Cloud Managed Services Market

Cloud Managed Services Market Size and Share:

The global cloud managed services market size was valued at USD 59.46 Billion in 2024. Looking forward, IMARC Group estimates the market to reach USD 171.17 Billion by 2033, exhibiting a CAGR of 11.15% from 2025-2033. North America currently dominates the market. The growth of the North American region is driven by widespread cloud adoption, advanced IT infrastructure, increasing digital transformation, and a strong focus on cybersecurity solutions.

Organizations are progressively migrating to cloud platforms to attain scalability, adaptability, and operational effectiveness. This shift is fueling the need for managed services to guarantee the smooth operation, enhancement, and upkeep of cloud environments. Moreover, companies are delegating information technology (IT) management to external providers to concentrate on strategic objectives and core functions. Cloud-managed services help companies lower IT expenses by decreasing the necessity for large internal IT teams and infrastructure outlays. Managed services providers offer scalable solutions that enable businesses to attain cost efficiency while maintaining quality. In addition to this, the increasing use of hybrid and multi-cloud strategies, necessitating expert management to guarantee seamless integration, effective resource allocation, and uniform performance across various platforms, is supporting the market growth.

The United States plays a crucial role in the market, driven by the development of solutions designed to meet strict regulatory and security requirements for government and defense sectors, ensuring secure and standardized cloud deployments. In 2024, Oracle launched its enhanced Cloud Native SCCA Landing Zone to streamline the implementation of SCCA-compliant architectures for the U.S. Department of Defense (DoD). This solution automates compliance for Impact Level 2, 4, and 5 workloads, reducing costs and accelerating secure cloud adoption. It encompasses capabilities such as Infrastructure-as-Code, active-active disaster recovery, and common core elements to streamline and standardize deployments. Apart from this, the shift toward remote and hybrid work models is driving the need for managed network services to ensure reliable connectivity, secure access, and optimized performance across distributed teams.

Cloud Managed Services Market Trends:

Growing Adoption of Cloud Computing

The increasing use of cloud computing by numerous companies to improve their operational effectiveness is bolstering the market growth. In addition to this, the proliferating use of cloud solutions for managing applications, services, and resources is also driving the growth of the cloud managed services market. For instance, according to Flexera Software, state of cloud report 2023, 75% of enterprise respondents indicated that they were adopting Microsoft Azure for public cloud usage. Additionally, in the framework of a multi-year collaboration, Google Cloud and XPO Logistics, located in Connecticut, joined forces to improve the flow of goods across supply chains. XPO used Google Cloud's data analytics, ML, and AI capabilities to create faster, more efficient supply chains with enhanced visibility. Furthermore, Hewlett Packard Enterprise Co. announced in June 2023 that it is launching a cloud computing service that aims to power AI systems akin to ChatGPT. The high-performance computing and AI unit of HPE said that the company would utilize its experience in supercomputers to offer a service specifically for what are known as large language models, the technology behind services including ChatGPT.

Rising Focus on Security and Compliance

The increasing need for sophisticated security solutions, such as intrusion prevention, threat detection, vulnerability assessments, and data encryption by companies to protect essential information and digital assets is mainly supporting the cloud managed services industry. IBM reports that in 2024, the worldwide average expense of a data breach has risen to USD 4.88 Million, reflecting a 10% rise from the prior year and the highest amount ever documented. This growing financial impact underscores the urgent need for enhanced data security measures across industries. In addition to this, cloud MSPs offer expertise in comprehending and applying various compliance standards that help businesses evade possible legal and financial penalties, further driving market growth. For example, the Data Security Council of India (DSCI) states that BFSI ranks among the top three sectors in India with the highest market share in cybersecurity spending. This is because of tightened norms from regulators, data localization, utility payments, e-commerce, and online insurance marketplaces. These initiatives are anticipated to boost the acceptance of endpoint security solutions in the nation. Additionally, Hewlett Packard Enterprise revealed that it has entered into a memorandum of understanding with the UAE Cyber Security Council to improve cyber skills education in schools and equip Emirati youth for careers in the tech sector.

