This dataset offers insights into the challenges, solutions, and emerging trends shaping Disaster Recovery as a Service (DRaaS) for Managed Service Providers (MSPs) in the USA for 2025. It provides key findings based on a comprehensive survey conducted among MSPs.

According to around ** percent of MSP executives globally, acquiring more customers is expected to be the leading challenge for managed service providers (MSPs) in 2023. Meanwhile, the main challenge for MSP technicians that year was dealing with advanced and sophisticated security threats according to around ** percent of technician respondents.

Global Managed Services Providers MSP market size 2021 was recorded $165.485 Billion whereas by the end of 2025 it will reach $294.5 Billion. According to the author, by 2033 Managed Services Providers MSP market size will become $932.698. Managed Services Providers MSP market will be growing at a CAGR of 15.5% during 2025 to 2033.

According to Cognitive Market Research, the global managed service provider market size was USD 301514.2 million in 2024. It will expand at a compound annual growth rate (CAGR) of 14.20% from 2024 to 2031.

North America held the major market share for 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.
Europe accounted for a market share of over 30% of the global revenue with a market size of USD 90454.26 million.
Asia Pacific held a 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.
Latin America had a market share of more than 5% of the global revenue with a market size of USD 15075.71 million in 2024 and will grow at a compound annual growth rate (CAGR) of 13.6% from 2024 to 2031.
Middle East and Africa had a market share of around 2% of the global revenue and was estimated at a market size of USD 6030.28 million in 2024 and will grow at a compound annual growth rate (CAGR) of 13.9% from 2024 to 2031.
The managed IT infrastructure & data center typically holds the largest market share of the managed service providers industry.

Market Dynamics of Managed Service Provider Market

Key Drivers for Managed Service Provider Market

Growing Demand for IT Cost Optimization

Organizations are increasingly turning to Managed Service Providers (MSPs) to outsource IT services, aiming to lower operational expenses, enhance IT infrastructure efficiency, and gain access to expert assistance without the need to expand internal teams. This model of cost-effectiveness allows businesses to concentrate on their primary activities while ensuring dependable and secure IT environments, thereby propelling substantial market growth for managed services.

Escalating Complexity in IT Infrastructure

As companies embrace hybrid cloud solutions, Internet of Things (IoT), and artificial intelligence (AI) technologies, the management of varied IT environments becomes increasingly intricate. MSPs provide scalable, 24/7 support for cybersecurity, network oversight, data management, and regulatory compliance. The growing need for specialized management of dynamic IT infrastructures is significantly driving the global expansion of the MSP market.

Restraint Factor for the Managed Service Provider Market

Concerns Regarding Data Security and Privacy

Outsourcing IT services to Managed Service Providers (MSPs) raises significant concerns about the control of sensitive corporate data. Issues such as data breaches, compliance risks, and vulnerabilities associated with third parties may discourage certain companies from utilizing managed services. Particularly in regulated sectors, fears surrounding data sovereignty and security could hinder market expansion unless MSPs commit to transparent and compliant practices.

High Dependence and Vendor Lock-In Challenges

A prolonged dependence on a particular MSP can result in vendor lock-in, making it expensive and complicated to switch providers. Organizations may struggle to adapt or regain control over their IT operations if the quality of service deteriorates. This inflexibility and associated risks can prevent businesses from fully adopting MSP models.

Key Trends for the Managed Service Provider Market

Transition to Cloud-Based Managed Services

Organizations are progressively embracing cloud-based managed services to enhance agility, scalability, and remote access. MSPs are now offering services related to cloud migration, management, and security. This transition is particularly evident among small to medium-sized businesses (SMBs) and larger enterprises undergoing digital transformation, which is driving the demand for cloud-focused managed service solutions.

Incorporation of AI and Automation in Service Delivery

MSPs are utilizing artificial intelligence (AI) and automation to improve service efficiency, decrease response times, and provide predictive maintenance. Innovations such as automated ticketing systems and AI-driven security monitoring enable MSPs to offer smarter, more proactive support. This trend is reshaping MSP capabilities and granting competitive advantages in a saturated market.

