GITNUXREPORT 2025

Msp Industry Statistics

MSP industry booming; cybersecurity, cloud growth, automation, and customer retention surging.

Jannik Lindner

Jannik Linder

Co-Founder of Gitnux, specialized in content and tech since 2016.

First published: April 29, 2025

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Key Statistics

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The average MSP manages 50+ clients across various industries

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72% of organizations that outsource to MSPs do so to reduce IT costs

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78% of MSP customers renew their contracts annually, indicating high customer satisfaction

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The average MSP manages 150 servers and 300 endpoints per client

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The average revenue per MSP employee is approximately $226,000 annually

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The average customer retention rate for MSPs is approximately 85%, indicating strong loyalty

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The average MSP customer budget for managed services is around $50,000 annually

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The average MSP client churn rate is around 5% annually, indicating stable customer relationships

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Approximately 40% of MSPs are targeting small-to-medium enterprises (SMEs) as their primary customer base

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68% of SMBs plan to increase their use of MSPs in the next year

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Managed security services represent approximately 35% of the total MSP revenue

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More than 50% of MSPs report experiencing increased demand for cybersecurity services in 2023

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The scarcity of skilled IT professionals is the primary challenge for 60% of MSPs

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Hybrid cloud solutions are used by 65% of MSPs to deliver services

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The MSP industry has seen a profit margin increase from 10% to over 20% on average in the last five years

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58% of MSPs have adopted automated tools for service management

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The primary revenue model for 70% of MSPs is subscription-based flat-rate pricing

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MSPs specializing in healthcare IT have grown 30% faster than those serving other sectors

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The use of AI and machine learning tools by MSPs has increased by 40% since 2020

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55% of MSPs report increasing demand for managed cybersecurity services due to rising cyber threats

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The most popular MSP certification is the CompTIA MSP certification, held by 65% of MSP professionals

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48% of MSPs are expanding their offerings into managed SaaS solutions

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Cloud-based managed services now account for approximately 65% of all managed services

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North American MSPs are more likely to leverage automation tools compared to other regions, with 70% integrated into their service delivery

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The top driver for MSP growth is the increase in remote work arrangements, cited by 75% of MSPs

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33% of MSPs have achieved ISO 27001 certification for their cybersecurity management systems

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MSPs serving the education sector have experienced a 20% increase in demand over the past year

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The percentage of MSPs offering IoT managed services has doubled in the last three years, from 25% to 50%

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62% of MSPs plan to invest in staff training and certification programs in 2024, to address skill gaps

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Managed services for DevOps and software development are emerging, with 25% of MSPs planning to venture into this area by 2025

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The industry has seen a 30% increase in mergers and acquisitions among MSPs since 2020, showing industry consolidation

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The majority of MSPs (around 70%) are focusing on cybersecurity due to escalating threats

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The global MSP market size was valued at approximately $179 billion in 2022

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The North American MSP market accounted for over 45% of the global market share in 2022

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The average annual contract value (ACV) for MSPs has increased by 12% over the last three years

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The global cloud managed services market is expected to reach $220 billion by 2027, with a CAGR of 15.2%

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The number of MSPs globally has grown by over 250% in the past decade

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60% of MSPs report a year-over-year growth rate of 10% or more

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Managed services for IoT devices are projected to grow at a CAGR of 18% through 2028

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European MSP market is growing at a CAGR of 10%, reaching $45 billion by 2025

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Small MSP firms with less than 10 employees represent about 35% of the industry

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MSPs revenue from managed security services is projected to grow at a CAGR of 16%, reaching $80 billion by 2027

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The global demand for managed services is expected to reach $500 billion by 2030

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The top three service offerings among MSPs are backup and disaster recovery, network management, and cybersecurity

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Over 90% of MSPs offer some form of cloud migration services

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The average maturity level of MSPs in delivering cybersecurity services is rated at 3.2 on a 5-point scale, indicating moderate proficiency

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Key Highlights

  • The global MSP market size was valued at approximately $179 billion in 2022
  • The North American MSP market accounted for over 45% of the global market share in 2022
  • 68% of SMBs plan to increase their use of MSPs in the next year
  • Managed security services represent approximately 35% of the total MSP revenue
  • The average annual contract value (ACV) for MSPs has increased by 12% over the last three years
  • The global cloud managed services market is expected to reach $220 billion by 2027, with a CAGR of 15.2%
  • More than 50% of MSPs report experiencing increased demand for cybersecurity services in 2023
  • The average MSP manages 50+ clients across various industries
  • 72% of organizations that outsource to MSPs do so to reduce IT costs
  • The scarcity of skilled IT professionals is the primary challenge for 60% of MSPs
  • The number of MSPs globally has grown by over 250% in the past decade
  • 78% of MSP customers renew their contracts annually, indicating high customer satisfaction
  • Hybrid cloud solutions are used by 65% of MSPs to deliver services

The MSP industry is booming, with a valuation soaring to nearly $179 billion in 2022 and poised to reach over $500 billion by 2030, driven by surging demand for cybersecurity, cloud migration, and automation across SMBs and enterprises worldwide.

