Managed Service Provider MSP Market Report 2025 (Global Edition)

Global Managed Service Provider MSP Market Report 2025 Market Size Split by Solution (Managed IT Infrastructure & Data Center, Managed Network, Managed Mobility, Managed Communication & Collaboration,...

Managed Service Provider MSP Market Report Description

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Managed Service Provider MSP Market Insights Video

Competitive Landscape of the Managed Service Provider Market

The competitive landscape of the managed service provider (MSP) market is characterized by a mix of established players and emerging startups. Companies compete based on their service offerings, pricing, and ability to provide customized solutions that satisfy specific client demands. Strategic collaborations, technical improvements, and a concentration on cybersecurity and compliance are essential for distinction. Additionally, suppliers are focusing on increasing customer assistance and service level agreements to improve client retention and satisfaction.

In June 2021, Druva Inc., a leader in Cloud Data Protection and Management, declared the launch of its new Managed Service Provider (MSP) program as part of the Druva Compass Partner Program. This initiative aimed to empower MSPs and accelerate their customers’ cloud transformation with a simplified and resilient data protection service. (Source: https://www.druva.com/about/press-releases/druva-launches-industrys-first-msp-program-with-the-simplicity-security-and-scale-of-a-saas-platform) In August 2023, Veritas Technologies launched the Veritas Managed Service Provider (MSP) Program as part of its Partner Force initiative. The program provided MSPs with a range of incentives, training, enablement, and flexible pricing models to capitalize on the increasing demand for data protection and cloud-native cyber resilience solutions. (Source: https://www.reseller.co.nz/article/1296200/veritas-launches-fresh-msp-program.html) In February 2023, Huawei's Data Communication Product Line launched the Digital Managed Network Solution and products aimed at carriers' B2B services. This initiative helped carriers seize digital transformation opportunities and drive new growth. The solution offered digitally managed network capabilities and a diverse product portfolio, assisting carriers in their transition from ISPs to MSPs. (Source: https://www.huawei.com/en/news/2023/2/mwc2023-digital-managed-network-solution)

Top Companies Market Share in Managed Service Provider MSP Industry: (In no particular order of Rank)

• IBM (US)
• Fujitsu (Japan)
• Accenture (Ireland)
• Atos (France)
• Cisco (US)
• DXC (US)
• TCS (India)
• Rackspace (US)
• AT&T (US)
• Verizon (US)
• Dimension Data (South Africa)
• Infosys (India)
• HCL (India)
• Ericsson (Sweden)
• GTT Communications (US)
• NTT Communications (Japan)
• Digital Reality (US)
• Confidential Data
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*List of Second Tier Companies, List of Third Tier/ Start-up Companies (Inquire with sales executive) Request Any Company Profile for Preview Purpose OR Data Validation!

If any Company(ies) of your interest has/have not been disclosed in the above list then please let us know the same so that we will check the data availability in our database and provide you the confirmation or include it in the final deliverables.

Regional Analysis of the Managed Service Provider Market

Which Region Dominates the Managed Service Provider Market in 2024?

According to Cognitive Market Research, North America currently dominates the Managed Service Providers market, and the region is expected to have significant growth during the projected period. The presence of numerous established MSPs, coupled with the rapid adoption of cloud services and cybersecurity measures, contributes to this dominance.

Which Region is Expanding at the Fastest CAGR?

Asia-Pacific is expected to make significant gains during the projected period, with the greatest compound annual growth rate (CAGR). This growth is driven by rapid digital transformation, increasing cloud adoption, and rising demand for cybersecurity solutions among businesses.

The current report Scope analyzes Managed Service Provider MSP Market on 5 major region Split (In case you wish to acquire a specific region edition (more granular data) or any country Edition data then please write us on info@cognitivemarketresearch.com

• North America (United States, Canada, Mexico)
• Europe (United Kingdom, France, Germany, Italy, Russia, Spain, Sweden, Denmark, Switzerland, Luxembourg, Rest of Europe)
• Asia Pacific (China, Japan, South Korea, India, Australia, Singapore, Taiwan, South East Asia, Rest of APAC)
• Latin America (Brazil, Argentina, Colombia, Peru, Chile, Rest of South America)
• Middle East (Saudi Arabia, Turkey, UAE, Egypt, Qatar, Rest of Middle East)
• Africa (Nigeria, South Africa, Rest of Africa)

The above graph is for illustrative purposes only.

