Does Horizontal scaling(scale out) option available in AZURE SQL Managed Instance?

Yes, Azure SQL managed instance support scale out.

You you reference the document @Perter Bons have provided in comment:

Document here:

  1. Scale up/down: Dynamically scale database resources with minimal downtime
  • Azure SQL Database and SQL Managed Instance enable you to dynamically add more resources to your database with minimal downtime; however,
    there is a switch over period where connectivity is lost to the
    database for a short amount of time, which can be mitigated using
    retry logic.
  1. Scale out: Use read-only replicas to offload read-only query workloads
  • As part of High Availability architecture, each single database,
    elastic pool database, and managed instance in the Premium and
    Business Critical service tier is automatically provisioned with a
    primary read-write replica and several secondary read-only replicas. The secondary replicas are provisioned with the same compute size as the primary replica. The read scale-out feature allows you to offload read-only workloads using the compute capacity of one of the
    read-only replicas, instead of running them on the read-write
    replica.

HTH.

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