MSP Industry Statistics 2026: Market, Growth & Trends

This page compiles verified managed service provider (MSP) industry statistics for 2026, with every figure graded by source strength. It serves MSP owners, executives, and analysts who need current, sourced numbers to cite.

Key MSP Statistics for 2026

The global MSP market has reached around $441 billion from $378 with a noticeable growth of 11-14%. Cybersecurity creates most of the new demand. Getting new clients is the main way MSP companies grow, while staff shortages limit how much work they can handle.

The headline figures:

• The global managed services market reached $378 to $441 billion, growing 11 to 14 percent a year.
• The United States market was worth $62.91 billion in 2025 and is heading toward $119.92 billion by 2031.
• Median MSP profit margins run near 8-10 percent, and best-in-class providers stay above 18 percent.
• 60 percent of MSPs expect to grow through new client acquisition, up 10 points year over year.
• 26 percent of MSPs cannot hire enough staff to support their clients adequately.
• 61 percent of United States small and midsize businesses outsource at least part of their technology operations.
• Roughly 39 percent of MSPs are executing an active artificial intelligence roadmap.

How Big is the MSP Industry?

In 2025, the global managed services market reached an estimated $441 billion. Estimates vary by scope. Recurring-revenue models land near $400 billion, while broader counts that include project work and wider regions run higher. Most analysts expect the market to roughly double by the early 2030s.

As the market grows, competition for new clients will also increase. MSPs will need reliable lead generation services to reach the right buyers and build a steady sales pipeline.

No single estimate is fully accurate, so the range gives a clearer picture. Recent estimates for the market include:

• ~$441 billion in 2025, with 11 to 14 percent annual growth (MSPAlliance, 2025).
• $441.15 billion in 2025, reaching $1.27 trillion by 2035, an 11.18 percent compound annual growth rate, or CAGR (Precedence Research, 2026).
• ~$401 billion in 2025, on track to about $847 billion by 2033 (CloudSecureTech, 2026).
• $393.03 billion in 2025, rising to $443.73 billion in 2026 (Straits Research, 2026).
• $378.19 billion in 2025 (Business Research Insights, 2026).
• ~$330 billion in 2025 (Fortune Business Insights, 2025).

Growth forecasts range from about 10 percent to over 14 percent a year. Canalys values the wider managed services channel at roughly $595 billion in 2025, while Mordor Intelligence puts the U.S. market at $62.91 billion.

Why the Estimates Disagree?

MSP estimates differ because research firms use different market definitions. Some measure only recurring managed services revenue. Others also include project work, hardware resale and other service income.

The geographic scope also changes the total. A U.S.-only estimate will be lower than one that includes North America. This is why every MSP market figure should be read with its service and regional scope.

MSP Market Growth and Forecast Statistics

Managed services continue to grow at double-digit rates, but the growth varies across different markets. The U.S. market is expected to grow faster than the global one. Among MSP services, managed security is growing the fastest.

Future growth forecasts are lower than recent rates. This shows the MSP market is still growing but becoming more mature.

Growth is stronger in some parts of the market than others. The figures below show where the fastest growth is happening:

• The U.S. managed services market is expected to grow from $71.14 billion in 2026 to $119.92 billion by 2031. That equals an 11.01 percent CAGR.
• Managed security is the fastest-growing service type in the United States, with a 12.13 percent CAGR.
• Cloud deployments held 63.41 percent of the U.S. market in 2025. This segment is growing at 11.49 percent a year.
• Small and midsize enterprises made up 57.93 percent of U.S. spending in 2025. Spending from this group is growing at 11.46 percent a year.
• The global managed security services market is expected to grow from $39.47 billion in 2025 to $66.83 billion by 2030. That equals an 11.1 percent CAGR.
• Healthcare is the fastest-growing U.S. vertical, with a 12.24 percent CAGR. Banking and financial services remain the largest vertical.
• Forward forecasts average around 9.9 percent per year through 2033. This is lower than recent growth rates and points to a gradual slowdown.

Sources: Mordor Intelligence and Grand View Research

The numbers show that MSP growth is strong but fluctuates. Cloud services and regulated industries are growing faster than basic service lines.

