The managed services provider (MSP) is an ever-changing business field. It is changing due to increased demand from businesses seeking help with their IT needs and seeking some form of scalability for their infrastructure. A growing number of businesses are turning to managed service providers (MSPs) to help them manage the complexities of technology, reduce costs, and increase competitiveness. More businesses are turning to MSPs, and in more ways than before – both signs of an industry that continues to grow and adapt.
The trends within MSP indicate a shift toward specialization, automation, and security-based managed services. In addition to basic technical assistance, businesses now expect more from their managed service providers (MSPs). Therefore, these businesses are receiving additional technical assistance beyond just routine maintenance.
In addition to the positive trends of the MSP industry, there are several negative trends. Many of the same challenges that exist in other industries, such as staffing shortages, “tool overload,” and changes in client expectations, are impacting the MSP industry. According to specialists from Support Adventure, many MSPs are addressing these challenges by developing innovative technologies and better processes.
Key MSP Industry Benchmarks and Statistics for 2026
Industry trends associated with managed service providers indicate both high expectations of continued growth and increased dependence on automation, coupled with changing client requirements.
- Around 55% of MSPs anticipate revenue increases exceeding 10% in 2026.
- Close to 60% of providers expect expansion driven by acquiring new clients.
- Approximately 87% of MSPs express confidence in the channel’s future outlook.
- About 60% of MSPs have implemented structured customer success initiatives.
- Cybersecurity leads as the most delivered service at 55%, while 41% prioritize expanding it further.
- Around 87% admit they are not fully leveraging their business intelligence tools.
- Gartner forecasts that 90% of organizations will rely on hybrid cloud setups through 2027.
- Data shows that 22% of the workforce operated remotely as of August 2025.
- Roughly 88% of small and midsize businesses already depend on MSP services.
- The global managed security market is expected to rise from $93 billion in 2025 to $106 billion in 2026, reflecting a 14.4% increase.
- AI adoption enables leading MSPs to boost technician productivity by 15–25% and cut ticket resolution times by 40–70%
- About 39% of MSPs actively follow an AI implementation roadmap, while another 37% have plans in place but haven’t started execution
- Around 43% believe AI may replace certain roles, although top-performing MSPs tend to see it as a productivity enhancer instead
- Nearly 26% of MSPs report a lack of sufficient staff to onboard additional clients
- MSPs focused on compliance are more likely to forecast revenue growth exceeding 50% in 2026
- Specialized providers report profit margins that are 30% higher and can charge 10–20% more than generalist competitors
- Healthcare accounts for 28% of specialized MSP revenue, followed by finance at 18% and manufacturing at 11%
- Hybrid work remains dominant, with 51% of businesses planning to adopt flexible work models
- Around 40% of MSPs manage more than 20 vendor tools, which impacts efficiency and increases burnout risks
- SMBs are the fastest-growing client segment, with 72% of U.S. small and medium businesses planning to boost managed IT spending by 2025.
- MSP collaboration increased from 24% in October 2025 to 32% by January 2026.
- The share of MSPs reporting talent shortages rose from 29% in October to 42% in January.
- Overall confidence across the MSP industry remains high heading into 2026
- Managed security services are expected to grow at a compound annual rate of 8.7%
- Managed network security stands as the fastest-growing network service in the U.S., with a projected 6.3% CAGR
This MSP data will help create a better understanding of the current state of the managed services industry and the direction it may take, providing the means for those who offer these services to develop their business strategy based on emerging trends in the industry.
1. Around 55% of MSPs anticipate revenue increases exceeding 10% in 2026
There is significant optimism throughout the MSP (Managed Service Provider) industry. Specifically, 55% of MSPs anticipate their revenue will increase by more than 10% in 2026. Such confidence has been fueled by an abundance of stable client demand, predictable and ongoing revenue streams, and an increasing number of services provided by many MSPs.
2. Close to 60% of providers expect expansion driven by acquiring new clients
In terms of growth, MSPs are not experiencing all of their growth within their current client base. As such, nearly 60% of MSPs anticipate expanding through acquiring additional clients. Competition among managed service providers keeps pushing MSPs to continually improve their outreach efforts and position themselves competitively.
