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
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
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
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
Sources & References
- Reference 1MARKETSANDMARKETSResearch Publication(2024)Visit source
- Reference 2INFOTECHResearch Publication(2024)Visit source
- Reference 3TECHREPUBLICResearch Publication(2024)Visit source
- Reference 4GARTNERResearch Publication(2024)Visit source
- Reference 5IDCResearch Publication(2024)Visit source
- Reference 6MARKETWATCHResearch Publication(2024)Visit source
- Reference 7CRNResearch Publication(2024)Visit source
- Reference 8SMALLBUSINESSCOMPUTINGResearch Publication(2024)Visit source
- Reference 9TECHADVISORResearch Publication(2024)Visit source
- Reference 10STATISTAResearch Publication(2024)Visit source
- Reference 11CONSULTINGResearch Publication(2024)Visit source
- Reference 12FORBESResearch Publication(2024)Visit source
- Reference 13HEALTHCAREITNEWSResearch Publication(2024)Visit source
- Reference 14COMPTIAResearch Publication(2024)Visit source
- Reference 15ISOResearch Publication(2024)Visit source
- Reference 16TECHCRUNCHResearch Publication(2024)Visit source