Managed services help businesses improve their operational efficiency while reducing functioning costs. The increased tendency of IT services outsourcing has facilitated the expansion of the MSP industry.
The global MSP market was evaluated at USD 239.71 billion in 2021. It is estimated to reach USD 354.8 billion by 2026. The estimation also states that the market will grow at a CAGR of 13.4% from 2022 to 2030.
Managed services refer to outsourcing management processes to a third-party service provider. It helps organizations enhance business operations with improved coordination between different units.
The evolution of cloud-based technologies and their technical accumulation have led to the rise of managed services. The biggest segment in this service is the managed data center, which accounts for 16% of the market share.
The easy integration of the latest technology into existing and new corporate frameworks makes managed services more facilitating for businesses. It is the main reason behind the growth of MSP help desk services.
Managed services help optimize corporate procedures by enabling business automation. It mainly supports business management in a remote IT infrastructure. We will discuss here everything about the MSP industry and its predicted growth in the coming years.
MSP Industry and Market Trends
A market analysis of the MSP industry indicates that the growth focuses on different segments. The fastest growing segments of the managed services are:
1. Cloud-Based Management
A market analysis of the MSP industry indicates that the growth focuses on different segments. The fastest growing segments of the managed services are:
2. Cybersecurity
A market analysis of the MSP industry indicates that the growth focuses on different segments. The fastest growing segments of the managed services are:
3. Managed Networks
A market analysis of the MSP industry indicates that the growth focuses on different segments. The fastest growing segments of the managed services are:
Factors Behind the Rise of the MSP Industry
Scalable systems and flexible services models are particularly making the MSP, as well as, after hours call center industry grow. It helps businesses to respond to technological refinements quickly. All such factors are driving the MSP market size over the predicted measure. Here are the key reasons behind the MSP market growth.
1. Result-based Services
With the continuously changing industry conditions, norms, and consumer demands, businesses of the present age seek result-based services. They need real-time, pre-defined, and clearly documented measures. Hence the MSPs now use cutting-edge analytics and reporting to explain the impact of technologies executed and current accurate data.
2. Cutting-edge Technology
The advanced technologies are creating better prospects for managed service providers. Further, businesses require expertise to implement new technologies. Hence, the MSPs continuously obtain vital skill sets to work on innovative technologies like AR, VR, and AI. It enables them to grab these opportunities and stay relevant to keep up with the competition.
3. COVID-19 Outbreak
Since the outbreak of COVID-19, enterprises have adopted remote working models. This trend led to the increased demand for cloud-based solutions resulting in its significant growth.
IT decision-makers prefer to take advantage of current cloud-based conditions. They are increasingly driving into longer project models that need larger budgets. And MSP outsourcing offers cutting-edge technology services at a lower cost.
About 48% of the US and the UK IT decision-makers say they need 1-2 months to successfully finalize the migration of one multi-cloud application.
Conclusion:
Managed services support enterprises to improve operating efficiency while reducing expenses. It allows businesses to concentrate more on core strategies. Besides, the increasing need for cyber security in the remote work model has opened new prospects for MSPs. The global MSP industry has seen a growth of USD 27.42 billion from 2019 to exceed USD 235.67 billion in 2022. For more information, you can read GLOBAL MANAGED SERVICES MARKET - GROWTH, TRENDS, COVID-19 IMPACT, AND FORECASTS (2022-2027).
Frequently Asked Questions
How Big is the MSP Industry?
The global MSP market was evaluated at USD 239.71 billion in 2021. It is estimated to reach USD 354.8 billion by 2026. The estimation also states that the market will grow at a CAGR of 13.4% from 2022 to 2030.
Do MSPs Make a Profit?
Research by Service Leadership INDEX reveals that the MSPs make an average profit of 8 percent, while in the case of top MSPs, the profit margin is 18 percent.