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Managed Application Services or MAS is a support agreement for companies to secure a set of service hours a month through their provider to add additional assistance for their team. MAS helps small and midsize companies extend their IT teams without the additional investment in hiring and training new staff to get critical post execution work done.

Statistics:

The managed application services market was valued at US$ 3.64 Bn in 2021 and is forecast to reach a value of US$ 20.94 Bn by 2030 at a CAGR of 21.9% between 2022 and 2030.

Figure 1: Global Managed Application Services Market Value (US$ Bn) Analysis and Forecast, 2017 - 2030

Managed Application Services  | Coherent Market Insights

Key Developments:

In November 2019, Fujitsu’s methods achieved AWS Managed Service Provider status for the integration or the combining capacities in the leveraging cloud infrastructure and the application migration to fuel the customers’ digital change. The AWS MSP partner program is made for the AWS PAN. Consulting collaborators who are efficient at the cloud infrastructure and the usage migration and then offer the value to the consumers by providing a proactive monitoring automation.

In October 2020, Fujitsu Limited declared the approval of its Fujitsu Hybrid IT service that is designed with the latest technologies and the model of the delivery, by providing the comprehensive assistance for the end users Hybrid IT environment. This would offer a combination of the industry standard OSS, ISV and Fujitsu middleware along with a container.

North America held dominant position in the Global Managed Application Services Market in 2021, accounting for 35.7% share in terms of volume.

Figure 2: Global Managed Application Services Market Share (%), By Region, 2021

Managed Application Services  | Coherent Market Insights

Market Drivers:

Driver 1:

The managed application services allow the organization to outsource certain aspects of their IT requirements to a third-party service provider. The companies can reduce costs, boost productivity, and enhance application performance without spending time on implementation, maintenance, and upgradation of their IT related application. This is expected to drive the growth of global managed application services market.  

Driver 2:

The increase in the adoption of smartphone devices and the implementation of the IoT services in the organization is expected to drive the growth of the global managed application services market. For instance, as per the data from GSMA intelligence, there are around 5.34 billion unique different smart phone users in the world.

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Managed Application Services Market Report Coverage

Report Coverage Details
Base Year: 2021 Market Size in 2021: US$ 3.64 Bn
Historical Data for: 2017 to 2020 Forecast Period: 2022 to 2030
Forecast Period 2022 to 2030 CAGR: 21.9 % 2030 Value Projection: US$ 20.94 Bn
Geographies covered:
  • North America: U.S. and Canada
  • Latin America: Brazil, Argentina, Mexico, and Rest of Latin America
  • Europe: Germany, U.K., Spain, France, Italy, Russia, and Rest of Europe
  • Asia Pacific: China, India, Japan, Australia, South Korea, ASEAN, and Rest of Asia Pacific
  • Middle East: GCC Countries, Israel, and Rest of Middle East
  • Africa: South Africa, North Africa, and Central Africa
Segments covered:
  • By Enterprise Size: Small and Medium Enterprises, Large Enterprises
  • By the End-user Industry: BFSI, IT and Telecom, Healthcare, Retail and e-commerce, Manufacturing, Other End-user Verticals
Companies covered:

Fujitsu Limited, Mindtree Limited, IBM Corporation, Wipro Limited, Unisys Corporation, CenturyLink Inc., Virtustream Inc. and HCL Technologies Limited

Growth Drivers:
  • Shift towards the cloud combined with the rising need for integrated application hosting services.
  • The rising demand of outsourcing of the non-core functions by the organizations   
Restraints & Challenges:
  • Concerns regarding the security and privacy linked with the outsourcing
  • Operational concerns regarding the Outsourcing 

Market Restraint:

Restraint 1:

As customers have moved their workloads to the cloud, there is a growth in the usage of cloud-native architectures, particularly microservices. Microservice-based architectures help improve scalability and velocity, but implementing them can pose challenges. This is anticipated to hamper the growth of global managed application services market.

Restraint 2:

The lack of data privacy concerns and the plastic nature of the application managed services is posing a challenge. Data security is an important factor to avoid cyber-attacks and also helps to keep the data protected and safe. Absence of it may hamper the growth of the global managed application services market.   

Market Opportunities:

Opportunity 1:

Evolving customer trends and after effects of Covid-19 pandemic has fueled the market. The rise in demand to ease the operation complexity of employees who are following the work from home policy is expected to offer lucrative opportunities for the growth of global managed application services market.

Opportunity 2:

Application management services assist businesses to easily adopt the new age transformation. It also helps them to expand their applications portfolio. This has led towards the growth in the application services. Further, this is expected to propel the growth of global managed application services market.

