Cloud Managed Services in United States Trends and Forecast
The future of the cloud managed services market in United States looks promising with opportunities in the BFSI, telecom, IT, government & public sector, healthcare & life sciences, retail & consumer goods, manufacturing, and energy & utility markets. The global cloud managed services market is expected to reach an estimated $223.7 billion by 2031 with a CAGR of 14.0% from 2025 to 2031. The cloud managed services market in United States is also forecasted to witness strong growth over the forecast period. The major drivers for this market are the increased demand for cloud applications across various fields, heightened cloud adoption during the COVID-19 pandemic, and the ability for hyper-scaling along with lower cloud service costs.
• Lucintel forecasts that, within the service type category, managed communication & collaboration services are expected to witness the highest growth over the forecast period.
• Within the end use category, retail & consumer goods will remain the largest segment.
Emerging Trends in the Cloud Managed Services Market in United States
The cloud managed services market in the United States is evolving rapidly, with organizations across industries leveraging cloud technologies to enhance operational efficiency and scalability. As businesses continue their digital transformation journeys, they are increasingly seeking specialized cloud solutions to meet their unique requirements. This shift has led to the emergence of several trends in the market, highlighting the growing importance of automation, AI, and security-focused solutions, among others. Below are five key trends reshaping the landscape of cloud managed services in the United States.
• Hybrid and Multi-Cloud Adoption: Hybrid and multi-cloud is the most dominant trend in the US cloud managed services market. Most firms are opting for a combination of public and private clouds. This balances ease and adaptability with security and cost-effectiveness. Cloud providers are responding with tailored hybrid and multi-cloud solutions that allow seamless integration across platforms. This trend enables organizations to distribute workloads optimally, ensuring greater control over sensitive data while benefiting from the scalability and cost benefits of public clouds.
• AI and Automation Integration: AI and automation are leading the charge in the cloud managed services market. Cloud providers are integrating AI-powered tools to enhance data analysis, decision-making, and predictive maintenance. Automation is also used to streamline cloud operations, reducing manual intervention, improving efficiency, and minimizing human error. This trend helps businesses optimize their operations by quickly allocating resources, reducing operational costs, and enhancing reliability, thereby allowing organizations to focus on more strategic initiatives.
• Cloud Security and Compliance Services: The volume of data being stored in the cloud has been rising, making security and compliance critical. Cloud providers are now offering advanced security services that include data encryption, identity management, and advanced threat detection to prevent cyberattacks on sensitive data. With stricter regulations like GDPR and CCPA, businesses in the United States need to follow compliance standards, and cloud managed service providers are helping organizations meet their legal obligations. This trend emphasizes data integrity and compliance while embracing cloud technology.
• Edge Computing: Edge computing is gaining popularity in cloud managed services as it allows data to be processed more swiftly through the decentralization of computing resources closer to the data source. This is especially important for industries, including manufacturing, healthcare, and self-driving vehicles, which need real-time processing of data. Edge computing reduces latency, enhances performance, and ensures that data can be processed at the point of origin. As cloud providers improve their edge computing capabilities, businesses will benefit from streamlined operations and enhanced decision-making.
• Cloud-Native Application Development: Cloud-native applications are new-age software designed specifically to utilize cloud environments more effectively. The recent advancement of microservices, containers, and serverless computing has led the way for implementing cloud-native development practices. Cloud-managed service providers help businesses build, deploy, and scale applications more quickly and efficiently. This reduces the total cost of ownership for businesses, allowing them to innovate faster, stay competitive, and respond better to customer demands.
Hybrid and multi-cloud adoption, AI and automation integration, cloud security and compliance, edge computing, and cloud-native application development are reshaping the United States cloud managed services market. Cloud providers continue to adapt to the needs of evolving businesses by delivering solutions that center on security, scalability, flexibility, and innovation. The growth of cloud managed services continues as businesses integrate these trends and shift their emphasis toward enhanced operational efficiency and digital transformation.
Recent Developments in the Cloud Managed Services Market in United States
The cloud managed services market in the United States is witnessing significant developments through technological advancements, changes in business needs, and a rise in the adoption of cloud services across various industries. Cloud providers continue to evolve their offerings to keep pace with the growing demand for scalable, secure, and cost-effective solutions in the cloud. Cloud-based innovations are thus paving the way for businesses to enhance their digital transformation strategies.
• Adoption of AI and Machine Learning: AI and machine learning are highly adopted in cloud managed services. They provide advanced analytics, predictive capabilities, and automation, enabling businesses to utilize these facilities. Cloud providers offer AI-driven solutions to optimize operations, make better decisions, and optimize resources. AI and machine learning tools improve the efficiency of cloud services, reduce operational costs, and boost performance for businesses, thus impacting industries like healthcare, retail, and financial services.
