July 20, 2024
Managed Application Services Market
Ict

Focus On Managed Application Modernization To Accelerate Digital Transformation Is Expected To Boost Managed Application Services Market

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 Overview:
Managed application services refer to outsourcing activities related to application management and maintenance to a third party service provider or managed service provider (MSP). Managed application services help organizations to focus more on core activities by taking responsibility of application management, including monitoring, updates, testing, and maintenance. These services aim to improve performance, scalability and security of applications while reducing costs. They offer various advantages such as enhanced productivity, hassle-free maintenance, access to advanced skills and better regulatory compliance. Growing digital transformation initiatives across industries are propelling demand for managed application services.

Market key trends:
The key trend in the managed application services market is the growing focus of organizations on managed application modernization to accelerate digital transformation. Modernizing legacy applications helps companies to gain agility to rapidly adapt to changing market conditions. It improves scalability, security and efficiency of applications. As legacy platforms lack capabilities required to support new digital business models, managed application service providers help modernize applications by re-architecting monolithic architectures to microservices. This enables easy integration of new technologies like cloud, IoT, big data and AI. Focus on modernization is expected to drive significant growth in demand for managed application services over the forecast period.
Porter’s Analysis
Threat of new entrants: Low as the managed application services market involves high capital requirement, established supply chains and customer relationships. Bargaining power of buyers: High as buyers have variety of options to choose from and can easily switch between providers. Bargaining power of suppliers: Moderate as buyers have dependency on technology expertise of suppliers. Threat of new substitutes: Low as managed application services provide unique value in improving operational efficiency and reducing costs. Competitive rivalry: High due to presence of many global as well as regional players competing on pricing and service offerings.

Key Takeaways
The global Managed Application Services Market Share is expected to witness high growth, exhibiting CAGR of 21% over the forecast period, due to increasing demand for reducing operational costs and managing complex applications.

Regional analysis
North America is expected to dominate the managed application services market owing to rapid digital transformation initiatives and technological advancements in the region. Asia Pacific is expected to exhibit the fastest growth in the market during the forecast period driven by growing adoption of cloud computing services in countries such as China, Japan and India.

Key players
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. Fujitsu Limited is one of the leading players providing application management and modernization services to enterprises globally. Mindtree Limited offers solution-focused application testing and maintenance services.

*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it