Market Forecast by Countries (South Africa, Nigeria, Kenya, Rest of Africa), By Service Type (Managed Security Services, Managed Network Services, Managed Data Center and IT Infrastructure Services, Managed Communication and Collaboration Services, Managed Mobility Services, Managed Information Services), By Deployment Type (Cloud, On-Premises), By Organization Size (Small and Medium-sized Enterprises (SMEs), Large Enterprises), By Vertical (BFSI, IT and Telecom, Retail and Consumer Goods, Manufacturing, Government, Healthcare and Life Sciences, Energy and Utilities, Media and Entertainment) And Competitive Landscape
Product Code: ETC4602359 | Publication Date: Jul 2023 | Updated Date: Sep 2024 | Product Type: Report | |
Publisher: 6Wresearch | No. of Pages: 200 | No. of Figures: 90 | No. of Tables: 300 | |
Report Name | Africa Managed Services Market |
Forecast Period | 2024-2030 |
Market Size | USD 5.7 Billion - 10.2 Billion |
CAGR | 8.2% |
Growing Sector | Financial Services |
Africa Managed Services Market report thoroughly covers the By Countries, By Service Type, By Deployment Type, By Organization Size, and By Vertical. The market report provides an unbiased and detailed analysis of the ongoing market trends, opportunities/high growth areas, and market drivers which would help the stakeholders to devise and align their market strategies according to the current and future market dynamics.
Africa Managed Services Market has been experiencing significant growth in recent years. The market size was valued at approximately USD 5.7 billion. With a compound annual growth rate (CAGR) of 8.2%, it is projected to reach USD 10.2 billion by 2027. This growth is driven by increasing digital transformation initiatives and the rising adoption of cloud-based services across various sectors.
Africa Managed Services Market is experiencing significant growth, driven by the increasing adoption of digital transformation across various industries. The managed services market encompasses a range of IT services, including managed security services, managed network services, managed data center services, and managed infrastructure services. Organizations in Africa are increasingly turning to managed services providers to help them navigate the complexities of technology and improve operational efficiency. These services allow businesses to focus on their core competencies while reducing IT costs and mitigating risks.
According to 6Wresearch, the Africa Managed Services Market Size is expected to reach at a CAGR of 8.2% during the forecast period 2024-2030. Several growth factors are propelling the Africa Managed Services Market forward. Firstly, the increasing penetration of the internet and mobile devices has led to a surge in the demand for digital services. This digital shift is compelling businesses to adopt managed IT services to stay competitive. Additionally, the growing significance of data analytics and artificial intelligence (AI) in driving business decisions is boosting the need for specialized IT services, which managed service providers (MSPs) can deliver efficiently. Furthermore, governmental initiatives to promote digitalization and enhance IT infrastructure across the continent are providing additional stimuli for market growth. With an emphasis on improving cybersecurity frameworks, organizations are also relying on managed services to safeguard their digital assets against evolving cyber threats.
Despite the promising growth trajectory, the Africa Managed Services Market Growth is expected to restrain due to several challenges. One of the primary obstacles is the shortage of skilled IT professionals, which can hinder service quality and scalability. Additionally, the high cost of advanced technologies and infrastructure can be prohibitive for many enterprises, particularly SMEs, limiting their ability to fully leverage managed services. The diverse regulatory environments across African countries can also pose compliance challenges for managed service providers operating in multiple jurisdictions. Furthermore, there is often a lack of awareness and understanding among potential clients regarding the benefits of managed services, leading to slower adoption rates. These challenges necessitate strategic planning and robust solutions to ensure sustainable growth in the industry.
Africa Managed Services market share is experiencing significant growth, driven by the increasing need for enhanced IT infrastructure and the rising demand for cost-efficient solutions. Organizations across the region are increasingly outsourcing non-core functions such as IT support, security, and network management to focus on their core business activities. This trend is further propelled by the growing adoption of cloud-based services and the need for robust cybersecurity measures to combat the rising incidence of cyber threats. Additionally, with the push towards digital transformation, businesses are seeking managed services providers that can offer scalable and flexible solutions to adapt to evolving technological landscapes. Key sectors such as banking, telecommunications, and healthcare are at the forefront of this trend, leveraging managed services to drive efficiency and innovation. As a result, the managed services market in Africa is positioned for sustained growth in the coming years.
