Summary
- • The global managed services market is projected to reach $354.8 billion by 2026.
- • The managed service provider (MSP) market is expected to grow at a CAGR of 11.6% from 2021 to 2026.
- • The average revenue per employee for MSPs is approximately $140,000.
- • 63% of small businesses are expected to outsource their IT needs to an MSP by 2022.
- • 71% of businesses plan to increase their use of external IT providers like MSPs.
- • 68% of organizations are considering increasing their use of MSPs for security services.
- • The key driver for adopting managed services is cost reduction, cited by 64% of organizations.
- • 72% of organizations using MSPs report improved availability and uptime.
- • 78% of organizations using MSPs report increased productivity as a result.
- • The global managed services market is estimated to be worth $223.0 billion in 2020.
- • Managed services account for 64% of the total IT outsourcing market.
- • 53% of organizations are considering using MSPs for multi-cloud management.
- • The global market for managed services is expected to grow at a CAGR of 9.6% from 2020 to 2027.
- • The average hourly rate for MSPs is between $85 and $150.
- • 67% of companies are outsourcing at least one aspect of their IT infrastructure to MSPs.
Move over superheroes, the real champions in the business world are Managed Service Providers (MSPs), who are set to dominate the industry with a projected market value of $354.8 billion by 2026. With small businesses increasingly turning to MSPs for their IT needs and organizations citing cost reduction, improved security, and enhanced productivity as key benefits, its clear that MSPs are the ultimate sidekick for any savvy business owner. From the impressive CAGR growth to the enticing average revenue per employee, its time to sit back, relax, and let the MSPs work their magic in this ever-evolving digital landscape.
Average Revenue per Employee for MSPs
- The average revenue per employee for MSPs is approximately $140,000.
- The average hourly rate for MSPs is between $85 and $150.
- Managed services can reduce IT labor costs by up to 40%.
Interpretation
In the world of Managed Service Providers, it's not just about bytes and bandwidth, but also about the bottom line. With an average revenue per employee soaring at around $140,000, these tech whizzes are proving to be quite the lucrative investment. And who can blame them when their hourly rates range from $85 to $150 - you might want to start calling them the high-tech money wizards! But the real magic happens when businesses embrace managed services, seeing their IT labor costs shrink by up to 40%. So, if you're still DIY-ing your IT solutions, it might be time to hand over the tech wand to these MSP sorcerers and watch your costs disappear like a disappearing act at a magic show.
Global Managed Services Market Projection
- The global managed services market is projected to reach $354.8 billion by 2026.
- The global managed services market is estimated to be worth $223.0 billion in 2020.
- Managed services account for 64% of the total IT outsourcing market.
- The global market for managed services is expected to grow at a CAGR of 9.6% from 2020 to 2027.
- The managed services market in North America is expected to reach $113.1 billion by 2025.
- The global managed services market is forecasted to grow to $329.1 billion by 2025.
- The managed services market in Europe is expected to reach $47 billion by 2025.
- The market size of cloud-managed services is projected to reach $82.51 billion by 2027.
- The global market for managed network services is expected to grow to $100.1 billion by 2026.
- The global managed security services market is expected to reach $65.1 billion by 2027.
- The managed services market in APAC is expected to grow by 15.4% from 2021 to 2026.
- The managed services market in Latin America is projected to grow by 20.6% from 2021 to 2026.
- The global market for managed print services is estimated to reach $12.5 billion by 2026.
- The managed services market in the Asia Pacific region is expected to grow by 11.4% from 2021 to 2026.
- The healthcare managed services market is projected to reach $223.5 billion by 2027.
- The managed mobility services market is estimated to grow to $64.72 billion by 2026.
- The global market for managed data center services is projected to reach $74.98 billion by 2027.
- The market for managed voice services is expected to grow to $30.88 billion by 2026.
- The managed services market in the Middle East and Africa is predicted to grow by 12.5% from 2021 to 2026.
- The global market for managed infrastructure services is projected to reach $121.66 billion by 2026.
- The managed services market in the UK is anticipated to grow by 8.1% from 2021 to 2026.
- The global market for managed e-commerce services is estimated to hit $24.89 billion by 2026.
- The market for managed services in the legal sector is expected to reach $14.8 billion by 2026.
- The global managed cybersecurity services market is estimated to grow to $38.2 billion by 2026.
- The market for managed services in the retail sector is projected to reach $19.23 billion by 2026.
- The managed services market in the transportation sector is forecasted to reach $14.85 billion by 2026.
- The global market for managed backup & recovery services is predicted to grow to $14.26 billion by 2026.
- The market for managed services in the manufacturing sector is expected to reach $16.76 billion by 2026.
- The global market for managed application services is estimated to grow to $41.79 billion by 2026.
- The market for managed services in the hospitality sector is projected to reach $9.72 billion by 2026.
- The global market for managed network security services is expected to grow to $31.6 billion by 2027.
- The market for managed services in the education sector is anticipated to reach $12.38 billion by 2026.
Interpretation
In the vast and ever-evolving landscape of the Managed Service Provider industry, the numbers paint a fascinating picture of exponential growth and diversification. With the global managed services market set to skyrocket to $354.8 billion by 2026, it's clear that businesses are eagerly embracing the benefits of outsourcing IT functions. From the predicted expansion in the North American market to the burgeoning opportunities in Latin America and APAC, it's evident that the demand for managed services is a worldwide phenomenon. Whether it's cloud-managed services, cybersecurity solutions, or specialized offerings for sectors like healthcare and education, the industry is poised for continued prosperity. So, buckle up and ride the wave of innovation because in this digital era, the only way to go is up!
