**London**: The global managed services market is set for a substantial rise, driven by increased adoption of IoT solutions and analytics while navigating challenges such as data privacy and cybersecurity risks, according to a Technavio report projecting a CAGR of 11.3% from 2025 to 2029.
The global managed services market is poised for significant expansion, with projections indicating a growth of USD 217 billion from 2025 to 2029, according to research by Technavio. This growth translates to a compound annual growth rate (CAGR) of 11.3% during the forecast period.
Central to the market’s evolution is the increasing adoption of Internet of Things (IoT) solutions and a heightened focus on big data and analytics services. However, businesses face critical challenges, notably concerning data privacy and security risks associated with cloud-based services.
Managed Service Providers (MSPs) are witnessing heightened demand as companies seek support in navigating complex IT operations. Reportedly, MSPs offer essential services related to network and communication collaboration, mobility, information, application testing, and cloud management. Industries such as retail, healthcare, energy, and media are actively investing in managed services to bolster their digital transformation initiatives.
A notable aspect of the current trend involves the use of analytics services to convert unstructured supplier data into structured information that businesses can leverage for strategic decision-making. Advanced analytical tools, including predictive analytics, are increasingly playing a pivotal role in identifying patterns in consumer and business behaviour. This capability has proven beneficial for sectors such as finance and telecommunications, aiding them in enhancing customer service and operational efficiency.
While embracing these technological advancements, organisations must remain cautious of vulnerabilities. As highlighted in the report, cloud security management is fraught with complexities. This is particularly true for public cloud environments that support multiple applications and tenants, which can be more vulnerable to cyber threats. The intricacies involved in managing open-source code and ensuring data protection against unauthorised access present significant hurdles for providers and users alike.
In conclusion, while the landscape for managed services is becoming increasingly robust due to the integration of AI, IoT, and cloud technologies, companies need to judiciously assess their IT strategies to mitigate risks associated with cybersecurity and data privacy. The managed services market appears set for growth and transformation, reinforcing the importance of analytics in refining supplier relationships and driving business performance.
Source: Noah Wire Services
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