The COVID-19 pandemic had an immense effect on the managed serv...

As of 2025, around ** global enterprises used MSPs. In contrast, only ** percent of SMBs used MSPs, while ** had no plans of implementing one. MSPs manage various IT services, including infrastructure management, technical support, and cybersecurity.

According to ** percent of survey respondents from EMEA, acquiring more customers will be a leading challenge for managed service providers (MSPs) in 2022. This is also a major business challenge for respondents from the Americas and EMEA region. Other business challenges include dealing with security threats and hiring.

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MSP Software Market Size 2025-2029

The MSP software market size is forecast to increase by USD 55.1 million at a CAGR of 16% between 2024 and 2029.

The Managed Service Provider (MSP) software market is experiencing significant growth, driven by the increasing adoption of Internet of Things (IoT) solutions and bring your own device (BYOD) policies in businesses. The proliferation of IoT devices in various industries is creating a wave in demand for MSPs to manage and secure these connected devices, ensuring optimal performance and data protection. Simultaneously, the widespread implementation of BYOD policies is increasing the complexity of IT environments, necessitating MSPs to provide comprehensive management and security services for diverse devices and platforms. However, the market is not without challenges. Data privacy and security risks associated with cloud-based services continue to be a major concern for businesses, particularly those handling sensitive information.
As a result, MSPs must prioritize security measures to mitigate these risks and build trust with their clients. Furthermore, the intense competition in the market necessitates MSPs to differentiate themselves through innovative offerings, exceptional customer service, and competitive pricing. Companies seeking to capitalize on market opportunities and navigate challenges effectively should focus on developing strong partnerships, investing in advanced technologies, and providing customized solutions to cater to the unique needs of their clients.

What will be the Size of the MSP Software Market during the forecast period?

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The Managed Service Provider (MSP) software market exhibits strong growth, driven by the increasing adoption of cloud services, IT transformation, and the digital workplace. Key areas of focus include data governance, knowledge base development, virtual desktop infrastructure, real-time analytics, and data protection. Application monitoring, remote collaboration, and service level reporting are essential for ensuring optimal performance and customer experience. Security remains a top priority, with managed security services, penetration testing, compliance audits, network security, and incident response addressing various threats. IT governance, ITIL framework, and IT service orchestration are crucial for managing complex IT environments.
Additionally, emerging trends such as AI-powered IT operations, proactive monitoring, asset tracking, software upgrades, and software-defined networking contribute to the market's expansion. Cloud strategy, license compliance, and cloud adoption continue to shape the landscape, while big data, business intelligence, and self-service portals offer new opportunities for MSPs to add value. The Internet of Things (IoT) and IT governance further expand the market's scope, ensuring a dynamic and evolving ecosystem.

How is this MSP Software Industry segmented?

The MSP software industry research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in 'USD million' for the period 2025-2029, as well as historical data from 2019-2023 for the following segments.

Deployment

  On-premises
  Cloud-based
  Hybrid
  Others


Type

  Managed data center
  Managed network
  Managed infrastructure
  Managed mobility
  Others


Application

  Telecom and IT
  BFSI
  Retail
  Media and entertainment
  Others


Geography

  North America

    US
    Canada


  Europe

    France
    Germany
    Italy
    UK


  APAC

    China
    India
    Japan


  South America

    Brazil


  Middle East and Africa

By Deployment Insights

The on-premises segment is estimated to witness significant growth during the forecast period. The market is experiencing notable growth, particularly in the on-premises segment. On-premises MSP software offers end-to-end quality control, ensuring higher security compared to SaaS-based managed services. Large client organizations, predominantly in sectors such as BFSI, aerospace and defense, and government, prioritize functionality and are more likely to adopt on-premises solutions due to regulatory requirements. These sectors handle sensitive data, making security a top priority. For instance, government bodies like the Central Intelligence Agency (CIA), Research and Analysis Wing (RAW), and Inter-services Intelligence (ISI) utilize on-premises MSP software to mitigate the risk of cyber threats and terrorism.

