GITNUXREPORT 2026

Managed Service Provider Industry Statistics

The global managed services market is large, growing rapidly, and increasingly focused on cybersecurity and cloud solutions.

Rajesh Patel

Team Lead & Senior Researcher with over 15 years of experience in market research and data analytics.

First published: Feb 13, 2026

Our Commitment to Accuracy

Rigorous fact-checking · Reputable sources · Regular updatesLearn more

Statistic 1

92% of MSPs cite cybersecurity as top challenge in 2023 surveys.

Statistic 2

Talent shortage affects 78% MSPs, with 25% engineer vacancies.

Statistic 3

65% MSPs report rising customer expectations for AI integration.

Statistic 4

Supply chain disruptions impacted 41% MSP hardware services 2023.

Statistic 5

Regulatory compliance burdens 55% MSPs, especially GDPR/CCPA.

Statistic 6

Multi-tenant platform scalability issues for 48% MSPs.

Statistic 7

72% MSPs face margin pressure from cloud price wars.

Statistic 8

Ransomware attacks up 33% targeting MSP entry points 2023.

Statistic 9

Remote work support complexity for 67% MSPs post-2023.

Statistic 10

Vendor consolidation overwhelming 53% MSP partner programs.

Statistic 11

Sustainability demands from clients challenge 39% MSPs.

Statistic 12

Edge computing deployment hurdles for 44% MSPs lacking expertise.

Statistic 13

81% MSPs struggle with 24/7 SOC staffing.

Statistic 14

Pricing transparency issues erode trust for 29% MSP-client relationships.

Statistic 15

Generative AI hype leads to 51% MSP investment uncertainty.

Statistic 16

M&A integration difficulties post-acquisition for 36% MSPs.

Statistic 17

Quantum computing threat awareness low in 62% MSPs.

Statistic 18

5G network management complexity for 47% MSPs.

Statistic 19

Data sovereignty regulations impacting 38% global MSPs.

Statistic 20

Automation ROI realization slow for 54% MSP tool adopters.

Statistic 21

Third-party risk management burdens 43% MSP supply chains.

Statistic 22

Hybrid cloud orchestration puzzles 59% MSP engineers.

Statistic 23

Customer data privacy breaches fear 76% MSPs most.

Statistic 24

Skill gaps in zero trust architecture for 66% MSPs.

Statistic 25

Economic downturn fears cut capex for 31% MSP clients.

Statistic 26

Legacy system migration stalls 52% MSP projects.

Statistic 27

Insider threat detection weak in 49% MSP security stacks.

Statistic 28

ESG reporting mandates confuse 27% MSP compliance teams.

Statistic 29

Container security gaps in 35% MSP Kubernetes deployments.

Statistic 30

Global talent competition raises engineer salaries 18% YoY.

Statistic 31

API management overloads 40% MSP integration services.

Statistic 32

Burnout rates at 42% among MSP frontline technicians 2023.

Statistic 33

65% of MSPs serve SMBs with average contract value of USD 5,200 MRR.

Statistic 34

42% of enterprises with 500+ employees use 3+ MSPs in 2023.

Statistic 35

SMB MSP adoption rate reached 72% in North America 2023.

Statistic 36

Healthcare organizations using MSPs increased to 58% in 2023.

Statistic 37

55% of MSP customers are in professional services sector.

Statistic 38

Average MSP customer has 150 endpoints managed in 2023.

Statistic 39

Retail sector MSP penetration at 49% among mid-market firms 2023.

Statistic 40

78% of financial services firms outsource to MSPs in 2023.

Statistic 41

Manufacturing customers represent 22% of MSP client base avg 2023.

Statistic 42

Government sector MSP adoption up 14% to 61% in 2023.

Statistic 43

Average customer satisfaction score for MSPs was 4.6/5 in 2023.

Statistic 44

35% of MSP customers are nonprofits or education in 2023.

Statistic 45

Enterprises with 1,000+ employees avg 5 MSP vendors in 2023.

Statistic 46

Construction industry MSP usage at 44% penetration 2023.

Statistic 47

62% of MSP customers migrated to cloud via MSP in last 2 years.

Statistic 48

Hospitality sector saw 27% increase in MSP adoption 2023.

Statistic 49

Average MSP customer tenure is 4.8 years in 2023.

