13 Mar MSP 2024 Market Growth Trends
According to Canalys Research, the Managed IT Services (MSP) market is projected to grow by at least 12% this year, driven by digital trends like increased demand for cybersecurity, cloud infrastructure, application development, AI consulting, and compliance solutions.
Key Insights from the Canalys Report
- Evolving MSP Model: More providers, including smaller ones, are offering managed services to large customers across different locations.
- Hybrid Delivery Model: MSPs will work with partners, vendors, and customers’ IT teams to deliver customized solutions.
- Rise in Cybersecurity Services: Over one-third of MSPs expect significant growth of over 20% in cybersecurity revenue, reflecting the growing importance of cybersecurity in customer solutions.
- AI Opportunities: MSPs see potential in AI technologies like Microsoft Copilot but need to educate customers about their benefits.
- Growth of MSP Partner Programs: A large majority of channel partners believe dedicated MSP programs could strengthen their relationships with vendors.
Challenges and Solutions
MSPs face challenges in customer acquisition and marketing due to increasing competition and budget constraints. Some are addressing these challenges by training their staff in technical and marketing skills.
M&A Outlook
After a slow year in 2023, mergers and acquisitions in the MSP market are expected to increase by 50% in 2024, but not to same frenzied levels of 2021 and 2022. MSP acquirers should consider beginning their processes soon to take advantage of improving market conditions.
Conclusion
Adaptability is key in the dynamic MSP market. As the industry continues to evolve, it’s important for tech leaders to embrace change, tackle challenges, and seize opportunities for growth.
