Recent technology research reports are predicting huge overall global growth in the managed services market through 2027, particularly in the North America region. A report published by Research Drive provides an analysis of the influence of cloud technology on global growth as well as potential obstacles. In addition, the Market Analysis Report generated by Grand View Research extends its projections through 2030, diving deeper into factors influencing the growth numbers.
According to the Market Analysis Report, the global managed services market size was valued at $239+ billion in 2021. It is expected to increase by 13.4% from 2022 to 2030.
Let’s take a look at what is influencing this growth.
Influential Growth Factors
Cloud Technology – Adoption of Cloud technology is not new in the corporate world. However, as these two reports state, Cloud-based technologies will continue to be developed and embraced by businesses of all sizes. Cloud technology leads to smoother operations for minimal transition costs, an attractive proposition for most business owners/CEOs.
For the managed services provider (MSP), the adoption of Cloud services by businesses is not a threat because the MSP is needed more than ever for cybersecurity, backup and recovery, monitoring, as well as a host of additional services to keep the company secure and running efficiently.
COVID – The COVID pandemic has had a huge influence on these growth figures as it triggered the need for businesses to automate operations as much as possible.
Additionally, COVID demonstrated the need for managed IT support to assist with onboarding and maintaining remote Work-From-Home (WFH) transitions.
Transitions to Augmented Reality (AR) and Artificial Intelligence (AI) – As businesses begin to embrace machine learning and other innovative technologies, AR and AI will become more common in the workplace in the future.
Business owners and operation managers realize that incorporating managed IT services and managed IT staff in their IT strategy means ensuring consistency of service and budgeting.
Potential Obstacles for Growth in the MSP Market
Two key factors rise to the top in examining potential obstacles for growth in the managed services market through 2030. These include:
1) Lack of training facilities to handle cyber security worldwide is a factor
2) Lack of skilled managed service providers will be an obstacle as global need expands. Shared services model may be adopted in some cases, stretching in-house departments or outsourcing for specific services as needed.
How RNIT is Ready to Assist Businesses Now and into the Future
Royal Network IT is an example of a highly skilled managed IT service provider with over 50 years of combined experience in network management, Cloud technology, backup and recovery, network security, and more. We invite you to have a conversation with us about these practices online or by phone at 949-236-7700.