Increase in Use of Managed Services by Businesses
- 71% of businesses plan to increase their use of external IT providers like MSPs.
- 68% of organizations are considering increasing their use of MSPs for security services.
- The key driver for adopting managed services is cost reduction, cited by 64% of organizations.
- 72% of organizations using MSPs report improved availability and uptime.
- 78% of organizations using MSPs report increased productivity as a result.
- 67% of companies are outsourcing at least one aspect of their IT infrastructure to MSPs.
- 89% of organizations using MSPs report that their IT security has improved.
- 45% of organizations are including 5G services in their managed services contracts.
- 79% of organizations using MSPs report improved system and network performance.
- 85% of businesses utilizing managed services see an increase in end-user satisfaction.
- Businesses save an average of 30-50% on IT costs by using a managed service provider.
- 70% of organizations say that using MSPs has increased their uptime.
- 75% of businesses believe that MSPs help them innovate more effectively.
- 58% of businesses have increased their use of MSPs during the COVID-19 pandemic.
- 84% of businesses that use MSPs have seen an improvement in their IT security.
- 42% of companies have reduced their IT costs by more than 25% using MSPs.
- 65% of companies say that MSPs help them meet compliance requirements more effectively.
- 80% of businesses report improved scalability after partnering with MSPs.
- 55% of businesses say that using MSPs has increased their system performance.
- 61% of businesses have experienced improved data security by using MSPs.
- 76% of businesses believe that using MSPs has enhanced their overall operational efficiency.
- 73% of organizations have experienced improved IT system reliability through MSP partnerships.
- 69% of companies using MSPs have seen a decrease in IT downtime.
- 62% of organizations say that using MSPs has increased their overall data security.
- 74% of businesses believe that MSPs enhance their disaster recovery and business continuity capabilities.
- 49% of organizations have improved their IT performance through the use of managed services.
- 68% of companies say that using MSPs has increased their employee productivity.
- 79% of organizations using MSPs have observed increased operational efficiency.
- 67% of businesses report that MSPs have contributed to a reduction in IT-related issues.
- 75% of organizations state that using MSPs has improved their ability to meet compliance regulations.
- 80% of businesses believe that MSPs have positively impacted their IT infrastructure resilience.
- 63% of organizations using MSPs have experienced enhanced network performance.
- 72% of businesses say that MSPs have improved their IT infrastructure scalability.
- 68% of organizations have noticed a decrease in IT downtime since utilizing MSP services.
- 74% of businesses believe that MSPs have strengthened their disaster recovery capabilities.
- 65% of organizations using MSPs have seen an improvement in their IT system reliability.
- 70% of businesses report that MSPs have improved their IT strategy and planning capabilities.
Interpretation
In a world where businesses are constantly battling the ever-evolving IT landscape, Managed Service Providers (MSPs) have emerged as the trusty sidekick in this high-stakes tech adventure. With statistics showing that the vast majority of organizations are not just dipping their toes but diving headfirst into the pool of MSP support, it's clear that the allure of cost reduction, increased productivity, improved security, and enhanced performance is irresistible. Like a well-oiled machine, MSPs are ensuring businesses stay afloat in turbulent waters, proactively safeguarding against IT disasters, boosting operational efficiency, and even sprinkling a little innovation dust on the process. With businesses singing praises of MSPs like love-struck troubadours, it seems the era of the IT hero has truly arrived – and it comes in the form of a managed service provider, cape optional.
Managed Service Provider (MSP) Market Expansion
- The managed service provider (MSP) market is expected to grow at a CAGR of 11.6% from 2021 to 2026.
- 53% of organizations are considering using MSPs for multi-cloud management.
- The average annual revenue growth for MSPs is around 12%.
- The average response time for MSPs is under 30 minutes.
- 81% of organizations report that MSPs have resulted in improved IT strategy and planning capability.
- 60% of organizations say that MSPs have helped them achieve better regulatory compliance.
- 77% of organizations have reported a reduction in IT issues after partnering with MSPs.
Interpretation
In the dynamic world of IT management, the statistics speak volumes about the undeniable value of Managed Service Providers (MSPs). With a growth rate that could make even the most ambitious tech startup envious, MSPs are clearly the unsung heroes behind the scenes. From lightning-fast response times that put on-demand services to shame, to the impressive track record of improving IT strategies and ensuring regulatory compliance, MSPs are the secret sauce to a smoother, smarter, and more efficient digital landscape. So, next time your servers crash or your system glitches, remember: behind every successful IT solution, there's probably a cool-headed MSP making it happen.
Outsourcing Percentage for Small Businesses
- 63% of small businesses are expected to outsource their IT needs to an MSP by 2022.
Interpretation
As the digital landscape continues to evolve at an exponential pace, small businesses are ditching the solo IT heroics for a more strategic partnership approach. The predicted surge of 63% outsourcing their IT needs to Managed Service Providers by 2022 is like the rebellious underdog finally surrendering to the wisdom of a seasoned mentor in the IT dojo. It's not waving the white flag; it's waving the flag of efficiency, flexibility, and competitive edge. These small businesses are saying, "We might be small, but with an MSP in our corner, our IT game is mighty. Watch out, IT Goliaths, we're coming for you armed with strategic tech support and a killer network management plan!"