The Africa managed services market presents an array of investment opportunities for global investors. With the rapid digital transformation across the continent, there is a heightened demand for IT infrastructure, cloud services, and network management. Sectors such as telecommunications, finance, and healthcare are increasingly outsourcing IT functions to managed service providers (MSPs) to focus on core business activities and reduce operational costs. Additionally, the influx of foreign direct investments and government initiatives aimed at improving digital connectivity create a fertile ground for MSPs to thrive, making it an attractive market for investors.ย
One of the key drivers for investment in the Africa managed services industry is the growing adoption of cloud-based solutions. As businesses across various sectors shift to a more digital and data-driven approach, there is a need for scalable and flexible IT infrastructure. This has led to an increase in demand for cloud-based managed services, providing opportunities for MSPs to offer cost-effective solutions. Moreover, with the rise of cybersecurity threats and data breaches, companies are increasingly turning to managed security service providers (MSSPs) to secure their networks and systems.
Government regulations play a vital role in shaping the managed services market in Africa. Regulatory frameworks are being established to ensure data protection, cybersecurity, and adherence to international standards. Governments across various African countries are implementing policies to encourage the growth of digital infrastructure while ensuring compliance with relevant laws. For instance, data localization laws and cybersecurity directives are being introduced to safeguard sensitive information. The evolving regulatory landscape demands MSPs to remain vigilant and adaptable, ensuring their operations align with the new laws while maintaining service efficiency.
Several leading players dominate the Africa managed services market by offering innovative solutions tailored to meet the unique challenges faced by businesses on the continent. Companies such as IBM, Dimension Data (NTT Ltd.), and Atos have established strong presences, leveraging their global expertise to deliver comprehensive managed services. Local firms like Liquid Intelligent Technologies and BCX are also noteworthy, combining local market knowledge with robust service portfolios. These companies provide a range of services including cloud computing, cybersecurity, data analytics, and IT consulting, making them key contenders in the managed services landscape.
The future of the Africa managed services market appears promising, driven by ongoing digital transformation and increasing IT service demand. The adoption of emerging technologies such as artificial intelligence (AI), Internet of Things (IoT), and 5G is expected to further propel market growth. Cloud-based services will likely become more prevalent as businesses seek scalable and cost-effective solutions. Moreover, initiatives aimed at fostering technology startups and digital education will cultivate a skilled workforce, bolstering the managed services ecosystem. Overall, the market is poised for expansion, presenting significant opportunities for both local and international players.
The report offers a comprehensive study of the subsequent market segments and their leading categories.
South Africa is expected to hold the prominent position in the market, driven by extensive digital adoption and a strong focus on improving cybersecurity measures.
According to Parth, Senior Research Analyst, 6Wresearch, Managed Security Services is experiencing the most growth, driven by the rising threat landscape and the need for businesses to bolster their cybersecurity measures. According to market analysis, Managed Security Services are projected to grow at a staggering rate of 12.5% CAGR, surpassing other service segments in terms of growth.
Healthcare and Life Sciences is expected to grow at massive pace due to increasing importance of data security, regulatory compliance, and the rapid adoption of telehealth services. The demand for sophisticated managed services to support these initiatives is expected to continue its robust growth trajectory.