3. Approximately 87% of MSPs express confidence in the channel’s future outlook
The overall confidence of MSPs regarding the future of the channel is extremely high. Over 87% of all MSPs are confident that the channel will continue to be successful. In other words, while there have been some issues and challenges, from most perspectives, the channel appears to be heading in a positive direction. Additionally, many current MSP market trends indicate a continued need for businesses to outsource various aspects of IT.
4. About 60% of MSPs have implemented structured Customer Success initiatives
The customer success model is an important component of growth for many MSPs. In fact, approximately 60% of MSPs have developed some type of formalized Customer Success program. Many are moving beyond simply providing traditional support services. As such, they will begin to develop longer-term outcomes for their customers. This approach can lead to a number of benefits, including increased customer satisfaction, lower churn rates, and stronger customer relationships.
5. Cybersecurity leads as the most delivered service at 55%, while 41% prioritize expanding it further
MSP security has remained one of the top services offered. Currently, 55% of MSPs provide Cybersecurity as a Service, and nearly two out of five (41%) plan to offer additional Cybersecurity Services. The growing threat landscape has created pressure from the customer base for MSPs to deliver greater levels of cyber protection. Additionally, developing this skill set allows MSP provoiders to position themselves as strategic partners, rather than simply vendors.
6. About 87% admit they are not fully leveraging their business intelligence tools
When you consider there is an notable difference in how much MSPs (Managed Service Providers) are utilizing their Business Intelligence tools, as indicated by the fact that nearly 87% of all MSPs say they do not utilize them as completely or effectively as they should, it’s clear that those important insights are likely going to be lost. Additionally, with improved data utilization, MSP statistics indicate that better forecasting, pricing, and operational efficiencies can result.
7. Gartner forecasts that 90% of organizations will rely on hybrid cloud setups through 2027
Cloud adoption keeps evolving, and Gartner’s projection that 90% of organizations will use hybrid cloud setups by 2027 highlights that shift. We can see this shaping MSP industry trends in a big way. Also, providers must support both on-premise and cloud systems. This creates opportunities, but it also requires more advanced expertise and flexible service delivery models.
8. Data shows that 22% of the workforce operated remotely as of August 2025
Working habits have shifted dramatically. In August 2025, 22% of all employees were working from home. As such, you are seeing these changes strongly influencing managed services, particularly in security, access management, and collaboration tools. Moreover, MSPs will be required to develop new products and services to meet the needs of remote workers, including cloud-based solutions, endpoint protection, and reliable remote infrastructure.
9. Roughly 88% of small and midsize businesses already depend on MSP services
The number of organizations using MSP (Managed Services Provider) is expected to continue at the same rate; around 88% of small and medium-sized businesses (SMBs) use MSP services or will be using them in the near future. This is one of the key drivers behind the current market trend toward MSP services; most SMBs do not have the resources to support an internal IT department.
10. The global managed security market is expected to rise from $93 billion in 2025 to $106 billion in 2026, reflecting a 14.4% increase
In addition to growth driven by increased reliance on MSP services, MSP clients’ overall spending on security continues to rise. The MSP security market is projected to grow from $93 billion in 2025 to $106 billion in 2026, representing a 14.4% increase. Many believe that this growth is caused by increasing threat levels and new regulatory compliance requirements.
11. AI adoption enables leading MSPs to boost technician productivity by 15–25% and cut ticket resolution times by 40–70%
When MSPs implement artificial intelligence (AI) in their business operations, they can expect significant improvements in operational performance. According to AI in MSP stats, many top-performing MSPs have seen improvements of 15-25% in technician productivity and reductions of 40-70% in time to resolve tickets. Improving efficiency has become one of the main ways for top-performing MSPs to differentiate themselves from other MSPs in terms of how efficiently they are able to perform their services.
