IBM, Four Others Lead Managed Services Market, Value Nears $200Bn

 
A new report by MarketsandMarkets shows the managed services market is estimated to grow from USD 145.33 Billion in 2016 to USD 242.45 Billion by 2021, at a Compound Annual Growth Rate (CAGR) of 10.8% during the forecast period.

The major forces driving the managed services market include flexibility to match custom requirements, continuous upsurge in dependency over heterogeneous networks, and persistent rise in the complexity of technological solutions.

The managed services market remains competitive with the presence of a large number of vendors such as IBM Corporation; Cisco Systems, Inc; Huawei Technologies Co. Ltd; Ericsson Corporation and Accenture Plc.

The report also encompasses different strategies, such as merger & acquisition, partnership & collaboration, and product development, adopted by major players to increase their market share.

Managed data center is the largest segment in the managed services market

Every company essentially requires data centers for their business operations. Managed data center is the backbone for enterprises to develop their businesses and remain competitive.

In the phase of increasing start-ups, there is upsurge in the use of data, owing to which data centers are increasing.

To manage this huge amount of data and its complexity, managed data centers have become an essential requirement.

Managed mobility is expected to be the most promising segment during the forecast period

The growth of managed mobility is driven by the Bring Your Own Device (BYOD) trend, which refers to permitting employees to bring personally owned devices.

This segment is expected to be the fastest growing during the forecast period. Various factors such as growing consumption in productivity applications, workforce decentralization, globalization of business, prominence of cloud-based enterprise mobility management and robust environment for smartphones is promoting the adoption of managed mobility.

North America is expected to be the biggest contributor to the managed services market

North America provides suitable environment for start-ups and Small and Medium businesses (SMBs) in terms of government regulations and compliance.

Owing to this, enterprises are growing rapidly and has heavy demand for managed services in the region. Macroeconomic uncertainty in Europe are forcing companies to invest more in North America which is also a driver for this market.