North America Managed Service Provider MSP Market Analysis

According to Cognitive Market Research, the global Managed Service Provider market size was estimated at USD 301514.2 Million, out of which North America held the major market share of more than 40% of the global revenue with a market size of USD 120605.68 million in 2024 and will grow at a compound annual growth rate (CAGR) of 12.4% from 2024 to 2031.

• According to Cognitive Market Research, the US had a major share in the Managed Service Provider market with a market size of USD 95157.88 million in 2024 and is projected to grow at a CAGR of 12.2% during the forecast period. The US holds a major share of the managed service provider market, driven by robust IT infrastructure and digital transformation initiatives.
• The Canada Managed Service Provider market had a market share of USD 14472.68 million in 2024 and is anticipated to progress at a CAGR of 13.2% during the forecast period. Canada is the fastest-growing market for managed service providers due to substantial digital transformation and cloud adoption.
• The Mexico Managed Service Provider market is projected to witness growth at a CAGR of 12.9% over the projection period, with a market size of USD 10975.12 million in 2024.

Europe Managed Service Provider MSP Market Analysis

According to Cognitive Market Research, the global Managed Service Provider market size was estimated at USD 301514.2 Million, out of which Europe held the market share of more than 30% of the global revenue with a market size of USD 90454.26 million in 2024 and will grow at a compound annual growth rate (CAGR) of 12.7% from 2024 to 2031.

• The United Kingdom Managed Service Provider market had a market share of USD 15196.32 million in 2024 and is projected to grow at a CAGR of 13.5% during the forecast period. The UK leads the managed service provider market, fueled by an increasing focus on cybersecurity and digital transformation initiatives.
• The France Managed Service Provider market is projected to witness growth at a CAGR of 11.9% during the forecast period, with a market size of USD 8321.79 million in 2024.
• According to Cognitive Market Research, the German Managed Service Provider market size was valued at USD 17909.94 million in 2024 and is projected to grow at a CAGR of 12.9% during the forecast period. Germany is witnessing growth in the managed service provider market, primarily fueled by increasing demand for digital transformation and cloud services.
• The Italy Managed Service Provider market is projected to witness growth at a CAGR of 12.1% during the forecast period, with a market size of USD 7779.07 million in 2024.
• The Russia Managed Service Provider market is projected to witness growth at a CAGR of 11.7% during the forecast period, with a market size of USD 14020.41 million in 2024.
• The Spain Managed Service Provider market is projected to witness growth at a CAGR of 11.8% during the forecast period with a market size of USD 7417.25 million in 2024
• The Luxembourg Managed Service Provider market is projected to witness growth at a CAGR of 12.8% during the forecast period, with a market size of USD 2804.08 million in 2024.
• The Portugal Managed Service Provider market is projected to witness growth at a CAGR of 12.5% during the forecast period, with a market size of USD 1899.54 million in 2024.
• The Greece Managed Service Provider market is projected to witness growth at a CAGR of 13.0% during the forecast period, with a market size of USD 1085.45 million in 2024.
• The Rest of Europe's Managed Service Provider market is projected to witness growth at a CAGR of 11.4% during the forecast period, with a market size of USD 14020.41 million in 2024.

Asia Pacific Managed Service Provider MSP Market Analysis

According to Cognitive Market Research, the global Managed Service Provider market size was estimated at USD 301514.2 Million, out of which Asia Pacific held the market share of around 23% of the global revenue with a market size of USD 69348.27 million in 2024 and will grow at a compound annual growth rate (CAGR) of 16.2% from 2024 to 2031.

