2024 Managed IT Services and MSP Market Update

This document is a market update report on the Managed IT Services (MITS) and Managed Service Provider (MSP) sector for the year 2024. It outlines the current state of the MSP industry, which is valued at $397 billion and projected to exceed $1 trillion by 2033, driven by a compound annual growth rate (CAGR) of 12.9%. The report segments the MSP market into five key areas: Cloud Platform Services, Digital Transformation, Unified Communications, Infrastructure & Hosting Services, and Managed Security Services Providers (MSSPs). It details the increasing reliance on MSPs by large organizations, with approximately 60% utilizing these services to optimize IT and cloud operations. Additionally, the report highlights significant private equity activity in the sector, noting a notable surge in investments and M&A transactions, with 71 recorded in Q4 2024 alone. The document also discusses growth catalysts, including the demand for AI-driven cybersecurity and the ongoing consolidation within the industry.