The market report has been segmented and sub segmented into the following categories:
1 Executive Summary |
2 Introduction |
2.1 Key Highlights of the Report |
2.2 Report Description |
2.3 Market Scope & Segmentation |
2.4 Research Methodology |
2.5 Assumptions |
3 Africa Managed Services Market Overview |
3.1 Africa Regional Macro Economic Indicators |
3.2 Africa Managed Services Market Revenues & Volume, 2020 & 2030F |
3.3 Africa Managed Services Market - Industry Life Cycle |
3.4 Africa Managed Services Market - Porter's Five Forces |
3.5 Africa Managed Services Market Revenues & Volume Share, By Countries, 2020 & 2030F |
3.6 Africa Managed Services Market Revenues & Volume Share, By Service Type , 2020 & 2030F |
3.7 Africa Managed Services Market Revenues & Volume Share, By Deployment Type, 2020 & 2030F |
3.8 Africa Managed Services Market Revenues & Volume Share, By Organization Size, 2020 & 2030F |
3.9 Africa Managed Services Market Revenues & Volume Share, By Vertical, 2020 & 2030F |
4 Africa Managed Services Market Dynamics |
4.1 Impact Analysis |
4.2 Market Drivers |
4.3 Market Restraints |
5 Africa Managed Services Market Trends |
6 Africa Managed Services Market, 2020 - 2030 |
6.1 Africa Managed Services Market, Revenues & Volume, By Service Type , 2020 - 2030 |
6.2 Africa Managed Services Market, Revenues & Volume, By Deployment Type, 2020 - 2030 |
6.3 Africa Managed Services Market, Revenues & Volume, By Organization Size, 2020 - 2030 |
6.4 Africa Managed Services Market, Revenues & Volume, By Vertical, 2020 - 2030 |
7 South Africa Managed Services Market, 2020 - 2030 |
7.1 South Africa Managed Services Market, Revenues & Volume, By Service Type , 2020 - 2030 |
7.2 South Africa Managed Services Market, Revenues & Volume, By Deployment Type, 2020 - 2030 |
7.3 South Africa Managed Services Market, Revenues & Volume, By Organization Size, 2020 - 2030 |
7.4 South Africa Managed Services Market, Revenues & Volume, By Vertical, 2020 - 2030 |
8 Nigeria Managed Services Market, 2020 - 2030 |
8.1 Nigeria Managed Services Market, Revenues & Volume, By Service Type , 2020 - 2030 |
8.2 Nigeria Managed Services Market, Revenues & Volume, By Deployment Type, 2020 - 2030 |
8.3 Nigeria Managed Services Market, Revenues & Volume, By Organization Size, 2020 - 2030 |
8.4 Nigeria Managed Services Market, Revenues & Volume, By Vertical, 2020 - 2030 |
9 Kenya Managed Services Market, 2020 - 2030 |
9.1 Kenya Managed Services Market, Revenues & Volume, By Service Type , 2020 - 2030 |
9.2 Kenya Managed Services Market, Revenues & Volume, By Deployment Type, 2020 - 2030 |
9.3 Kenya Managed Services Market, Revenues & Volume, By Organization Size, 2020 - 2030 |
9.4 Kenya Managed Services Market, Revenues & Volume, By Vertical, 2020 - 2030 |
10 Rest of Africa Managed Services Market, 2020 - 2030 |
10.1 Rest of Africa Managed Services Market, Revenues & Volume, By Service Type , 2020 - 2030 |
10.2 Rest of Africa Managed Services Market, Revenues & Volume, By Deployment Type, 2020 - 2030 |
10.3 Rest of Africa Managed Services Market, Revenues & Volume, By Organization Size, 2020 - 2030 |
10.4 Rest of Africa Managed Services Market, Revenues & Volume, By Vertical, 2020 - 2030 |
11 Africa Managed Services Market Key Performance Indicators |
12 Africa Managed Services Market - Opportunity Assessment |
12.1 Africa Managed Services Market Opportunity Assessment, By Countries, 2020 & 2030F |
12.2 Africa Managed Services Market Opportunity Assessment, By Service Type , 2020 & 2030F |
12.3 Africa Managed Services Market Opportunity Assessment, By Deployment Type, 2020 & 2030F |
12.4 Africa Managed Services Market Opportunity Assessment, By Organization Size, 2020 & 2030F |
12.5 Africa Managed Services Market Opportunity Assessment, By Vertical, 2020 & 2030F |
13 Africa Managed Services Market - Competitive Landscape |
13.1 Africa Managed Services Market Revenue Share, By Companies, 2023 |
13.2 Africa Managed Services Market Competitive Benchmarking, By Operating and Technical Parameters |
14 Company Profiles |
15 Recommendations |
16 Disclaimer |