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The MSP software market size is forecast to increase by USD 181 million at a CAGR of 12.12% between 2023 and 2028. The market is experiencing significant growth due to several key trends. The increasing adoption of Internet of Things (IoT) solutions is driving the demand for MSP services, as businesses seek to manage and secure their growing number of connected devices. Additionally, the widespread implementation of bring-your-own-device (BYOD) policies in organizations is leading to an increased need for MSPs to manage and secure diverse endpoints. However, the market also faces challenges, particularly in ensuring data privacy and security in cloud-based services. With the growing adoption of cloud solutions, MSPs must prioritize data security and compliance to meet the evolving needs of their clients and maintain their competitive edge.
The market is witnessing significant growth due to the increasing adoption of cloud services in IT environments. Businesses are moving their applications and networks to the cloud for greater flexibility, scalability, and cost savings. Hybrid infrastructure, which combines on-premises and cloud-based solutions, is becoming increasingly popular. Security is a major concern for businesses, leading to a demand for service providers that offer proactive monitoring, continuous support, and live administration. MSPs provide a range of services, including infrastructure management, information services, and B2B integration, to various industries such as transportation, utilities, media, and supply chain management.
Furthermore, cloud storage, authentication, and data center services are also in high demand. Service providers offer service standards that ensure uptime, reliability, and data security. The outsourcing of IT services to MSPs allows businesses to focus on their core competencies while benefiting from ongoing support and continuous improvement. Third-party data centers offer additional benefits, such as cost savings and access to advanced technologies. Virtual assistant services are also gaining popularity, providing an additional layer of support for businesses.
The market 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.
The on-premises segment is estimated to witness significant growth during the forecast period. The market is primarily driven by large enterprises in verticals such as healthcare, financial services, and manufacturing, which prioritize Enterprise IT solutions for ongoing support and continuous service. On-premise MSP software continues to dominate the market due to the need for end-to-end quality control and enhanced security features. This segment is particularly popular among industries dealing with critical data, including BFSI, aerospace and defense, and government sectors, which are subject to stringent regulations. These organizations prefer on-premises solutions for infrastructure management, network security, and managed communication services. Cloud-based solutions, while offering flexibility and cost savings, may not meet the stringent security requirements of these industries.
Furthermore, service providers offer managed data centers, managed mobility, managed infrastructure, managed information, and B2B integration services to cater to the diverse needs of their clients. The transport and logistics, IT and telecommunication, automotive, retail, transportation, utilities, media, and supply chain management sectors also benefit from managed services. Virtual assistants play a crucial role in managing IT services, ensuring seamless integration and efficient communication between various systems and applications.
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The On-premises segment was valued at USD 111.50 million in 2018 and showed a gradual increase during the forecast period.
North America is estimated to contribute 39% to the growth of the global market during the forecast period. Technavio's analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.
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In the dynamic landscape of Enterprise IT, the market caters to the diverse needs of large enterprises across various verticals, including Healthcare, Financial Services, and Transportation & Logistics. The market offers both On-Premise and Cloud-Based solutions, enabling businesses to choose the best fit for their infrastructure. On-premises solutions provide control over network authentication and infrastructure management at the customer's premises, while cloud-based services offer the advantages of outsourcing IT services, cloud storage, and continuous support through live administration. Managed services encompass managed data centers, managed networks, managed mobility, managed infrastructure, managed communication, managed information, managed security, and B2B integration. IT firms cater to retail clients, IT and telecommunication, automotive, media, supply chain management, transportation, utilities, and the virtual assistant industry. These services ensure seamless operations and efficient business processes for verticals with complex IT requirements.
Our researchers analyzed the data with 2023 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
The increased adoption of IoT solutions is the key driver of the market. The Internet of Things (IoT) is a network of interconnected devices, sensors, and data sources that communicate and exchange data in real-time. This technology connects various hardware, software, communication services, and managed services to create smart environments such as smart homes, healthcare, transportation, and shopping. IoT devices require specialized tools and centralized platforms for capacity planning, load balancing, resource allocation, storage, bandwidth, processing power, remote management, monitoring, configuration changes, troubleshooting, software updates, and data privacy. MSP software plays a crucial role in building end-to-end IoT infrastructure for these systems. It ensures data security by addressing concerns related to unauthorized access, identity theft, data leaks, and financial losses.