Statistic 50

Energy/utilities firms using MSPs rose to 52% in 2023.

Statistic 51

48% of transportation/logistics companies partner with MSPs 2023.

Statistic 52

MSP Net Promoter Score averaged 45 across customers in 2023.

Statistic 53

Legal firms MSP adoption at 67% for firms over 50 employees 2023.

Statistic 54

71% of customers cite cost savings as primary MSP adoption reason.

Statistic 55

Telecom sector customers avg 210 seats managed by MSPs 2023.

Statistic 56

Nonprofits increased MSP reliance by 19% post-pandemic 2023.

Statistic 57

56% of customers in APAC are SMBs using MSPs in 2023.

Statistic 58

Education institutions MSP penetration 63% for K-12 in 2023.

Statistic 59

MSPs manage avg 75 users per customer in EMEA 2023.

Statistic 60

Real estate sector 41% MSP adoption rate in 2023.

Statistic 61

82% of MSP customers renew contracts annually in 2023.

Statistic 62

Automotive industry MSP clients grew 16% YoY 2023.

Statistic 63

MSPs report 92% customer retention rate for cybersecurity services.

Statistic 64

Average annual revenue per MSP in the US was USD 4.2 million in 2023.

Statistic 65

MSP profit margins averaged 15.2% in 2023 for top performers.

Statistic 66

Recurring revenue accounted for 78% of total MSP revenue in 2023.

Statistic 67

Median MSP EBITDA margin was 12.8% in North America 2023.

Statistic 68

Project-based revenue grew 9% YoY for MSPs in 2023.

Statistic 69

Average MSP customer lifetime value reached USD 250,000 in 2023.

Statistic 70

MSPs with cybersecurity focus saw 22% revenue growth in 2023.

Statistic 71

Cost per ticket for MSPs averaged USD 125 in 2023.

Statistic 72

MSP billable utilization rate was 72% on average in 2023.

Statistic 73

Hardware resale margins for MSPs dropped to 8.5% in 2023.

Statistic 74

Cloud services contributed 45% to MSP average revenue in 2023.

Statistic 75

MSP customer acquisition cost averaged USD 18,500 in 2023.

Statistic 76

Top 25% MSPs achieved 25% YoY revenue growth in 2023.

Statistic 77

MSP RPO (recurring revenue percentage) hit 85% for mature providers in 2023.

Statistic 78

Average MSP employee cost per billable hour was USD 85 in 2023.

Statistic 79

MSPs investing in AI saw 18% margin improvement in 2023.

Statistic 80

Churn rate for MSP customers averaged 8.2% annually in 2023.

Statistic 81

MSP valuation multiples averaged 6.2x EBITDA in 2023 M&A deals.

Statistic 82

Professional services revenue share was 22% for MSPs in 2023.

Statistic 83

MSP cash flow from operations averaged 120% of net income in 2023.

Statistic 84

Backup and DR services generated USD 1.2 million avg revenue per MSP in 2023.

Statistic 85

MSP marketing spend was 7.5% of revenue on average in 2023.

Statistic 86

NOC/Helpdesk revenue per MSP was USD 850,000 in 2023.

Statistic 87

MSPs with 50-100 employees averaged USD 12M revenue in 2023.

Statistic 88

Cybersecurity MRR growth was 28% for MSPs in 2023.

Statistic 89

Average MSP AR days outstanding was 45 in 2023.

Statistic 90

VoIP services contributed 15% to MSP revenue in 2023.

Statistic 91

MSP gross margin on managed services was 52% in 2023.

Statistic 92

The global managed services market size was valued at USD 287.03 billion in 2023 and is expected to grow at a CAGR of 7.8% from 2024 to 2030.

Statistic 93

North America dominated the managed services market with a share of over 38.0% in 2023.

Statistic 94

The managed services market in Asia Pacific is projected to register the fastest CAGR of 9.2% from 2024 to 2030.

Statistic 95

Managed services market revenue in Europe reached USD 75.2 billion in 2023.

Statistic 96

The global MSP market is forecasted to reach USD 457.1 billion by 2028, growing at a CAGR of 8.5% from 2023.

Statistic 97

U.S. managed services market accounted for 35% of the North American market in 2023.

Statistic 98

The SMB segment in managed services grew by 11.3% YoY in 2023 globally.