12. About 39% of MSPs actively follow an AI implementation roadmap, while another 37% have plans in place but haven’t started execution
In terms of developing an AI strategy, this is no longer a “nice-to-have” but a “must-do”. Currently, approximately 39% of MSPs have developed an active AI roadmap, while approximately 37% are still in the planning stages. As we’ve previously discussed in MSP statistics, early adopters of new technologies typically experience greater growth and momentum than laggards who fail to move forward.
13. Around 43% believe AI may replace certain roles, although top-performing MSPs tend to see it as a productivity enhancer instead
As mentioned previously, there remains some uncertainty about the role automation will play in the MSP space. Approximately 43% of MSPs believe that AI may potentially displace certain employees. While successful teams do have differing opinions, according to managed service provider trends, the best-performing teams treat automation as a tool to enhance productivity, not eliminate jobs.
14. Nearly 26% of MSPs report a lack of sufficient staff to onboard additional clients
More than one-fourth (26%) of all MSP companies report that staffing is a major issue due to the inability to hire enough employees to provide adequate client support. As the demand for managed services continues to grow much faster than their ability to hire staff, many MSPs are now forced to turn to technology (such as automation), outsourcing, and process improvements to ensure their customer service levels do not decline.
15. MSPs focused on compliance are more likely to forecast revenue growth exceeding 50% in 2026
Compliance-focused MSPs can achieve better-than-average projected annual revenue growth of more than 50%, primarily because regulated industries require an extremely high level of compliance. The same holds true for compliance experts: as they become trusted compliance experts in their markets, they can typically command premium pricing for their services and secure longer-term engagements from customers who understand the importance of managing risk.
16. Specialized providers report profit margins that are 30% higher and can charge 10–20% more than generalist competitors
You will be able to clearly identify an advantage of specialized MSPs, as they have been shown to generate a profit margin 30% higher and a price range 10-20% higher than those of generalist MSPs. It also represents a broader trend in the MSP space, where specialization delivers greater value. Additionally, many clients tend to prefer doing business with organizations that have extensive knowledge of their respective areas of operation.
17. Healthcare accounts for 28% of specialized MSP revenue, followed by finance at 18% and manufacturing at 11%
In terms of industry specialization, the most prominent areas in the managed services space are healthcare (28%), financial services (18%), and manufacturing (11%). The large number of regulated areas of operation is evident in overall MSP industry trends, where client demand is generally highest in regulated sectors. In addition to being highly regulated, these types of businesses also require additional measures to ensure compliance and security.
18. Hybrid work remains dominant, with 51% of businesses planning to adopt flexible work models
The way people will be working from now on continues to evolve toward more flexible workplaces. A total of 51% of all companies plan to transition to hybrid workplace environments. These changes are driving a high level of activity around trends in managed services – specifically cloud infrastructure and remote security. However, because MSPs must develop solutions for distributed workforces, the opportunity for reliable, secure solutions remains.
19. Around 40% of MSPs manage more than 20 vendor tools, which impacts efficiency and increases burnout risks
Around 40% of MSPs currently use more than 20 different vendor tools; as a result, tool overload is now an increasingly common problem for MSPs. This problem poses challenges to productivity, profit margins, and technician morale. Furthermore, research on the impact of too many tools in the managed services industry shows that having too many tools will negatively affect your ability to deliver efficient service.
20. SMBs are the fastest-growing client segment, with 72% of U.S. small and medium businesses planning to boost managed IT spending by 2025
There is still a significant growth opportunity available within the SMB (small & medium business) marketplace. With 72% of U.S. small- and medium-sized businesses that planned to increase their managed IT spending through at least 2025, we saw significant market expansion across the managed services sector. By 2030, the SMB IT spend is expected to top at $1.1 trillion. Additionally, MSPs that develop solutions specifically designed to meet the needs of the small business community are likely to capture a much larger share of this extremely rapidly growing market.
21. MSP collaboration increased from 24% in October 2025 to 32% by January 2026
We see an increase in partnership development. For example, the number of MSPs working together increased from 24% in October 2025 to 32% in January 2026. The trend is for MSPs to work together rather than independently. It also creates opportunities to fill capabilities, improves services, and increases the services offered while using less internal capital, thus creating a cost-effective option for growth.
