30+ Stats And Trends MSPs Should Know In 2024

Managed Service Providers (MSPs) are, for many businesses, the first line of defence when it comes to securing critical infrastructure and applications.

But in discussions around cybersecurity, we perhaps don’t talk enough about the importance of MSPs in the cybersecurity space.

Expert Insights has combed through major reports on the IT landscape, industry trends, and MSP growth to provide the top MSPs statistics for cybersecurity professionals to reflect on.

General MSP Market Trends

It’s estimated there are over 150,000 MSPs globally, and 40,000 in the USA alone. (Cloudsaver)
The global managed services market is projected to grow at a compound annual growth rate (CAGR) of 13.6% from 2023 to 2030. (GrandViewResearch)
The global managed services market size was estimated at USD 299.01 billion in 2023. (GrandViewResearch)
Demand for Managed IT services surged during and after the COVID-19 Pandemic. (TechTarget)
It’s estimated that MSP revenues will grow 12% in 2024. (Canalys)
34% of MSP partners expect over 20% year-on-year growth in cybersecurity revenue in 2024 – with MDR and XDR two of the most popular growth areas. (Canalys)
Increasing competition is the top challenge that MSPs are facing today. (Datto)
On average, MSPs support around 122 clients, with the majority having fewer than 100 clients. (ScribeHow)

The 2024 State Of The MSP Report

According to Datto’s 2024 ‘State of The MSP’ report:

The majority of MSPs increased their revenue by more than 10% year-over-year in 2024.
In North America, 68% of MSPs experienced a revenue increase, with almost 40% of MSPs growing more than 10%.
The majority of MSPs mostly serve businesses with 25-50 employees.
The average client spend on MSPs in North America is $110,800 USD.
The top industry served by MSPs is technology, followed by telecom, healthcare, manufacturing, and professional services.
59% of MSPs make money via monthly recurring service fees.

The Evolving Landscape of the MSP Business Report 2024

According to Barracuda’s 2024 Evolving Landscape of the MSP report, for which Barracuda interviewed 700 MSP decision makers:

MSPs expect revenue from managed services to make up nearly 44% of their total revenue in 2024.
92% of MSPs see cloud marketplaces as a crucial way to drive growth for their services.
97% of MSPs expect to increase their service portfolio with six new services on average in 2024, with a specific focus on security.
Almost 9 in 10 MSPs say they need significant improvements in knowledge and in the application of AI.
98% of MSPs report that they need to improve their internal security posture.

Why are MSPs so important?

Cybersecurity risks are the number one reasons that clients invest in using an MSP. (Datto)
The top managed security services offered by MSPs include email security, two factor authentication, security and compliance auditing, network firewalls, and password management. (Datto)
The cost for businesses to train in-house staff can often far exceed the cost of utilizing an MSP. (Hitachi Solutions)
Network downtime is a significant business risk – costing up to $5,600 USD per minute, which MSPs can help to protect against. (Gartner)
MSPs can help organizations to improve their compliance maturity – 87% of organizations report negative outcomes resulting from low compliance maturity. (Drata)
The top reason that small and midsized businesses work with MSPs is to save costs. (Infrascale)

Challenges Facing MSPs

The most significant challenge for MSPs this year include new customer acquisition, upskilling staff, managing customer budgets, and marketing. (Canalys)
The biggest challenges for MSPs in the cybersecurity space include complexity of products, hiring skilled professionals, managing too many products, and responding to too many alerts. (Datto)
28% of MSPs have found a key challenge is that too many customers are simply not concerned about protecting against cybersecurity risks. (Datto)
The risk of generative AI offers both opportunities and challenges for MSPs, improving efficiency and business processes but also offering opportunities for cybercriminals. (In-Soc)

Top Growing MSP categories

Top services MSPs are likely to add in the next year include collaboration software, business intelligence and analytics, incident response and forensics, data backup and protection, and physical access management. (Datto)
2024 will see 60% growth in compliance consulting revenue for MSPs. (Canalys)

Staying informed about these statistics and trends is crucial for MSPs to remain competitive and effectively meet the evolving needs of their clients in 2024.