Statistic 99

Cloud managed services sub-segment held 42% market share in 2023.

Statistic 100

Managed security services market size was USD 36.2 billion in 2023, projected to USD 65.8 billion by 2028.

Statistic 101

IT managed services in healthcare sector grew 15% in 2023.

Statistic 102

Global MSP market penetration in enterprises reached 68% in 2023.

Statistic 103

Latin America managed services market expanded by 10.2% CAGR from 2020-2023.

Statistic 104

Managed network services segment valued at USD 52.4 billion in 2023.

Statistic 105

MEA region MSP market to grow at 8.7% CAGR through 2027.

Statistic 106

Digital workplace managed services hit USD 28.9 billion in 2023.

Statistic 107

MSP market in India projected to reach USD 15.6 billion by 2025.

Statistic 108

Unified communications as a service (UCaaS) managed market grew 22% in 2023.

Statistic 109

Global data center managed services market size USD 102.3 billion in 2023.

Statistic 110

MSP adoption in manufacturing sector up 18% YoY in 2023.

Statistic 111

Managed services for BFSI segment valued at USD 45.7 billion in 2023.

Statistic 112

Australia MSP market grew 12.4% in 2023 to AUD 4.2 billion.

Statistic 113

Edge computing managed services emerging at 25% CAGR from 2023-2030.

Statistic 114

MSP market share of top 10 providers was 22% in 2023 globally.

Statistic 115

Remote infrastructure management services reached USD 38.5 billion in 2023.

Statistic 116

Canada MSP market size USD 12.8 billion in 2023, CAGR 9.1% to 2030.

Statistic 117

Managed services in retail sector projected 13% growth in 2024.

Statistic 118

Global MSP headcount grew 7.2% to 2.1 million in 2023.

Statistic 119

PaaS managed services sub-market USD 22.4 billion in 2023.

Statistic 120

UK MSP market valued at GBP 18.3 billion in 2023.

Statistic 121

Managed mobility services market to hit USD 85.6 billion by 2027.

Statistic 122

Cloud services dominate MSP offerings with 55% share in 2023 portfolios.

Statistic 123

Cybersecurity managed services used by 88% of MSPs in 2023.

Statistic 124

Backup and disaster recovery offered by 92% of MSPs.

Statistic 125

Helpdesk and NOC services core to 95% MSP service stacks 2023.

Statistic 126

Microsoft 365 management by 76% of MSPs in 2023.

Statistic 127

Network management services provided to 84% MSP clients.

Statistic 128

VoIP and UCaaS offered by 62% of MSPs growing 25% YoY.

Statistic 129

Endpoint detection and response (EDR) deployed by 81% MSPs.

Statistic 130

Virtualization management (VMware/Hyper-V) in 68% MSP offerings.

Statistic 131

Multi-cloud management services up to 47% MSP adoption 2023.

Statistic 132

Email security and archiving by 73% of MSPs.

Statistic 133

Compliance services (GDPR/HIPAA) offered by 59% MSPs.

Statistic 134

IoT device management emerging in 34% MSP portfolios 2023.

Statistic 135

SIEM as a service provided by 52% advanced MSPs.

Statistic 136

Desktop as a service (DaaS) grown to 41% MSP offering 2023.

Statistic 137

Penetration testing annual service by 66% MSPs.

Statistic 138

Data center colocation management by 55% MSPs.

Statistic 139

AI/ML operations managed by 28% cutting-edge MSPs 2023.

Statistic 140

Wireless network optimization in 49% MSP service lines.

Statistic 141

Vulnerability management automated by 77% MSPs.

Statistic 142

SaaS management platforms used by 63% MSPs for optimization.

Statistic 143

Managed print services declining to 31% MSP offerings.

Statistic 144

Zero trust implementation services by 45% MSPs.

Statistic 145

DevOps as a service offered by 37% MSPs to devs.

Statistic 146

Managed detection and response (MDR) top growth at 35% adoption.

Statistic 147

CRM/ERP hosting (Salesforce/NetSuite) by 58% MSPs.

Statistic 148

SD-WAN deployment managed by 71% network-focused MSPs.

Statistic 149

Patch management automated for 94% MSP endpoints.

Statistic 150

Container orchestration (Kubernetes) by 22% MSPs.