Customer and Client Metrics

  • The average MSP manages 50+ clients across various industries
  • 72% of organizations that outsource to MSPs do so to reduce IT costs
  • 78% of MSP customers renew their contracts annually, indicating high customer satisfaction
  • The average MSP manages 150 servers and 300 endpoints per client
  • The average revenue per MSP employee is approximately $226,000 annually
  • The average customer retention rate for MSPs is approximately 85%, indicating strong loyalty
  • The average MSP customer budget for managed services is around $50,000 annually
  • The average MSP client churn rate is around 5% annually, indicating stable customer relationships
  • Approximately 40% of MSPs are targeting small-to-medium enterprises (SMEs) as their primary customer base

Customer and Client Metrics Interpretation

With MSPs juggling 50+ clients and managing extensive digital assets, their high renewal rates and steady client retention—driven by cost-effective solutions and targeted SME outreach—highlight a resilient industry where customer satisfaction and loyalty fuel both growth and stability amid complex IT landscapes.

Industry Trends and Adoption

  • 68% of SMBs plan to increase their use of MSPs in the next year
  • Managed security services represent approximately 35% of the total MSP revenue
  • More than 50% of MSPs report experiencing increased demand for cybersecurity services in 2023
  • The scarcity of skilled IT professionals is the primary challenge for 60% of MSPs
  • Hybrid cloud solutions are used by 65% of MSPs to deliver services
  • The MSP industry has seen a profit margin increase from 10% to over 20% on average in the last five years
  • 58% of MSPs have adopted automated tools for service management
  • The primary revenue model for 70% of MSPs is subscription-based flat-rate pricing
  • MSPs specializing in healthcare IT have grown 30% faster than those serving other sectors
  • The use of AI and machine learning tools by MSPs has increased by 40% since 2020
  • 55% of MSPs report increasing demand for managed cybersecurity services due to rising cyber threats
  • The most popular MSP certification is the CompTIA MSP certification, held by 65% of MSP professionals
  • 48% of MSPs are expanding their offerings into managed SaaS solutions
  • Cloud-based managed services now account for approximately 65% of all managed services
  • North American MSPs are more likely to leverage automation tools compared to other regions, with 70% integrated into their service delivery
  • The top driver for MSP growth is the increase in remote work arrangements, cited by 75% of MSPs
  • 33% of MSPs have achieved ISO 27001 certification for their cybersecurity management systems
  • MSPs serving the education sector have experienced a 20% increase in demand over the past year
  • The percentage of MSPs offering IoT managed services has doubled in the last three years, from 25% to 50%
  • 62% of MSPs plan to invest in staff training and certification programs in 2024, to address skill gaps
  • Managed services for DevOps and software development are emerging, with 25% of MSPs planning to venture into this area by 2025
  • The industry has seen a 30% increase in mergers and acquisitions among MSPs since 2020, showing industry consolidation
  • The majority of MSPs (around 70%) are focusing on cybersecurity due to escalating threats

Industry Trends and Adoption Interpretation

With over two-thirds of SMBs increasing their MSP partnerships amidst a cybersecurity surge driven by remote work and IoT expansion, the industry's profitability doubles as automation, cloud solutions, and specialized services like healthcare IT propel MSPs into a future where skill shortages and industry consolidation remain both challenge and opportunity.

Market Size and Growth

  • The global MSP market size was valued at approximately $179 billion in 2022
  • The North American MSP market accounted for over 45% of the global market share in 2022
  • The average annual contract value (ACV) for MSPs has increased by 12% over the last three years
  • The global cloud managed services market is expected to reach $220 billion by 2027, with a CAGR of 15.2%
  • The number of MSPs globally has grown by over 250% in the past decade
  • 60% of MSPs report a year-over-year growth rate of 10% or more
  • Managed services for IoT devices are projected to grow at a CAGR of 18% through 2028
  • European MSP market is growing at a CAGR of 10%, reaching $45 billion by 2025
  • Small MSP firms with less than 10 employees represent about 35% of the industry
  • MSPs revenue from managed security services is projected to grow at a CAGR of 16%, reaching $80 billion by 2027
  • The global demand for managed services is expected to reach $500 billion by 2030

Market Size and Growth Interpretation

As the MSP industry accelerates toward a projected $500 billion global valuation by 2030, with North America commanding nearly half the market and smaller firms comprising over a third, it’s clear that managing the digital universe—be it IoT or security—is not just a service but the backbone of tomorrow’s enterprise infrastructure, demanding both wit and seriousness from industry leaders navigating a 250% growth surge and a 15.2% CAGR in cloud services.

Service Offerings and Specializations

  • The top three service offerings among MSPs are backup and disaster recovery, network management, and cybersecurity
  • Over 90% of MSPs offer some form of cloud migration services
  • The average maturity level of MSPs in delivering cybersecurity services is rated at 3.2 on a 5-point scale, indicating moderate proficiency

Service Offerings and Specializations Interpretation

While MSPs fiercely compete in backup, network management, and cybersecurity—and over 90% are embracing cloud migration—their moderate cybersecurity maturity score of 3.2 highlights that there's still significant room for industry-wide improvement in protecting digital assets.