do we receive customization in this report?
Answer: Yes, Lucintel provides 10% customization without any additional cost.
This report answers following 11 key questions:
Q.1. What are some of the most promising, high-growth opportunities for the managed infrastructure service market by service type (remote system management & monitoring, disaster recovery & business continuity service, information security audits & assessment, and others), end use (telecom & IT, BFSI, consumer goods and retail, manufacturing, healthcare and life sciences, education, energy, and others), and region (North America, Europe, Asia Pacific, and the Rest of the World)?
Q.2. Which segments will grow at a faster pace and why?
Q.3. Which region will grow at a faster pace and why?
Q.4. What are the key factors affecting market dynamics? What are the key challenges and business risks in this market?
Q.5. What are the business risks and competitive threats in this market?
Q.6. What are the emerging trends in this market and the reasons behind them?
Q.7. What are some of the changing demands of customers in the market?
Q.8. What are the new developments in the market? Which companies are leading these developments?
Q.9. Who are the major players in this market? What strategic initiatives are key players pursuing for business growth?
Q.10. What are some of the competing products in this market and how big of a threat do they pose for loss of market share by material or product substitution?
Q.11. What M&A activity has occurred in the last 5 years and what has its impact been on the industry?
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