Statistic 151

Incident response retainers held by 64% MSPs.

1/151

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A $287 billion industry that’s growing at nearly 8% annually, the global managed services market isn't just thriving—it's fundamentally reshaping how businesses of every size secure their future in an increasingly digital world.

Key Takeaways

The global managed services market size was valued at USD 287.03 billion in 2023 and is expected to grow at a CAGR of 7.8% from 2024 to 2030.
North America dominated the managed services market with a share of over 38.0% in 2023.
The managed services market in Asia Pacific is projected to register the fastest CAGR of 9.2% from 2024 to 2030.
Average annual revenue per MSP in the US was USD 4.2 million in 2023.
MSP profit margins averaged 15.2% in 2023 for top performers.
Recurring revenue accounted for 78% of total MSP revenue in 2023.
65% of MSPs serve SMBs with average contract value of USD 5,200 MRR.
42% of enterprises with 500+ employees use 3+ MSPs in 2023.
SMB MSP adoption rate reached 72% in North America 2023.
Cloud services dominate MSP offerings with 55% share in 2023 portfolios.
Cybersecurity managed services used by 88% of MSPs in 2023.
Backup and disaster recovery offered by 92% of MSPs.
92% of MSPs cite cybersecurity as top challenge in 2023 surveys.
Talent shortage affects 78% MSPs, with 25% engineer vacancies.
65% MSPs report rising customer expectations for AI integration.

The global managed services market is large, growing rapidly, and increasingly focused on cybersecurity and cloud solutions.

Challenges and Trends

92% of MSPs cite cybersecurity as top challenge in 2023 surveys.
Talent shortage affects 78% MSPs, with 25% engineer vacancies.
65% MSPs report rising customer expectations for AI integration.
Supply chain disruptions impacted 41% MSP hardware services 2023.
Regulatory compliance burdens 55% MSPs, especially GDPR/CCPA.
Multi-tenant platform scalability issues for 48% MSPs.
72% MSPs face margin pressure from cloud price wars.
Ransomware attacks up 33% targeting MSP entry points 2023.
Remote work support complexity for 67% MSPs post-2023.
Vendor consolidation overwhelming 53% MSP partner programs.
Sustainability demands from clients challenge 39% MSPs.
Edge computing deployment hurdles for 44% MSPs lacking expertise.
81% MSPs struggle with 24/7 SOC staffing.
Pricing transparency issues erode trust for 29% MSP-client relationships.
Generative AI hype leads to 51% MSP investment uncertainty.
M&A integration difficulties post-acquisition for 36% MSPs.
Quantum computing threat awareness low in 62% MSPs.
5G network management complexity for 47% MSPs.
Data sovereignty regulations impacting 38% global MSPs.
Automation ROI realization slow for 54% MSP tool adopters.
Third-party risk management burdens 43% MSP supply chains.
Hybrid cloud orchestration puzzles 59% MSP engineers.
Customer data privacy breaches fear 76% MSPs most.
Skill gaps in zero trust architecture for 66% MSPs.
Economic downturn fears cut capex for 31% MSP clients.
Legacy system migration stalls 52% MSP projects.
Insider threat detection weak in 49% MSP security stacks.
ESG reporting mandates confuse 27% MSP compliance teams.
Container security gaps in 35% MSP Kubernetes deployments.
Global talent competition raises engineer salaries 18% YoY.
API management overloads 40% MSP integration services.
Burnout rates at 42% among MSP frontline technicians 2023.

Challenges and Trends Interpretation

MSPs are navigating a perfect storm where they must defend against escalating cyberattacks with understaffed teams, manage client demands for bleeding-edge tech on razor-thin margins, and somehow future-proof their business while the very ground of compliance, supply chains, and vendor ecosystems shifts beneath their feet.

