MSP Statistics and Trends for 2025: Everything You Need to Know

It's not just about gaining a competitive edge; businesses of all sizes need comprehensive solutions for their IT infrastructure to survive in today's tech-driven world.

Many companies are now turning to MSPs for their expertise in technology. Through this partnership, companies can stay in business and ahead of their competitors, as MSPs are constantly adapting their processes, technological infrastructure and management practices to ensure their clients' success.

With the evolution of cloud-based technologies and the accumulation of technical expertise, managed services have become even more accessible. The growing trend of IT services outsourcing has further boosted the MSP industry

In this guide, we'll delve into the world of MSPs, exploring statistics and trends that shed light on their predicted growth and adoption in the coming years. We'll also highlight the numerous benefits of partnering with MSPs and provide a glimpse into the future outlook of this thriving industry.

TL;DR: MSP statistics and trends

• MSPs are essential for businesses to survive in today's tech-driven world.
• The global managed services market is projected to grow at a CAGR of 13.6% from 2023 to 2030.
• Businesses increasingly outsource their IT operations to MSPs for cost savings and specialized expertise.
• MSPs offer enhanced cybersecurity, scalability, improved IT performance, and access to advanced technologies.
• The future of the MSP industry includes IoT and blockchain technologies, the rise of IaaS, changing customer expectations, and strengthening cybersecurity defenses.

Introduction to MSPs

Managed Service Providers (MSPs) are external companies that manage and support a business's IT infrastructure, handling network management, data storage, security, cloud computing and more, like:

• Proactively monitoring systems.
• Using advanced tools to detect and resolve issues before they escalate.
• Offering comprehensive support.
• Assisting with IT problems.
• Performing routine maintenance and performance optimization
• Minimizing downtime.
• Ensuring secure systems.

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MSP market size and growth

‎Reports suggest a continued positive trend in the Managed Service Provider (MSP) industry. According to Grand View Research:

• The global managed services market size was valued at a whopping USD 267.3 billion in 2022.
• The market is projected to grow at a compound annual growth rate (CAGR) of 13.6 percent from 2023 to 2030.

Furthermore, CompTIA's Trends in Managed Services 2022 research shows that while Infrastructure-level monitoring and management still dominate most MSPs' day-to-day activities, newer and more sophisticated services and business approaches are steadily making their mark.

The COVID-19 pandemic catalyzed the soaring demand for managed services as businesses rushed to embrace remote work. They needed remote support, enhanced security and cost optimization to keep things running smoothly.

But beyond this, several other factors contribute to the growth of the MSP market.

• Businesses from all industries increasingly realize the benefits of outsourcing their IT operations and management to MSPs. This strategic move allows them to concentrate on their core competencies while leaving the IT infrastructure, applications and support services in the capable hands of MSP experts.
• With IT environments becoming more complex, including hybrid and multi-cloud setups, there's a growing need for specialized expertise that MSPs can readily provide.
• Ever-evolving regulatory compliance and security requirements are driving the expansion of the managed services market, as highlighted by MarketsandMarkets.

Overall, it's an exciting time for the MSP industry, with plenty of opportunities for growth and innovation. As businesses continue to see the value of partnering with MSPs and the landscape of technology evolves, it looks like the sky's the limit for this thriving sector.

Adoption of MSP Services

The adoption of MSP services has been on the rise, catering to businesses of all sizes and across various industries. According to Datto:

• MSPs, on average, serve around 122 clients, with the majority (69 percent) having fewer than 100 clients.
• The sweet spot for MSPs lies in businesses with 1 to 150 employees, which constitute 60 percent of their typical client base.
• While the primary clientele for MSPs is small or micro businesses (89 percent), large enterprises also recognize the advantages of partnering with MSPs to optimize their IT operations and drive cost savings.
• In fact, some MSPs (11 percent) serve very large businesses, with 5 percent reporting clients with over 500 employees.

Various factors drive the decision to work with MSPs, including:

• Infrascale found that the top reason businesses opt for MSP services is cost savings, as 51 percent of respondents indicated.
• Increased security (46 percent), which is crucial in today's cybersecurity landscape.
• The predictability of IT budgets is another highly valued consideration, with 96 percent of respondents considering it extremely or very important, reinforcing the perception that working with an MSP is more economical than hiring internal talent.

In terms of market scope, MSPs cater to various industries. Fortune Business Heights highlights:

• MSPs are in medical, financial, government, audit & consulting, corporate, telecommunication and insurance and re-insurance sectors.
• The corporate industry holds the largest market share, driven by the need to manage and maintain highly complex infrastructure.
• The financial industry is expected to grow at the highest CAGR, as robust IT services are crucial for managing various financial transactions.
• Even the government sector is predicted to experience significant growth, fueled by the adoption of IoT solutions in smart buildings, smart transportation and other projects.