• According to Cognitive Market Research, the China Managed Service Provider market size was valued at USD 48.59 million in 2024 and is projected to grow at a CAGR of 10.5% during the projection period. China dominates the managed service provider industry due to increasing digital transformation activities.
• The Japan Managed Service Provider market is projected to witness growth at a CAGR of 14.7% during the forecast period, with a market size of USD 9570.06 million in 2024.
• The India Managed Service Provider market had a market share of USD 8321.79 million in 2024 and is projected to grow at a CAGR of 18.0% during the forecast period. India's managed service provider market is growing substantially due to rising cloud adoption and digital transformation initiatives..
• The South Korean Managed Service Provider market is projected to witness growth at a CAGR of 15.3% during the forecast period, with a market size of USD 6934.83 million in 2024.
• The Australian Managed Service Provider market is projected to witness growth at a CAGR of 15.9% during the forecast period, with a market size of USD 3606.11 million in 2024.
• The South East Asia Managed Service Provider market is projected to witness growth at a CAGR of 17.2% during the forecast period, with a market size of USD 4785.03 million in 2024.
• The Rest of Asia Pacific Managed Service Provider market is projected to witness growth at a CAGR of 16.0% during the forecast period, with a market size of USD 4923.73 million in 2024.

South America Managed Service Provider MSP Market Analysis

According to Cognitive Market Research, the global Managed Service Provider market size was estimated at USD 301514.2 Million, out of which Latin America held the market share of around 5% of the global revenue with a market size of USD 15075.71 million in 2024 and will progress at a compound annual growth rate (CAGR) of 13.6% from 2024 to 2031.

• According to Cognitive Market Research, the Brazil Managed Service Provider market size was valued at USD 6452.40 million in 2024 and is anticipated to grow at a CAGR of 14.2% over the projection period. Brazil stands out as a significant player in the managed service provider market, driven by increasing digital transformation efforts.
• Argentina's Managed Service Provider market had a market share of USD 2532.72 million in 2024 and is anticipated to grow at a CAGR of 14.5% during the forecast period. Argentina is experiencing significant growth in the managed service provider market, primarily driven by increased cloud adoption and digital solutions.
• Colombia Managed Service Provider market is projected to witness growth at a CAGR of 13.4% during the forecast period, with a market size of USD 1341.74 million in 2024.
• Peru Managed Service Provider market is projected to witness growth at a CAGR of 13.8% during the forecast period, with a market size of USD 1236.21 million in 2024.
• Chile Managed Service Provider market is projected to witness growth at a CAGR of 13.9% during the forecast period, with a market size of USD 1085.45 million in 2024.
• The Rest of Latin America's Managed Service Provider market is projected to witness growth at a CAGR of 12.7% during the forecast period, with a market size of USD 2427.19 million in 2024.

Middle East Managed Service Provider MSP Market Analysis

According to Cognitive Market Research, the global Managed Service Provider market size was estimated at USD 301514.2 Million, out of which the Middle East and Africa secured the prominent market share of around 2% of the global revenue with a market size of USD 6030.28 million in 2024 and will progress at a compound annual growth rate (CAGR) of 13.9% from 2024 to 2031..

• The GCC Countries Managed Service Provider market is projected to witness growth at a CAGR of 14.7% during the forecast period, with a market size of USD 2580.96 million in 2024. The managed service provider market in GCC countries is primarily driven by a focus on regulatory compliance and data security.
• The Egypt Managed Service Provider market is projected to witness growth at a CAGR of 14.2% during the forecast period, with a market size of USD 633.18 million in 2024.
• The South Africa Managed Service Provider market is projected to witness growth at a CAGR of 14.9% during the forecast period, with a market size of USD 952.78 million in 2024. In South Africa, the growing demand for managed service providers is largely driven by increased cloud adoption and cybersecurity needs.
• The Turkey Managed Service Provider market is projected to witness growth at a CAGR of 13.4% during the forecast period, with a market size of USD 518.60 million in 2024.
• The Nigeria Managed Service Provider market is projected to witness growth at a CAGR of 13.0% during the forecast period, with a market size of USD 633.18 million in 2024.
• The Rest of the MEA Managed Service Provider market is projected to witness growth at a CAGR of 12.9% during the forecast period, with a market size of USD 711.57 million in 2024.

Managed Service Provider MSP Market Analysis

How are Segments Performing in the Global Managed Service Provider Market?

Managed Service Provider Market Solution Segment Analysis

According to Cognitive Market Research, the managed IT infrastructure & data Centre segment controls a significant share of the managed service provider (MSP) market. This category is essential due to the rising reliance on cloud computing and data management solutions. Organizations want efficient infrastructure management, scalability, and increased security, which drives demand for managed service providers that specialize in data center operations and IT infrastructure management.

