As businesses rely more on managed service providers (MSPs) to navigate cybersecurity, cloud management, and IT infrastructure, the industry continues to evolve rapidly. Shifting client demands, emerging technologies, and an increasingly competitive landscape are shaping how MSPs operate.
To gain deeper insights into these trends, we leveraged AI-driven audience profiling to synthesize insights from opinions expressed online to a high statistical confidence level. Our data covered a 12-month range, ending 2 February 2025, and revealed the current perspectives of 268,240 people working for MSPs in the U.S.
MSP U.S. Market Size and Growth
The U.S. managed services market is steadily climbing, with strong growth expected over the next several years. By 2025, the managed services industry is projected to be worth $69.55 billion, with forecasts estimating it could reach $116.25 billion by 2030, growing at an annual rate of 10.82%. Demand for MSPs continues to rise as businesses face increasing pressure to secure their IT environments, optimize cloud infrastructure, and manage complex systems.
The U.S. managed services market is expected to generate $10.60 billion in revenue by 2025, reflecting the growing investment in outsourced IT solutions. With digital transformation accelerating across industries, MSPs are expanding significantly and becoming essential to IT strategies.
The growth of the MSP industry reflects a fundamental shift in how businesses approach IT management. As more organizations recognize the benefits of outsourcing IT services, the demand for MSPs continues to rise.
Robert Peterson, CEO of Infrascale, emphasizes why this trend is accelerating:
“Businesses are moving away from reactive IT management and toward proactive, managed services. MSPs provide not just support, but strategic value—offering cybersecurity, cloud management, backup and disaster recovery that keep businesses running smoothly and profitably in an increasingly complex digital environment.”
This shift cements MSPs as an integral part of modern IT strategies, ensuring companies can focus on growth while experts handle their technology needs.
Which MSP Services Do You Currently Offer?
44.9% of MSPs offer disaster recovery services
Business continuity is a top concern, and MSPs are focusing their services on minimizing risk and disruption.
Disaster recovery leads the way among MSP services, with 44.9% of providers prioritizing it in their range of services. This dominance isn’t surprising. It’s now estimated that downtime can cost $9,000 per minute, making a solid disaster recovery plan the difference between swift recovery and financial ruin.
With nearly half of MSPs offering disaster recovery services, it’s clear that business continuity is a top priority. However, other critical services, such as cybersecurity and cloud management, remain underdeveloped among many providers.
As Peterson points out:
“The most successful MSPs will be the ones that expand beyond traditional IT support and truly align with their clients’ evolving needs. Businesses today require end-to-end solutions—security, compliance, cloud optimization, and proactive monitoring—not just break-fix IT support.”
MSPs that broaden their service offerings and invest in future-ready solutions will position themselves as indispensable partners in business growth.
Cybersecurity follows at 29.2%, reflecting growing concerns over cyber threats. Yet, despite the rising risks, fewer than a third of MSPs focus on cybersecurity, suggesting a gap in the market for providers willing to strengthen their security offerings. Traditional IT support (11.8%) and data backup (6.6%) remain core services, though their relatively lower figures indicate that many businesses may now handle these functions in-house or through cloud-based solutions.
Interestingly, consulting (2.7%), software management (2.1%), and cloud services (1.2%) sit at the bottom of the list, but that may not be the case for long. According to a 2024 Barracuda MSP report, 97% of MSPs plan to expand their service portfolios, with most adding an average of six new offerings. Security services are a top priority, reinforcing that cybersecurity will continue growing as a key MSP service.
With businesses increasingly relying on digital infrastructure, the demand for network monitoring (0.5%) and help desk support (1.0%) may be smaller but remains essential for operational efficiency. These figures suggest a rapidly evolving MSP landscape, where security and recovery take precedence, while traditional IT support and advisory services present new growth opportunities.
What Industries Are Your Clients In?
