This page explains how the MSP industry is evolving across the U.S. and global markets. It connects key pressures like cybersecurity threats (77% of MSPs) and talent shortages (82%) to the operational model: recurring revenue is 82% of total MSP income. You’ll also see how cloud costs, RMM adoption, and AI/ML uptake influence growth by region and service line through 2030.
Key Takeaways
- 77% of MSPs cite cybersecurity threats as top challenge in 2023.
- Talent shortage affects 82% MSPs, with 45% unable to fill engineer roles 2023.
- 64% MSPs report margin pressure from rising cloud costs 2023.
- 68% of SMBs use MSPs, with average spend $15,000 annually per client in 2023.
- 92% of enterprises with over 1,000 employees partner with at least one MSP in 2023.
- Adoption rate of MSP services among U.S. SMBs reached 55% in 2023, up from 48% in 2022.
- The global managed services market size was valued at USD 287.9 billion in 2023 and is projected to grow to USD 511.9 billion by 2030, exhibiting a CAGR of 7.6% from 2024 to 2030.
- North America's managed services market accounted for over 37.0% of the global revenue share in 2023 due to high cloud adoption and cybersecurity needs.
- The IT managed services segment dominated the market with a revenue share of 35.8% in 2023, driven by demand for infrastructure management.
- Average annual revenue per MSP employee was $250,000 in 2023 for top performers.
- MSPs reported average 18.5% profit margins in 2023, up from 15.2% in 2022.
- Recurring revenue accounted for 82% of total MSP income in 2023.
- Cloud services dominate MSP offerings with 92% provider adoption in 2023.
- 85% of MSPs offer cybersecurity as core service in 2023 surveys.
- RMM tool usage among MSPs reached 96% in 2023.
In 2023, MSPs faced cybersecurity and talent gaps while growing through recurring cloud focused services.
Related reading
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01 · Category
Challenges And Future Outlook30 stats
01
77% of MSPs cite cybersecurity threats as top challenge in 2023.
02
Talent shortage affects 82% MSPs, with 45% unable to fill engineer roles 2023.
03
64% MSPs report margin pressure from rising cloud costs 2023.
04
Supply chain disruptions impacted 39% MSP hardware deliveries 2023.
05
Regulatory compliance challenges for 71% MSPs handling GDPR/CCPA 2023.
06
56% MSPs face client churn due to poor communication 2023 surveys.
07
Economic uncertainty led 48% MSPs to delay expansions in 2023.
08
69% MSPs struggle with multi-vendor tool integration 2023.
09
Ransomware attacks rose 33% against MSP clients in 2023.
10
53% MSPs report scaling automation as major hurdle 2023.
11
Client expectations for 24/7 support unmet by 61% MSPs 2023.
12
44% MSPs face competition from hyperscalers like AWS 2023.
13
Skills gap in AI/cloud widest at 67% MSP workforce 2023.
14
58% MSPs cite inflation eroding 12-15% of profits 2023.
15
Data sovereignty issues challenge 49% global MSPs 2023.
16
72% MSPs worry about burnout among technicians 2023.
17
Vendor lock-in affects 37% MSP client migrations 2023.
18
65% MSPs predict AI ethics as emerging challenge by 2025.
19
Remote work security gaps reported by 59% MSPs 2023.
20
46% MSPs struggle with sustainable IT practices 2023.
21
Pricing transparency issues led to 29% lost deals for MSPs 2023.
22
63% MSPs face third-party risk management hurdles 2023.
23
Quantum computing threats anticipated by 21% MSPs by 2030.
24
54% MSPs report difficulties in measuring ROI for clients 2023.
25
Legacy system modernization blocks 51% MSP projects 2023.
26
68% MSPs foresee supply chain cyber risks increasing 2024.
27
Diversity hiring lags at 33% MSP workforce representation 2023.
28
47% MSPs challenged by rapid tech obsolescence cycles 2023.
29
Insider threats managed inadequately by 42% MSPs 2023.
30
60% MSPs predict geopolitical tensions impacting ops by 2025.
