Industry research
Scope
Europe
Companies
270
Table of contents
Report collaborator:
Chris Woodland and Ewan Parry, Partners at OC&C Strategy Consultants, provided expert insights for this report. They lead OC&C's IT services and cloud segments as sector specialists. Read the full interview here
What does the managed IT services market landscape look like in Europe?
The European market has a fragmented nature with generalist IT businesses (e.g. Computacenter, Bechtle Group), consultancies (e.g. Capgemini, Accenture) and specialist managed services providers (“MSPs”) focused on cloud (e.g. ANS) and cybersecurity (e.g. Nomios). The market is highly fragmented across all segments with hundreds of active players in major European countries. These local MSPs are ubiquitous, as customers prefer domestic providers due to geographic proximity, language and local market understanding. This leaves significant room for consolidation led by the industry incumbents and investor-backed platforms, which acquire smaller peers to exercise scale economies, expand geographically and add new service capabilities.
What is the level of investor activity in Europe's managed IT services industry?
Investor-led interest has been strong, with ~68% of identified assets being backed by financial sponsors (October 2025). This is primarily driven by the continuous modernisation of IT infrastructure, paired with the increased adoption of cloud services in Europe. The recurring nature of sales and typically low capex needs On the other hand, structural talent shortages in a personnel-intensive sector and less demand for managed IT services due to AI automation represent key headwinds for investors.
What are the key ESG considerations in Europe's managed IT services industry?
The environmental agenda of the managed IT services industry revolves around the reduction of Scope 3 emissions from key suppliers, as well as minimising electronic waste and the increasing use of clean energy for data centre operations. On the governance side, incumbents are focused on preventing data breaches and minimising cybersecurity risks. Lastly, social topics primarily concern talent development initiatives, reflecting the structural shortage of technology professionals across Europe.
Technavio (July 2024) estimated the global cloud managed services market at ~$82.5bn in 2023 and expects it to reach ~$124.0bn by 2028, registering a +8.5% CAGR over the period
The IT services market in Europe was estimated to reach ~€471.4bn in 2025 and is projected to grow to ~€522.0bn by 2030 (+3.9% CAGR 2025-2030; Statista, June 2025)
Modernisation of IT infrastructure across Europe is expected to continue for at least the next ~15–20 years, sustaining strong demand for all types of managed IT services. At the same time, traditional non-digitalised businesses are gradually exiting the market, while nearly all new enterprises are born digital and inherently reliant on MSP-provided services (OC&C expert interview)
Cloud adoption, complex IT environments and evolving cybersecurity threats make in-house IT management less viable, translating into strong demand, particularly for cloud-focused MSSP players (Houlihan Lokey, July 2025; McKinsey, April 2024)
The rapid growth of hyperscalers (e.g. Microsoft Azure, Google Cloud) benefits MSPs, as they cover the cloud migration and customisations not addressed by the vendors (The Gorilla Game, April 2025; Technavio, May 2025; OC&C expert interview)
Advances in AI technologies have increased automation across service segments (e.g. call centres agents impacted by chatbots), enabling MSPs to lower operational costs. However, as these efficiency gains become widespread, competition intensifies and pricing pressure rises, ultimately compressing industry profit margins (OC&C expert interview; The Gorilla Game, April 2025)
Large IT implementation projects that depend on substantial one-off discretionary spending by C-level executives may be delayed amid budget constraints and macroeconomic uncertainty. Moreover, MSPs with their own server infrastructures are expected to experience slower top-line growth due to the competition posed by the hyperscale segment (OC&C expert interview)
Structural talent shortages across the European IT industry are set to lower organic growth prospects for players across all segments, while talent attraction initiatives (e.g. higher salaries) could potentially reduce bottom-line margins (OC&C expert interview; Halexo, September 2025)
With the full report, you’ll gain access to:
Detailed assessments of the market outlook
Insights from c-suite industry executives
A clear overview of all active investors in the industry
An in-depth look into 270 private companies, incl. financials, ownership details and more.
A view on all 2,376 deals in the industry
ESG assessments with highlighted ESG outperformers