In addition to security, on-premises solutions offer customizability, control, and compliance with specific industry regulations. The market dynamics are influenced by factors such as IT budgeting, IT infrastructure management, system updates, vulnerability assessment, firewall management, disaster recovery, and IT support. Companies are also focusing on cost optimization, change management, project management

MSP FY21 customer service annual report - results and plans for the future.

In 2020, ** percent of managed service providers (MSP) companies from the Americas provide an antivirus or antimalware service as part of their service portfolio. Across all three regions listed, endpoint management takes the second place. This includes the management of servers, desktops, and laptops, among others.

MSP Software Market size was valued at USD 115 Billion in 2023 and is projected to reach USD 252.95 Billion by 2030, growing at a CAGR of 12.5% during the forecast period 2024-2030. Global MSP Software Market Drivers

The market drivers for the MSP Software Market can be influenced by various factors. These may include:

Growing Adoption of Cloud Services: As more companies shift their operations to the cloud, there's a greater need for MSP software to effectively manage and keep an eye on these cloud-based services.

Increasing Complexity of IT Environments: To efficiently manage their networks, endpoints, apps, and data, enterprises need MSP solutions as their IT environments becoming more complicated. The development of software applications, a variety of device kinds, and hybrid infrastructure are some of the causes contributing to this complexity.

Pay Attention to Cost Optimisation: Many businesses want to save IT expenses without sacrificing security and service standards. By streamlining repetitive processes, increasing operational effectiveness, and offering proactive monitoring and management features, MSP software can aid in cost optimisation.

Growing Cybersecurity Threats: Organisations are turning to MSPs for assistance in strengthening their cybersecurity defences as a result of the increase in cybersecurity threats including ransomware, malware, and data breaches. Strong security features like threat detection, vulnerability management, and security incident response capabilities are frequently included in MSP software.

Increasing Complexity of Compliance Requirements: Organisations must adhere to strict privacy and data protection standards, such as GDPR, HIPAA, and PCI DSS. MSP software's capabilities, which include data encryption, access restrictions, and audit trails, can help businesses comply with these regulations.

Requirement for Flexible and Scalable IT Solutions: Modern businesses need IT solutions that can grow with their changing needs and adjust to shifting market dynamics. Because MSP software is flexible and scalable, businesses can easily add or remove services as needed and modify their IT infrastructure to match changing business needs.

Emphasis on Business Continuity and Disaster Recovery: Organisations place a high premium on ensuring business continuity and disaster recovery capabilities, particularly in the event of natural disasters, cyberattacks, or other interruptions. MSP software assists businesses in minimising downtime, ensuring business continuity, and implementing reliable backup and recovery solutions.

Changes in Work Practices: The COVID-19 epidemic has sped up the adoption of remote work, which has raised the need for MSP software that can facilitate remote collaboration, secure remote access, and efficiently manage distributed IT settings.

United States No. of Flights: MSP Terminal: 1 data was reported at 15.000 Unit in 16 May 2025. This records an increase from the previous number of 12.000 Unit for 15 May 2025. United States No. of Flights: MSP Terminal: 1 data is updated daily, averaging 0.000 Unit from May 2008 (Median) to 16 May 2025, with 5143 observations. The data reached an all-time high of 30.000 Unit in 05 Apr 2025 and a record low of 0.000 Unit in 14 Sep 2020. United States No. of Flights: MSP Terminal: 1 data remains active status in CEIC and is reported by U.S. Customs and Border Protection. The data is categorized under Global Database’s United States – Table US.TA: Airport Statistics: Number of Flights: by Airport. [COVID-19-IMPACT]

FY21 Customer Service Annual Report table of contents for MSP

Managed Services Market is Segmented by Deployment (On-Premises, Cloud), Service Type (Managed Data Center, Managed Security, Managed Communications, and More), Enterprise Size (Small and Medium Enterprises, Large Enterprises), End-User Vertical (BFSI, IT and Telecommunication, Manufacturing, and More), and by Geography. The Market Forecasts are Provided in Terms of Value (USD).