Interpretation
Challenges And Future Outlook Interpretation
In the Challenges And Future Outlook for MSPs, cybersecurity and compliance pressures are climbing alongside talent and cost constraints, with 77% citing security threats, 71% struggling with GDPR and CCPA, and 82% battling talent shortages while 64% feel margin pressure from rising cloud costs.
02 · Category
Customer And Adoption Metrics30 stats
01
68% of SMBs use MSPs, with average spend $15,000 annually per client in 2023.
02
92% of enterprises with over 1,000 employees partner with at least one MSP in 2023.
03
Adoption rate of MSP services among U.S. SMBs reached 55% in 2023, up from 48% in 2022.
04
47% of healthcare organizations rely on MSPs for compliance management in 2023.
05
Global MSP customer retention rate averaged 91.2% in 2023 for top providers.
06
62% of retail businesses adopted MSP cloud services post-2023 pandemic shifts.
07
Manufacturing sector MSP adoption grew to 58% in Europe 2023.
08
75% of financial institutions use MSPs for cybersecurity, per 2023 surveys.
09
Average MSP client tenure 4.2 years in North America 2023.
10
81% of APAC enterprises plan to increase MSP spend in 2024, based on 2023 data.
11
MSP penetration in education sector hit 49% globally in 2023.
12
66% of government agencies outsourced IT to MSPs in 2023 U.S. survey.
13
Hybrid work drove 34% increase in MSP adoption among remote-first companies 2023.
14
53% of startups under 50 employees use MSPs as primary IT in 2023.
15
Customer satisfaction score for MSPs averaged 4.6/5 in 2023 reviews.
16
70% of law firms adopted MSP managed security in 2023.
17
MSP multi-client management grew 25% with 3.8 average clients per SMB in 2023.
18
59% adoption rate for MSP backup solutions in EMEA 2023.
19
Non-profits MSP usage up 41% to 52% of sector in 2023.
20
84% of Fortune 500 use multiple MSPs for specialized services 2023.
21
Average number of MSP vendors per enterprise client 2.7 in 2023.
22
MSP adoption in logistics 61%, driven by IoT needs 2023.
23
48% of mid-market firms (250-999 employees) fully outsource to MSPs 2023.
24
Client acquisition cost for MSPs averaged $4,200in 2023.
25
76% of clients renew MSP contracts annually, per 2023 benchmarks.
26
MSPs serve average 145 clients per provider in U.S. 2023.
27
67% of energy firms adopted MSP edge computing in 2023.
28
Cybersecurity MSPs saw 88% client growth in high-risk industries 2023.
29
MSP share of total IT spend for SMBs 28% in 2023.
30
55% of MSP clients are in professional services sector 2023.
Interpretation
Customer And Adoption Metrics Interpretation
Customer and adoption metrics show MSP momentum is widening across segments, with SMB MSP usage rising to 55% in 2023 from 48% in 2022 and enterprises with over 1,000 employees reaching 92% who partner with at least one MSP.
03 · Category
Market Size And Growth30 stats
01
The global managed services market size was valued at USD 287.9 billion in 2023 and is projected to grow to USD 511.9 billion by 2030, exhibiting a CAGR of 7.6% from 2024 to 2030.
02
North America's managed services market accounted for over 37.0% of the global revenue share in 2023 due to high cloud adoption and cybersecurity needs.
03
The IT managed services segment dominated the market with a revenue share of 35.8% in 2023, driven by demand for infrastructure management.
04
Asia Pacific managed services market is expected to grow at the fastest CAGR of 8.2% from 2024 to 2030, fueled by digital transformation in SMEs.
05
The managed services market in Europe was valued at USD 78.4 billion in 2023, supported by stringent data regulations like GDPR.
06
Global MSP market revenue reached $381 billion in 2022, with a forecasted CAGR of 12.3% through 2027.
07
U.S. MSP market size hit $142 billion in 2023, representing 45% of North American total.