Customer Demographics and Adoption

65% of MSPs serve SMBs with average contract value of USD 5,200 MRR.
42% of enterprises with 500+ employees use 3+ MSPs in 2023.
SMB MSP adoption rate reached 72% in North America 2023.
Healthcare organizations using MSPs increased to 58% in 2023.
55% of MSP customers are in professional services sector.
Average MSP customer has 150 endpoints managed in 2023.
Retail sector MSP penetration at 49% among mid-market firms 2023.
78% of financial services firms outsource to MSPs in 2023.
Manufacturing customers represent 22% of MSP client base avg 2023.
Government sector MSP adoption up 14% to 61% in 2023.
Average customer satisfaction score for MSPs was 4.6/5 in 2023.
35% of MSP customers are nonprofits or education in 2023.
Enterprises with 1,000+ employees avg 5 MSP vendors in 2023.
Construction industry MSP usage at 44% penetration 2023.
62% of MSP customers migrated to cloud via MSP in last 2 years.
Hospitality sector saw 27% increase in MSP adoption 2023.
Average MSP customer tenure is 4.8 years in 2023.
Energy/utilities firms using MSPs rose to 52% in 2023.
48% of transportation/logistics companies partner with MSPs 2023.
MSP Net Promoter Score averaged 45 across customers in 2023.
Legal firms MSP adoption at 67% for firms over 50 employees 2023.
71% of customers cite cost savings as primary MSP adoption reason.
Telecom sector customers avg 210 seats managed by MSPs 2023.
Nonprofits increased MSP reliance by 19% post-pandemic 2023.
56% of customers in APAC are SMBs using MSPs in 2023.
Education institutions MSP penetration 63% for K-12 in 2023.
MSPs manage avg 75 users per customer in EMEA 2023.
Real estate sector 41% MSP adoption rate in 2023.
82% of MSP customers renew contracts annually in 2023.
Automotive industry MSP clients grew 16% YoY 2023.
MSPs report 92% customer retention rate for cybersecurity services.

Customer Demographics and Adoption Interpretation

The data reveals a world where, from the skeptical CFO to the overwhelmed hospital CIO, everyone is pragmatically buying a slice of the MSP pie, proving that while you can’t outsource responsibility, you can very successfully rent expertise.

Financial Performance

Average annual revenue per MSP in the US was USD 4.2 million in 2023.
MSP profit margins averaged 15.2% in 2023 for top performers.
Recurring revenue accounted for 78% of total MSP revenue in 2023.
Median MSP EBITDA margin was 12.8% in North America 2023.
Project-based revenue grew 9% YoY for MSPs in 2023.
Average MSP customer lifetime value reached USD 250,000 in 2023.
MSPs with cybersecurity focus saw 22% revenue growth in 2023.
Cost per ticket for MSPs averaged USD 125 in 2023.
MSP billable utilization rate was 72% on average in 2023.
Hardware resale margins for MSPs dropped to 8.5% in 2023.
Cloud services contributed 45% to MSP average revenue in 2023.
MSP customer acquisition cost averaged USD 18,500 in 2023.
Top 25% MSPs achieved 25% YoY revenue growth in 2023.
MSP RPO (recurring revenue percentage) hit 85% for mature providers in 2023.
Average MSP employee cost per billable hour was USD 85 in 2023.
MSPs investing in AI saw 18% margin improvement in 2023.
Churn rate for MSP customers averaged 8.2% annually in 2023.
MSP valuation multiples averaged 6.2x EBITDA in 2023 M&A deals.
Professional services revenue share was 22% for MSPs in 2023.
MSP cash flow from operations averaged 120% of net income in 2023.
Backup and DR services generated USD 1.2 million avg revenue per MSP in 2023.
MSP marketing spend was 7.5% of revenue on average in 2023.
NOC/Helpdesk revenue per MSP was USD 850,000 in 2023.
MSPs with 50-100 employees averaged USD 12M revenue in 2023.
Cybersecurity MRR growth was 28% for MSPs in 2023.
Average MSP AR days outstanding was 45 in 2023.
VoIP services contributed 15% to MSP revenue in 2023.
MSP gross margin on managed services was 52% in 2023.

Financial Performance Interpretation

While the average MSP appears healthily profitable by skating diligently on the thick ice of recurring revenue, the cracks of churn, acquisition costs, and sinking hardware margins remind everyone that this is a business of meticulous efficiency, not just a subscription gold rush.