Increasing Complexity of Cloud Environments

Cloud managed service providers offer specialized knowledge and skills to businesses that lack in-house expertise in managing complex cloud configurations effectively, which is acting as a significant growth-inducing factor. For instance, the increasing statistics of cloud adoption, with public cloud service revenue surpassing USD 415 Billion in 2022, highlight the growing complexity of cloud environments. This surge underscores the need for advanced cloud management services to navigate and optimize these dynamic infrastructures. Additionally, the rising need for sophisticated services to handle different elements, including security, networking, databases, and application enhancement is favorably affecting the worldwide market. For instance, Cisco released AppDynamics Cloud, a cloud-native observability platform for modern applications built on increasingly complex, distributed architectures and services. It is crafted for ease, practicality, and clarity, allowing IT teams to produce the outstanding digital experiences that organizations, customers, and end users now require. Existing AppDynamics clients may transition to AppDynamics Cloud while still utilizing their current application performance monitoring (APM) agents or operate both platforms simultaneously. AppDynamics Cloud facilitates AWS cloud-native and oversees Kubernetes deployments, with intentions to expand to Microsoft Azure, Google Cloud Platform, and additional cloud service providers.

Growing Demand for Cloud Managed Services in Healthcare 

The rising adoption of telemedicine, electronic health records (EHRs), and AI-driven diagnostics is increasing reliance on managed cloud services for secure data storage, seamless system integration, and regulatory compliance. These services optimize IT operations by decreasing infrastructure expenses, facilitating instant data access, and enhancing cybersecurity measures, which are critical for safeguarding sensitive patient information. Managed cloud providers also support healthcare institutions in complying with regulations, ensuring data privacy and interoperability. The shift towards value-based care models further necessitates advanced data analytics and AI capabilities, both of which require robust cloud infrastructure. Additionally, remote patient monitoring and wearable health technologies generate vast datasets that demand scalable, cloud-based solutions. By outsourcing cloud management to specialized providers, healthcare organizations can focus on core clinical functions while leveraging advanced digital tools to improve patient outcomes, operational efficiency, and overall service delivery. In 2024, Oracle launched the Oracle Health Clinical Data Exchange, a cloud-based platform designed to streamline medical claims processing between healthcare providers and payers. The system replaces manual processes with automation, reducing administrative burdens and expediting reimbursements while ensuring data security and compliance.

Cloud Managed Services Industry Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the global cloud managed services market, along with forecast at the global, regional, and country levels from 2025-2033. The market has been categorized based on service type, deployment model, organization size, and vertical.

Analysis by Service Type:

• Managed Network Services
• Managed Business Services
• Managed Security Services
• Managed Infrastructure Services
• Managed Mobility Services
• Managed Communication and Collaboration Services

Managed network services dominate the market because of the increasing need for dependable and scalable network infrastructure to facilitate digital transformation efforts. Organizations depend on these services to maintain smooth connectivity, enhance performance, and simplify the challenges linked to managing their own networks. As cloud computing, IoT devices, and remote work arrangements become more widespread, the demand for effective network management is becoming increasingly critical. Managed network services provide 24/7 monitoring, proactive problem-solving, and improved security, allowing companies to sustain seamless operations while protecting against cyber threats. These services also offer economical solutions by minimizing the necessity for internal IT resources and infrastructure expenditures. Furthermore, the implementation of advanced technologies such as SD-WAN, which improves network flexibility and efficiency, are bolstering the market growth. Companies emphasize managed network services to guarantee strong and adaptable connectivity, which is vital for sustaining competitiveness in a technology-focused landscape.

Analysis by Deployment Model:

• Private Cloud
• Public Cloud

Private cloud exhibits clear dominance in the market due to its ability to provide enhanced security, control, and customization, which are critical for organizations handling sensitive data. Enterprises in industries like finance, healthcare, and government prioritize private cloud deployments to comply with strict regulatory requirements and maintain data sovereignty. This model offers businesses greater control over their infrastructure, enabling tailored configurations to meet specific performance and workload demands. The growing need for reliable disaster recovery and backup solutions is also encouraging the adoption of private clouds, as they offer dedicated environments with minimal risk of data breaches or downtime. Additionally, advancements in private cloud technologies, such as hybrid integration capabilities and automation, enhance operational efficiency and scalability. As businesses increasingly adopt AI-driven applications and data-intensive processes, private cloud solutions provide the secure and flexible foundation needed to support their evolving IT requirements.