08
Cloud managed services sub-segment grew by 18.5% YoY in 2023, outpacing overall market at 7.6%.
09
By 2025, 50% of global enterprises are expected to use MSPs for more than half of their IT infrastructure.
10
Latin America MSP market expanded 15.2% in 2023 to $12.5 billion, driven by remote work trends.
11
Middle East MSP market projected to reach $25 billion by 2028 at CAGR 9.8% from 2024 base of $14.2 billion.
12
Security managed services grew 22% in 2023 to $68 billion globally.
13
SMB segment in MSP market share increased to 42% in 2023 from 38% in 2022.
14
Hybrid cloud MSP services market valued at $112 billion in 2023, CAGR 14.1% to 2030.
15
Telecom sector MSP adoption drove 28% of market growth in 2023.
16
Global MSP market to hit $647 billion by 2032, growing at 7.9% CAGR from 2024.
17
Healthcare MSP segment reached $45.3 billion in 2023, up 11.4% YoY.
18
Retail MSP market in APAC grew 19.3% in 2023 to $18.7 billion.
19
Overall MSP industry CAGR forecasted at 8.5% for 2024-2029 period.
20
U.K. MSP market size $22.1 billion in 2023, projected $35.4 billion by 2028.
21
Managed services market in India valued at $5.8 billion in 2023, CAGR 12.7% to 2030.
22
BFSI sector contributed 24.5% to global MSP revenue in 2023.
23
MSP market for AI-driven services expected to grow 25.6% annually to 2028.
24
Global MSP outsourcing market hit $295 billion in 2023.
25
China MSP market share 15.2% of APAC in 2023, valued at $28.4 billion.
26
Energy & Utilities MSP segment up 13.8% to $22 billion in 2023.
27
MSP market penetration in manufacturing reached 62% in 2023 globally.
28
Projected MSP market volume $450 billion by end of 2024.
29
Australia MSP market grew 10.2% to $9.5 billion in 2023.
30
MSP services for 5G expected CAGR 16.7% from 2024-2030.
Interpretation
Market Size And Growth Interpretation
The managed services market is expanding rapidly with growth from USD 287.9 billion in 2023 to USD 511.9 billion by 2030, underscoring strong market size momentum for MSPs as North America leads with over 37.0% of global revenue share in 2023.
More related reading
04 · Category
Revenue Statistics28 stats
01
Average annual revenue per MSP employee was $250,000in 2023 for top performers.
02
MSPs reported average 18.5% profit margins in 2023, up from 15.2% in 2022.
03
Recurring revenue accounted for 82% of total MSP income in 2023.
04
Top 10% MSPs achieved $5.2 million average annual revenue in 2023.
05
Project-based revenue grew 12% YoY to 18% of total MSP revenue in 2023.
06
MSP average MRR per client hit $1,850in North America 2023.
07
65% of MSPs saw revenue growth over 20% in 2023 due to cybersecurity services.
08
Hardware sales contributed 11% to MSP revenue streams in 2023.
09
European MSPs averaged €2.1 million ARR per firm in 2023.
10
MSP billable utilization rate averaged 72% in 2023 for mid-sized providers.
11
Cloud services generated 45% of MSP revenue in 2023 globally.
12
Average MSP pricing per user per month for security was $12.50in 2023.
13
42% of MSP revenue from managed backup services in SMB segment 2023.
14
High-growth MSPs (25%+ YoY) averaged 28% EBITDA margins in 2023.
15
APAC MSPs saw average revenue increase of 22.4% in 2023.
16
Managed print services revenue $19 billion globally for MSPs in 2023.
17
MSPs with RMM tools reported 15% higher revenue per tech in 2023.
18
Average contract value for enterprise MSP deals $450,000annually in 2023.
19
55% of MSPs diversified revenue to include consulting, boosting totals by 14% in 2023.
20
Latin American MSP average revenue per client $8,200ARR in 2023.
21
MSP SaaS revenue share reached 38% of total in 2023.
22
Top MSPs had $120,000revenue per employee in security services 2023.
