The global managed services market sits between $424 billion and $460 billion in 2026, depending on which analyst you ask, with every major forecast pushing past $700 billion by 2031. This post covers the latest MSP market size statistics for 2026 across regions, service segments, adoption rates, and the trends moving the numbers.
MSP Market Size Statistics – TL;DR
- The global MSP market in 2026 is valued between $424.14 billion and $460.59 billion across four major analyst estimates.
- North America held 32.40% of global managed services revenue in 2025, the largest regional share per Mordor Intelligence.
- Managed security services are projected at $41.3 billion in 2026, per Persistence Market Research.
- 71% of MSPs reported year-over-year revenue growth in cybersecurity services in the Kaseya 2026 State of the MSP Report.
- 87% of MSPs are optimistic about the channel’s growth potential heading into 2026, per ScalePad.
The headline MSP market size statistics point in one direction: outsourced IT keeps taking budget from in-house teams. Cybersecurity demand, cloud complexity, and AI-driven service delivery account for most of the growth, with forecast CAGRs clustered between 8.9% and 12.8% through the early 2030s.
How Big Is the MSP Market in 2026?
Four research firms place the 2026 global market between $424 billion and $460 billion. The midpoint of the estimates lands at roughly $438 billion.
Estimates differ because each firm scopes managed services differently. Grand View Research and Mordor Intelligence include broader IT outsourcing categories, while MarketsandMarkets counts pure managed IT and communications services.
| Research firm | 2025 size | 2026 size | Forecast | Forecast year | CAGR |
|---|---|---|---|---|---|
| Grand View Research | $401.15B | $437.26B | $847.41B | 2033 | 9.9% |
| Mordor Intelligence | $390.21B | $430.56B | $704.20B | 2031 | 10.34% |
| MarketsandMarkets | n/a | $460.59B | $705.22B | 2031 | 8.9% |
| Research Nester | $380.33B | $424.14B | $1.27T | 2035 | 12.8% |
Source: Grand View Research, Mordor Intelligence, MarketsandMarkets, Research Nester
Every analyst expects the market to roughly double by 2031-2033. AI-augmented operations and rising cloud complexity are the two growth drivers cited most often in the underlying reports.
MSP Market Size by Region
North America retained 32.40% of global managed services revenue in 2025, based on Mordor Intelligence data. Fortune Business Insights puts the region’s share higher at 43.20%, with revenue of $142.6 billion in 2025 rising to $157.1 billion in 2026.
Asia Pacific is the fastest-growing region at an 11.28% CAGR through 2031. Within APAC, Japan is projected to reach $18.8 billion, China $32.9 billion, and India $17.9 billion by 2026, per Fortune Business Insights. Distributed teams and shifting work and employment trends in regional hubs are one structural driver behind the region’s pace.
| Region | 2025 revenue share | 2025 / 2026 revenue |
|---|---|---|
| North America | 32.40% (Mordor) / 43.20% (Fortune) | $142.6B (2025), $157.1B (2026) |
| Europe | ~28% | n/a |
| Asia Pacific | 22.40% | $74.1B (2025), $87.9B (2026) |
| Middle East & Africa | ~11% | n/a |
Source: Mordor Intelligence, Fortune Business Insights
MSP Market Size by Service Segment
Managed security is the fastest-moving segment in 2026. Persistence Market Research values managed security services at $41.3 billion in 2026, more than doubling to $87.9 billion by 2033 at an 11.4% CAGR.
SkyQuest sizes the same segment higher, at $42.8 billion in 2025 climbing to $123.82 billion by 2033 at a 14.2% CAGR. The gap again comes down to scope and methodology, a pattern that shows up across the wider cybersecurity market statistics as well.
Cloud-based delivery dominated with 52.35% of MSP deployments in 2025, and hybrid cloud shows the fastest growth trajectory. The steady move of workloads onto rented cloud infrastructure services keeps pulling more contracts toward managed cloud models.
| Segment | Share or size | Source |
|---|---|---|
| Managed data center (solution) | 15.0% revenue share, largest in 2025 | Grand View Research |
| Cloud deployment model | 52.35% share in 2025 | Mordor Intelligence |
| Managed security services | $41.3B in 2026, $87.9B by 2033 | Persistence Market Research |
| Managed security services (alt) | $42.8B in 2025, $123.82B by 2033 | SkyQuest |
| BFSI end-user vertical | 34.10% revenue share in 2025 | Mordor Intelligence |
| Healthcare vertical | 11.03% CAGR through 2031, fastest end-user | Mordor Intelligence |
| Large enterprises | 66.95% share in 2025; SMEs at 10.41% CAGR | Mordor Intelligence |
Source: Grand View Research, Mordor Intelligence, Persistence Market Research, SkyQuest
By industry, BFSI led end-user spend at 34.10% of MSP revenue in 2025. Healthcare is the fastest-growing vertical at an 11.03% CAGR through 2031.
MSP Adoption Rates Among SMBs and Enterprises
71% of MSPs reported year-over-year revenue growth in cybersecurity services, per the Kaseya 2026 State of the MSP Report, while 39% of the same MSPs say hiring skilled security staff gets harder each year.
