Managed application services provide various services related to third-party application management including application infrastructure management, application monitoring, support and maintenance. These services allow enterprises to focus on their core business operations while offloading non-core operational responsibilities to external service providers. Managed application services help organizations improve application performance, manage costs and ensure regulatory compliance. They provide enterprises the flexibility to scale their application operations as and when needed to support business growth. Various industries such as BFSI, IT & telecom, government and healthcare are increasingly adopting managed application services to efficiently manage their diverse and complex application landscape.
The global Managed Application Services Market is estimated to be valued at US$ 5.41 Bn in 2023 and is expected to exhibit a CAGR of 21% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market key trends:
One of the major trends in the managed application services market is the rise of containerization. Containerization allows grouping application code and dependencies together in isolated compartments called containers that are portable between computing environments. It provides the flexibility for applications to dynamically spin up or down containers based on demand. Containerization also facilitates streamlining application deployment and management across physical, virtual and cloud infrastructure. Many managed service providers are offering container-based managed application services catering to modern applications developed using microservices and cloud-native architectures. They help enterprises leverage the agility, portability and scalability benefits of containers in managing complex multi-cloud application environments.
Threat of new entrants: The threat is moderate as managed application service market requires huge capital investment and skills. Established players enjoy economies of scale.
Bargaining power of buyers: The power is high as buyers can negotiate on price and service quality. They can easily switch to other providers.
Bargaining power of suppliers: The power is low as there are many application service providers and switching costs for providers are low.
Threat of new substitutes: The threat is low as there are limited substitutes available for managed application services.
Competitive rivalry: The competition is high among key global and regional players to gain market share.
The Global Managed Application Services Market Demand is expected to witness high growth. The global Managed Application Services Market is estimated to be valued at US$ 5.41 Bn in 2023 and is expected to exhibit a CAGR of 21% over the forecast period 2023 to 2030.
Regional analysis comprises- North America holds the major share of the global managed application services market. Countries like US and Canada are aggressively adopting managed application services. Growing digital transformation across industries is driving the market growth.
Key players related content comprises- Key players operating in the Managed Application Services market are Fujitsu Limited, Mindtree Limited, IBM Corporation, Wipro Limited, Unisys Corporation, CenturyLink Inc., Virtustream Inc. and HCL Technologies Limited. These players are focusing on enhancing their service offerings and exploring new markets to gain competitive advantage.
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it