22. The share of MSPs reporting talent shortages rose from 29% in October to 42% in January
MSP staffing problems are increasing. The percentage of MSPs experiencing staffing shortages has gone from 29% in October to 42% in January. There appear to be significant concerns about MSPs’ ability to hire qualified personnel, even as demand for their services continues to rise. In addition, the need for skilled workers may cause some MSPs to consider utilizing automated technology, outsourcing certain tasks, or developing creative recruitment techniques.
23. Overall confidence across the MSP industry remains high heading into 2026
The confidence level within the MSP community seems to remain relatively high throughout the remainder of 2026. This can be seen in continued investments, expansion plans, and the overall positive attitudes expressed by many MSP providers. As such, there seems to be little doubt that demand for MSP services will remain consistent.
24. Managed security services are expected to grow at a compound annual rate of 8.7%
Managed Security Services are expected to remain a major growth driver, with an estimated Compound Annual Growth Rate (CAGR) of 8.7% through 2025. The increasing complexity of cyber threats is creating an environment where MSPs will continue to increase dependence on each other for protection. This creates a long-term revenue stream with a stable and steady flow of customers.
25. Managed network security stands as the fastest-growing network service in the U.S., with a projected 6.3% CAGR
Managed Network Security has emerged as one of the fastest-growing network services in the United States, with a 6.3% CAGR. As Secure Connectivity becomes paramount in today’s business world, MSP agencies can capitalize on rising client demand and create opportunities for themselves by enhancing their network security offerings.
Conclusion
MSP trends for 2026 indicate that the MSP Industry is entering the year with strong momentum, driven largely by growth expectations, rising demand for its services, and clear shifts in what clients expect from their Managed Service Providers. As you look at many of the MSP statistics, there are common themes, including cybersecurity, AI adoption, and the trend toward specialized offerings, as being major contributors to successful MSPs. Trends in the MSP industry also show that those who adapt most quickly to changing requirements and adopt automation generally outperform other MSPs.
Frequently Asked Questions (FAQ):
1. What are the most important MSP industry trends in 2026?
Cybersecurity is the primary trend driving the Managed Services Provider (MSP) market in 2026, driven by the ongoing evolution of cyber threats, which necessitate continuous protection of business assets. As a result, MSPs are delivering and planning to expand into this space, as companies have become increasingly reliant on the expertise of outsourced IT professionals.
2. How fast is the MSP market growing?
Overall, there is continued significant growth in the managed services market, with solid data and numbers across various markets. A great number of managed service providers are expecting double-digit revenue increases in their business. There are numerous other areas, including Managed Security Services, where the expected CAGR is high. This continuing increase in the size of this industry can be attributed to the growing dependence on outsourcing IT expertise.
3. Why is cybersecurity such a major focus for MSPs?
Cybersecurity is the number one trend among MSPs due to the constantly evolving threat environment, and companies require continuous cyber protection. Additionally, Cybersecurity is not only the most delivered service by MSPs but also an area of potential expansion. Finally, tighter compliance regulations and the increased risk of attacks have made Cybersecurity a required component of providers’ offerings, rather than optional.
4. What challenges does the MSP industry face in 2026?
The MSP space has numerous issues to overcome, including a shortage of skilled workers, an overwhelming number of solutions, and increased operational complexity. It is estimated that approximately one-fourth of all providers have difficulty hiring sufficient personnel for them to operate successfully. Additionally, managing large numbers of tools also creates additional problems. As technology continues to evolve at an incredible rate, it increases pressure on MSPs to adapt, requiring better strategic methods and improved resource allocation.
5. How is AI impacting managed service providers?
As artificial intelligence (AI) continues to grow and shape MSP industry trends, there are ways that AI can improve efficiency and service delivery for managed services providers. Many MSP are utilizing automation to increase productivity and decrease time-to-resolution. However, when deciding how to implement AI, many MSPs will need to consider whether they view AI as a threat or as a way to enhance their team members’ skills.
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