61% of MSP clients are in manufacturing
Businesses across multiple sectors rely on MSPs for IT support, but some industries stand out, as we can see in the graph below:
With nearly 90% of SMEs already using or considering using an MSP, there’s a clear demand for these services in various industries. For our audience, manufacturing companies comprise the largest share of MSP clients at 61%, reflecting the sector’s reliance on managed IT services for security, cloud management, and system optimization. Technology follows, with 35.2% of clients in this sector. However, the statistics then take a nosedive, with real estate accounting for just 1.7% and construction for 1.3%. Education only accounts for 0.5% of clients, while transportation accounts for just 0.4%.
This big gap reinforces the observation that sectors with complex IT needs, such as manufacturing and technology, are more inclined to use MSPs, while industries with less intensive IT requirements exhibit lower MSP adoption rates.
How Would You Describe The Competition Level In Your Region?
100% of MSPs report high competition
Every one of our audience agrees that competition in the MSP sector is high:
100% of MSPs in our data describe competition in their region as high. The industry is growing rapidly, and with that growth comes increasing pressure to differentiate. As demand surges, so do the challenges of standing out.
Industry giants like Fujitsu, Cisco Systems, IBM, and AT&T already hold a strong grip on the market, making it tougher for mid-sized and niche MSPs to gain traction. To compete, many are doubling down on specialized services, from cybersecurity to disaster recovery, carving out a distinct edge in an increasingly saturated space.
What’s Your Primary Source For Acquiring New Clients?
25.8% MSPs use social media for client acquisition
MSPs use a mix of digital and traditional strategies to attract new clients, adapting to changing market demands. Here’s how the channels stack up:
With 36% of MSP executives citing client acquisition as their biggest challenge, it’s no surprise our data shows that 25.8% of our audience rely on social media as their primary source of new business. Decision-makers are spending more time online, and MSPs are leveraging digital platforms to engage prospects, build credibility, and generate leads.
Email marketing follows at 19.5%, demonstrating that direct outreach remains highly effective, especially when targeting businesses already interested in IT solutions. Meanwhile, 14.1% of MSPs secure new clients through partnerships, highlighting the importance of vendor collaborations and complementary service providers in driving business growth.
Traditional sales tactics like cold calling (10.6%) and trade shows (6.3%) still play a role but trail behind digital-first strategies. Surprisingly, referrals account for just 9.1% of client acquisition—a relatively low figure given how powerful word-of-mouth marketing can be. Networking events (4.5%) and content marketing (0.8%) round out the list, showing that inbound marketing remains an underutilized strategy.
With competition at an all-time high, MSPs are leaning into digital marketing while still maintaining traditional outreach methods. The key takeaway? A strong online presence combined with relationship-driven strategies remains the best approach for sustainable growth.
With 25.8% of MSPs relying on social media for client acquisition, digital engagement has become a critical growth strategy. However, many MSPs still struggle to attract new business, particularly in an increasingly competitive market.
Robert Hayes, Channel Director at Infrascale, highlights the importance of differentiation:
“Winning new clients isn’t just about visibility—it’s about value. MSPs that clearly articulate their unique offerings and demonstrate measurable outcomes will stand out. Whether it’s superior cybersecurity expertise, unmatched response times, or innovative disaster recovery solutions, differentiation is key in today’s crowded marketplace.”
The MSPs that succeed are those that not only reach potential clients but also prove their ability to solve real business challenges.
What Do You See As The Biggest Threats To MSPs In The Near Future?
Cybersecurity threats dominate 59.7% MSP concerns for the near future
From security risks to shifting client expectations, these are the threats our audience of MSPs faces in the industry’s future:
Cybersecurity threats are the biggest concern, with 59.7% of MSPs identifying this as their top challenge. The increasing sophistication of cyberattacks, including AI-driven phishing schemes and the rise of ransomware, continues to put businesses at risk. Staying ahead of these threats requires constant investment in security infrastructure and proactive defense strategies.
With cybersecurity threats dominating MSP concerns at 59.7%, staying ahead of evolving risks is more important than ever. Businesses increasingly expect their MSPs to offer robust security solutions, and those that fail to adapt may lose ground to competitors.
Hayes explains:
“Cybersecurity is no longer just an add-on service—it’s a core expectation. MSPs that don’t prioritize security risk becoming obsolete. From ransomware mitigation to zero-trust architectures, the ability to safeguard client data is what will define the next generation of successful MSPs.”
