MSP Service Market Size, Share, Growth and Industry analysis, By Type (Managed Security Services, Managed Network Services, Managed IT Infrastructure and Data Center Services), By Application (BFSI, IT & Telecommunication, Healthcare, Entertainment and Media, Retail, Manufacturing and Government) and Regional Forecast to 2033

MSP SERVICE MARKET OVERVIEW

The global MSP’s market size is currently valued at 330.37 billion USD in 2025 and it is expected to raise and reach a value of 878.71 billion USD by the year of 2032 with a CAGR of 15% during the forecast period.

MSP service is a company that does management and infrastructure for various IT firms on a monthly basis. It helps to reduce cost for the IT firms and increase productivity.

The MSP service market is a growing market and its growth is propelled by its need to outsource IT solutions, maintain and manage IT infrastructure and to find scalable solutions for the IT sector.

GLOBAL CRISIS IMPACTING THE MSP SERVICE MARKET

US TARIFF IMPACT

As a result of the US tariff, the cost to employ MSP service has increased. It has led to delay in negotiations, projects, disruption in the supply chain and increases risk mitigation. Hence it can be seen that implementing the tariff will have a negative impact by disturbing the growth of the market on a global scale.

LATEST TRENDS

Using AI and Automation for Market Growth

In recent years the MSP service has started using AI and automation for their tasks. This has resulted in improvement in the service and reduction in cost. It has also helped with streamlining the various outsourcing operations. Especially the usage of robotic process automation has been widely helpful in the continuous problem solving, ticket management and automating the repetitive tasks. Due to these latest trends the MSP service market has seen robust growth globally.

MSP SERVICE MARKET SEGMENTATION

BY TYPE

Based on Type, The MSP Service Market can be Categorized into Managed Security Services, Managed Network Services, Managed IT Infrastructure and Data Center Services

• Managed Security Services : A third party company that takes care of and protects the cyber security of an IT firm is called as managed security services (MSS). They are responsible for managing, monitoring and protecting the IT companies from cyber-attacks. Security Operations Centers are used by MSS to monitor and protect the company from cyber-attacks. The managed security services market is growing mainly due to the demand for cyber security as cyber threats have been on a rise in the recent years. The market will continue to grow as the need for cyber security increases.

• Managed Network Services : Monitoring, managing and maintenance of a company's network with the help of a specialized service is called as managed network services (MNS). They offer services from remote locations and are used to provide network protection, performance and reliability. The need for cost effective network solutions has propelled the market growth. The market was valued at 304.03 billion USD in the year 2023 and this value is expected to rise and reach 965.53 billion USD by the year 2032 with a CAGR of 13.7% during the forecast period.

• Managed IT Infrastructure : When an organization outsources its IT infrastructure management to a third party service then it is called as managed IT infrastructure. These services help with productivity improvement, manage hardware, software and enhance security.The managed IT infrastructure market is a large and growing market. Although the accurate estimation has not been established, it is projected to reach 200.68 billion USD by 2030 by some sources.

• Data Center Services : When a service offers smooth operation within a data center then it is called as a Data Centre Services. It offers data backup and recovery of data in case of any malfunction in the system. Its offers effective outsourcing of cloud-based services. As a result, the data center services is having a robust growth in recent years.The data center services are a growing market and it is expected to reach 893.98 billion USD by the year 2029 with a CAGR of 17.4% during a forecast period.

Based on the Downstream Industry

Based on Downstream Industry, the MSP Service is Categorized into BSFI, IT & Telecommunication, Healthcare, Retail, Entertain & Media, Manufacturing and Government

• BFSI : In Banking, Financial Services and Insurances (BSFI) the MSPs play a vital role. The MSPs offer specified services tailored for the organization’s needs. MSP’s are known for providing protection against cyber-attacks and offers protection solutions. All these factors have resulted in the growth of the MSP’s in the BFSI market. In 2024 the global MSP service in BSFI market was valued at 65.7 billion USD and since it is a growing market it is expected to reach a value of 134.6 billion USD by 2033.

• IT & Telecommunication : MSP offer various services for the IT and Telecommunications. It is responsible for monitoring and managing the firewalls, security, routers and data backup. MSP in recent years offer cloud based services such as cloud based storage, infrastructure monitoring and manage wireless networks. Due to all these features the MSP in the IT & telecommunication is gaining interest as a result there is also a significant market growth. Currently the market is valued at 28.76 billion USD and it is expected to raise and reach 48.89 billion USD by the year 2030.

• Healthcare : In healthcare industry the MSP has gained an increased interest in the recent years. The MSP are out sourcing services that provide services such as staffing, vendor relationships, audits, protecting patient data and infrastructure management. Since MSP provide solutions tailored to the healthcare sector needs it has resulted in the market growth. The market is expected to reach 570.8 billion USD by the year of 2033.

• Entertainment and Media : In the entertainment and media sector the MSP service is used for protecting private data of the employees, providing content insight by taking case of the license, managing digital contents, assets and media documents. Hence the MSP is now increasingly used in the given years.The market was valued at 239.56 billion USD in the year 2022 and it expected to raise to 413.79 billion USD by the year 2030.

