North America Managed Services Market Size And Forecast
The North American managed services market has grown significantly over the years, with a valuation of approximately $96.9 billion in 2023. As we look ahead, industry experts predict that this number will continue to rise, reaching an impressive $229 billion by 2031. This growth is expected to be driven by a Compound Annual Growth Rate (CAGR) of 12.9% from 2024 to 2031, indicating a strong and steady expansion in the market.
North America Managed Services Market Dynamics
The North America managed services market is undergoing significant changes driven by evolving consumer preferences, technological advancements, and shifting business landscapes. Several key factors are playing a crucial role in shaping this dynamic market. These include:

* The increasing adoption of cloud-based technologies, with 71% of enterprises already using cloud infrastructure.
* Growing demand for cybersecurity solutions, with 62% of businesses experiencing data breaches in the past year.
* Rising popularity of artificial intelligence (AI) and machine learning (ML) in managed services, with AI-powered tools being used by 41% of organizations to enhance operational efficiency.
Key Market Drivers
Key Challenges
Key Trends
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North America Managed Services Market Regional Analysis
A closer look at the North America managed services market reveals diverse regional dynamics, with the United States being the largest contributor, accounting for over 80% of the total market share. Canada follows closely, with its managed services market size expected to reach USD 14.4 billion by 2025.

In terms of growth prospects, Mexico is anticipated to witness significant expansion, driven by increasing demand for cloud computing and cybersecurity solutions. The Latin American region, comprising countries such as Brazil and Argentina, is also poised for substantial growth, primarily due to the adoption of managed services in the financial and healthcare sectors.
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North America Managed Services Market: Segmentation Analysis
North America Managed Services Market, By Service
The North America Managed Services Market has evolved into five distinct service categories: Managed Security, Managed Networks, Managed Data Centers, Managed Communication, and Managed Mobility. Among these, the Managed Security sector occupies a prominent position.

As organizations increasingly recognize the significance of safeguarding their IT systems and critical data from evolving cyber threats, Managed Security services have become an indispensable component of their overall security strategy. These services encompass proactive monitoring, threat detection, firewall administration, and compliance solutions that cater to the growing concerns of enterprises struggling to keep pace with the escalating cybersecurity landscape.

The region's reliance on Managed Security services is anticipated to continue its upward trajectory as cloud-based solutions gain widespread acceptance and stringent data security regulations become more prevalent.
North America Managed Services Market, By Deployment Modes
The North America Managed Services market is poised to flourish in both On-Premises and Cloud deployment modes. Notably, the cloud segment holds a significant lead, driven by the widespread adoption of digital transformation and cloud computing. This trend has led to an increase in demand for cloud-based managed services, which offer scalability, flexibility, and cost-effectiveness. Organizations seeking to streamline operations, reduce infrastructure expenses, and enhance disaster recovery are increasingly turning to cloud services as a viable alternative. As more enterprises migrate to cloud environments, the need for managed cloud services is likely to surge, ultimately surpassing the on-premises segment.
North America Managed Services Market, By Enterprise Sizes
The North America Managed Services Market is predominantly driven by large enterprises, which require complex IT infrastructures, robust security measures, and high scalability demands. These organizations typically have substantial budgets and require significant resources to manage their IT tasks effectively. Consequently, they outsource critical functions such as network administration, security, and data center operations to managed service providers.

The growing focus on operational efficiency and the adoption of innovative technologies like AI and cloud solutions further solidify large enterprises' market leadership in the managed services industry. With a significant presence in the region, large enterprises continue to dominate the North America Managed Services Market, with an estimated 71% share (2023).
North America Managed Services Market, By Industry
In North America, the managed services market is diversified across various sectors, with BFSI (Banking, Financial Services, and Insurance) emerging as a leading category. This segment heavily relies on managed services to ensure robust data security, regulatory compliance, and uninterrupted service delivery.