As cyber threats continue to grow in sophistication, MSPs that invest in security services will not only protect their clients but also secure their own long-term relevance in the industry.
Right behind cybersecurity, 28.1% of MSPs cite data privacy concerns as a major issue. As regulations like the California Consumer Privacy Act (CCPA) evolve, ensuring compliance and protecting sensitive client data is becoming more complex.
Despite the well-documented skills shortage in IT, only 3.7% of MSPs consider talent acquisition a top threat. This is surprising, given that cybersecurity specialists and cloud architects are in high demand, with many MSPs struggling to fill key roles. As competition for top talent intensifies, companies that fail to attract skilled professionals may find themselves falling behind.
Other concerns rank lower but remain relevant. Client retention (2.3%) and market competition (2.1%) are ongoing pressures, particularly as businesses now have more MSP options than ever. The relatively low emphasis on regulatory compliance (2.1%) is intriguing, especially as compliance and regulation are projected to be among the top three challenges for MSPs by 2025.
Cloud migration challenges (1.0%) highlight some MSPs’ growing pains as they shift businesses to fully digital environments. Finally, service diversification (0.9%) ranks the lowest, suggesting that most MSPs feel confident in adapting and expanding their offerings.
Which Deployment Models Are Being Used To Service Your Clients?
34.4% of MSPs use cloud-based deployment
With no single deployment model dominating, MSPs are split almost evenly across cloud, on-premises, and hybrid solutions. Here’s what our audience data revealed:
Cloud-based deployments lead the way, with 34.3% of MSPs saying they are the most effective. Their appeal lies in scalability, cost efficiency, and accessibility, making them particularly attractive for SMBs looking to reduce hardware dependencies.
However, on-premises deployments remain just as popular, with 32.8% of MSPs preferring them.
Hybrid deployments are also favored by 32.8% of MSPs, striking a balance between cloud and on-premises benefits. This aligns with broader business trends, as 41% of American organizations currently use hybrid cloud models, with many planning to expand into hybrid multi-cloud strategies.
Which Factor Do You Think Will Drive The Most Growth For MSPs Over The Next 3 Years?
Over 50% of MSPs believe remote work solutions will be the primary growth driver
As businesses adapt to evolving work environments, MSPs are identifying key areas poised to fuel their expansion. These are the areas our audience identified, from most to least:
51.8% of our audience believe remote work solutions will be the biggest growth driver. With hybrid and remote setups becoming the norm, companies need stronger IT infrastructure, seamless cloud access, and better security for off-site employees. This shift isn’t slowing down. A recent analysis from the Bureau of Labor Statistics links the rise of remote work to measurable productivity gains in several industries.
Cybersecurity follows at 30.2%, reflecting the rising demand for managed security services. As cyber threats grow more sophisticated, businesses are looking to MSPs to provide real-time protection, threat detection, and compliance support. AI and machine learning (11.1%) are also gaining traction. As businesses explore automation, MSPs have an opportunity to offer AI-driven solutions that streamline workflows and enhance decision-making.
Lower on the list, managed IT services (3.8%), cloud services (1.0%), and customer experience (0.8%) are seen as less influential in driving growth. This suggests that MSPs are shifting their focus toward emerging technologies and security rather than traditional IT services.
Firmographics
Which Regions Do You Primarily Serve In The US?
MSPs primarily serve the Midwest at 72.7%
The distribution of MSPs across the U.S. is vast, with some regions attracting far more providers than others. The graph below outlines the regional distribution:
The Midwest dominates, with 72.7% of MSPs identifying it as their primary service region. This overwhelming presence suggests a strong demand for managed services in industries like manufacturing, healthcare, and agriculture, which are key sectors defining the region’s economy.
By contrast, other regions have far fewer MSPs. The Southwest (7.6%) and Southeast (6.3%) have modest representation, while major hubs like New York (4.4%) and Texas (4.1%) account for an even smaller share. Surprisingly, the Pacific Northwest (3.4%) and Northeast (1.4%) rank at the bottom, despite housing major tech and financial centers.
