How Large is the MSP Market and How Many MSPs Are There?
Answer: The global market for managed services will grow from $107.17 billion in 2014 to $193.34 billion by 2019, at a Compound Annual Growth Rate (CAGR) of 12.5%, according to Markets and Markets. North America (NA) is expected to be the largest MSP in terms of revenues generated, but Asia-Pacific (APAC) is expected to emerge as a high-growth market, the market researcher said.
MSPs come in all shapes and sizes.
- Small business: Here, IT service providers remotely monitor and manage customer networks, while increasingly shifting some customer workloads to third-party cloud providers like Amazon, Microsoft Azure and IBM. ChannelE2E estimates that there are fewer than 20,000 truly successful (i.e., very healthy and very profitable) small business MSPs in the North American market.
- Midmarket and Enterprise: Here, MSPs typically work side-by-side with corporate IT departments, augmenting internal IT with a range of proactive, remote services.
- Telcos and Cloud Services Providers: Industry giants like Amazon, Microsoft, Rackspace and a range of telcos are integrating managed services into their cloud and hosted services. A mid-2015 example: Rackspace, which maintains its own cloud, now offers managed services for Microsoft Azure.
- Global Systems Integrators and IT Consulting Firms: Giants like Accenture, Atos and CSC offer a range enterprise-class managed services. Even hardware giants like Dell Technologies, HP Enterprise and IBM also compete in that sector.
Related MSP Market Size Math: For a worldwide count, you could add up all the MSPs running platforms like SolarWinds MSP (20,000 across N-able and LogicNow), ConnectWise (over 10,000 but I need an update), Autotask (9,000) Continuum (5,800) and the list goes on. But don’t forget about the midmarket and enterprise MSPs that are running FinancialForce, LogicMonitor, ServiceNow and dozens of additional options. The point is, you can make the true market numbers as big or as small as you want — depending on the segment you’re truly targeting.
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