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How big is the aws managed services market today, and what are its future growth expectations?
The AWS managed services market size has grown rapidly in recent years. It will grow from $0.78 billion in 2024 to $0.91 billion in 2025 at a compound annual growth rate (CAGR) of 17.3%. The growth in the historic period can be attributed to migration from on-premises to cloud, increasing focus on business agility, economic pressures and cost optimization, increasing complexity of IT infrastructures, and global expansion of businesses.
The AWS managed services market size is expected to see rapid growth in the next few years. It will grow to $1.71 billion in 2029 at a compound annual growth rate (CAGR) of 17.0%. The growth in the forecast period can be attributed to focus on digital transformation, rise of remote work, increasing number of AWS customers, increasing focus on sustainability, and increasing demand for cloud-based solutions. Major trends in the forecast period include technological advancements, businesses digitization, increasingly adopting multi-cloud and hybrid cloud strategies, expansion of artificial intelligence (AI) and machine learning capabilities, and adoption of serverless computing.
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What have been the primary factors driving the aws managed services market’s growth?
The growing demand for cloud-based solutions is expected to propel the growth of the AWS managed services market going forward. Cloud-based solutions refer to software applications, services, or resources hosted and delivered over the internet, typically from remote servers managed by a third-party provider. Cloud-based solutions are increasing due to several factors, such as security and compliance, remote access to applications, highly redundant and resilient infrastructure, and prioritized security and compliance. AWS managed services streamline the administration of AWS infrastructure and operations, enabling businesses to prioritize innovation and core business functions. Leveraging AMS enables organizations to bolster security, meet regulatory requirements, optimize expenditures, and maintain dependable performance for their cloud-based solutions on AWS. For instance, in December 2023, according to the European Union, a Netherlands-based international organization, the percentage of EU businesses that bought cloud computing services increased by 4.2 percentage points in 2023 compared to 2021. Therefore, the growing demand for cloud-based solutions is driving the growth of the AWS managed services market.
What are the key segments within the aws managed services market?
The AWS managed services market covered in this report is segmented –
1) By Service Type: Infrastructure As A Service Management, Platform As A Service Management, Software As A Service Management, Security And Compliance Services, Data Management And Analytics Services, DevOps And Automation Services, Application Management And Development Services, Migration And Transformation Services
2) By Deployment Model: Public, Private, Hybrid
3) By Organization Size: Large Enterprises, Small And Medium-Sized Enterprises (SMEs)
4) By Industry Vertical: Banking, Financial Services, And Insurance, Healthcare, Manufacturing, Government And Defense, Media And Entertainment, Information Technology And Telecommunications, Other Industries
Subsegments:
1) By Infrastructure As A Service (Iaas) Management: Virtual Machine (Vm) Provisioning And Management, Compute And Storage Management, Networking Services (Vpc, Subnets, Vpn), Monitoring And Performance Optimization, Load Balancing And Auto-Scaling, Disaster Recovery Management
2) By Platform As A Service (Paas) Management: Database As A Service (Dbaas) Management, Managed Container Services (Ecs, Eks), Serverless Architecture Management (Aws Lambda), Application Platform Management (Aws Elastic Beanstalk), Platform Monitoring And Scaling
3) By Software As A Service (Saas) Management: Application Management And Updates, Service Integration And Customization, Performance Monitoring, User Access And Identity Management, Multi-Tenant Saas Management
4) By Security And Compliance Services: Identity And Access Management (Iam), Data Encryption And Key Management (Kms), Threat Detection And Mitigation, Security Auditing And Compliance Reporting, Vulnerability Scanning And Penetration Testing, Security Incident Response
5) By Data Management And Analytics Services: Data Storage And Backup Management, Data Warehousing (E.g., Amazon Redshift), Big Data Solutions (Aws Emr), Data Integration And Etl Services, Real-Time Data Streaming (Aws Kinesis), Business Intelligence And Reporting (Quicksight)
6) By Devops And Automation Services: Continuous Integration Or continuous Deployment (Ci Or Cd), Infrastructure As Code (Aws Cloudformation, Terraform), Monitoring And Logging (Aws Cloudwatch, Aws X-Ray), Automated Testing And Deployment, Resource Provisioning And Scaling Automation
7) By Application Management And Development Services: Application Performance Monitoring And Optimization, Development Toolkits And Frameworks (Aws Sdks, Aws Amplify), Microservices Architecture Support, Mobile App Backend Management, Custom Application Development And Maintenance
8) By Migration And Transformation Services: Cloud Migration Assessment And Planning, Data Center To Cloud Migration, Application Migration To Aws Cloud, Hybrid Cloud Implementation And Management, Cloud Optimization And Cost Management, Cloud-Native Transformation
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Which key players are shaping the aws managed services market?
Major companies operating in the AWS managed services market are Google LLC, Amazon Web Services Inc, Accenture plc, IBM Corporation, Microsoft Azure, Oracle Corporation, SAP SE, Capgemini SE, DXC Technology Company, Alibaba Cloud, Workday Inc., Slalom LLC, Rackspace Inc., Claranet Group Limited, Smartronix Inc., GS Lab, e-Zest solutions, Cloudreach Inc., 8K Miles Software Services Ltd., Onica, Logicworks, Reliance Cloud (Pty) Ltd., Stratalux Inc., Cloudnexa Inc
How will emerging trends drive the aws managed services market throughout the forecast period?
Major companies operating in the AWS managed services market are focused on developing innovative services such as Deadline Cloud to streamline and optimize cloud-based rendering and content creation workflows. Deadline Cloud is a fully managed service that simplifies render management for teams creating computer-generated 2D and 3D graphics and visual effects for films, TV shows, commercials, games, and industrial design. For instance, in April 2024, Amazon Web Services, a US-based cloud computing company, launched Deadline Cloud, a fully managed service. The service can scale thousands of compute instances up and down, minute to minute, to handle complex rendering jobs and meet challenging turnaround times. The service provides a dashboard and step-by-step setup wizard to create a cloud-based render farm, making it easy for artists to define job parameters and manage rendering projects.
How do regional factors impact the aws managed services market, and which region is the largest contributor?
North America was the largest region in the AWS managed services market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the AWS managed services market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
What Does The AWS Managed Services Market Report 2025 Offer?
The aws managed services market research report from The Business Research Company offers global market size, growth rate, regional shares, competitor analysis, detailed segments, trends, and opportunities.
AWS Managed Services (AMS) is a cloud offering provided by Amazon Web Services (AWS) that help businesses manage their AWS infrastructure and operations. It is used to automate common activities, such as change requests, monitoring, patch management, security, and backup services, ensuring the smooth and secure operation of AWS environments. The purpose of AWS Managed Services is to help organizations reduce the complexity and overhead of managing their cloud infrastructure, allowing them to focus on their core business activities.
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