Analysis by Organization Size:

• Large Enterprises
• Small and Medium-sized Enterprises

Large enterprises hold the biggest market share because of their extensive IT needs, large-scale operations, and substantial budgets that allow for significant investment in advanced cloud solutions. These organizations often operate across multiple locations and require complex infrastructure, making managed services essential for seamless integration, performance optimization, and maintenance. The increasing reliance on hybrid and multi-cloud environments to support diverse business functions is catalyzing the demand for expert management to ensure security, compliance, and scalability. Large enterprises also prioritize robust disaster recovery and data backup solutions to safeguard critical business information. With growing concerns about cybersecurity, they seek managed services providers to address vulnerabilities, monitor threats, and ensure compliance with strict regulatory standards. Additionally, the need to adopt emerging technologies like AI, ML, and automation further boosts the adoption of cloud managed services, enabling large enterprises to enhance efficiency and maintain a competitive edge.

Analysis by Vertical:

• Retail and Consumer Goods
• BFSI
• Telecom
• Government and Public Sector
• Healthcare and Lifesciences
• Manufacturing
• Energy and Utilities
• IT
• Others

Retail and consumer goods represent the largest segment owing to the industry's rapid digital transformation and increasing reliance on technology to enhance client experiences. The adoption of cloud solutions supports the management of dynamic operations such as inventory tracking, supply chain optimization, and omnichannel retailing. Businesses in this sector leverage managed services to process and analyze vast amounts of user data for personalized marketing and improved decision-making. The rise of e-commerce and the need for scalable infrastructure to handle fluctuating traffic and transactions further boost the demand for cloud-managed services. Additionally, the growing focus on data security, compliance, and protecting sensitive customer information drives retailers to outsource IT management to specialized providers. Retailers also seek managed solutions for integrating advanced technologies like AI, ML, and IoT to streamline operations, enhance efficiency, and remain competitive in an increasingly digital marketplace.

Analysis by Region:

• North America
  • United States
  • Canada
• Asia-Pacific
  • China
  • Japan
  • India
  • South Korea
  • Australia
  • Indonesia
  • Others
• Europe
  • Germany
  • France
  • United Kingdom
  • Italy
  • Spain
  • Russia
  • Others
• Latin America
  • Brazil
  • Mexico
  • Others
• Middle East and Africa

North America leads the market due to its sophisticated IT infrastructure, extensive cloud adoption throughout sectors, and considerable investment in digital transformation efforts. The area thrives due to a dense cluster of technology-driven companies, cloud service providers, and managed service vendors that promote innovation and usage. The increasing use of hybrid and multi-cloud setups is boosting the need for managed services to guarantee smooth integration, performance enhancement, and cost control. Moreover, major stakeholders in the area are concentrating on innovation, strategic collaborations, and acquisitions to broaden their service offerings, improve proficiency in cloud technologies, and meet the rising need for IT modernization and digital transformation services. In 2024, Accenture declared its acquisition of Navisite, a managed services provider, to enhance its cloud and digital transformation abilities for clients throughout North America. Navisite's team of 1,500 professionals, skilled in cloud and enterprise applications, will strengthen Accenture's Infrastructure Engineering practice. This initiative seeks to assist companies in updating their IT for the age of AI.

Key Regional Takeaways:

United States Cloud Managed Services Market Analysis

The adoption of cloud managed services in the United States has surged due to increasing concerns over data breaches. According to reports, in 2023, 725 data breaches were reported to OCR, exposing over 133 Million records. This growing data breach trend highlights the increasing need for robust security measures. Cloud management services provide essential solutions to mitigate risks and safeguard sensitive data. As businesses accumulate vast amounts of sensitive information, the risk of cyber threats has escalated, driving the need for more robust, secure IT infrastructures. Cloud managed services offer organizations scalable and cost-effective solutions to safeguard data through advanced security measures like encryption, real-time monitoring, and compliance with industry regulations. With the rise of sophisticated cyberattacks, companies are prioritizing the protection of their networks and data assets, prompting the widespread adoption of these services. Furthermore, the shift toward cloud environments provides greater flexibility and agility, ensuring businesses can respond quickly to emerging threats. As the demand for enhanced security grows, companies are increasingly relying on specialized cloud managed service providers to offer the necessary expertise, reducing the burden on internal IT teams.

