Cloud Managed Services Market by Type (Cybersecurity, Infrastructure, Business, Network, Data Center, Communication, Mobility), Deployment (Public, Private, Hybrid), Organization, Sector (BFSI, Retail, Manufacturing, Automotive) - Global Forecast to 2030

The Cloud Managed Services Market is projected to reach $247.5 billion by 2030, at a CAGR of 14.2% during the forecast period 2023–2030. The growth of the cloud managed services market is driven by the advancements in technology supporting the adoption of cloud services, the growing need for cloud services in the BFSI sector, and the increasing importance of managed cloud services in the healthcare sector. Moreover, the increasing focus on customized and managed cloud services and integration of cloud technologies with in-house apps provide significant opportunities in the global cloud managed services market. However, the high cost of cloud managed services restrains the market to some extent. Additionally, security & privacy risks associated with multi-tenancy, compliance issues, limited flexibility, and unpredictable costs of cloud services are some of the key challenges for the growth of the managed cloud services market.

Enterprises' increasing preference for storage-as-a-service and rising demand for backup and archive-as-a-service are the key trends observed in the cloud managed services market.

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Growing Significance of Managed Cloud in the Healthcare Sector to Fuel the Market Growth

The healthcare sector is one of the most crucial areas and is growing rapidly in terms of research, services, and advanced treatment technology. With rapid technology adoption, cloud computing helps healthcare service providers with fast and hassle-free medical record-sharing, facilitates automation of the backend operations, and aids in the creation and maintenance of telehealth apps. However, keeping a dedicated team of IT and Cloud professionals is not always a viable alternative for a hospital or healthcare unit. This is encouraging the adoption of cloud managed services within healthcare across different applications. Various healthcare sector stakeholders are focusing on the adoption of cloud managed services to unlock digital and analytical capabilities across the healthcare sector. Some of the major healthcare service areas that benefit from cloud managed services are:

• Personalized healthcare: Cloud managed services are helping deliver more personalized care to patients and help stakeholders with their productivity and caregiver engagements, with improved results and affordability.

• Medical management: Helps to integrate AI for effective AI-driven patient engagement.
• Member acquisitions: To identify and approach the right people at the right time through the right channels.
• Value-based care: Design value-based care products and facilitate contracting between payers and providers.
• Home health: Deliver home healthcare models such as home health and telemedicine, ensuring high availability and resilience.

Healthcare sectors in the developed regions, particularly in North America and Western Europe, have incorporated cloud managed services to facilitate features such as electronic medical records (EMR) mandate, enterprise resource planning (ERP), and connected healthcare. However, developing nations are also adopting managed cloud services at a considerable rate; hence, their demand in the healthcare sector is witnessing consistent growth.

Key Findings in the Cloud Managed Services Market Study:

In 2023, the Mobility Services Segment is Projected to Register the Highest CAGR During the Forecast Period

Based on type, the mobility services segment is projected to register the highest CAGR during the forecast period. Cloud-based mobility solutions and services can simplify customers’ mobility complexity, lower IT costs, achieve seamless integration with backend systems, improve insights to make real-time decisions, and minimize backend processes. The high growth of this segment is driven by the growing demand for better connectivity, increasing focus on better employee work-life balance, growing trend of remote work policies since the COVID-19 pandemic, rising BYOD convenience, increasing need for automated updates, and benefits offered by flexible workspace productivity.

In 2023, the Hybrid Cloud Segment is Projected to Register the Highest CAGR During the Forecast Period

Based on deployment mode, the hybrid cloud segment is projected to register the highest CAGR during the forecast period. Hybrid cloud managed services allow companies to use their private cloud in addition to a public cloud (on-premises data storage) for managing their assets. Through hybrid cloud managed services, companies have the advantage of storing sensitive data in-house while optimizing public cloud storage services for different purposes. This can significantly reduce costs and time spent on in-house private cloud management. The fast growth of this segment is driven by the growing emphasis of cloud managed service providers on benefits such as better support for a remote workforce, reduced costs, improved scalability and control, increased agility and innovation, and business continuity.

