From a staggering USD 300 billion industry growing at breakneck speed to the remarkable fact that 67% of organizations now rely on them, the global managed services provider (MSP) market isn't just thriving—it's fundamentally reshaping how businesses of every size secure, manage, and power their technology.
Key Takeaways
- The global managed services market size was valued at USD 271.2 billion in 2022 and is projected to reach USD 457.0 billion by 2030, growing at a CAGR of 7.9% from 2023 to 2030
- North America's managed services market dominated with over 37.0% revenue share in 2022, driven by high cloud adoption among SMEs
- The managed security services segment accounted for 28.4% of the total managed services market revenue in 2022
- The average annual revenue per MSP client was USD 45,000 in 2023 for North American providers
- MSPs reported average gross margins of 52% on managed services in 2023, up from 48% in 2022
- Recurring revenue accounted for 78% of total MSP revenue in 2023 globally
- 67% of organizations outsource at least some IT management to MSPs in 2023
- SMEs represent 62% of MSP client base globally in 2023
- 78% of mid-market firms (250-1000 employees) use MSPs for cloud management in 2023
- Cybersecurity managed services adopted by 88% of MSP clients in 2023
- Cloud migration services offered by 92% of MSPs, used by 70% clients in 2023
- Endpoint detection & response (EDR) deployed in 65% of MSP-managed environments 2023
- 92% of MSPs cite cybersecurity threats as top challenge in 2023 surveys
- MSP talent shortage affects 76% providers, with 25% engineer vacancy rate in 2023
- Average MSP cyber breach cost per client incident USD 150,000 in 2023
The global managed services market is rapidly growing and diversifying across sectors and regions.
Challenges, Risks & Projections
- 92% of MSPs cite cybersecurity threats as top challenge in 2023 surveys
- MSP talent shortage affects 76% providers, with 25% engineer vacancy rate in 2023
- Average MSP cyber breach cost per client incident USD 150,000 in 2023
- Regulatory compliance burdens increased for 68% MSPs in 2023
- MSP market projected to reach USD 500 billion by 2030, CAGR 8.5% from 2024
- 55% MSPs expect AI automation to reduce staff needs by 20% by 2027
- Supply chain risks disrupted 41% MSP operations in 2023
- Client churn due to pricing projected to rise 10% by 2025 for 62% MSPs
- Global MSP M&A activity up 35% in 2023, projected 28% CAGR to 2028
- Economic downturn risks could slow MSP growth to 5% in 2024 per 67% respondents
- 49% MSPs face increasing competition from hyperscalers like AWS by 2025
- Projected MSP cybersecurity spend to hit USD 150 billion by 2027, CAGR 13%
- Skills gap in cloud certs affects 71% MSPs, projected resolution by 2028
- Climate-related data center risks concern 38% MSPs in 2023 surveys
- MSPs forecast 15% revenue growth in 2024 despite 22% inflation pressures
- Quantum computing threats to encryption projected to impact MSPs by 2030
- 63% MSPs predict edge computing boom, but integration challenges ahead
- Vendor lock-in risks cited by 52% MSP clients in 2023
- MSPs expect 25% workforce upskilling investment rise by 2026
- Ransomware attack frequency on MSP clients up 30% in 2023, projected 20% annual rise
- Sustainability mandates to affect 45% MSP service models by 2027
- Hybrid work persistence challenges MSPs with 58% endpoint management issues 2023
- MSP profitability pressures from commoditization expected in 40% services by 2025
- Global chip shortages to linger, impacting 29% MSP hardware services to 2025
- AI ethics and bias risks projected to challenge 37% MSP AI deployments by 2026
Challenges, Risks & Projections Interpretation
Despite glowing with a half-trillion dollar future, the MSP industry must desperately juggle the chaotic trio of relentless cyber threats, a debilitating talent shortage, and hungry hyperscalers—all while trying to stop clients from fleeing over price hikes and hoping their own AI doesn't become a liability.