The data points to a clear regional imbalance, with MSPs largely concentrated in the Midwest while other areas remain underserved. This suggests potential opportunities for expansion in high-growth urban markets, where digital transformation and cybersecurity demands continue to rise.
Demographics
Age
Nearly half of MSP professionals are over the age of 55
The age distribution highlights a leadership pool dominated by experienced professionals. The graph illustrates the age breakdown of our audience of 268,240 people working for MSPs in the U.S:
Of our audience, a combined 47.6% of MSP professionals are age 55 or older, with 25.7% over 65 and 21.9% between 55 and 64. This suggests that those with decades of expertise largely drive decision-making within the industry.
Meanwhile, the 45–54 age group accounts for 22.8%, reinforcing that most MSP professionals are mid-to-late career. In contrast, younger demographics comprise a much smaller industry share. Only 13.0% are between 35 and 44, while those aged 25–34 represent just 4.8%. Surprisingly, 11.7% of MSP professionals are under 25, suggesting some early-career engagement but not yet enough to offset the aging workforce and the aforementioned IT skills shortage.
Gender
Only 0.2% more men than women work for U.S MSPs
Our data shows an uncommon balance in gender representation, setting MSPs apart from many other areas of tech:
Of our audience, 50.1% of MSP professionals are male, while 49.9% are female, making this one of the most balanced demographics in the sector. Unlike many areas of IT, where men significantly outnumber women, this even split suggests that managed services may offer more inclusive career opportunities. In contrast, women comprise around one-third of the U.S. tech workforce overall, highlighting how rare this level of parity is within the industry.
Region
Over 26% of MSP professionals are based in the Pacific region
The distribution of MSP professionals across the U.S. varies significantly, with certain regions attracting a much larger share of the workforce.
The Pacific region leads with 26.2%, aligning with California’s dominance in the tech sector. With Silicon Valley at its core and a tech workforce exceeding 1.4 million, California remains a natural epicenter for MSPs.
The South Atlantic follows at 15.3%, a region that includes Virginia, home to the Dulles Technology Corridor and a high concentration of cybersecurity firms and defense contractors. East North Central accounts for 14.0%, with Illinois leading the charge. Chicago alone is the headquarters of over 6,000 tech companies, reinforcing its position as a key player in the MSP talent pool.
The Mountain region, at 12.0%, and West South Central, at 10.1%, also see a strong MSP presence, with Texas standing out due to its rapidly expanding tech scene. Austin’s emergence as a major tech hub has drawn a surge of professionals, contributing to the state’s high ranking for tech employment. Meanwhile, New England (9.1%) and the Mid-Atlantic (6.6%) maintain moderate representation, despite New York’s role as a major business and financial center.
At the lower end of the spectrum, East South Central (4.8%) and West North Central (1.9%) have the smallest share of MSP professionals. This reveals that while demand exists nationwide, workforce concentration remains strongest in regions with established tech ecosystems.
Income
49% of MSP professionals earn between $120,000 and $200,000 per year
Earnings in the MSP industry vary widely, but as our data reveals, most professionals fall within a mid-to-high income range:
ZipRecruiter states that the average MSP personnel salary in the United States as of January 2025 is $101.03 an hour or $210,137 annually. However, 49% of our audience of MSP professionals report annual earnings a little below this, at between $120,000 and $200,000.
Yet, in second place, 29.6% of our audience earns between $200,000 and $500,000, highlighting the strong earning potential for experienced professionals in the field and topping the ZipRecruiter average. At the higher end, 4.8% of MSP professionals report incomes between $500,000 and $1,000,000, illustrating that top performers command significant salaries.
Lower income brackets are far less common. Just 7.6% earn between $80,000 and $120,000, while 9.1% fall within the $40,000 to $80,000 range, likely representing early-career professionals or those in non-technical roles.
With nearly 80% of MSP professionals earning at least $120,000 annually, this sector has plenty of financial opportunities. There’s also huge potential for business growth as the demand for managed services continues on its upward trajectory in 2025 and beyond.
About the data
Sourced from an independent sample of 268,240 people working for MSPs in the U.S. expressing opinions online across X, Quora, Reddit, TikTok and Threads. Responses are collected within a 95% confidence interval and 4% margin of error.