Europe Cloud Managed Services Market Analysis

The growing demand for cloud managed services in Europe is closely linked to the expansion of BFSI services. As reported, in 2021, there were around 784 foreign bank branches in the EU, including 619 from EU Member States and 165 from other countries. This growing number of branches benefits cloud management services by increasing demand for scalable and secure solutions. With financial institutions increasingly relying on digital tools to enhance their operations, data management, and customer services, the need for secure and efficient cloud solutions has become paramount. The financial sector faces growing regulatory requirements and cybersecurity threats, prompting the adoption of cloud-managed services to ensure compliance and protect sensitive financial data. Cloud solutions offer the scalability needed to handle high volumes of transactions and customer data, while also reducing operational costs. Moreover, the ability to quickly scale up resources enables financial institutions to adapt to market changes, meet customer expectations, and stay ahead of competitors. As the BFSI sector continues to expand and innovate, the demand for cloud managed services is expected to grow in Europe, providing a reliable platform for seamless financial operations.

Asia Pacific Cloud Managed Services Market Analysis

In the Asia-Pacific region, the rapid growth of Small and Medium-sized Enterprises (SMEs) has significantly contributed to the rising demand for cloud managed services. According to India Brand Equity Foundation, the number of MSMEs in the country is expected to grow from 63 Million to approximately 75 Million, growing at a projected CAGR of 2.5%. This growth presents significant opportunities for cloud management services to support the expanding SME sector. SMEs often face resource limitations that hinder their ability to maintain complex IT infrastructures, making the cost-effective and scalable nature of cloud services particularly attractive. These services allow SMEs to access advanced technologies such as data storage, computing power, and security measures without the need for large upfront investments. As businesses expand, cloud managed services offer the flexibility to scale operations and adapt to evolving market demands. Moreover, cloud services help SMEs improve their operational efficiency, enhance customer experiences, and remain competitive in a fast-paced, digital economy. As the number of SMEs increases, the demand for cloud-based solutions continues to rise, fostering growth in cloud managed services across the region.

Latin America Cloud Managed Services Market Analysis

In Latin America, the expansion of sectors such as IT, Energy, and Utilities has driven the rising adoption of cloud managed services. For instance, Mexico received USD 3.4 Billion in venture capital funding in 2022, with Mexico City hosting major IT companies like Google, Facebook, and Amazon. This growth supports the increasing demand for cloud management services in the region. These industries are increasingly turning to the cloud for enhanced data storage, processing capabilities, and operational efficiency. Cloud-managed services offer the flexibility to optimize workflows, reduce downtime, and enhance system reliability. The growing demand for renewable energy sources and the need for more efficient utility management systems also contribute to the increasing reliance on cloud services. Furthermore, cloud-based platforms enable businesses in these sectors to better manage large-scale data sets, improve decision-making processes, and meet regulatory requirements. As companies in Latin America seek to modernize their infrastructure, the adoption of cloud managed services has become a key factor in improving performance, reducing operational costs, and driving innovation.

Middle East and Africa Cloud Managed Services Market Analysis

The In the Middle East and Africa, the growing demand for cloud-managed services, particularly managed infrastructure services, is driven by urbanization and the expansion of infrastructure projects. Reports indicate that more than 5,200 construction initiatives are currently underway in Saudi Arabia, with an estimated value of around USD 819,000 Million, accounting for 35% of all active projects in the GCC. This growing real estate sector significantly benefits cloud management services by driving demand for scalable, efficient infrastructure solutions. Rapid urban development requires scalable, efficient, and secure IT solutions to support expanding urban populations and their increasing reliance on digital services. Cloud-managed services offer a flexible and cost-effective way to manage and maintain the complex IT systems that underpin these large-scale infrastructure projects. As cities and infrastructure hubs continue to grow, the need for advanced cloud solutions to support these developments is also on the rise. These services provide the flexibility, security, and scalability required to meet the demands of rapidly growing urban areas.

