KBS - Managed Service Providers - Market Insight

MARKET INSIGHT The managed IT services sector in the UK is a substantial and expanding market, with revenues of over $89 billion USD as of 2023, driven by widespread digital transformation across industries and the demand for scalable IT solutions. SMEs constitute a key client base, seeking cost-effective and reliable IT support without the expense of dedicated in-house teams. The sector is forecasted to grow by 30% from 2023 to 2027, propelled by heightened demand for cloud infrastructure, cybersecurity services, and compliance solutions. Additionally, the rise of remote work, artificial intelligence, and data analytics continues to drive managed IT services growth, positioning the sector as a critical component of UK businesses’ strategic IT planning.

UK IT SERVICES MARKET REVENUE (BILLION USD, 2023 - 2027)

140

115.80

120

109.08

102.36

95.45

100

89.22

80

60

40

Revenue (bn USD)

20

0

2023

2023

2023

2023

2023 Source: Statista

The UK IT managed services sector, and subsequent M&A and investment appetite, is poised for growth driven by the below, with businesses increasingly relying on external experts to manage their IT infrastructure, drive digital transformation, and enhance cybersecurity. The demand for cloud services, cybersecurity solutions, and digital transformation expertise, combined with increasing pressure to improve efficiency and control costs, positions the sector for continued expansion.

+ INCREASED CLOUD ADOPTION

+ CYBERSECURITY CONCERNS

+ TRANSFORMATION & AUTOMATION + SME DEMAND FOR IT SUPPORT

+ 5G AND I o T INTEGRATION

+ COST PRESSURES

+ SUSTAINABILITY & GREEN IT

+ TALENT SHORTAGES & SKILLS GAPS

+ REMOTE WORKING

+ MANAGED IT FOR INDUSTRY- SPECIFIC SOLUTIONS