IT Managed Services Market Size 2026: Growth, Trends, and Segment Breakdown
Management consulting
AI and data consulting
Business consulting
IT managed services in 2026 are driven by hybrid cloud complexity, cybersecurity pressure, and talent shortages.
Market size estimates differ across research firms, but the story is consistent: managed services is a large, expanding market, and buyers are raising expectations around outcomes, security, and transparency.
Managed services market size 2026
Managed security services
Managed cloud services
MSP pricing models
Choosing an MSP
Note: Market size varies by definition. Some reports measure managed services broadly, while others focus specifically on IT managed services.
This article focuses on IT managed services and explains how to interpret common market size ranges.
Keywords and questions this page covers?
- Keywords: IT managed services market size 2026, managed services market size 2026, MSP market, managed security, managed cloud.
- Questions: What is the IT managed services market size in 2026?
- Questions: What segments are growing fastest in 2026?
- Questions: How do MSPs price services and how do you choose a provider?
IT managed services market size 2026?
A practical way to interpret market sizing is to treat 2026 values as a range, then compare each report’s definition.
Some include business process services, some focus on IT operations only, and some split by managed security, network, cloud, and infrastructure.
| Source | Market label | 2026 estimate | Notes to interpret correctly |
|---|---|---|---|
| Grand View Research | Managed services market | USD 437.26B (2026) | Useful for a broad managed services benchmark; verify segment scope for IT only. |
| Fortune Business Insights | Managed services market | USD 370.5B (2026) | Often emphasizes service segmentation and forecast period; compare definition and base year. |
| Mordor Intelligence | Managed services market | USD 430.56B (2026) | Strong for trend narrative; confirm whether BPO is included or excluded. |
| Research Nester | Managed services market | USD 424.14B (2026) | Check assumptions and segmentation; use as another anchor for range building. |
| Research and Markets | Managed services market | USD 415.36B (2026) | Marketplace aggregator; validate underlying publisher and scope for IT managed services. |
For IT managed services specifically, many buyers focus less on the exact total number and more on where growth is concentrated, especially managed security, managed cloud, and hybrid operations.
What counts as IT managed services?
Common IT managed services scope
- Managed infrastructure: servers, storage, virtualization, backups.
- Managed networks: SD WAN, LAN, WiFi, firewall operations.
- Managed endpoints: devices, patching, MDM, remote support.
- Managed cloud: landing zones, FinOps, reliability and operations.
- Managed security: SOC, MDR, SIEM, vulnerability management.
- Service desk: incident and request management, tiered support.
Where definitions differ
- Some reports include business process outsourcing and shared services.
- Some include application managed services, others separate it into IT services.
- Some treat cloud subscriptions as part of the market, others exclude software spend.
- Some focus on enterprise, others include SMB MSP packages heavily.
Key segments and where growth comes from?
Managed security services
Buyers are shifting from tool ownership to security outcomes like detection, response, and resilience. This drives demand for MDR, SOC modernization, and identity centered security operations.
Managed cloud operations
Hybrid and multi cloud environments increase operational burden. MSPs win when they provide reliability engineering, automation, and cost optimization with clear KPIs.
Managed infrastructure and networks
Infrastructure work remains large due to legacy estates, network modernization, and uptime needs. Differentiation comes from automation, observability, and strong incident management.
End user services
Endpoint growth is tied to hybrid work and device sprawl. Buyers look for consistent patching, remote support, and security aligned device management.
Application managed services
Many organizations outsource app support and minor enhancements. The market shifts toward product teams and platform engineering, changing how app support is delivered.
Industry specific managed services
Regulated industries often want specialized operations and compliance reporting. MSPs with vertical playbooks and certifications can earn premium pricing.
Growth drivers in 2026?
| Driver | What it means for buyers | What it means for MSPs |
|---|---|---|
| Hybrid cloud complexity | Need a stable operating model for mixed environments. | Win with automation, observability, and clear runbooks. |
| Cybersecurity pressure | Need measurable detection and response capability. | Differentiate with MDR, threat hunting, and incident readiness. |
| Talent shortages | Need capacity without permanent headcount growth. | Build scalable delivery and training pipelines. |
| Demand for predictable cost | Preference for transparent, predictable operating spend. | Offer clear service catalogs and measurable SLAs. |
| Regulatory and audit readiness | Need consistent controls and reporting. | Provide compliance aligned reporting and evidence collection. |
How buyers should select an MSP?
Selection checklist for 2026
- Scope clarity: what is in and what is out of contract.
- Security: identity, logging, incident response, and data handling.
- Operational maturity: monitoring, runbooks, change control.
- Transparency: KPIs, reporting, and real time visibility.
- People model: on-call coverage, escalation, and turnover management.
- Tooling: integrations with your ITSM, SIEM, and cloud platforms.
Questions to ask providers
- How do you prevent and handle incidents, not only respond?
- What does your first 30 days transition plan look like?
- How do you measure service quality beyond ticket closure?
- What is your policy on subcontractors and data access?
- How do you handle automation and continuous improvement?
- What is your exit plan if we change providers?
A strong managed services contract is a governance system. It defines decision rights, escalation paths, and measurable outcomes, not only hours and ticket counts.
MSP pricing models and contract structures?
| Pricing model | Common usage | Pros | Risks to manage |
|---|---|---|---|
| Per user | End user support bundles. | Simple to budget, aligns to workforce size. | Scope creep if apps and devices vary heavily. |
| Per device or endpoint | Endpoint management and security. | Aligns to asset footprint. | Device sprawl and unmanaged assets can distort cost. |
| Per server or per workload | Infrastructure operations. | Maps to infrastructure inventory. | Hybrid and cloud elasticity makes counting complex. |
| Tiered bundles | SMB and midmarket packages. | Clear service catalog. | Hidden exclusions that surprise buyers. |
| Consumption based | Cloud operations and FinOps aligned contracts. | Aligns to usage. | Can be unpredictable without caps and governance. |
| Outcome linked | Selective enterprise deals. | Aligns incentives with value. | Requires strong baselines and measurement agreement. |
Internal links and external references?
Recommended internal links
External references
- Grand View Research: Managed services market
- Fortune Business Insights: Managed services market
- Mordor Intelligence: Managed services market
- Research Nester: Managed services market
- Research and Markets: Managed services forecast
- CRN: MSP 500 coverage and market commentary
Market sizing varies across research firms. Use multiple sources, compare definitions, and treat single point estimates as directional unless the methodology matches your exact scope.
FAQ?
What is the IT managed services market size in 2026?
Most widely cited estimates place the 2026 global managed services market in the high hundreds of billions of dollars, with differences driven by what each report includes.
If you are sizing IT managed services for a business case, define scope first, then pick the source that matches your definition.
What is included in IT managed services?
IT managed services often include managed infrastructure, networks, endpoints, cloud operations, security operations, backup and disaster recovery, and service desk support.
Some market reports include adjacent services like application managed services or broader outsourcing categories.
What segments are growing fastest in 2026?
Managed security and managed cloud frequently lead growth due to ransomware risk, compliance needs, and hybrid cloud complexity.
Buyers also demand stronger reporting, measurable outcomes, and better automation.
How do MSPs price services?
Common pricing includes per user, per device, and tiered bundles, while enterprise deals may use consumption based or outcome linked models.
Regardless of pricing, clarity on scope, SLAs, and governance prevents surprises.
How do you choose the right MSP?
Choose based on scope fit, security maturity, operating model, references, and transparency of reporting.
Confirm transition planning and exit planning so the relationship remains healthy over time.