Client Demographics & Adoption
- 67% of organizations outsource at least some IT management to MSPs in 2023
- SMEs represent 62% of MSP client base globally in 2023
- 78% of mid-market firms (250-1000 employees) use MSPs for cloud management in 2023
- Healthcare sector adoption of MSPs reached 55% in North America 2023
- 45% of retail businesses adopted managed security services from MSPs in 2023
- Enterprise adoption of multi-cloud MSPs hit 72% in 2023, up 15% YoY
- 81% of U.S. SMBs plan to increase MSP spending in 2024 per 2023 survey
- Manufacturing firms using MSPs for IoT management: 38% in 2023
- BFSI sector MSP adoption rate 68% globally in 2023
- 52% of government entities contracted MSPs in 2023 for compliance services
- Education sector MSP penetration 49% in 2023, highest for remote learning support
- APAC SMB MSP adoption grew to 55% in 2023 from 42% in 2020
- 64% of European enterprises use MSPs for endpoint management in 2023
- U.K. SMBs with MSPs: 58% in 2023
- Australian firms adopting MSPs reached 61% in 2023
- 73% of MSP clients are in professional services sector per 2023 data
- Average MSP client tenure is 4.2 years in 2023
- 29% of MSP clients are multi-location businesses in 2023
- Female-led businesses adopting MSPs at 48% rate in 2023
- 66% of clients under 250 employees use MSPs primarily for helpdesk
- Construction industry MSP adoption 41% in 2023
- 75% of MSP clients report satisfaction scores above 8/10 in 2023 NPS surveys
- Hospitality sector using MSPs for VoIP: 53% in 2023
- Average number of MSPs per enterprise client: 2.3 in 2023
- Non-profit MSP adoption 39% in 2023
- 59% of clients in tech startups use MSPs in 2023
- MSP clients in transportation: 47% adoption rate 2023
Client Demographics & Adoption Interpretation
While skepticism whispers "outsourcing is for the weak," the data shouts that strategic reliance on MSPs has become the sophisticated, sector-spanning norm for organizations of all sizes, as evidenced by two-thirds of companies now trusting them, four out of five planning to spend even more, and the average client sticking around for over four years because it simply works.
Market Size & Growth
- The global managed services market size was valued at USD 271.2 billion in 2022 and is projected to reach USD 457.0 billion by 2030, growing at a CAGR of 7.9% from 2023 to 2030
- North America's managed services market dominated with over 37.0% revenue share in 2022, driven by high cloud adoption among SMEs
- The managed security services segment accounted for 28.4% of the total managed services market revenue in 2022
- Asia Pacific managed services market is expected to grow at the highest CAGR of 9.2% from 2023 to 2028 due to digital transformation initiatives
- U.S. managed services market revenue reached USD 102.3 billion in 2022, representing 38% of global share
- Global MSP market grew by 12% YoY in 2023, reaching approximately USD 300 billion
- Europe's managed services market was valued at EUR 85 billion in 2022, with a projected CAGR of 8.1% through 2027
- SMB segment in managed services grew 15% in 2023, outpacing enterprise growth of 9%
- Cloud managed services sub-market expanded to USD 150 billion in 2023, CAGR 11.5% forecasted to 2030
- Latin America MSP market projected to hit USD 25 billion by 2027, growing at 10.3% CAGR from 2022 base of USD 15 billion
- Middle East & Africa managed services market valued at USD 18.5 billion in 2022, expected CAGR 9.8%
- IT managed services segment held 42% market share in 2023 globally
- Managed services market in India grew 18% YoY to USD 12.4 billion in FY2023
- Australia's MSP market reached AUD 15.2 billion in 2023, CAGR 7.5% projected to 2028
- Managed services penetration in global enterprises reached 65% in 2023, up from 55% in 2020
- Global MSP market for healthcare sector valued at USD 35 billion in 2022, CAGR 12.1%
- Retail managed services market grew to USD 22 billion in 2023, 14% YoY increase
- Manufacturing MSP segment at USD 40 billion in 2023, projected CAGR 8.7% to 2030
- Telecom managed services market size USD 95 billion in 2022, CAGR 7.2%
- BFSI managed services reached USD 55 billion globally in 2023
- Energy & utilities MSP market USD 28 billion in 2022, growth 9.5% CAGR
- Global MSP market for SMEs projected to grow from USD 120 billion in 2023 to USD 220 billion by 2030
- Enterprise MSP market CAGR 6.8% from 2023-2030, starting at USD 180 billion
- Hybrid cloud managed services grew 20% in 2023 to USD 60 billion
- Managed services in APAC SMEs hit USD 45 billion in 2023, CAGR 10.2%
- U.K. MSP market valued at GBP 12.5 billion in 2023
- German managed services market EUR 25 billion in 2022, CAGR 8.3%
- Canadian MSP market CAD 18 billion in 2023, growth 11%
- Brazil MSP market BRL 40 billion in 2023, CAGR 12.5%
- Japan managed services market JPY 3.5 trillion in FY2023
Market Size & Growth Interpretation
While everyone is busy arguing about whether to build or buy tech talent, the world's businesses have quietly and wisely voted with their wallets, creating a $300 billion-and-growing global industry where "managed services" really just means "we'll handle the IT so you can run the damn company."