• Enhanced Cloud Security Solutions: As cyber threats become more prevalent, cloud service providers focus on making stronger security solutions. Some recent developments include advanced encryption methods, multi-factor authentication, and AI-powered threat detection. These improved security solutions help enterprises maintain confidentiality and integrity over their data while adhering to strict regulation requirements. The emphasis on security is also important because an increasing number of businesses are moving sensitive operations and data to the cloud and, therefore, require comprehensive security measures to be more resistant to these ever-evolving cyber threats.
• Serverless Computing and Containers: Serverless computing and containers are increasingly being adopted in the cloud managed services market. Serverless computing allows businesses to run applications without managing infrastructure, thus reducing complexity and operational overhead. Containers, on the other hand, provide a portable, efficient method of deploying and managing applications. Cloud providers are increasingly offering these technologies to businesses, enabling them to optimize performance, reduce costs, and improve application scalability. These will enable businesses to react faster to changes within the market and spur innovation.
• Cloud Cost Management Solutions: As businesses scale their cloud usage, managing costs becomes a major concern. In response, cloud providers are bringing more advanced cost management tools to the table that provide detailed insights into cloud resource consumption and optimization. These solutions help businesses track their cloud spending and identify opportunities for cost savings. By improving cost visibility and offering greater control over resource allocation, businesses can ensure they are maximizing the value of their cloud investments while minimizing waste.
• Regulatory and Compliance Improvements: With changing data protection laws, such as CCPA and GDPR, cloud provider companies are enhancing compliance offerings all the time. There have been newer developments in automation for managing regulatory compliance, data retention policies, and audit capabilities. This ensures compliance requirements from cloud providers can be met by minimizing the risks associated with penalties. Industry-specific compliance solutions offered by cloud providers have ensured businesses meet the requirements unique to industries such as healthcare, finance, and retail.
All these advancements in AI and machine learning, cloud security solutions, serverless computing, cost management, and regulatory compliance shape the future of cloud managed services in the United States. These cloud providers adjust to changing needs by delivering next-generation scalable, secure, and advanced solutions to businesses. More and more businesses will opt for innovative cloud services as this change continues to impact the market by focusing more on security, efficiency in operation, and compliance.
Strategic Growth Opportunities for Cloud Managed Services Market in United States
This is a market in the United States that, with cloud managed services, is expected to have considerable growth, largely fueled by the increasing use of cloud technologies in almost every sector. There are many strategic growth opportunities in the market as organizations embrace digital transformation. Key applications include driving operational efficiency, security, scalability, and innovation. More and more businesses are deploying critical applications in cloud managed services, opening new avenues for growth. Below are five significant growth opportunities within specific cloud applications.
• Cloud Security Solutions: As cyber threats continue to evolve, cloud security has become a significant imperative for businesses in the United States. Cloud managed service providers have a growing opportunity to offer advanced security solutions that will protect sensitive data and ensure that these services comply with regulatory standards. A multi-layered approach to security strategies could be the way forward, starting with data encryption, threat detection, and real-time monitoring, as the need for heightened security measures continues to grow. This applies particularly to healthcare, finance, and e-commerce industries, where data protection is essential.
• Disaster Recovery as a Service (DRaaS): As organizations rely more on cloud infrastructure, disaster recovery has emerged as one of the most popular applications for cloud managed service providers. DRaaS provides businesses with an economical and efficient way to protect their data and applications from an outage or disaster. This growth opportunity provides organizations with a means of safeguarding their critical operations without major investments in on-premise infrastructure. The key opportunity here for providers is offering customized recovery solutions, like automated failover and backup strategies, to ensure business continuity in sectors that rely on uptime and data integrity.
• Cloud Migration and Integration: There is an accelerating trend from on-premise systems to the cloud as businesses strive for greater scalability and flexibility. Cloud migration and integration services present significant growth opportunities for managed service providers. These services help organizations transition to cloud environments smoothly, ensuring minimal disruption during the process. With more businesses adopting hybrid and multi-cloud environments, providers can capitalize on the demand for seamless integration solutions that unify disparate systems and streamline workflows, allowing companies to maximize the full potential of their cloud investments.
• AI and Machine Learning Integration: Artificial intelligence (AI) and machine learning (ML) integration within cloud environments is rapidly gaining traction. Cloud managed services providers can leverage AI and ML capabilities to deliver advanced data analytics, predictive insights, and automation solutions to businesses. This growth opportunity enables companies to harness AI-driven tools that enhance decision-making, improve operational efficiency, and foster innovation. Providers can create new value propositions by embedding AI and ML into cloud applications, thus providing businesses with more automation, resource optimization, and advanced analytics in retail, manufacturing, and finance, among others.