As cyber threats escalate and financial operations require increased efficiency, companies in this industry increasingly seek specialized providers to outsource their needs. With the need for enhanced cybersecurity measures and cloud, and data center services on the rise, BFSI is poised to continue its dominance in the managed services market, with expected growth driven by increasing demand for robust security solutions and operational continuity.
North America Managed Services Market, By Geography
The United States holds a commanding position in the North America managed services market, driven by its extensive IT infrastructure and concentration of businesses in key technical hubs such as San Francisco, New York, Boston, and Seattle. These cities boast well-established technological ecosystems that propel the country's dominance in this space. According to data from the United States Bureau of Labor Statistics (BLS), the IT services sector is projected to employ over 4.6 million individuals by 2023, with significant concentrations in metropolitan regions like these hubs. Meanwhile, the Bureau of Economic Analysis (BEA) forecasts that information technology-related services will account for nearly $1.9 trillion of the US GDP in 2023.
Key Players
The global North America managed services market is poised for significant growth, driven by the increasing adoption of cloud computing and digital transformation initiatives among enterprises. According to our research, this lucrative market is expected to reach USD 43.8 billion by 2027, growing at a CAGR of 9.4% during the forecast period.

The North America managed services market is highly competitive, with several major players vying for market share. Top contenders in this space include IBM Corporation, Cisco Systems, Inc., Hewlett Packard Enterprise (HPE), Accenture, Cognizant, DXC Technology, Oracle Corporation, AT&T, Tata Consultancy Services (TCS), and Rackspace Technology.
Our market analysis provides a comprehensive overview of the top market players, including in-depth examination of their financial statements, product benchmarking, and SWOT analysis. This section allows our analysts to provide valuable insights into the competitive landscape, shedding light on key development strategies, market share, and global market ranking for these prominent players.
North America Managed Services Market Key Developments
Report Scope
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The period from 2020 to 2031 is expected to bring significant changes in various industries and aspects of life. According to projections, the global economy is expected to experience growth, with GDP forecasts reaching $94 trillion by 2030 (Source: International Monetary Fund). This growth is expected to be driven by increasing demand for digital technologies, sustainable energy solutions, and innovative products.

In terms of population growth, the United Nations projects that the world's population will reach 9.7 billion by 2030 (Source: United Nations Department of Economic and Social Affairs), with a significant increase in urbanization and changes in demographic trends.

These projections highlight the importance of adapting to changing circumstances and investing in emerging technologies to stay ahead of the curve.
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The value of innovation is undeniable, with $1.4 trillion invested in research and development worldwide annually, creating jobs and driving economic growth.
The world's top IT consulting firms are known for their innovative solutions and exceptional service delivery. IBM Corporation, Cisco Systems, Inc., Hewlett Packard Enterprise (HPE), Accenture, Cognizant, Oracle Corporation, AT&T, Tata Consultancy Services (TCS), Rackspace Technology have established themselves as industry leaders, providing expert guidance to clients across various sectors.

With a combined workforce of over 1.5 million professionals, these firms offer end-to-end solutions that cater to the unique needs of each client. Their commitment to delivering high-quality services has earned them numerous awards and recognition from top industry bodies.

Some notable statistics highlight their success:

- IBM Corporation: $75 billion in annual revenue (2022)
- Cisco Systems, Inc.: $51.8 billion in annual revenue (2022)
- Hewlett Packard Enterprise (HPE): $14.3 billion in annual revenue (2022)
- Accenture: $43.6 billion in annual revenue (2022)
- Cognizant: $19.9 billion in annual revenue (2022)
- Oracle Corporation: $42.8 billion in annual revenue (2022)
- AT&T: $232.3 billion in annual revenue (2022)
- Tata Consult
As a business leader, navigating the complexities of software deployment can be overwhelming. However, with the right approach, you can optimize your strategy for maximum ROI.

To begin, consider your organization's size and structure. Small to medium-sized enterprises (SMEs) often benefit from flexible deployment models that adapt to their changing needs. Enterprise-level businesses, on the other hand, require more robust solutions that cater to their complex IT infrastructures.

When it comes to industry, specific sectors such as healthcare and finance demand heightened security measures and regulatory compliance. Meanwhile, industries like e-commerce and entertainment prioritize speed and agility in software deployment.