Managed security is the fastest-growing segment of the managed service provider (MSP) market. This expansion is driven by a rising number of cyber threats and the growing necessity for businesses to safeguard sensitive data. Organizations are looking to managed service providers for complete security solutions, including threat detection, incident response, and compliance management, to improve their cybersecurity posture successfully.

The above Chart is for representative purposes and does not depict actual sale statistics. Access/Request the quantitative data to understand the trends and dominating segment of Managed Service Provider MSP Industry. Request a Free Sample PDF!

Managed Service Provider Market Managed Information Service (MIS) Segment Analysis

According to Cognitive Market Research, the business process outsourcing (BPO) segment dominates the managed service provider (MSP) market. This segment's growth is being driven by rising demand for cost-effective solutions, operational efficiency, and access to specialized expertise. Companies are increasingly outsourcing non-essential tasks to MSPs, such as support for customers and personnel, to free up time for strategic projects and key company activities.

Project and portfolio management (PPM) is the fastest-growing segment of the managed service provider (MSP) market. This expansion is driven by organizations' need for more efficient resource allocation, increased project visibility, and enhanced team cooperation. As businesses recognize the value of strategic project management, managed service providers are customizing their offerings to provide customized PPM solutions that promote operational efficiency and project success..

The above Graph is for representation purposes only. This chart does not depict actual Market share.

Managed Service Provider MSP Deployment Segment Analysis

Managed Service Provider Market Deployment Segment Analysis

According to Cognitive Market Research, the on-premise sector dominates the managed service provider (MSP) market. Many businesses select on-premise solutions to have greater control over their IT environments and data security. This need for innovation is particularly strong in industries that have stringent regulatory requirements. As businesses invest more in strong IT infrastructure, managed service providers are projected to continue to prioritize on-premise services.

The hosted segment is the fastest-growing segment of the managed service provider (MSP) market. This expansion is being driven by increased demand for cloud-based services as organizations seek scalable and cost-effective solutions. Hosted services provide flexibility and ease of management, allowing organizations to focus on core activities while providing strong IT support, hence improving efficiency and overall performance across industries.

• On-premise
• Hosted

Managed Service Provider MSP Enterprise Size Segment Analysis

Managed Service Provider Market Enterprise Size Segment Analysis

According to Cognitive Market Research, the small and medium enterprises (SMEs) segment dominates the managed service provider (MSP) market. SMEs are increasingly relying on MSPs to manage their IT infrastructure, reduce operational costs, and improve security. Outsourcing IT services enables small organizations to focus on core operations while accessing new technologies, resulting in high demand for MSP solutions in small and medium-sized enterprises.

Large enterprises are the fastest-growing category in the managed service provider (MSP) market. The growing demand for improved IT infrastructure, enhanced cybersecurity, and cloud services are driving this rise. Large enterprises are adopting MSP solutions to streamline operations, reduce expenses, and ensure business continuity, contributing significantly to the MSP market's growth.

• Small & Medium Enterprises (SMEs)
• Large Enterprises

Managed Service Provider MSP End-use Segment Analysis

Managed Service Provider Market End-use Segment Analysis

According to Cognitive Market Research, the BFSI (Banking, Financial Services, and Insurance) segment dominates the managed service provider industry. This dominance comes from the industry's demand for strong cybersecurity, regulatory compliance, and sophisticated IT infrastructure. Managed service providers support BFSI organizations in managing vital processes, enhancing data security, and providing smooth customer service, making them essential to the industry's digital strategy.

The healthcare sector is the fastest-growing segment within the managed service provider market owing to the increased use of digital health technology, electronic medical records (EMRs), and telemedicine. As the industry's demand for credible, secure, and scalable IT solutions develops, MSPs assist healthcare organizations in improving IT infrastructure, ensuring data security, and meeting regulatory compliance.

• BFSI
• Government
• Healthcare
• IT & Telecom
• Manufacturing
• Media & Entertainment
• Retail
• Others

Author's Detail

Swasti Dharmadhikari

Research associate at Cognitive Market Research

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Swasti Dharmadhikari, an agile and achievement-focused market researcher with an innate ardor for deciphering the intricacies of the Service & Software sector. Backed by a profound insight into technology trends and consumer dynamics, she has committed herself to meticulously navigating the ever-evolving terrain of digital Services and software solutions.

Author's Conclusion