Dublin, March 25, 2021 (GLOBE NEWSWIRE) -- The "Cloud Managed Services Market - Growth, Trends, COVID-19 Impact, and Forecasts (2021 - 2026)" report has been added to ResearchAndMarkets.com's offering.
The cloud managed services market was valued at USD 36.47 billion in 2020 and is expected to reach USD 88.85 billion by 2026, at a CAGR of 16% over the forecast period 2021 - 2026. Increasing need for businesses to cut down operational and infrastructural costs involved in business processes is anticipated to drive the demand for cloud managed services.
Outsourcing cloud services to third-party enables the organizations to focus on their core competencies, thereby enhancing the overall productivity. The expanding big data space has created a higher demand for managed analytical services and cloud storage services. Also, the increasing demand for reliability and scalability may further elevate the need for these services as it will enable enterprises in scaling-up and down their operations by providing custom-made offerings to the available services.
As various organizations, such as American Red Cross, Netflix, and Rovio, are increasingly utilizing a wide array of Software-as-a-Service (SaaS) applications and various other cloud-based services, the demand for cloud-based managed security services is set to increase. Increasing penetration of mobile devices and the trend of BYOD in multiple organizations are also likely to drive the demand for this market, to manage these devices for utilization and security need. Around 67% of the workforce is expected to adopt their own devices for work, which may further drive the growth for cloud managed services market. However, concerns regarding cloud privacy are estimated to challenge the growth of the market.
Cloud managed services is driven by the rapid adoption of cloud services by enterprises across the world. Higher flexibility and introduction of 'pay as you go' model has enabled the small & medium enterprises to emerge as the most promising consumers of cloud services. As a result, cloud managed services market is set to register high growth with continually increasing adoption of cloud services
Key Market Trends
BFSI Sector is Expected to Drive Growth in the Market
The BFSI sector, a pioneer in the adoption of computer and networking systems to curtail large, space-intensive repositories and databases, is expected to have a substantial share in the cloud managed services market, during the forecast period. The BFSI sector assesses the risks accurately using big data solutions; thus, enabling firms to make informed decisions, by analyzing transactional data to determine risks based on market behavior, scoring customers, and potential clients. Banks, such as BNY Mellon, Morgan Stanley, Bank of America, Credit Suisse, and PNC, are already working on strategies around big data in banking, further increasing the growth prospect for cloud managed services.
Moreover, many banks, such as Thai Bank, Krungsri, are entering into strategic collaborations for upgrading its technology infrastructure to be cloud-ready to support digital banking. The bank has entered into a five-year USD 140 million partnership with IBM for its digital transformation, which will also cover managed services, thus driving the demand for this market.
North America is Expected to Occupy Substantial Market Share
North America's strong financial position enables it to invest heavily in advanced solutions and technologies, which has provided organizations in the region a competitive edge in the market. Moreover, the region has the presence of several key cloud managed services vendors, such as IBM Corporation (US), CenturyLink Inc., (US) and Cisco Systems Inc. (US), among others.
The increasing deployment of big data solutions by major IT enterprises, such as Google and Microsoft, to enhance the efficiency and streamline their business operations is driving the adoption for the cloud managed services market in this region. Companies in this region, such as IBM Corp, have invested USD 1 billion in Watson, which focuses on big data and artificial intelligence. This, in turn, is expected to drive the growth of the cloud managed services market.
The increased sale of smartphones and penetration of mobile device has resulted in the high adoption of BYOD in this region, which is also driving companies to adopt cloud managed services. According to NewZoo, smartphone penetration in the United States is estimated at 69.3% in 2016. With many end-user industries, such as healthcare, implementing IoT to enable better operations, the usage of the cloud is increasing, which, in turn, promotes the growth of this market in North America. According to Intel, the trend of IoT is rising rapidly, from 2 billion in 2006 to a projected 200 billion by 2020.
The cloud managed services market is fragmented and fiercely competitive due to the presence of a sizeable number of market players, both large and small. Strategic initiatives like partnerships, agreements, and acquisitions have been some of the prominent features of this market. Some of the major players of this market are Ericsson Inc., Accenture plc, Accenture plc, International Business Machines Corporation, Huawei Technologies Co., Ltd., NEC Corporation among others.
January 2019 - DXC Technology and Luxoft Holding, Inc, announced an agreement for DXC to acquire Luxoft, a global-scale digital innovator with unique offerings, vertical industry expertise, and world-class digital talent. Luxoft offers differentiated digital capabilities in areas such as analytics, UX/UI, IoT, and blockchain, and a significant player in outsourced engineering services, cloud, and DevOps.
August 2018 - DXC Technology entered into a partnership with Amazon Web Services (AWS) to build a new multi-billion dollar DXC - AWS Integrated Practice that will deliver IT migration, application, transformation, and business innovation to clients. The DXC - AWS Integrated Practice will offer clients secure, cloud-first solutions to enable them to innovate in their industries while modernizing their operations for a digital era.
August 2018 - CenturyLink collaborated with IBM to deliver secure, dedicated, and private network connectivity to the IBM Cloud through its Cloud Connect solutions. The collaboration between CenturyLink and IBM builds on CenturyLink's existing support for IBM Business Resiliency Services and IBM Cloud Managed Services.
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Key Topics Covered:
1.1 Study Assumptions
1.2 Scope of the Study
2 RESEARCH METHODOLOGY
3 EXECUTIVE SUMMARY
4 MARKET DYNAMICS
4.1 Market Overview
4.2 Market Drivers
4.2.1 BFSI Sector is Expected to Drive Growth in the Market
4.2.2 Increasing Adoption of Cloud Technology among Businesses for Managing their Application
4.3 Market Restraints
4.3.1 Concern over Cloud Security and Inefficiency of Cloud Managed Service Model
4.4 Industry Value Chain Analysis
4.5 Industry Attractiveness - Porter's Five Force Analysis
4.5.1 Threat of New Entrants
4.5.2 Bargaining Power of Buyers/Consumers
4.5.3 Bargaining Power of Suppliers
4.5.4 Threat of Substitute Products
4.5.5 Intensity of Competitive Rivalry
5 MARKET SEGMENTATION
5.1 By Type
5.1.1 Infrastructure Service
5.1.2 Network Service
5.2 By End-User Industry
5.2.2 IT & Telecom
5.3.1 North America
18.104.22.168 United States
22.214.171.124 United Kingdom
126.96.36.199 Rest of Europe
188.8.131.52 Rest of Asia-Pacific
5.3.4 Latin America
184.108.40.206 Rest of Latin America
5.3.5 Middle East and Africa
220.127.116.11 United Arab Emirates
18.104.22.168 Saudi Arabia
22.214.171.124 Rest of Middle-East & Africa
6 COMPETITIVE LANDSCAPE
6.1 Company Profiles
6.1.1 Ericsson Inc.
6.1.2 Accenture plc
6.1.3 Cisco Systems, Inc.
6.1.4 International Business Machines Corporation
6.1.5 Huawei Technologies Co., Ltd.
6.1.6 NEC Corporation
6.1.7 Fujitsu Limited
6.1.8 DXC Technology Company
6.1.9 NTT DATA Corporation
6.1.10 CenturyLink, Inc.
7 INVESTMENT ANALYSIS
8 MARKET OPPORTUNITIES AND FUTURE TRENDS
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