Lower future forecasts suggest the market is maturing. Standard services face more price pressure, while specialized services remain easier to protect and sell at higher margins.

MSP Profitability and Business Health Statistics

MSP profit margins remain healthy but modest. The median margin is close to 11 percent of revenue, while top performers earn more than 19 percent.

Revenue growth improved in 2025 after a slower 2024. Most MSPs are small, established firms with fewer than 50 employees and more than 20 years in business.

For smaller providers, controlling Customer Acquisition Cost (CAC) is important because high sales and marketing expenses can quickly reduce already modest profit margins.

The verified profitability and firm-structure figures:

• Median MSP adjusted EBITDA, or earnings before interest, taxes, depreciation, and amortization, ran near 11 percent in late 2024.
• Best-in-class providers held adjusted EBITDA above 19 percent for the sixth consecutive year.
• Total MSP revenue growth rebounded to 9.6 percent in 2025, up from 7.1 percent in 2024.
• Top-quartile providers earn roughly 2.5 times the profit margin of median peers.
• 18 percent of MSPs reported an operating loss in the fourth quarter of 2024.
• 8 percent of MSPs employ fewer than 50 people, and only 1.7 percent exceed 250.
• The median MSP was founded in 2003, making the typical firm about 23 years old.

Sources: ConnectWise and CloudSecureTech

MSP Growth and Client Acquisition Statistics

Most MSPs expect to grow in 2026. Both Kaseya and ScalePad surveys show that getting new clients is the main way providers plan to increase revenue.

More than half expect double-digit revenue growth. However, finding and winning those new clients remains their biggest concern.

The finding is more reliable because two separate surveys reached the same conclusion:

• 55 percent of MSPs project double-digit revenue growth in 2026.
• 60 percent expect to grow through new client acquisition, up 10 points year over year.
• New customer acquisition ranked as MSPs’ top concern, cited by 43 percent of providers, ahead of revenue growth at 37 percent.
• The challenge has since intensified, with 71 percent naming new-customer acquisition their biggest challenge.
• 64 percent reported higher revenue in 2024, and 67 percent expect growth over the next three years.
• 87 percent say they feel optimistic about the future of the channel.
• 42 percent of top-performing MSPs offer vCIO (virtual chief information officer) services, against 29 percent across all providers.

Source: ScalePad and Kaseya

Two patterns stand out. Most MSPs expect growth to come from new clients rather than higher prices or lower costs.

Fast-growing providers also use strategic services such as governance and vCIO advisory to stand apart. Since their growth depends on a steady flow of new prospects, MSP lead generation remains a key part of their growth plans.

MSP Staffing and Capacity Statistics

Staff shortages continue to slow MSP growth. More than a quarter of providers say they do not have enough staff to take on more clients. Many existing teams also work near full capacity.

The wider cybersecurity skills shortage makes the problem worse. Specialized roles remain difficult to fill across the industry.

The workforce and capacity figures:

• 26 percent of MSPs report they cannot hire enough staff to support their clients.
• 22 percent say they cannot find skilled staff to deliver new services.
• 21 percent run staff utilization above 75 percent, a common threshold for limited bandwidth.
• 95 percent of cybersecurity professionals report at least one skills gap.
• 88 percent of organizations experienced a security incident tied in part to a skills shortage.
• The United States had 514,359 open cybersecurity job postings in the year to April 2025, of which roughly 74 percent were fillable by the current workforce.
• 55 percent of security teams report being understaffed.

Sources: ScalePad, ISC2, ISACA, and NIST CyberSeek

SMB Managed Services Adoption Statistics

Managed services are already common among small and midsize businesses. A little over half use an MSP, while about 61 percent outsource at least part of their technology operations.

Figures near 90 percent often refer to businesses planning to use managed services, not those already using them. These estimates also come from smaller vendor surveys.

The adoption and driver figures:

• 51 percent of SMBs use a managed service provider, rising to 62 percent among midsize firms.
• 61 percent of SMBs outsource IT regularly or occasionally, and 17 percent do so frequently.
• 61 percent of SMBs engage a provider for more technical expertise than they hold in-house.
• 56 percent cite help managing hybrid or remote workers, and 44 percent cite rising cyber risk.