Market Key Takeaways/Trends:

Trend 1:

Modern business model operations are getting complicated everyday with more variables to analyze, more data to handle and more demands to meet. Application managed services have reduced the stress on business enterprises and allow them to focus more on business and development of an organizations activity rather than committing their critical and expensive IT resources. This is expected to act as a leading trend in the growth of global managed application services. 

Trend 2:

The IT and telecom sector is a significant market for the managed application services, due to the high rate of various technological adoptions, increased frequency of confirmation of the BYOD policy. An increased need for high-end security due to the rapidly growing data among the organizations is also fueling the market. Telecommunication companies are encountering constant pressure to deliver innovative services at lower costs to retain their customers in the competitive market. This is further expected to act as a leading trend in the growth of global managed application services market.

Competitive Landscape:

Major companies involved in the managed application services are Fujitsu Limited, Mindtree Limited, IBM Corporation, Wipro Limited, Unisys Corporation, CenturyLink Inc., Virtustream Inc. and HCL Technologies Limited. 

MAS enables companies with the tools, resources, and knowledge to compete with larger organizations, without putting strain on their internal resources. It can be used to implement things like system to system integrations, advanced reporting, new user training, customizations to improve business efficiencies and many more.

Market Dynamics:

Short-term projects are getting stopped, the managed application services segment, which fetches significant revenue for service providers, has not been impacted by the outbreak. This is expected to drive the growth of global managed application services market. In May 2020, XenonStack offered a free 3-month Managed IT Support, MAS and Migration to Cloud as part of their COVID-19 response plan program. It is for anyone who is directly involved in relief initiatives like Healthcare, NGOs and government bodies. Edge computing is also likely  to  emerge  as  an opportunity for Managed Application Services. As some large enterprises across industries, such as telecom and manufacturing, are expected to use edge computing which may fuel the growth of the global managed application services.

On contrary, a lack of trust in third-party service providers and rise in concern about application data security are projected to hamper the growth of managed application service market.

Key features of the study:

  • This report provides in-depth analysis of the global managed application services market, and provides market size (US$ 3.64 Bn ) and compound annual growth rate (21.9%) for the forecast period (2022–2030), considering 2021 as the base year
  • It elucidates potential revenue opportunities across different segments and explains attractive investment proposition matrices for this market
  • This study also provides key insights about market drivers, restraints, opportunities, new product launches or approval, market trends,  regional outlook, and competitive strategies adopted by key players
  • It profiles key players in the global managed application services market based on the following parameters – company highlights, products portfolio, key highlights, financial performance, and strategies
  • Major companies involved in the managed application services are Fujitsu Limited, Mindtree Limited, IBM Corporation, Wipro Limited, Unisys Corporation, CenturyLink Inc., Virtustream Inc. and HCL Technologies Limited.
  • Insights from this report would allow marketers and the management authorities of the companies to make informed decisions regarding their future product launches, type up-gradation, market expansion, and marketing tactics
  • The global managed application services market report caters to various stakeholders in this industry including investors, suppliers, product manufacturers, distributors, new entrants, and financial analysts
  • Stakeholders would have ease in decision-making through various strategy matrices used in analyzing the global managed application services market.

Detailed Segmentation:

  • Global Managed Application Services Market, By Enterprise Size:
    • Small and Medium Enterprises
    • Large Enterprises
  • Global Managed Application Services Market, By End-User Industry:
    • BFSI
    • IT and Telecom
    • Healthcare
    • Retail and e-commerce
    • Manufacturing
    • Other End-user Verticals
  • Global Managed Application Services Market, By Geography:
    • North America
    • Europe
    • Asia-Pacific
    • Rest of the World
  • Company Profiles:
    • Fujitsu Limited
    • IBM Corporation
    • CenturyLink Inc.
    • HCL Technologies Limited
    • Wipro Limited
    • Mindtree Limited
    • Virtustream Inc.
    • Unisys Corporation

Frequently Asked Questions

The global managed application services market is estimated to be valued at US$ 4.29 Bn in 2022 and is expected to exhibit a CAGR of 21.9% between 2022 and 2030.
The rising demand of outsourcing of the non-core functions by the organizations is anticipated to drive the growth of the market.
BFSI segment is the leading End-user vertical segment in the market.
Operational concerns regarding the Outsourcing is the key factor hampering the growth of the market.
Major companies involved in the managed application services are Fujitsu Limited, Mindtree Limited, IBM Corporation, Wipro Limited, Unisys Corporation, CenturyLink Inc., Virtustream Inc. and HCL Technologies Limited.

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