by Managed application services involve providing remote infrastructure management services for critical business applications and processes. These services help ensure the smooth functioning of core business applications while reducing costs for the client. The managed services model provides flexibility and scalability to customers.
The global Managed Application Services Market is estimated to be valued at US$ 5.41 billion 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:
The increased adoption of cloud-based managed application services has been a major trend driving market growth over the recent past. Cloud platforms allow enterprises to deploy critical applications and migrate workload to third-party data centers. This delivers higher agility, scalability, and reduces upfront investment and maintenance costs for clients. Cloud-based managed application services provide automatic software updates, data backup solutions, and seamless scaling of infrastructure based on demand. This has pushed several organizations to outsource application management requirements to specialized service providers to optimize operational efficiency.
SWOT Analysis
Strength: Managed application services help businesses focus on their core competencies by outsourcing non-core functions. This reduces costs and improves efficiency.
Weakness: Vendor lock-in is a risk as it can increase costs if the service provider hikes prices or the business wants to change vendors. There is also a loss of control as the service provider manages critical applications.
Opportunity: The rising need among businesses to streamline and optimize application management processes is driving demand. Growing adoption of cloud-based applications also provides opportunities for managed application services vendors.
Threats: Increased in-housing of non-core functions by businesses poses a threat. Compatibility issues in integrating legacy systems with managed services is another challenge.
Key Takeaways
The Global Managed Application Services Market Size is expected to witness high growth over the forecast period of 2023 to 2030. The market size for 2023 is estimated to be US$ 5.41 Billion with a CAGR of 21% during the forecast period.
Regional analysis comprises North America currently dominates the market, primarily due to advanced infrastructure and early adoption of managed services. Asia-Pacific is expected to grow at the fastest rate owing to rising digitalization and focus on optimizing operational costs among businesses in the region.
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. Key players are focusing on partnerships, mergers and acquisitions to expand their service offerings and geographical footprint. They are also investing in cutting-edge technologies like artificial intelligence and robotic process automation to provide application management services.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
Money Singh is a seasoned content writer with over four years of experience in the market research sector. Her expertise spans various industries, including food and beverages, biotechnology, chemicals and materials, defense and aerospace, consumer goods, etc.
