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The MSP software market size is projected to increase by USD 181 million, at a CAGR of 12.12% between between 2023 and 2028. The growth rate of the market is influenced by several key factors. Firstly, there is a significant increased adoption of IoT solutions, integrating smart devices and systems to enhance operational efficiency and data-driven decision-making across industries. Secondly, the rising adoption of cloud computing services enables scalable and flexible IT infrastructures, facilitating cost-efficiency and agility in business operations. Thirdly, the growth of anything-as-a-service (XaaS) technologies offers subscription-based models for diverse digital services, ranging from software to infrastructure, supporting organizational scalability and innovation. These trends underscore a broader shift towards digital transformation and service-based economies. As businesses embrace these technologies to drive efficiency and competitiveness, they are poised to leverage interconnected ecosystems and advanced analytics, reshaping market dynamics and fostering sustainable growth in the digital era.
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Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
Acronis International GmbH - The company offers MSP Software for hybrid backup cloud, disaster recovery, ransomware protection, esignatures and blockchain based files.
Market analysis and report of qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The market share growth by the on-premises segment will be significant during the forecast period. Due to end-to-end quality control, on-premises msp software are highly secure compared with SaaS-based managed services. The market is dominated by large client organizations, which are more concerned about functionality. Companies in the BFSI, aerospace and defense, and government sectors deal with critical data.
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The on-premises segment was the largest and was valued at USD 111.50 million in 2018. They prefer on-premises MSP software due to certain regulations binding them by law. For example, the government sector is at high risk of terrorism and cyber threat, which requires high-end security services, and many government bodies such as the Central Intelligence Agency (CIA), Research and Analysis Wing (RAW), and Inter-services Intelligence (ISI) are using on-premises MSP software. Such factors will propel the growth of the on-premises segment in the market during the forecast period.
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North America is estimated to contribute 39% to the growth of the global market during the forecast period. Technavio's analysts have provided an extensive insight into the market forecast, detailing the regional trends and drivers influencing the market's trajectory throughout the forecast period. In the dynamic landscape of the market, on-premise and cloud-based solutions cater to the diverse needs of enterprise IT in various verticals. Large enterprises in sectors such as healthcare, financial services, and service providers require on-going support and continuous administration for their network, infrastructure management, and customer's premises.
In addition, outsourcing IT services to MSPs enables businesses to leverage cloud storage, authentication, and B2B integration for enhanced efficiency. MSPs offer managed data centers, managed networks, managed mobility, managed communication, managed information, and managed security services to verticals like transportation, utilities, media, retail clients, IT and telecommunication, automotive, and IT firms. Managed services encompass infrastructure management, managed infrastructure, and virtual assistant solutions that cater to the unique requirements of each industry. The IT service platform ensures seamless integration and information services, enabling businesses to focus on their core competencies while the MSP manages their IT needs.
The market is witnessing significant growth due to the increasing adoption of IT environments in various industries. Cloud services have played a pivotal role in this growth, enabling businesses to outsource IT services and enjoy continuous support and on-going administration from service providers. Networks, apps, and infrastructure management are key areas where MSPs offer their services, ensuring high service standards and proactive monitoring. MSPs provide solutions for various IT needs, including security, hybrid infrastructure, and infrastructure management. They offer cloud storage, B2B integration, and IT service platforms to cater to the information services requirements of businesses. MSPs also offer authentication services to ensure data security and support third-party data centres. The MSP market caters to various sectors, including transportation, utilities, media, and supply chain management. They provide virtual assistant services, data centre management, and infrastructure management for customer's premises. MSPs offer outsourcing IT services for infrastructure management, ensuring service continuity and reducing the burden on in-house IT teams. With the increasing demand for proactive monitoring and continuous support, the MSP market is expected to grow at a steady pace in the coming years.
Increased adoption of IoT solutions is notably driving market growth. The Internet of Things (IoT) is a network of interconnected devices and objects that communicate and exchange data through technology. This includes hardware, embedded software, communication services, and managed services. IoT enables the creation of smart environments, such as smart homes, shopping, transportation, and healthcare, through the remote control and monitoring of various objects using microcontrollers and the Internet. MSP (Manage Service Providers) software plays a crucial role in the IoT ecosystem by managing the communication services and machine-to-machine (M2M) communication required by these smart devices. MSP software helps build end-to-end IoT infrastructure for various applications, including smart communities, healthcare, homes, and transportation systems. Capacity planning, load balancing, resource allocation, storage, bandwidth, and processing power are essential functions of MSP software in IoT environments.
Additionally, MSP software offers remote management, monitoring, configuration changes, troubleshooting, software updates, and data privacy and security features to address concerns related to unauthorized access, identity theft, data leaks, and financial losses. MSP software can be deployed as cloud-based solutions or on-premises, depending on the specific needs of enterprises, small businesses, and large multinational corporations. The adoption of cloud computing and outsourcing IT management has led to an increase in the demand for MSP software, particularly in the cloud-based segment. However, the on-premises solution remains popular for businesses with specific hardware and software requirements and internet connectivity constraints. MSP software licenses and implementation involve hardware, software, and internet connectivity costs, making it essential to consider these factors during the decision-making process. Cybersecurity is a significant concern for IoT and MSP software, as interconnected devices and data sources are susceptible to various threats, including unauthorized access, data leaks, and financial losses. Therefore, it is crucial to choose an MSP software solution that offers robust security features and adheres to industry standards and regulations. Thus, such factors are driving the growth of the market during the forecast period.