Buyer trust has not kept pace with adoption. 73% of SMBs are not fully confident their MSP could defend against a major cyberattack, and nearly half say they would switch providers for stronger security, according to ConnectWise. Rising claim costs are also pushing more of these firms toward cyber risk insurance alongside managed protection.
| Adoption metric | Figure | Source |
|---|---|---|
| MSPs with YoY revenue growth in cybersecurity services | 71% | Kaseya 2026 State of the MSP Report |
| Businesses planning to raise cybersecurity budgets in 12 months | ~50% | Kaseya 2026 Cybersecurity Outlook Report |
| SMBs that overspent their cybersecurity budget in 2024 | 58% | ConnectWise |
| SMBs naming cybersecurity their top business priority | 57% | ConnectWise |
| SMBs not fully confident in MSP cybersecurity capability | 73% | ConnectWise |
| SMBs that say AI/genAI raises their threat level | 83% | ConnectWise |
Source: Kaseya, ConnectWise State of SMB Cybersecurity
58% of SMBs overspent their cybersecurity budget in 2024, and 57% named security their top business priority for the year. Around 50% of businesses plan to raise cybersecurity spend in the next 12 months, with 68% of those expecting growth in the 5%-25% range, per the Kaseya 2026 Cybersecurity Outlook Report.
MSP Industry Trends Shaping Market Size in 2026
AI investment is the biggest line-item change in MSP delivery this year. 81% of vCISO service providers already use AI or automation in their workflows, and Cynomi reports AI-driven tools cut vCISO workflow time by an average of 68%.
vCISO adoption among MSPs and MSSPs jumped 319% in one year, from 21% in 2024 to 67% in 2025, per Cynomi. The pattern tracks the broader AI in cybersecurity market, where automated detection and response tools are absorbing a growing share of security budgets.
| Trend metric | Figure | Source |
|---|---|---|
| MSPs optimistic about the channel’s future growth | 87% | ScalePad 2026 MSP Trends Report |
| MSPs projecting double-digit growth in 2026 | 55% | ScalePad 2026 MSP Trends Report |
| vCISO providers using AI/automation in workflows | 81% | Cynomi 2025 State of the vCISO Report |
| Average reduction in vCISO workflow time from AI | 68% | Cynomi 2025 State of the vCISO Report |
| vCISO adoption among MSPs/MSSPs (one-year growth) | 21% to 67% (319%) | Cynomi 2025 State of the vCISO Report |
| MSPs with a formal Customer Success program | 60% | ScalePad 2026 MSP Trends Report |
| MSP owners planning to sell in the next 3-5 years | 48% | MSP Success Reader Survey |
Source: ScalePad, Cynomi, MSP Success
Consolidation is also reshaping the market. 48% of MSP owners plan to sell their business within the next 3-5 years, according to an MSP Success reader survey, supplying a steady deal pipeline for private equity acquirers.
MSP Market Size Outlook Through 2031
Even at the low end of analyst forecasts, the 2026 MSP market sits at $424 billion, well above where it stood a few years ago. Cybersecurity demand, cloud complexity, the IT skills gap, and AI-augmented operations all pull in the same direction.
With North America holding between 32% and 43% of global revenue and Asia Pacific running the fastest CAGR at 11.28%, providers expanding into SME and healthcare verticals have the clearest revenue runway through 2031. How fast advanced artificial intelligence gets embedded into managed services delivery is now the single biggest variable across all of these forecasts.
FAQs
How big is the MSP market in 2026?
The global MSP market is valued between $424.14 billion and $460.59 billion in 2026, depending on the analyst. The midpoint of the four largest estimates is roughly $438 billion.
Which region has the largest MSP market share?
North America leads with 32.40% of global managed services revenue in 2025 per Mordor Intelligence, or 43.20% per Fortune Business Insights, worth $142.6 billion in 2025.
What is the fastest-growing MSP service segment?
Managed security services. The segment is worth $41.3 billion in 2026 and is projected to reach $87.9 billion by 2033 at an 11.4% CAGR, per Persistence Market Research.
How fast will the MSP market grow through 2031?
Analyst CAGRs range from 8.9% to 12.8%. MarketsandMarkets projects $705.22 billion by 2031, Mordor Intelligence $704.20 billion by 2031, and Research Nester $1.27 trillion by 2035.
Are MSPs growing revenue in 2026?
Yes. 71% of MSPs reported year-over-year revenue growth in cybersecurity services, and 55% project double-digit overall growth in 2026, per Kaseya and ScalePad survey data.
Sources
https://www.marketsandmarkets.com/Market-Reports/managed-services-market-1141.html
https://www.kaseya.com/resource/2026-kaseya-state-of-the-msp-report-insights/
https://www.connectwise.com/resources/state-of-smb-cybersecurity
With many years of professional experience within transnational corporations in different industries, Richard Jaimes has had the opportunity to lead people and organizations, investigate future topics, create strategies and innovations, consult senior management and translate insights into business advantages. Richard is also a long time senior consultant with Quantumrun Foresight.
