MSP Trends and Predictions for 2025

MSP Trends and Predictions for 2025

According to recent research from the renowned research firm Canalys, the Managed Services Provider (MSP) market in the EMEA region is expected to grow by approximately 12% in 2025. Globally, revenue from managed services is projected to reach as much as US$595 billion by the end of 2025. This significant growth underscores the increasing relevance of MSPs for companies seeking more efficient IT management and enhanced security. Below, we have summarized the key findings from the Canalys Research Report for your convenience.

Security becomes standard in MSP offerings

An important conclusion from the research is that security is increasingly becoming integrated into the standard MSP offering. Whereas previously, security was often sold as an optional add-on, it is now regarded as an essential component of all services. This shift is driven by growing cyber threats and the increasing complexity of IT environments. Businesses no longer view cybersecurity as a separate service, but rather as a crucial part of their overall IT solution.

In addition, the research emphasizes that MSPs are offering new, advanced security solutions, such as Managed Detection and Response (MDR), Extended Detection and Response (XDR), Zero-Trust Architectures, and Secure Access Service Edge (SASE). These technologies are essential for effectively combating sophisticated and targeted cyberattacks.

MSPs: Essential partners in digital transformation

Businesses are increasingly relying on MSPs to help manage complex technologies such as cloud migration, data management, and AI. Since many organizations lack sufficient specialized expertise internally, they consider MSPs indispensable partners in their digital transformation.

According to Canalys, MSPs will increasingly leverage cloud-based services and software-as-a-service (SaaS) solutions to enhance organizational flexibility and scalability. This enables MSPs to better respond to rapidly changing business needs and technological advancements.

Furthermore, the MSP model is evolving toward MSP 3.0, in which clients increasingly prefer a co-managed, cloud-first approach. This new strategy includes not only technology and integrated cybersecurity but also requires profound knowledge of compliance, regulations, and sector-specific expertise. MSPs that fail to adapt to this trend will, according to the report, increasingly struggle to remain operational.

Compliance and regulation increasingly important

Due to stricter regulations concerning privacy and data protection, compliance is becoming increasingly important for MSPs. In addition to the Digital Operational Resilience Act (DORA), which focuses on financial services, the NIS2 directive—affecting broader sectors—is another significant development.

Both regulations require specific compliance measures related to cybersecurity and risk management, meaning MSPs must strengthen their knowledge and resources to meet these requirements.

Rise of Agentic AI in MSP services

According to Canalys, Agentic AI, an advanced form of artificial intelligence, will become increasingly important for MSPs in 2025. This technology provides MSPs with opportunities to significantly enhance operational processes, operate more efficiently, and proactively support customers through automated analytics and preventive management.

Agentic AI will also contribute to improving marketing and sales processes by predicting customer behavior and personalizing services.

Mergers and acquisitions are on the rise

Another notable trend identified in the Canalys research is the anticipated increase in mergers and acquisitions within the MSP sector in 2025. This activity is driven by the need to consolidate technologies, expand service offerings, and achieve economies of scale in an increasingly competitive market.

MSPs are evolving into strategic partners

In 2025, MSPs will increasingly operate as strategic partners, playing a crucial role in the overall digital strategy of businesses. To remain successful, MSPs will need to invest in technologies and staff training in order to meet the evolving needs and expectations of their clients.

In short, MSPs that anticipate these developments and continue to innovate will be best positioned for success in the years to come.

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