In 2023, the Large Enterprises Segment is Expected to Dominate the Cloud Managed Services Market

Based on organization size, the global cloud managed services market is segmented into small & medium-sized enterprises and large enterprises. In 2023, the large enterprises segment is expected to account for the larger share of the global cloud managed services market. The large market share of this segment is attributed to the growing demand for cloud managed services due to the rising need for efficient network infrastructure, data centralization, business continuity, integration of new services and updates, and availability of larger budgets and focus on developing strategic IT initiatives for implementing cloud managed services.

However, the small & medium-sized enterprises segment is projected to register the higher CAGR during the forecast period. The high growth of this segment is driven by the increasing deployment of cloud managed services due to the availability of fully managed services, reduction in hardware maintenance and infrastructure replacement/upgradation costs, and the availability of market-proven solutions & services at affordable subscription fees.

In 2023, the IT & telecommunications Segment is Expected to Dominate the Cloud Managed Services Market

Based on sector, the global cloud managed services market is segmented into IT & telecommunications, BFSI, retail & consumer goods, healthcare & life sciences, manufacturing, government & public sector, energy & utility, oil & gas, automotive, and other sectors. In 2023, the IT & telecommunications segment is expected to account for the largest share of the global cloud managed services market. The growth of this segment is attributed to the increasing demand for cloud managed services by the telecommunications sector to reduce their operating and administrative costs, the growing demand for cloud solutions by IT industries to store, manage, and process huge data sets, and increasing availability of cloud solutions & services for IT & telecom infrastructure.

Asia-Pacific: The Fastest-growing Regional Market

Asia-Pacific is expected to register the highest CAGR during the forecast period. The rapid growth of this region is driven by growing investments by major players existing in the region, such as International Business Machines Corporation (U.S.) and Google LLC (U.S.), for strengthening the growth of cloud managed services. Regional governments are making considerable investments to improve cloud infrastructure, and growing adoption of data center services in China and Japan. Further, the growing adoption of cloud managed services by small and medium-sized enterprises and the increase in demand for outsourcing management functions from the cloud and managed services providers support the growth of this regional market.

Market Share Analysis of Cloud Managed Services Market

Some of the recent developments in this market space are as follows:

• In October 2022, Amazon Web Services, Inc. (a subsidiary of Amazon.com, Inc.) (U.S.) collaborated with Bayerische Motoren Werke Aktiengesellschaft (BMW AG) (Germany) to develop customizable cloud software that simplifies the distribution and management of data from millions of connected vehicles.
• In September 2022, Tata Consultancy Services Limited (India) launched TCS Mobility Cloud Suite, a rich toolbox of cloud-enabled software, to help automotive manufacturers and suppliers adapt to the rapid changes in their industry and accelerate the expansion of their ecosystems.
• In September 2022, Park Place International d/b/a CloudWave (U.S.) launched OpSus Cloud Services with seven additional healthcare institutions, bringing its total number of hospitals and healthcare organizations to more than 250.
• In June 2022, Globe Telecom, Inc. (Philippines) selected Netcracker Managed Services provided by NetCracker Technology Corporation (U.S.) to upgrade its support services and maintain a higher operational efficiency. Through this collaboration, the telecom operator achieved faster issue resolution, improved order processing time, and significantly lower platform costs.
• In May 2022, Nokia Corporation (Finland) launched two new Software-as-Service (SaaS) offerings that help communication service providers (CSPs) and enterprises augment their energy efficiency and optimize the management of home devices. Nokia AVA for Energy SaaS uses artificial intelligence to reduce energy consumption across the network. Home Device Management SaaS provides more automated control over a device management environment and enhances the customer experience.

Key Players

The report includes a competitive landscape based on an extensive assessment of the key strategic developments adopted by the leading market participants in the cloud managed services industry over the last three years. The key players operating in the global cloud managed services market are Google LLC (a subsidiary of Alphabet Inc.) (U.S.), Microsoft Corporation (U.S.), International Business Machines Corporation (U.S.), Oracle Corporation (U.S.), Telefonaktiebolaget LM Ericsson (Sweden), Accenture plc (Ireland), NEC Corporation (Japan), Nokia Corporation (Finland), Amazon Web Services, Inc. (a subsidiary of Amazon.com, Inc.) (U.S.), Wipro Limited (India), Tata Consultancy Services Limited (India), Infosys Limited (India), AT&T Inc. (U.S.), CloudNow Technologies Pvt Ltd (India), and ISmile Technologies (U.S.).

Report Summary:

Key questions answered in the report: