Global managed services market will reach $111.33 billion by 2022, growing at a CAGR of 11% during the forecast period (2018-2022), according to a report by Technavio.
In a managed services environment, the service provider takes the responsibility of IT services and equipment, and manage them. The consumer generally pays on a monthly basis for receipt of the service.
According to the report, the accelerated adoption of internet of things (IoT) solutions will drive the growth of managed services market.
In this era of digital transformation, the organizations see IoT not only as a technology, but also as a significant business opportunity. The IoT establishes smart communication environments like smart homes, smart shopping, smart cities, etc.
By type, the report divided the managed services market in four segments- MDS, MNS, MSS, and MMS.
In 2017, the MDS segment dominated the managed services market by type. As per the report, this segment is expected to continue its dominance throughout the forecast period.
Further, the MSS segment is expected to exhibit higher incremental growth than the MNS segment.
The emergence of big data and analytics services will be one of the main trend driving the managed services market. Big data and analytics services help organizations transform the unstructured data into structured data to gain meaningful insights.
Several industries including BFSI, telecom, and healthcare are using data analytics tools to take key decisions at organizational levels to better serve the customers.
“Big data can help government banks to detect fraudulent transactions. With the increasing amount of digitization, governments worldwide are dealing with the digitization of information such as digital records of citizens. To make the most of this data, governments worldwide are focusing on the adoption of big data infrastructure. This has increased the awareness of the need to outsource data analytics activities among governments and large organizations,” said a senior analyst at Technavio for research on enterprise application.