When it comes to the services offered by MSPs, according to the same Infrascale research, the top three services utilized by business executives are

• Data protection (53 percent).
• Data and analytics (48 percent).
• Cloud services (45 percent).

Data protection services such as backup and recovery and cybersecurity are highly sought after.

For SMBs and mid-market companies, the selection criteria for MSPs are similar, with the top three requirements being:

• Data protection (52 percent)
• Data and analytics (48 percent)
• Cloud services (45 percent).

Technical support and backup and recovery also rank high on the list of essential services for consideration by these businesses.

Emerging trends in the MSP industry

Several emerging trends are shaping the MSP industry and influencing the way MSPs deliver services to their clients:

• Traditional MSP may soon be extinct: Client demands have shifted significantly since 2020, with remote work support and cybersecurity becoming increasingly important. On the other hand, services such as system integration projects and help desk support have seen limited growth. MSPs themselves predict that managed security and managed cloud services will be their primary sources of revenue in the coming years, while traditional revenue streams will decline. The days of MSPs primarily reselling hardware and software are numbered. (Source: Acronis)
• Cloud adoption among small and medium-sized businesses (SMBs) has become commonplace: Most clients have already moved their workloads to the cloud, with nearly two in five MSPs reporting that 25 percent to 50 percent of their clients' workloads are in the cloud. This trend is expected to continue over the next three years, with more than half of all client workloads projected to be in the cloud by 2024. As a result, the use of on-premises servers is declining, with only a tiny percentage (5 percent) of MSPs anticipating an increase in on-premises server use. (Source: Datto)
• Increased focus on cybersecurity: MSPs are emphasizing cybersecurity more due to the increasing frequency and sophistication of cyber threats. SMBs are actively investing in security solutions such as antivirus software (57 percent), email/spam protection (53 percent) and file backup (49 percent) to protect their systems and data. (Source: Datto) Advanced security measures like threat intelligence, real-time monitoring and incident response capabilities are also being implemented by MSPs to safeguard their clients' IT infrastructure. 
• Shift towards proactive and predictive IT support: MSPs are moving away from reactive support models to proactive and predictive approaches. By utilizing advanced monitoring and management tools, MSPs can identify potential issues before they impact the client's operations, minimizing downtime and optimizing IT performance.
• Enterprises and MSPs are prioritizing automation as a key focus area: Over 60 percent of respondents are adopting AIOps to enhance service and application availability and performance. The top choices for automation include operations automation (58 percent) and process automation (54 percent). Automating as many operations as possible is seen as the greatest IT operations challenge for enterprises, as stated by 66 percent of respondents. (Source: The State of AIOps 2023) MSPs are also leveraging AI-powered tools to automate routine tasks, perform predictive analytics and detect anomalies in real-time. This automation enables faster response times and proactive issue resolution. 

Benefits of partnering with MSPs

Businesses can gain several advantages by partnering with MSPs:

• Enhanced cybersecurity: According to Kaspersky's Global Corporate IT Security Risks Survey, around 70 percent of companies plan to outsource their security to an MSP or MSSP in the next 12 months. MSPs have dedicated security teams and advanced technologies to protect against cyber threats. By partnering with an MSP, businesses can strengthen their security, reduce risks and ensure compliance with industry regulations.
• Scalability: MSPs offer flexible solutions that can quickly adapt to a business's changing needs and growth. Whether expanding infrastructure, adding new users, or accommodating increased workloads, MSPs can provide scalable services without major disruptions, ensuring businesses can keep up with their evolving requirements.
• Improved IT performance: With their expertise and resources, MSPs can optimize IT infrastructure, enhance system performance and ensure high availability. This helps businesses minimize downtime and significantly reduce ongoing support needs, improving operational efficiency and increased productivity.
• Cost-efficiency: By partnering with an MSP, businesses can achieve substantial cost savings. MSPs operate on a shared services model, which means clients can access high-quality infrastructure, software licenses and skilled professionals at a fraction of the cost of maintaining an in-house IT department. Successful implementation of managed services can reduce IT costs by 25-45 percent and boost operational efficiency by 45-65 percent. Additionally, organizations have experienced downtime costs ranging from $301,000 to $400,000 per hour, further highlighting the cost-effectiveness of MSPs.
• Access to advanced technologies: MSPs stay up-to-date with the latest technological advancements and can provide access to cutting-edge tools and solutions. Businesses can leverage these technologies without the high costs associated with research, development and implementation, giving them a competitive edge in the market.

