Market Overview

The managed services market in Japan reached 3.304 trillion yen in FY2024, marking a 7.1% increase from the previous fiscal year.

Managed services are outsourced IT services that IT companies provide for the operation and maintenance of clients' IT infrastructure. Using managed services allows client companies to concentrate their human resources on their core business. Demand for managed services is surging, since IT departments need to address IT empowerment and digital transformation (DX) promotions, which increases their workload.

Continued system integration and migration have broadened the scope of systems required for operation and maintenance, which is expected to expand the managed services market. Additionally,  major companies' eagerness to invest in IT and security measures will also boost market growth.

Noteworthy Topics

Expanded Cloud Services Are Fueling Managed Services Demands

The increased use of cloud-based services, including infrastructure as a service (IaaS) and platform as a service (PaaS), has expanded environments, including those of multiple clouds and hybrids that span on-premises and the cloud. This has complicated system structures and increased the operational burdens for user companies. Managed services are highly expected to reduce these burdens.

Furthermore, full outsourcing services have emerged. These services integrate multiple systems without limiting domains and operate the entire system. Unlike the traditional method of multiple MSPs providing services for systems they have built, this enables a single managed service operator (MSP) to operate and maintain a client's integrated system.

Future Outlook

The managed services market in Japan is forecast to reach 4.694 trillion yen by FY2028, marking a 9.6% increase from the preceding fiscal year.

The ongoing prevalence of multi-cloud and hybrid applications, rapid technological and service innovations in IT, and shortages of digital talent will generate demand for workload reduction among client companies, leading to increased managed service implementations. 

Additionally, the recent reports of harmful ransomware are generating more interest in security measures. Due to the increase in AI-powered cyberattacks, more companies are seeking support services from technology vendors. Consequently, managed security services are expected to grow, driving the market expansion.

Research Outline