Market Growth and Size

The global managed services market size was valued at USD 287.03 billion in 2023 and is expected to grow at a CAGR of 7.8% from 2024 to 2030.
North America dominated the managed services market with a share of over 38.0% in 2023.
The managed services market in Asia Pacific is projected to register the fastest CAGR of 9.2% from 2024 to 2030.
Managed services market revenue in Europe reached USD 75.2 billion in 2023.
The global MSP market is forecasted to reach USD 457.1 billion by 2028, growing at a CAGR of 8.5% from 2023.
U.S. managed services market accounted for 35% of the North American market in 2023.
The SMB segment in managed services grew by 11.3% YoY in 2023 globally.
Cloud managed services sub-segment held 42% market share in 2023.
Managed security services market size was USD 36.2 billion in 2023, projected to USD 65.8 billion by 2028.
IT managed services in healthcare sector grew 15% in 2023.
Global MSP market penetration in enterprises reached 68% in 2023.
Latin America managed services market expanded by 10.2% CAGR from 2020-2023.
Managed network services segment valued at USD 52.4 billion in 2023.
MEA region MSP market to grow at 8.7% CAGR through 2027.
Digital workplace managed services hit USD 28.9 billion in 2023.
MSP market in India projected to reach USD 15.6 billion by 2025.
Unified communications as a service (UCaaS) managed market grew 22% in 2023.
Global data center managed services market size USD 102.3 billion in 2023.
MSP adoption in manufacturing sector up 18% YoY in 2023.
Managed services for BFSI segment valued at USD 45.7 billion in 2023.
Australia MSP market grew 12.4% in 2023 to AUD 4.2 billion.
Edge computing managed services emerging at 25% CAGR from 2023-2030.
MSP market share of top 10 providers was 22% in 2023 globally.
Remote infrastructure management services reached USD 38.5 billion in 2023.
Canada MSP market size USD 12.8 billion in 2023, CAGR 9.1% to 2030.
Managed services in retail sector projected 13% growth in 2024.
Global MSP headcount grew 7.2% to 2.1 million in 2023.
PaaS managed services sub-market USD 22.4 billion in 2023.
UK MSP market valued at GBP 18.3 billion in 2023.
Managed mobility services market to hit USD 85.6 billion by 2027.

Market Growth and Size Interpretation

While North America currently rules the MSP roost, the explosive, security-driven growth from SMBs to healthcare shows the world is finally admitting that managing IT internally is a bit like doing your own dental work—possible, but universally wiser to outsource.

Service Offerings and Technologies

Cloud services dominate MSP offerings with 55% share in 2023 portfolios.
Cybersecurity managed services used by 88% of MSPs in 2023.
Backup and disaster recovery offered by 92% of MSPs.
Helpdesk and NOC services core to 95% MSP service stacks 2023.
Microsoft 365 management by 76% of MSPs in 2023.
Network management services provided to 84% MSP clients.
VoIP and UCaaS offered by 62% of MSPs growing 25% YoY.
Endpoint detection and response (EDR) deployed by 81% MSPs.
Virtualization management (VMware/Hyper-V) in 68% MSP offerings.
Multi-cloud management services up to 47% MSP adoption 2023.
Email security and archiving by 73% of MSPs.
Compliance services (GDPR/HIPAA) offered by 59% MSPs.
IoT device management emerging in 34% MSP portfolios 2023.
SIEM as a service provided by 52% advanced MSPs.
Desktop as a service (DaaS) grown to 41% MSP offering 2023.
Penetration testing annual service by 66% MSPs.
Data center colocation management by 55% MSPs.
AI/ML operations managed by 28% cutting-edge MSPs 2023.
Wireless network optimization in 49% MSP service lines.
Vulnerability management automated by 77% MSPs.
SaaS management platforms used by 63% MSPs for optimization.
Managed print services declining to 31% MSP offerings.
Zero trust implementation services by 45% MSPs.
DevOps as a service offered by 37% MSPs to devs.
Managed detection and response (MDR) top growth at 35% adoption.
CRM/ERP hosting (Salesforce/NetSuite) by 58% MSPs.
SD-WAN deployment managed by 71% network-focused MSPs.
Patch management automated for 94% MSP endpoints.
Container orchestration (Kubernetes) by 22% MSPs.
Incident response retainers held by 64% MSPs.

Service Offerings and Technologies Interpretation

In 2023, the modern MSP has evolved from a simple break-fix helper into a comprehensive, security-first cloud conductor, whose core mission is keeping the business lights on (via near-ubiquitous backup and helpdesk) while actively fending off digital chaos with a growing arsenal of advanced services.