• Edge Computing for Real-Time Data Processing: The growing demand for real-time data processing has created a strategic opportunity for cloud managed services providers in the form of edge computing. Edge computing brings computational power closer to the source of data generation, minimizing latency and enhancing processing speeds. This is particularly beneficial for industries like manufacturing, healthcare, and autonomous vehicles, where real-time decision-making is crucial. Providers can capitalize on the opportunity to offer edge computing solutions that optimize network performance and improve the ability to process large volumes of data efficiently, delivering faster and more responsive cloud services.
Strategic growth opportunities in cloud managed services, including cloud security solutions, disaster recovery, cloud migration, AI integration, and edge computing, are reshaping the market in the United States. As businesses continue to prioritize digital transformation and enhance their cloud capabilities, these opportunities offer providers the chance to deliver cutting-edge services that meet the evolving needs of various industries. With the aid of these applications, cloud managed service providers will be in an excellent position to compete in an increasingly dynamic market and drive growth.
Cloud Managed Services Market in United States Driver and Challenges
The cloud managed services market in the United States is influenced by various technological, economic, and regulatory factors. Across industries, businesses are increasing the adoption of cloud-based solutions to streamline operations, scale easily, and remain cost-effective. However, such rapid adoption presents challenges in security, compliance requirements, and the complexity of integrating these services into existing systems. We present five key drivers and three major challenges that influence the cloud managed services market and their implications for businesses and providers.
The factors responsible for driving the cloud managed services market in United States include:
• Technological Advancement: Advancements in technologies such as cloud computing, artificial intelligence, machine learning, and automation serve as a major catalyst for the evolution of the cloud managed services market. The more complex cloud services become, the more companies benefit from the latest features, such as real-time analytics for instant decisions and predictive maintenance to enhance operational efficiency. Cloud service providers can offer businesses access to cutting-edge technologies that drive digital transformation and provide a competitive edge. This advancement fosters innovation and enables businesses to scale operations more effectively while reducing costs.
• Cost-Efficiency: Cost-efficiency is a significant driver of cloud managed services adoption. Cloud solutions offer businesses the ability to reduce capital expenditures on on-premise infrastructure while providing flexible, pay-as-you-go pricing models. This allows businesses to optimize their IT budgets, scale services up or down according to demand, and eliminate the need for costly hardware investments and maintenance. As organizations face pressure to reduce operational costs and improve bottom-line performance, the shift toward cost-effective cloud solutions continues to drive demand for cloud managed services across industries.
• Scalability and Flexibility: Scalability and flexibility are the most important drivers of cloud adoption, especially as businesses need to quickly adapt to changing market conditions and customer demands. Cloud managed services allow organizations to scale their IT infrastructure on demand, enabling rapid deployment of new applications, services, and resources. This level of flexibility allows businesses to meet fluctuating workloads and optimize resource usage without the limitations of traditional on-premise systems. Scanning cloud services adds to business agility, supporting growth and innovation efficiently and operationally.
• Higher Use of Data with Analytics: As the amount of data businesses produce increases, cloud-managed services are required more than ever to enable higher-level data analytics and unlock insights that help organizations make strategic decisions. Cloud managed services providers offer customized analytics solutions that enable businesses to analyze data in real time and gain actionable insights, improving business performance. The increasing need for data storage, processing power, and analytics is a key driver of cloud managed services growth.
• Regulatory Compliance Requirements: Cloud managed services provide an opportunity for businesses to comply with complex regulatory requirements, including data protection laws like GDPR and CCPA. Cloud service providers offer advanced tools and solutions to help businesses meet strict compliance standards, including automating compliance processes, providing audit trails, and securely handling sensitive data. The increasing demand for regulatory compliance, especially in healthcare, finance, and e-commerce industries, is driving demand for cloud managed services that offer secure, compliant solutions.
Challenges in the cloud managed services market in United States are:
• Cybersecurity Threats: Cybersecurity threats are one of the biggest challenges to the cloud managed services market. As businesses move sensitive data and applications to the cloud, they expose themselves to potential data breaches, cyberattacks, and other security vulnerabilities. Cloud providers must offer robust security measures, such as encryption, identity management, and multi-factor authentication, to protect client data. Despite these measures, the increasing frequency and sophistication of cyber threats remain a significant challenge, requiring constant innovation and vigilance from cloud providers to ensure the security of their services.
• Complexity of Integration and Migration: The integration and migration of legacy systems to cloud environments present significant challenges for businesses. Many organizations are still dependent on outdated on-premise infrastructure. The transition to the cloud is complex and resource-intensive, making it difficult to ensure seamless migration while maintaining business continuity. Furthermore, integrating cloud services with existing IT systems is a challenging process that requires careful planning and execution to avoid disruption. Cloud managed service providers must offer customized solutions that simplify migration and integration processes to reduce complexity and risk for businesses.
