Cloud Managed Services Market Size, Share & Trend Analysis Report By Service Type (Business, Network), By Deployment, By End-user, By Vertical, By Region, And Segment Forecasts, 2018 - 2025

Industry Insights

The global cloud managed services market size was valued at USD 23.19 billion in 2016 and is expected to increase at an expected CAGR of 15.4% over the forecast period. The growing emphasis on mobility coupled with the requirement to focus on core business functions will drive the market growth rate. Also, increasing demand for scalability and reliability will further elevate the demand for the services as it will enable enterprises to scaling-up and down their operations by offering custom-made offerings to the available services.

Enterprises are more concerned with IT costs reduction which will fuel the demand in the future. Services being offered on the pay-as-you-go model, where enterprises are charged as per their use of the resources, will enable enterprises to save on costs and will provide flexibility.

There are several other benefits of cloud managed services such as enhanced IT functionality and customized IT services. The availability of robust infrastructure will remain a key concern for service providers as uninterrupted internet connectivity is required for service delivery. Simultaneous access from multiple users to the cloud might result in network congestion which can hamper the internet speed and can lead to downtime. Massive load from multiple client access on the server might result in power failure which can disrupt business operations temporarily.

Poor infrastructure and connectivity in developing regional markets such as India, Mexico, and MEA will remain the biggest challenge for the market to grow. Also, data privacy and data security over the cloud will restrain the market growth. Additionally, cost-sensitive enterprises may refrain from investing in these services owing to the initial high cost of installation and maintenance.

供应商是另一个主要关心的service providers. Signing new contracts might include substantial charges along with application reconfiguration. In such cases, platform compatibility can be another concern as applications that are developed on one platform might not be supported on other platforms.

Service Type Insights

In service type segments, the mobility services will be the segment that will increase with the highest growth rate. An increase in trends such asBring Your Own Devices (BYOD)and mobile workforce will impel enterprises to implement services to manage both devices and data. Increasing the adoption of portable and mobile devices in enterprises will further drive the growth of this segment.

The security services segment is expected to grow at a CAGR of over 18% during the forecast period. This growth can be attributed to the adoption of cloud technologies. The data in the cloud becomes more vulnerable as the number of users with access to the cloud increases. It will drive the demand for security services.

Deployment Insights

The private cloud offers several benefits to enterprises such as increased data security and access control. This model further provides enterprises with benefits such as cost efficiency, and reliability, however, costs associated with the private cloud model are high.

Unlike the private cloud, the public cloud requires a low cost of deployment, is easy to configure and offer economies of scale to the enterprises. The market size for the public cloud segment contributed USD 15 billion in 2016 and is expected to increase with an expected CAGR of 14% over the forecast period.

End-User Insights

Cloud managed services help enterprises to reduce IT costs. These services are offered based on the pay-as-you-go model. These services also enable enterprises to achieve economies of scale by collaborating with employees on the go. It increases enterprise capabilities regarding flexibility, communication, and reliability.

Cloud managed services have increased the operational efficiency of small- and medium-sized organizations by managing their IT infrastructure. They enable organizations to focus on their core business practices, which further enhances their productivity.

Customizations provided to organizations by the service providers are enabling them to experience flexibility. These factors are expected to drive the adoption of cloud managed services by SMEs. The segment market size was valued at USD 6 billion in 2016 and is expected to grow with a CAGR of 20% over the forecast period.

Vertical Insights

The increased adoption of cloud in the healthcare industry is driving the demand for cloud managed services. A significant amount of data has been generated due to research-related activities and healthcare operations in the recent past. The management of this data requires expertise in the cloud and hence, healthcare service providers seek cloud-managed service providers. Cloud managed services help healthcare service providers to focus on their core processes.

The retail & consumer segment is another major segment that will witness significant growth during the forecast period. The market size of the segment is expected to increase with a CAGR of over 17% during the forecast period. Tailor-made offerings from service providers enable retailers to scale-up and down business operations.

Regional Insights

North America held the largest market share in 2016 and is expected to witness significant growth over the forecast period, owing to the presence of technology giants such as IBM, Google, Cisco Systems and Verizon Communications. Initiatives by the federal government are increasing the adoption of cloud managed services. In Europe, several governments are working with various organizations and other countries to increase cloud adoption. Government initiatives such as the UK government's G-Cloud framework is enabling the government to utilize cloud managed services.

The Asia Pacific is expected to be the fastest-growing region over the forecast period, owing to the growing adoption of cloud managed services by the small and medium-sized enterprises, which are expected to drive the market growth. Increasing investments by prominent players such as IBM and Google are bolstering the growth of cloud adoption and hence growth for cloud managed services market.

Cloud Managed Services Market Share Insights

Cisco Systems Inc., IBM, Ericsson, Accenture PLC, Verizon Communications Inc., NTT Data Corporation, CenturyLink and Fujitsu Limited, are some of the most prominent players in the market. These players are adopting several strategies to grow in the market. Collaborations with other players, partnerships, and investments in R&D are some of the most widespread strategies.

Mergers & acquisitions and new product/service development is another major strategy being adopted by the existing players. For example, IBM acquired SoftLayer in 2013 for USD 2 billion. The acquisition helped IBM to strengthen cloud computing capabilities.

Report Scope

Attribute	Details
The base year for estimation	2016
Actual estimates/Historical data	2014 - 2016
Forecast period	2017 - 2025
Market representation	Revenue in USD Million & CAGR from 2017 to 2025
Regional scope	North America, Europe, Asia Pacific, Latin America, and MEA
Country scope	U.S., Canada, UK, Germany, India, Japan, and China
Report coverage	Revenue forecast, company ranking, competitive landscape, growth factors, and trends
15% free customization scope (equivalent to 5 analysts working days)	If you need specific information that is not currently within the scope of the report, we will provide it to you as a part of the customization

赛格ments Covered in the Report

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the industry trends in each of the sub-segments from 2016 to 2025. For this study, Grand View Research has segmented the global cloud managed services market report based on types, deployments, end-users, verticals, and regions:

• Service Type Outlook (Revenue, USD Million; 2014 - 2025)

  • Business

  • Network

  • Security

  • Data Center

  • Mobility

• Cloud Deployment Outlook (Revenue, USD Million; 2014 - 2025)

  • Public

  • Private

• End-User Outlook (Revenue, USD Million; 2014 - 2025)

  • SMEs

  • Large Enterprises

• Vertical Outlook (Revenue, USD Million; 2014 - 2025)

  • Telecom & ITES

  • Government (State & Local, Federal) & Education

  • BFSI

  • Retail & Consumer

  • Healthcare

  • Manufacturing & Automotive

  • Others (Media, Transportation, Food & Beverages, Oil & Gas, Real Estate)

• Regional Outlook (Revenue, USD Million; 2014 - 2025)

  • North America

    • The U.S.

    • Canada

  • Europe

    • UK

    • Germany

  • Asia Pacific

    • China

    • India

    • Japan

  • Latin America

  • Middle East & Africa (MEA)