23
Managed network services generated $92 billion for MSPs worldwide 2023.
24
SMB MSPs averaged $2.8 million total revenue in 2023.
25
Pricing for managed VoIP services averaged $25/user/month across MSPs 2023.
26
73% of MSP revenue growth attributed to upselling in 2023 surveys.
27
Enterprise MSP contracts averaged 9% higher revenue growth than SMB in 2023.
28
MSP revenue from disaster recovery services up 17% to $15.4 billion 2023.
Interpretation
Revenue Statistics Interpretation
For Revenue Statistics, the strongest signal is that recurring revenue drives MSP growth with 82% of total income in 2023, while profit margins climbed to 18.5% from 15.2% as top performers reached $5.2 million in average annual revenue.
05 · Category
Technology And Services30 stats
01
Cloud services dominate MSP offerings with 92% provider adoption in 2023.
02
85% of MSPs offer cybersecurity as core service in 2023 surveys.
03
RMM tool usage among MSPs reached 96% in 2023.
04
AI/ML integration in MSP services adopted by 43% of providers 2023.
05
Managed detection and response (MDR) offered by 67% MSPs in 2023.
06
74% MSPs provide multi-cloud management services 2023.
07
Backup and DR solutions core to 89% MSP portfolios 2023.
08
IoT management services launched by 31% MSPs in 2023.
09
PSA software adoption 82% among MSPs for ticketing 2023.
10
Zero-trust architecture implemented by 52% MSP clients via providers 2023.
11
65% MSPs offer DevOps as managed service 2023.
12
Edge computing services provided by 39% of MSPs 2023.
13
SOC-as-a-Service utilization 48% among MSP security offerings 2023.
14
Container management (Kubernetes) by 27% MSPs 2023.
15
91% MSPs use automation tools for routine tasks 2023.
16
Managed 5G services piloted by 22% MSPs targeting enterprises 2023.
17
Blockchain services offered by 14% specialized MSPs 2023.
18
76% MSPs deliver VoIP/UCaaS managed services 2023.
19
Hyper-converged infrastructure management by 58% MSPs 2023.
20
83% MSPs support Microsoft 365 management 2023.
21
Ransomware protection as standard in 79% MSP security stacks 2023.
22
44% MSPs offer data analytics services 2023.
23
SD-WAN deployment managed by 71% network-focused MSPs 2023.
24
35% MSPs provide AR/VR managed support 2023.
25
Patch management automated for 94% MSP endpoints 2023.
26
62% MSPs integrate low-code platforms for clients 2023.
27
Quantum-safe cryptography piloted by 9% advanced MSPs 2023.
28
88% MSPs offer endpoint detection & response (EDR) 2023.
29
Managed Wi-Fi services in 55% MSP portfolios for SMBs 2023.
30
51% MSPs support Salesforce managed services 2023.
Interpretation
Technology And Services Interpretation
In the Technology And Services category, MSPs are heavily leaning into advanced platforms and security capabilities, with 92% adopting cloud services in 2023 and 85% bundling cybersecurity as a core offering.
report visual · Breakdown
Key MSP challenges (2023)
Cybersecurity threats top MSP concerns, alongside talent shortages and rising cloud costs.
64%
64% MSPs report margin pressure from rising cloud costs 2023.
35.8%
The IT managed services segment dominated the market with a revenue share of 35.8% in 2023, driven by demand for infrast
Reference
Cite This Report
This report is designed to be cited. We maintain stable URLs and versioned verification dates. Copy the format appropriate for your publication below.
APA
Felix Zimmermann. (2026, February 13). Msp Industry Statistics. Gitnux. https://gitnux.org/msp-industry-statistics
MLA
Felix Zimmermann. "Msp Industry Statistics." Gitnux, 13 Feb 2026, https://gitnux.org/msp-industry-statistics.
Chicago
Felix Zimmermann. 2026. "Msp Industry Statistics." Gitnux. https://gitnux.org/msp-industry-statistics.
Sources & references
100 datasets cited across this report · attribution is report-level