The future outlook for MSPs

The future of the MSP industry is promising but also faces potential disruptions. Several factors will shape the industry's trajectory, including:

Greater impact of IoT and blockchain technologies

IoT and blockchain technologies are changing how businesses create connected devices, systems and services. Companies can gather real-time data through IoT solutions and make data-driven decisions by enabling secure and efficient information exchange between devices without a central server. This eliminates the need for manual processes and extensive field research. Implementing IoT solutions brings numerous benefits, such as increased efficiency, cost savings, and more accurate data collection.

MSPs are taking the lead in adopting IoT and blockchain technologies in this transformative landscape. They actively raise customer awareness and promote the adoption of IoT and blockchain-based services to help businesses efficiently manage various aspects of their financial operations.

MSPs are reshaping interactions within the financial services industry with their expertise, offering effective and efficient solutions.

Rise of IaaS

When businesses migrate their IT infrastructure to the cloud, they gain advantages such as improved scalability, flexibility, and cost savings.

MSPs have the exciting opportunity to offer Infrastructure-as-a-Service (IaaS) through leading providers like Microsoft or AWS. This helps clients and opens a significant revenue stream for their businesses. In fact, experts project the IaaS market will reach an impressive $96.93 billion in 2023, with a compound annual growth rate (CAGR) of 19.4 percent.

Even if organizations aren't ready to fully embrace IaaS, MSPs can still encourage them to migrate other solutions to the cloud. This enables clients to enjoy cost savings and facilitates remote and hybrid work arrangements while simplifying user management on the MSP's end (compared to traditional on-premise systems). They can remotely add or remove users, and with a simple coding change, provide clients with the same new features for every offered solution, ensuring consistent delivery of services to their clients.

Changing customer expectations and growing competition

Competition remains the top challenge MSPs face, arising from various factors like marketing difficulties and the abundance of options available to clients when it comes to MSPs and the range of tools and services they offer.

Organizations now have higher expectations for the level of service and support their MSPs provide, emphasizing their growing significance in navigating the intricate landscape of technology and IT services.

To meet these rising expectations, MSPs must stay ahead of industry trends and continually invest in training and development for their teams. By keeping their finger on the pulse of the latest advancements, MSPs can ensure they have the knowledge and expertise to deliver exceptional solutions.

✨ ‎Learn why a comprehensive MSP knowledge base is essential for streamlining your operations and improving customer service.

Moreover, MSPs must embrace advanced tools and technologies that enhance their service delivery capabilities. Automation, AI and ML have become increasingly valuable assets for MSPs, enabling MSPs to detect issues and provide faster, more accurate solutions proactively.

By leveraging these tools, MSPs improve the quality of their services and enhance their ability to scale operations effectively to improve MSP customer relations.

Strengthening cybersecurity defenses and ensuring regulatory compliance

When navigating the ever-changing digital landscape, MSPs face the dual challenge of addressing evolving cybersecurity threats and complex regulatory compliance requirements. To safeguard their clients' critical assets, MSPs continually enhance their security offerings, leveraging advanced technologies like behavioral analytics, threat intelligence, and zero-trust architectures. 

MSPs play a vital role in assisting businesses in meeting stringent compliance regulations such as GDPR and CCPA by implementing robust security measures, establishing comprehensive data governance frameworks, and ensuring the implementation of strict privacy controls.

By providing guidance and support in navigating the intricacies of regulatory compliance, MSPs empower businesses to operate while safeguarding sensitive data. 

With their proactive approach to cybersecurity and deep understanding of regulatory landscapes, MSPs become trusted partners, enabling enterprises to stay resilient in the face of evolving threats and regulatory demands. (Source: Datto)

Stay updated about MSP statistics and trends to make informed decisions

Keeping up with the latest MSP statistics and trends will help you make informed decisions and align your business strategies accordingly. MSPs offer expertise, advanced technologies, and cost-effective solutions to enhance your IT operations and protect your business from evolving threats. 

Embracing the evolving industry landscape and leveraging the services of MSPs can help you stay ahead of the curve, maximize efficiency, and drive growth. Add to this the convenience of MSP documentation tools like Scribe, and you'll have a solid team that effectively serves your clients and drives your business's success.

Scribe can help you capture and maintain MSP documentation templates (procedures, workflows and best practices) for consistent service delivery, overcoming key MSP challenges like efficient knowledge transfer.

So, sign up for a free account and start documenting your MSP processes today.