Furthermore, MSP software is available as cloud-based solutions or on-premises, depending on the enterprise's requirements. Cloud adoption is increasing, and outsourcing IT management is becoming common among enterprises, small businesses, and large multinational corporations. However, on-premises solutions offer better control over hardware, software licenses, implementation, and internet connectivity. Regardless of the choice, MSP software is essential for managing IoT infrastructure, ensuring cybersecurity, and facilitating the adoption of cloud computing.
The increased adoption of bring your own device (BYOD) policy is the upcoming trend in the market. In today's digital age, businesses are increasingly relying on interconnected devices and sensors to collect and process data from various data sources in their data centers, whether they are housed in third-party data centers or on-premises. This data is essential for IoT solutions and specialized tools that require centralized platform management for capacity planning, load balancing, resource allocation, storage, bandwidth, and processing power. Remote management, monitoring, configuration changes, troubleshooting, software updates, and data privacy are critical concerns for enterprises, small businesses, and large multinational corporations. As the adoption of cloud computing and outsourcing IT management continues to grow, cloud-based MSP software is becoming increasingly popular due to its advantages such as internet connectivity and cost savings.
However, it also brings security concerns, including unauthorized access, identity theft, data leaks, and financial losses. Thus, cybersecurity is a top priority for enterprises adopting cloud solutions. The on-premises solution remains an option for those with specific hardware and software license requirements. The implementation of these solutions requires careful consideration of the organization's IT infrastructure, internet connectivity, and cloud adoption strategy.
The data privacy and security risk in cloud-based services is a key challenge affecting the market growth. In today's interconnected world, data centers, whether third-party or on-premises have become the backbone of businesses, powering IoT solutions and interconnected devices that generate vast amounts of data from various data sources. Managing this data requires specialized tools and a centralized platform for capacity planning, load balancing, resource allocation, storage, bandwidth, processing power, and more. Cloud-based MSP software offers remote management, monitoring, configuration changes, troubleshooting, software updates, and more, making it an attractive option for enterprises, small businesses, and large multinational corporations. However, data privacy and security concerns are major barriers to cloud adoption, particularly in the public cloud. Cybersecurity threats, such as unauthorized access, identity theft, data leaks, and financial losses, can compromise sensitive information.
Furthermore, cloud infrastructure, based on open-source code and shared resources, can bring vulnerabilities to cloud systems. Hardware and software licenses, implementation, internet connectivity, and cloud computing outsourcing IT management add to the complexity. Cybersecurity is a critical consideration, with cyber-attackers targeting cloud-based data storage systems. Cloud adoption continues to grow, with the on-premise segment also offering contactless solutions. Cloud computing offers flexibility and cost savings, but it requires strong security measures to mitigate risks.
The market forecasting report includes the adoption lifecycle of the market, 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 analysis strategies.
Customer Landscape
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.
The market research and growth report includes detailed analyses of the competitive landscape of the market and information about key companies, including:
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 MSP (Manage Service Provider) software market is witnessing significant growth due to the increasing adoption of cloud services in IT environments. Networks, apps, and hybrid infrastructure are becoming more complex, leading to a higher demand for proactive monitoring, security, and service standards. Cybersecurity threats such as ransomware, malware, data breaches, and hacking are major concerns for businesses, necessitating strong cybersecurity defenses. MSPs offer security features like threat detection, vulnerability management, compliance requirements, and data encryption to mitigate risks. Compliance with regulations like GDPR, HIPAA, and PCI DSS is crucial, and MSPs ensure access restrictions, audit trails, and flexible, scalable IT solutions to meet these needs.
Furthermore, MSPs help businesses cope with natural disasters, cyberattacks, interruptions, and downtime caused by system crashes or sluggish performance. Constrained funding, workflows, and skilled workers are challenges faced by businesses, which MSPs address by offering cost-effective, reliable, and customizable solutions. However, vendor lock-in and exclusive ecosystems can limit flexibility, and MSPs must balance security with performance to avoid outages.
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 analysis, market growth inducers and obstacles, market forecast, fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, 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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