Increased adoption of bring your own device (BYOD) policy is the key trend in the market. In today's digital age, the use of mobile devices in business environments has become increasingly prevalent due to employee preferences and the need for flexibility. This trend, known as Bring Your Own Device (BYOD), necessitates specialized tools and centralized platforms for managing and securing interconnected devices accessing data centre networks. These solutions encompass capacity planning, load balancing, resource allocation, storage, bandwidth, and processing power. Remote management, monitoring, configuration changes, troubleshooting, software updates, and data privacy are essential considerations for ensuring secure and efficient operations. Security concerns, including unauthorized access, identity theft, data leaks, and financial losses, are significant challenges for both cloud-based MSP software and on-premises solutions.
As enterprises, small businesses, and large multinational corporations adopt cloud computing and outsource IT management, cybersecurity becomes a paramount concern. IoT solutions with sensors as data sources add to the complexity, necessitating advanced tools and expertise. Hardware and software licenses, implementation, internet connectivity, and cloud adoption are essential aspects of implementing an effective IT management strategy. While cloud-based MSP software offers flexibility and cost savings, on-premises solutions maintain control over hardware and data privacy. Contactless solutions have emerged as a response to the current global situation, further expanding the scope of IT management requirements. Thus, such trends will shape the growth of the market during the forecast period.
Data privacy and security risks in cloud-based services are the major challenge that affects the growth of the market. In today's digital landscape, data center management is a critical aspect for enterprises, small businesses, and large multinational corporations. The increasing adoption of IoT solutions and interconnected devices has led to an influx of data sources, necessitating specialized tools and a centralized platform for effective capacity planning, load balancing, resource allocation, storage, bandwidth, and processing power. However, the shift towards cloud-based MSP software raises data privacy and security concerns. Moreover, cloud-based infrastructure, while offering flexibility and cost savings, is vulnerable to cyber threats such as unauthorized access, identity theft, data leaks, and financial losses. These risks are more pronounced in third-party data centers due to the open architecture and shared resources.
Moreover, cloud adoption has become a necessity for businesses, but outsourcing IT management to cloud-based solutions requires robust cybersecurity measures. On-premises solutions offer greater control over hardware and software licenses but require significant implementation efforts and internet connectivity. Contactless solutions are gaining popularity, and cloud computing and outsourcing IT management are key trends. Despite these challenges, cloud-based MSP software offers numerous benefits, including remote management, monitoring, configuration changes, troubleshooting, and software updates. It is essential to weigh the pros and cons carefully and implement appropriate security measures to mitigate risks. Hence, the above factors will impede the growth of the market during the forecast period
The market forecasting report includes the adoption lifecycle of the market research and growth, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth and trends strategies.
Global Market Customer Landscape
The market growth and forecasting research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD million" for the period 2024-2028, as well as historical data from 2018-2022 for the following segments.
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MSP (Managed Service Provider) software marketing focuses on providing cloud-based solutions for various IT environments, including networks and apps. These services offer flexibility and scalability, enabling businesses to adapt to changing workflows and IT infrastructure. Security is a top priority, with proactive monitoring, cybersecurity defenses, and threat detection to guard against cybersecurity threats such as ransomware, malware, and data breaches. MSP software also emphasizes service standards, ensuring compliance with regulations like GDPR, HIPAA, and PCI DSS. Data encryption, access restrictions, and audit trails are essential security features. Disaster recovery solutions protect against natural disasters, cyberattacks, and interruptions, minimizing downtime and constrained funding.
In addition, MSPs offer flexible and scalable IT solutions, enabling businesses to grow and adapt without being constrained by vendor lock-in or exclusive ecosystems. Skilled workers and qualified IT professionals are crucial for implementing and managing these complex systems. However, challenges like system crashes, sluggish performance, and outages can impact the success of MSP software implementations. Overall, the MSP software market continues to evolve, driven by the need for robust cybersecurity defenses and the increasing importance of IT infrastructure in today's digital economy.
Market Scope |
|
Report Coverage |
Details |
Page number |
158 |
Base year |
2023 |
Historic period |
2018 - 2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 12.12% |
Market Growth 2024-2028 |
USD 181 million |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
10.92 |
Regional analysis |
North America, Europe, APAC, South America, and Middle East and Africa |
Performing market contribution |
North America at 39% |
Key countries |
US, Germany, China, France, and UK |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Acronis International GmbH, AT and T Inc., Atera Networks Ltd., Auvik Networks Inc., Bravura Software LLC, Cisco Systems Inc., ConnectWise LLC, DNSFilter Inc., Hewlett Packard Enterprise Co., Hornetsecurity Ltd., Infosys Ltd., International Business Machines Corp., Kaseya Ltd., LogicMonitor Inc., Opmantek Software Pty Ltd., ServiceNow Inc., TitanHQ, Trend Micro Inc., Wipro Ltd., Ziff Davis LLC, and Zoho Corp. Pvt. Ltd. |
Market dynamics |
Parent market growth analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, and Market condition analysis for the forecast period. |
Customization purview |
If our market report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Deployment
7 Market Segmentation by Type
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Opportunity/Restraints
11 Competitive Landscape
12 Competitive Analysis
13 Appendix
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