Cloud managed services market is projected to increase at a CAGR of around 9.6% by 2032 – Fact.MR says

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The cloud managed services market revenues were estimated at US$ 86.1 Bn in 2021 and is anticipated to grow at a CAGR of 9.6% from 2022-2032, according to a recently published Fact.MR report.

By the end of 2032, the market is expected to reach US$ 237.0 Bn.

US market held a market share of nearly 34% and this trend is likely to be continued due to the predicted CAGR of 9.4% in the next ten years. Market growth is expected to be fueled by the growing demand for cloud managed services owing to its demand being driven by increasing demand of high speed data transfer and storage with large network infrastructure.

The continuous surge in digitization and increase in demand of IT infrastructure is propelling the demand for high speed internet which is consequently driving the need for logistics in IT systems for high-speed data transfer, big data storage and need of data centers with increasing consumers on digital platforms. 

Country-wise Analysis

The U.S. dominated the market in 2021 with a global share of over 34%. This is due to the increased R & D investment and the local presence of global players. For instance, large companies in the U.S. spent around US$ 18 Bn in the first quarter of 2021.

Over the last decade, the number of IT companies have increased significantly. In addition, due to Covid-outbreak the demand for digital platforms due to work from home model increased rapidly. Gaming industry has also been propelling the demand of live streaming which requires high-speed and large bandwidth of network. Moreover, the U.S. government have added US$ 1 Bn in Technology Modernization Fund as part of the American Rescue Plan. All these factors have been contributing to increase in demand for cloud managed services in the country.

Key Takeaways from the Market Study

  • Global cloud managed services market is expected to reach a market size of US$ 237 Bn by 2032.
  • In 2022, US to contribute more than 34% to the market revenue.
  • In Cloud Managed Services Demand, large enterprises is expected to account for growth at CAGR of 9.4% during forecasted period.
  • Managed network services show the highest potential for growth in the service type segment. Its market is expected to grow at a rate of about 9.1% during 2022- 2032.
  • U.S., the key market is expected to hold the prominent market share and grow at a CAGR of 9.4% during 2022 - 2032.

Competitive Landscape

A number of regional and global players operate in this market. The key companies in cloud managed services market include IBM, Ericsson, AWS, Cisco, Infosys, NTT Data, Fujitsu, Accenture, HPE, NEC, Google, Microsoft, Intel, and DigitalOcean. A variety of strategies are being employed by companies to remain competitive.

There are three types of cloud managed services including public cloud, private cloud and hybrid cloud. Nowadays, people can view and edit documents using mobile phones, using Microsoft’s Office Web Apps, and Google Docs. This type of cloud computing service model called as ‘Software as a Service’ (SaaS). 

  • In September 2021, Nimbella, which provides serverless platform is acquired by DigitalOcean to provide cloud services to help businesses scale operations.
  • In April, 2021, Nuance Communications, a provider of conversational AI and cloud-based in healthcare, is acquired by Microsoft at US $19.7 Bn.
  • In April, 2020, IBM Corporation announced to form new company "NewCo" by separating its managed infrastructure services unit of its Global Technology Services division into a new public company.

These insights are based on a report on Cloud Managed Services Market by Fact.MR.

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