Revenue Statistics
- The average annual revenue per MSP client was USD 45,000 in 2023 for North American providers
- MSPs reported average gross margins of 52% on managed services in 2023, up from 48% in 2022
- Recurring revenue accounted for 78% of total MSP revenue in 2023 globally
- Top 10% MSPs achieved average annual revenue growth of 25% in 2023
- Average MSP revenue from cybersecurity services was 32% of total in 2023
- SMB-focused MSPs had average revenue per employee of USD 220,000 in 2023
- Managed cloud services generated 45% of MSP revenue in EMEA in 2023, averaging EUR 1.2 million per firm
- U.S. MSP average contract value rose to USD 52,000 annually in 2023 from USD 48,000 in 2022
- Project-based revenue comprised 22% of MSP total revenue in 2023, with average project size USD 15,000
- MSPs with RMM tools saw 18% higher revenue per client at USD 55,000 in 2023
- Average MSP EBITDA margin was 18% for firms over USD 5M revenue in 2023
- Cybersecurity MSPs averaged USD 3.2 million annual revenue in 2023, 28% YoY growth
- European MSPs reported average revenue of EUR 2.8 million per firm in 2023
- MSP revenue from backup & DR services averaged 15% of total, USD 28,000 per client in 2023
- Top MSPs derived 60% revenue from proactive services in 2023, boosting margins to 55%
- Average upsell revenue per MSP client was USD 12,000 in 2023
- MSPs in APAC averaged USD 1.5 million revenue per firm in 2023, 22% growth
- U.K. MSP average revenue GBP 2.1 million in 2023, with 65% recurring
- Managed print services revenue for MSPs averaged USD 18,000 per client annually in 2023
- MSP net promoter score correlated with 15% higher revenue growth in 2023 survey
- Average MSP cost per acquisition of new client was USD 8,500 in 2023
- Firms with PSA software had 12% higher revenue efficiency at USD 250k per employee
- MSP revenue churn rate averaged 8% in 2023, lowest for cybersecurity-focused at 5%
- Latin American MSPs averaged USD 900k revenue per firm in 2023
- MSPs charging per device averaged USD 25/device/month revenue in 2023
- 42% of MSP revenue came from services beyond basic IT in 2023, averaging USD 35k/client
Revenue Statistics Interpretation
While we're clearly in a golden age of recurring revenue and juicy margins, the real story is that the top MSPs aren't just babysitting servers; they're strategically morphing into high-margin, cybersecurity-focused consultants who expertly upsell clients from being a cost center to becoming a genuine business advantage.
Service Offerings & Technologies
- Cybersecurity managed services adopted by 88% of MSP clients in 2023
- Cloud migration services offered by 92% of MSPs, used by 70% clients in 2023
- Endpoint detection & response (EDR) deployed in 65% of MSP-managed environments 2023
- Multi-factor authentication enforcement by MSPs covered 82% client users in 2023
- Backup & disaster recovery solutions from MSPs protected 77% of client data in 2023
- Managed detection & response (MDR) services grew 40% YoY, offered by 55% MSPs 2023
- VoIP & unified communications managed by MSPs for 48% clients in 2023
- Zero-trust network access implemented via MSPs in 35% environments 2023
- AI-driven monitoring tools used by 62% MSPs for predictive maintenance 2023
- Managed Wi-Fi services provided to 41% SMB clients by MSPs in 2023
- Patch management automated for 89% MSP client endpoints in 2023
- Container management services offered by 28% MSPs to enterprises 2023
- Email security gateways managed by MSPs for 76% clients 2023
- IoT device management via MSPs covered 22% manufacturing clients 2023
- SIEM as a service from MSPs utilized by 51% mid-market firms 2023
- Desktop as a service (DaaS) adoption via MSPs at 39% in 2023
- Vulnerability scanning performed monthly by 84% MSPs for clients 2023
- Managed blockchain services emerging, offered by 12% MSPs 2023
- Network performance monitoring by MSPs for 67% clients 2023
- Compliance management (GDPR/HIPAA) handled by MSPs for 59% clients 2023
- Edge computing management services from 19% MSPs in 2023
- Phishing simulation training delivered by 73% MSPs to clients 2023
- Managed DevOps services used by 26% enterprise clients via MSPs 2023
- Ransomware protection stacks deployed by 91% MSPs in 2023
- Virtual desktop infrastructure (VDI) managed for 33% remote work clients 2023
- API management services offered by 21% MSPs to SaaS clients 2023
- Incident response retainers held by 44% MSP clients in 2023
- Managed 5G connectivity services launched by 15% MSPs 2023
- Quantum-safe cryptography prep services by 8% MSPs in 2023
Service Offerings & Technologies Interpretation
The modern MSP has become the indispensable Swiss Army knife for business, where even though they're hammering clients with multi-factor authentication and patching everything in sight, the fact that 91% have ransomware protection ready shows everyone knows we're not just moving to the cloud but fortifying a digital Alamo.
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