United States No. of Flights: MSP Terminal: 2 data was reported at 1.000 Unit in 16 May 2025. This stayed constant from the previous number of 1.000 Unit for 15 May 2025. United States No. of Flights: MSP Terminal: 2 data is updated daily, averaging 0.000 Unit from May 2008 (Median) to 16 May 2025, with 5143 observations. The data reached an all-time high of 19.000 Unit in 22 Mar 2025 and a record low of 0.000 Unit in 08 May 2025. United States No. of Flights: MSP Terminal: 2 data remains active status in CEIC and is reported by U.S. Customs and Border Protection. The data is categorized under Global Database’s United States – Table US.TA: Airport Statistics: Number of Flights: by Airport. [COVID-19-IMPACT]

MSP Software Market Outlook

The global Managed Service Provider (MSP) software market size was valued at USD 12.5 billion in 2023, and it is forecasted to reach USD 25.8 billion by 2032, growing at a compound annual growth rate (CAGR) of 8.2% during the forecast period. This robust growth is driven by the increasing complexities in IT environments and the growing need for efficient management of IT infrastructure. The market for MSP software is expanding rapidly due to the rising dependency on IT services across various industries, making efficient management a key priority.

Several factors contribute to the growth of the MSP software market. Firstly, the increasing adoption of cloud computing and digital transformation initiatives across various sectors has significantly boosted the demand for managed services. As organizations strive to implement more complex IT environments, the need for specialized software to manage these systems effectively becomes crucial. MSP software helps in reducing operational costs, enhancing efficiency, and improving service quality, which in turn drives market growth.

Secondly, the surge in cyber threats and security breaches has amplified the demand for robust IT security management solutions. MSP software offers comprehensive security management features, including real-time monitoring, threat detection, and vulnerability management, which are essential in safeguarding organizational data. The rising awareness about data privacy and stringent regulatory requirements also play a significant role in driving the adoption of MSP software, particularly in sectors such as BFSI and healthcare.

Another critical growth factor is the increasing trend of outsourcing IT services to managed service providers. Small and medium enterprises (SMEs) often lack the resources to maintain in-house IT teams, making MSPs a cost-effective and efficient alternative. MSP software enables these providers to deliver high-quality services, manage multiple clients, and ensure compliance with industry standards. The growing need for remote monitoring and management of IT infrastructure also fuels the demand for MSP software.

From a regional perspective, North America holds a significant share of the MSP software market, driven by the high adoption rate of advanced technologies and the presence of major industry players. Europe is also a substantial market due to stringent data protection regulations and increasing cybersecurity concerns. The Asia Pacific region is expected to witness the highest growth rate during the forecast period, attributed to rapid economic development, increased IT spending, and the growing number of SMEs in countries like China and India.

Deployment Mode Analysis

The deployment mode of MSP software can be broadly categorized into on-premises and cloud-based solutions. On-premises deployment involves installing the software on the local servers of the organization, giving them complete control over their data and IT infrastructure. This mode is preferred by organizations with stringent data security policies and those that require customized solutions to meet specific needs. Despite its advantages, the high initial investment and maintenance costs associated with on-premises deployment can be a barrier for some businesses.

Cloud-based deployment, on the other hand, has gained significant traction in recent years. It offers numerous benefits, including scalability, flexibility, and cost-effectiveness. Organizations can access the software from anywhere, ensuring seamless remote management and operations. The pay-as-you-go model of cloud deployment makes it an attractive option for SMEs, allowing them to scale services according to their needs without significant capital expenditure. The increasing adoption of cloud services globally is a major driver for the growth of cloud-based MSP software.

Another key aspect of cloud deployment is the ease of integration with other cloud services and applications. This interoperability enhances the overall efficiency of IT operations and provides a unified platform for managing various aspects of the IT infrastructure. The ongoing advancements in cloud technology, such as the introduction of artificial intelligence and machine learning capabilities, further enhance the functionalities of MSP software, making it more appealing to organizations across different sectors.

