by Managed application services involves third party vendors taking responsibility of crucial business applications and ensuring smooth functionality on a regular basis. It offers advantages like reduced IT costs, improved scalability, and focused resources on core business priorities. The growing preference of cloud-based applications among organizations has boosted the need for managed application services to integrate, maintain and optimize such software. 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 7.6% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market key trends:
The key trend propelling the growth of the market is the increased adoption of cloud-based applications. Migration to cloud-based applications requires rigorous management and maintenance to ensure seamless performance. Managed application services help optimize cloud applications by integrating, upgrading and streamlining them as per evolving business needs. They also offer services like application performance monitoring, security and support to maximize the value of cloud investments. This rising dependency on cloud solutions, especially post-pandemic, has driven the demand for managed application services that can support smooth cloud operations.
SWOT Analysis
Strength: Managed application services enable companies to focus on their core competencies by outsourcing non-core tasks to experienced service providers. This allows companies to enhance efficiency and reduce costs.
Weakness: Over-reliance on third-party service providers can reduce control and increase security risks for critical applications and data. Transitioning from in-house to outsourced management also requires careful planning and change management.
Opportunity: Growing need among companies to streamline IT operations and optimize costs is driving increased demand for managed application services. Emerging technologies like cloud, analytics and IoT are also creating new opportunities.
Threats: Intense competition among service providers limits pricing power and bargaining ability of customers. Economic slowdowns can potentially impact budgets for outside contracting and managed services.
Key Takeaways
The Global Managed Application Services Market Demand is expected to witness high growth. The market size is projected to reach US$ 5.41 Billion by 2024, growing at a CAGR of 7.6% during the forecast period.
Regional analysis: North America currently dominates the market, supported by rapid technology adoption among enterprises. Asia Pacific is expected to be the fastest growing region, with countries like China, India and Japan emerging as major hubs for outsourcing and offshoring of managed application services.
Key players: Key players operating in the Managed Application Services market are INEOS Group, Croda International Plc., Vantage Specialty Chemicals, RITA Corporation, The Innovation Company, Presperse Corporation, LANXESS Corporation, Trulux Pty Ltd., Dowpol Chemical International Corp, DeWolf Chemical, and SAMKWANG Co. Ltd. These players are focusing on partnerships, M&A and new service offerings to expand their market share.
Note:
Source: Coherent Market Insights, Public sources, Desk research
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