GITNUXREPORT 2025

Msp Industry Statistics

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

Jannik Linder

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

First published: Apr 29, 2025•Last updated: Nov 29, 2025

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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

Projected to expand from roughly $179 billion in 2022 to more than $500 billion by 2030, the managed services market is on track for a threefold surge that will reshape vendor and buyer priorities. This data-driven Msp Industry Statistics report compiles the latest figures on cybersecurity spending, cloud migration rates, and automation adoption to pinpoint where demand and risk intersect. With cyber threats escalating and digital transformation timelines compressing, these current statistics matter now for anyone planning budgets or vendor strategies. Read on for concrete numbers, charts, and actionable benchmarks to inform immediate decisions.

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.