Source: Kaseya, GTIA, and CloudSecureTech

The most reliable adoption figure is around 61 percent. It counts SMBs that currently outsource at least part of their technology work.

Figures between 88 and 94 percent often include businesses that only plan to use a provider. This is why they appear much higher. Current use and planned use should not be treated as the same measure.

AI Adoption Statistics in the MSP Industry

AI adoption among MSPs is growing, but it is still at an early stage. Around two in five providers are actively following an AI roadmap, while a similar share is still planning.

MSPs mainly use AI for data analysis, security monitoring and routine task automation.

The adoption and application figures:

• Roughly 39 percent of MSPs have an active AI roadmap in execution, while about 37 percent are still in the planning stage.
• The leading AI use cases are data and insights at 44 percent, security and monitoring at 43 percent, and advanced automation at 39 percent.
• 43 percent of MSPs believe AI has already replaced or will eventually replace some roles within the business.
• 84 percent of technology firms expect to increase AI investment, and a net 94 percent plan AI-specific training.
• Across all organizations, about 90 percent now use AI regularly, and 60 percent use generative AI for productivity.

Sources: ScalePad, CompTIA, and McKinsey

Most MSPs plan to use AI, but fewer have fully put it into daily operations. Planning is still ahead of real adoption across much of the market.

MSPs mainly use AI to support technicians. It handles analysis and routine tasks, not large-scale staff replacement.

How to Evaluate MSP Statistics?

Check three things before trusting any MSP statistic: the source, the date of the data and what the number actually measures.

Strong statistics name the original source, use data from the last two years and explain their scope. Be cautious when any of these details are missing, since many MSP statistics come from weak or recycled research.

The same rule applies when comparing cost per lead, since the number can change based on the channel, industry and what each source counts as a lead.

Several patterns signal an unreliable number:

• Old data with a new date: A 2026 page may still use figures from 2023 or earlier. Check the original study date.
• Self-created trust labels: A publisher’s own verification badge is marketing, not proof.
• Social opinions presented as surveys: Posts from X, Reddit and TikTok do not match the quality of a structured MSP survey.
• No source for each figure: Source logos at the bottom are not enough. Every key statistic should be traceable.
• Conflicting numbers: Different figures for the same market or year show weak fact-checking.
• Numbers with no source: Repetition across websites does not make a claim reliable. The widely repeated 18.5 percent margin figure is higher than verified median benchmarks.

Apply these three checks to every MSP statistic and most unreliable claims become easy to spot. When two credible sources give different estimates, use the range instead of treating one figure as exact.

Bottom Line

The MSP market continues to grow, led by security, cloud services and new client acquisition. However, staffing shortages, rising competition and uneven data quality make it important to check every statistic before using it.

Frequently Asked Questions

How big is the MSP industry in 2026?

The global MSP industry is worth around $400 billion to $444 billion in 2026, depending on what each study includes. One estimate puts the market at $443.73 billion, while other revenue models remain closer to $400 billion.

Is the MSP market growing?

Yes. The MSP market continues to grow at double-digit rates. Most forecasts place annual growth between about 10% and 14%, while the U.S. market is expected to reach $119.92 billion by 2031.

What is the average MSP profit margin?

The median MSP profit margin is close to 11% of revenue. Best-in-class providers earn more than 19%, while top-quartile MSPs achieve roughly 2.5 times the margin of median providers.

What percentage of small businesses use a managed service provider?

Around 51% of small and midsize businesses use a managed service provider. Adoption rises to 62% among midsize firms, while 61% of SMBs outsource at least part of their IT regularly or occasionally.

What is the biggest challenge facing MSPs in 2026?

New customer acquisition is the biggest challenge facing MSPs in 2026. Around 71% of providers name it as their biggest challenge, while 60% expect new clients to drive their growth.

How many MSPs are there?

There is no reliable single figure for the total number of MSPs worldwide. Industry reports usually measure market revenue rather than provider count, and totals vary because researchers use different service and geographic definitions.