However, cloud deployment also presents some challenges, particularly related to data security and compliance. Organizations need to ensure that their cl

In a 2024 survey, around ** percent of European respondents stated that their organization is utilizing MSP for managing some of their cloud usage. Moreover, only * percent responded with their company having plans to use MSP in the future.

A dataset containing statistics on data backup solutions used by Managed Service Providers (MSPs) in the USA, including types of solutions, challenges, and preferences.

Copy of Maryland State Police Customer Service Annual Report FY21 (description updated 2/17/2023)

The global MSP Software market was valued at USD 201.45 million in 2022 and is projected to reach USD 464.25 million by 2030, registering a CAGR of 11 % for the forecast period 2023-2030. The rising adoption of IoT solutions, fuels the demand for MSP software favouring the market growth

IoT solutions includes a wide range of sensors, data sources, networks, and interconnected devices. To manage these components efficiently, software and specialized tools are required that can analyze, monitor, and troubleshoot several aspects of the IoT ecosystem. Thus, MSP software provides centralized platform so as to monitor and manage these complex deployments, thereby, ensuring minimized downtime and optimal performance. Moreover, MSP software is also used in capacity planning, load balancing, and resource allocation, thereby, capable of handling device connections and increased data traffic effectively. Therefore, This MSP software is used in managing resources such as storage, bandwidth, and processing power. In addition, MSP software also enables remote management and monitoring, which enables administrators to perform several tasks such as configuration changes, troubleshooting, and software updates without physically being present at device location. Thus, MSP software plays a vital role in maintaining the functionality and health of IoT devices spread at different geographical locations. Several IT companies have increased the use of various technological tools in order to scale up their services and businesses. For instance, in September 2022, Atera, a cloud-based remote monitoring and management (RMM) and professional services automation (PSA) platform for IT professionals, entered into a partnership with Veeam Software, thereby, enabling IT professionals to grow their business, boost security, and optimize tasks by using MSP software. Thus, considering all the above factors, the rising IoT solutions has fuelled the demand for the MSP software.

Data privacy and security concerns associated with the cloud-based MSP software are likely to limit the market growth

Whenever the data is stored in the cloud, the cloud may expose it to the risk of data breaches and unauthorized access. In case if, a cloud service provider's security measures are not strong enough, hackers can potentially gain access to sensitive information, resulting into identity theft, data leaks, and financial losses. Moreover, the businesses that majorly rely on cloud-based MSP software can become dependent on a specific cloud service provider's services nd infrastructure. This can lead to vendor lock-in making it complicate and difficult to switch providers or even migrate to an on-premises solution without any significant disruption. Also, whenever the data is hosted in the cloud, several organizations can have limited control over security measures that are implemented by the cloud provider. This lack of control over the data can be a case to worry about, specifically for businesses that deal with highly sensitive information. Therefore, the data privacy and security concerns can likely hamper the market growth.

Impact of the COVID-19 pandemic on the MSP Software Market:

The outbreak of Covid-19 has witnessed a significant impact on MSP Software market growth. The pandemic increased the adoption of contactless solutions and technologies across several different sectors. The COVID-19 provided. led to an increased demand for remote monitoring and management, increased emphasis on cybersecurity, rising cloud adoption, acceleration in digital transformation, and increased need for operational efficiency. Thus, there was an increased demand for MSP software post-COVID. Overall, the global MSP Software market was moderately impacted by the pandemic.

  What is a MSP Software?

Managed Service Provider (MSP) software is referred to as an IT service platform that manages a predefined set of services for clients. It is used within several industries such as information services, B2B integration, transportation, utilities, media, and supply chain management, as a virtual assistant. The MSP software is manages multiple number of clients simultaneously from set of centralized controls. A Managed Service Provider (MSP), delivers several services such as application, network, security, and infrastructure, through regular and ongoing support and active administration on customers' premises, in their MSP's data c...

The Managed Service Provider (MSP) market is rapidly evolving, reflecting the increasing demand for outsourced IT services among businesses seeking efficiency, security, and expertise. Managed Service Providers deliver a wide range of IT solutions, including network management, cybersecurity services, data backup an