Competitive Landscape:

Major market players are concentrating on innovation, strategic alliances, and acquisitions to improve their service offerings and widen their global presence. They are putting money into cutting-edge technologies such as AI, ML, and automation to enhance cloud operations and elevate client experiences. Focus is directed toward providing customized solutions to meet particular industry demands, including compliance and security requirements. Providers are improving their managed security services to tackle the increasing cyber threats, guaranteeing data protection and adherence to regulations. To remain competitive, businesses are developing strong multi-cloud management capabilities and providing cost-effective services. In 2024, Hitachi Vantara and Cisco introduced the Hitachi EverFlex with Cisco Powered Hybrid Cloud, a suite of cloud management tools designed to address the challenges of cloud adoption. Focusing on cost-effectiveness, flexibility, and safety, the solution integrates automation and predictive analytics to enhance infrastructure management. This partnership aims to deliver sustainable solutions for improved operational efficiency and better data management.

The report provides a comprehensive analysis of the competitive landscape in the cloud managed services market with detailed profiles of all major companies, including:

• Accenture plc
• Atos SE
• Cisco Systems, Inc.
• DXC Technology
• Fujitsu Limited
• Google LLC (Alphabet Inc.)
• HCL Technologies
• Hewlett Packard Enterprise
• International Business Machines Corporation
• Infosys Limited
• NEC Corporation (AT&T Inc.)
• NTT DATA Corporation (Nippon Telegraph and Telephone Corporation)
• Wipro Limited

Latest News and Developments:

• January 2025: Eastnets launched its Managed SWIFT Service on AWS Cloud, providing financial institutions with a secure, scalable, and cost-effective alternative to in-house SWIFT management. The service integrates SWIFT Alliance Access, API capabilities, ISO 20022 translation, fraud prevention, and disaster recovery, ensuring compliance and operational efficiency.
• October 2024: Sify Technologies launched GPU Cloud, CloudInfinit+AI, offering GPU-as-a-Service to support machine learning, deep learning, and AI workloads. The platform provides scalable, cost-effective GPU resources on a pay-as-you-go model, enhancing accessibility for enterprises and startups. Sify aims to strengthen hybrid cloud deployments with low-latency interconnects to hyperscale clouds.
• October 2024: CommScope launched RUCKUS Edge, a cloud-managed edge platform extending RUCKUS One to enable AI-driven network, security, and productivity services at the network edge. It offers centralized management, reduced latency, scalability, and pay-as-you-go pricing, enhancing cloud-managed services for enterprises and campuses.
• November 2024: Hewlett Packard Enterprise (HPE) has upgraded its GreenLake cloud platform by introducing new managed services that simplify hybrid infrastructure, data, and applications. These advancements offer partners growth opportunities through HPE's Partner Ready Vantage program, aligning with their as-a-service journey. HPE's Partner Ecosystem Multiplier study reveals that partners providing comprehensive services can achieve significant profitability, earning up to $4.90 for every $1 of HPE technology sold.
• November 2024: BT has expanded its managed secure SD-WAN solution in the UK, integrating Security Service Edge (SSE) capabilities powered by Fortinet. This enhancement enables customers to seamlessly transition to a managed SASE service, combining networking and security in a cloud-delivered platform. It supports digital transformation by safeguarding access to cloud-based applications and data, addressing the growing need for secure, flexible cloud management services as organizations become more dispersed.
• March 2024: Cognizant has renewed its partnership with Pon IT to provide cloud management services, optimizing Pon IT’s cloud platform across its operating companies. This collaboration aims to enhance agility, intuition, and innovation through continued managed services. The renewed relationship will enable further optimizations, ensuring an integrated and efficient cloud environment. This partnership supports Pon IT’s ongoing transformation with advanced cloud capabilities.
• March 2024: DMI, a worldwide leader in comprehensive managed mobility services, has teamed up with Dynamic Solutions Technology to create a joint venture named Dynamic Digital Transformation (DDT). This venture has received a contract from the U.S. Department of Treasury’s Office of the Comptroller of the Currency (OCC) to assist and oversee the bureau’s enterprise mobility management services (EMMS).

Cloud Managed Services Market Report Scope:

Key Benefits for Stakeholders:

• IMARC’s report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the cloud managed services market from 2019-2033.
• The research study provides the latest information on the market drivers, challenges, and opportunities in the global cloud managed services market.
• The study maps the leading, as well as the fastest-growing, regional markets. It further enables stakeholders to identify the key country-level markets within each region.
• Porter's Five Forces analysis assists stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the cloud managed services industry and its attractiveness.
• Competitive landscape allows stakeholders to understand their competitive environment and provides an insight into the current positions of key players in the market.