Geographically, regional markets exhibit unique characteristics that influence software deployment strategies. For instance, regions with limited internet connectivity may require more localized solutions, while areas with high-speed networks can accommodate cloud-based infrastructure.

Ultimately, a tailored approach that considers these factors will help you optimize your software deployment strategy for maximum success.

Important considerations:

* 75% of companies have implemented cloud-based solutions to improve scalability and flexibility.
* 60% of organizations use containerization to reduce app delivery time by up to 80%.
* 55% of enterprises prioritize cybersecurity when selecting a software provider.
We offer complimentary report customization, which translates to approximately 4 working days of an analyst's time, at no additional cost with the purchase of our reports. This allows for adjustments to be made to your chosen country, regional, and segment focus.
Research Methodology of The Research Insights:
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Qualitative and quantitative analysis of the market based on segmentation involving both economic as well as non-economic factors
Provision of market value (USD Billion) data for each segment and sub-segment
Indicates the region and segment that is expected to witness the fastest growth as well as to dominate the market
Analysis by geography highlighting the consumption of the product/service in the region as well as indicating the factors that are affecting the market within each region
Competitive landscape which incorporates the market ranking of the major players, along with new service/product launches, partnerships, business expansions, and acquisitions in the past five years of companies profiled
Extensive company profiles comprising of company overview, company insights, product benchmarking, and SWOT analysis for the major market players
The current as well as the future market outlook of the industry with respect to recent developments which involve growth opportunities and drivers as well as challenges and restraints of both emerging as well as developed regions
Includes in-depth analysis of the market of various perspectives through Porter’s five forces analysis
Provides insight into the market through Value Chain
Market dynamics scenario, along with growth opportunities of the market in the years to come
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Frequently Asked Questions
What is the projected market size & growth rate of the North America Managed Services Market?
What are the key driving factors for the growth of the North America Managed Services Market?
What are the top players operating in the North America Managed Services Market?
What segments are covered in the North America Managed Services Market report?
How can I get a sample report/company profiles for the North America Managed Services Market?
                   
                                                    


                            
                            

                                             

             Frequently Asked Questions About This Report
            
                                                                

                                    

                                      
                                            

                                                1What is the projected market size & growth rate of the North America Managed Services Market?
                                            
                                    
                                    
                                    

                                        

                                            
North America Managed Services Market was valued at USD 96.9 Billion in 2023 and is projected to reach USD 229 Billion by 2031, growing at a CAGR of 12.9% from 2024 to 2031.
                                        
                                    
                                
                                                                

                                    

                                      
                                            

                                                2What are the key driving factors for the growth of the North America Managed Services Market?
                                            
                                    
                                    
                                    

                                        

                                            
Digital Transformation And Cloud Adoption, Cybersecurity Concerns And Compliance Requirements, and Skills Gap And It Workforce Shortage are the factors driving the growth of the North America Managed Services Market.
                                        
                                    
                                
                                                                

                                    

                                      
                                            

                                                3What are the top players operating in the North America Managed Services Market?
                                            
                                    
                                    
                                    

                                        

                                            
The major players are IBM Corporation, Cisco Systems, Inc., Hewlett Packard Enterprise (HPE), Accenture, Cognizant, Oracle Corporation, AT&T, Tata Consultancy Services (TCS), And Rackspace Technology.
                                        
                                    
                                
                                                                

                                    

                                      
                                            

                                                4What segments are covered in the North America Managed Services Market report?
                                            
                                    
                                    
                                    

                                        

                                            
The North America Managed Services Market is Segmented on the basis of Service, Deployment Modes, Enterprise Sizes, Industry, And Geography.
                                        
                                    
                                
                                                                

                                    

                                      
                                            

                                                5How can I get a sample report/company profiles for the North America Managed Services Market?
                                            
                                    
                                    
                                    

                                        

                                            
The sample report for the North America Managed Services Market can be obtained on demand from the website. Also, the 24*7 chat support & direct call services are provided to procure the sample report.