• Data Privacy and Compliance Risks: Cloud managed services providers face the challenge of ensuring their offerings meet regulatory standards. Industries such as healthcare, finance, and government have strict data privacy requirements. Any breach or non-compliance can lead to significant penalties. While cloud services offer advanced compliance tools, the complex landscape of regional and industry-specific regulations makes it challenging to navigate. Cloud providers need to update their solutions constantly to ensure compliance with changing laws and avoid the consequences of non-compliance.
The cloud managed services market in the United States is influenced by various drivers, including technological advancements, cost-efficiency, scalability, growth in data usage, and regulatory compliance. However, challenges such as cybersecurity threats, integration complexities, and data privacy concerns remain significant hurdles for cloud service providers. As the market continues to evolve, businesses and cloud providers must collaborate to address these challenges and seize the opportunities presented by the cloud, fostering growth and innovation in the industry.
List of Cloud Managed Services Market in United States Companies
Companies in the market compete on the basis of product quality offered. Major players in this market focus on expanding their manufacturing facilities, R&D investments, infrastructural development, and leverage integration opportunities across the value chain. Through these strategies, cloud managed services companies cater to increasing demand, ensure competitive effectiveness, develop innovative products & technologies, reduce production costs, and expand their customer base. Some of the cloud managed services companies profiled in this report include:
• Company 1
• Company 2
• Company 3
• Company 4
• Company 5
• Company 6
• Company 7
• Company 8
• Company 9
• Company 10
Cloud Managed Services Market in United States by Segment
The study includes a forecast for the cloud managed services market in United States by service type, organization size, and end use.
Cloud Managed Services Market in United States by Service Type [Analysis by Value from 2019 to 2031]:
• Managed Security Services
• Managed Network Services
• Managed Infrastructure Services
• Managed Communication & Collaboration Services
• Managed Mobility Services
• Managed Business Services
Cloud Managed Services Market in United States by Organization Size [Analysis by Value from 2019 to 2031]:
• SMEs
• Large Enterprises
Cloud Managed Services Market in United States by End Use [Analysis by Value from 2019 to 2031]:
• BFSI
• Telecom
• IT
• Government & Public Sector
• Healthcare & Life Sciences
• Retail & Consumer Goods
• Manufacturing
• Energy & Utilities
• Other Verticals
Features of the Cloud Managed Services Market in United States
Market Size Estimates: Cloud managed services in United States market size estimation in terms of value ($B).
Trend and Forecast Analysis: Market trends and forecasts by various segments.
Segmentation Analysis: Cloud managed services in United States market size by service type, organization size, and end use in terms of value ($B).
Growth Opportunities: Analysis of growth opportunities in different service type, organization size, and end use for the cloud managed services in United States.
Strategic Analysis: This includes M&A, new product development, and competitive landscape of the cloud managed services in United States.
Analysis of competitive intensity of the industry based on Porter’s Five Forces model.
If you are looking to expand your business in this or adjacent markets, then contact us. We have done hundreds of strategic consulting projects in market entry, opportunity screening, due diligence, supply chain analysis, M & A, and more.
FAQ
Q.1 What are the major drivers influencing the growth of the cloud managed services market in United States?
Answer: The major drivers for this market are increased demand for cloud applications in various fields, heightened cloud adoption during the covid-19 pandemic, and hyper-scaling capability and lower cloud service costs.
Q2. What are the major segments for cloud managed services market in United States?
Answer: The future of the cloud managed services market in United States looks promising with opportunities in the BFSI, telecom, IT, government & public sector, healthcare & life sciences, retail & consumer goods, manufacturing, and energy & utilities markets.
Q3. Which cloud managed services market segment in United States will be the largest in future?
Answer: Lucintel forecasts that managed communication & collaboration services is expected to witness the highest growth over the forecast period.
Q4. Do we receive customization in this report?
Answer: Yes, Lucintel provides 10% customization without any additional cost.
This report answers following 10 key questions:
Q.1. What are some of the most promising, high-growth opportunities for the cloud managed services market in United States by service type (managed security services, managed network services, managed infrastructure services, managed communication & collaboration services, managed mobility services, and managed business services), organization size (SEMS and large enterprises), and end use (BFSI, telecom, IT, government & public sector, healthcare & life sciences, retail & consumer goods, manufacturing, energy & utilities, and other verticals)?
Q.2. Which segments will grow at a faster pace and why?
Q.3. What are the key factors affecting market dynamics? What are the key challenges and business risks in this market?
Q.4. What are the business risks and competitive threats in this market?
Q.5. What are the emerging trends in this market and the reasons behind them?
Q.6. What are some of the changing demands of customers in the market?
Q.7. What are the new developments in the market? Which companies are leading these developments?
Q.8. Who are the major players in this market? What strategic initiatives are key players pursuing for business growth?
Q.9. What are some of the competing products in this market and how big of a threat do they pose for loss of market share by material or product substitution?
Q.10. What M&A activity has occurred in the last 5 years and what has its impact been on the industry?