• Retail : In the retail industry the MSP is helping to transition into the digital based industry. It helps the retailers in maintaining the hardware and software updates, protecting them from cyber threats and they also help with supply chain distribution and payroll administration. This has resulted in the growth of the MSP in the retail market.

• Manufacturing : The MSP services offers a wide range of services in the manufacturing industry. In the manufacturing industry they offer services such as distribution in the supply chain, checking and monitoring the inventory, hiring and deployment of the staff and automation. These factors have resulted in the MSP market growth.

• Government : The role of managed service provider is to maintain and manage the government’s IT sectors and agencies. Some of the services offered by the MSP include security, optimization in the IT infrastructure and maintain the government network. Due to these factors the governments are increasingly opting for MSP services which has resulted in the market growth.

MARKET DYNAMICS

Market dynamics includes driving and restraining factor, opportunities and challenges stating the market conditions.

DRIVING FACTORS

Implementation of Cybersecurity Protection Boosting the Market

In recent years MSP has started providing cybersecurity services for the IT and government sectors. Some of the specialized cybersecurity services provided by the MSP in the recent years include cyberattacks, threats detecting, response to cyber accidents and providing security. Due to all these key factors there is a significant growth in the MSP market in recent years.

Cost Reduction Fueling the Market

The MSP services helps to reduce the cost in the unpredictable workforce. They offer cloud solution, remote support, cybersecurity and automation. This has helped organizations reduce the overall cost spent on support work. It has resulted in the 25-30% reduction in the spending of the organization.

RESTRANING FACTOR

Finding Skilled Professionals Impacting the Market Growth

MSP services provide services for various sectors as such it need skilled professionals to carry out all the specialized work. Finding these skilled professionals can be quite tedious and difficult to achieve. This can lead decline in the market growth.

OPPORTUNITY

Chat Support Providing New Opportunity for the Market Growth

In the recent years, the MSPs have adapted to digitalization. One such factor is the adaptation of chat support which helps with real-time solution, quick results, instant response and results leading to high level of customer satisfaction. This has opened new opportunity for the MSP service and has resulted in the market growth.

CHALLENGE

Keeping Up with Trends Could Be Quite Tedious

The main challenge of the MSP service is the keeping up with new trends and technologies which will make the future work easier and efficient. Trends such as cloud computing, automation, integrating new technologies with the already existing system. This can pose as a challenge for the traditionalist who might find it hard to adapt. This can also lead to market growth challenges.

THE MSP SERVICE MARKET REGIONAL INSIGHT

• NORTH AMERICA (US)

Managed Service Provider market holds a dominant position in the US market. This is driven by implementation of new technologies and innovations. Some of the key players in the US market include Microsoft, IBM, Cisco and so on. The MSP’s provide services such as cybersecurity, risk management, IT infrastructure management, adaptation to automation and cloud-based solutions.

The US managed service provider market was valued at 69.9 billion USD in the year 2024 and it will raise due to robust growth with the introduction of modern technologies and will reach 171.7 billion USD by the year 2033.

• EUROPE

In Europe the MSP services helps various sector where they provide specialized support based on the organization needs. Some of the Europe based organizations which provide these supports include Accenture, Wipro and Capgemini. The leading countries in the MSP’s market in Europe are UK, France, Germany and Netherlands. Currently the Europe managed service provider market share is at 59.35 billion USD and this is expected to raise and reach 113.98 billion USD by the year 2030 with a CAGR of 13.94% during the forecast period.

• ASIA

In Asia the main reason for the market growth is their services such as remote managing and monitoring, and offering cloud based solutions, automation and introduction of new technologies. In Asia pacific the market was valued at 62.38 billion USD in the year 2023 and it is expected to raise in the coming years with a CAGR of 14.6%.

KEY INDUSTRY PLAYERS

Key Industry Players Shaping the Market Through Innovation and Market Expansion

The key industry players are the major shareholders in the MSP’s market. They are responsible for the production, implementation and distribution of the services provided by the MSP’s. Key players play a vital role in bringing up strategies and research to make the market grow. Key players also keep with trends and technologies and help with the implementation according to the current organization needs.

LIST OF MANAGED SERVICE PROVIDER COMPANIES

• Cisco (US)
• Dataprise (US)
• Cognizant (US)
• AT&T (US)
• GTT Communications (US)
• Atos (France)
• Unisys (US)
• Ericsson (Sweden)
• IBM (US)
• Rackspace (US)
• Accenture (Ireland)
• DXC (US)

KEY INDUSTRY DEVELOPMENT

April 2023: In the year of 2023 a company called VMware Inc. an American based company has launched a service called as a cross-cloud managed service. This service will help the organization to implement digital technologies and smart cloud based services to the already existing system.

REPORT COVERAGE

This report covers the basic overview of the MSP’s and their market growth in the recent years. The effect of tariff on this growing environment and the latest trends that keeps this services in demand in the recent years.

It also covers the segmentation of the MSP’s and how each of this segments helps the organization. Their contribution to the overall market growth. The driving factors and opportunities that propel the market growth and the challenges and restraining factors that impact the market.

This article also briefly covers the key industry player’s contribution, key industry development that has been made in the recent years to boost the market growth.