04 May 15 Surprising Stats About Managed Service Providers

15 Surprising Stats About Managed Service Providers

Managed service providers (MSPs) are companies that offer IT services to other businesses, such as network management, cloud computing, cybersecurity, data backup, and more. MSPs can help their clients reduce costs, improve efficiency, and enhance security. But how much do you know about the MSP industry and its trends? Here are 15 surprising stats that will give you some insights into the world of managed service providers.

1. The global MSP market size is expected to reach $376.2 billion by 2025, growing at a compound annual growth rate (CAGR) of 11.5% from 2020 to 2025. (Source: Grand View Research)
2. The top three drivers for MSP adoption are cost reduction (38%), improved operational efficiency (37%), and enhanced security (35%). (Source: CompTIA)
3. The average annual revenue of an MSP in North America is $2.9 million, with a median profit margin of 17%. (Source: ChannelE2E)
4. The most common services offered by MSPs are network management (83%), cloud infrastructure (80%), cybersecurity (77%), data backup and recovery (76%), and remote monitoring and management (75%). (Source: Kaseya)
5. The most profitable services for MSPs are cybersecurity (57%), cloud infrastructure (55%), and data backup and recovery (54%). (Source: Kaseya)
6. The biggest challenges faced by MSPs are pricing pressure (50%), hiring and retaining talent (47%), increasing competition (46%), cybersecurity threats (45%), and customer churn (44%). (Source: Kaseya)

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7. The average monthly recurring revenue (MRR) per client for an MSP in North America is $5,607, with a median contract length of 36 months. (Source: ChannelE2E)
8. The average customer retention rate for an MSP in North America is 92%, with a median churn rate of 8%. (Source: ChannelE2E)
9. The top three vertical markets served by MSPs are professional services (28%), healthcare (19%), and manufacturing (18%). (Source: CompTIA)
10. The top three sources of new leads for MSPs are referrals (64%), website/SEO (39%), and email marketing (38%). (Source: Kaseya)
11. The average cost per lead for an MSP in North America is $305, with a median conversion rate of 25%. (Source: ChannelE2E)
12. The average time to close a deal for an MSP in North America is 46 days, with a median sales cycle of 30 days. (Source: ChannelE2E)
13. The average customer lifetime value (CLV) for an MSP in North America is $202,128, with a median CLV of $120,000. (Source: ChannelE2E)
14. The average net promoter score (NPS) for an MSP in North America is 59, which is considered excellent by industry standards. (Source: ChannelE2E)
15. The top three goals for MSPs in 2021 are increasing profitability (69%), acquiring new customers (57%), and expanding service offerings (56%). (Source: Kaseya)

These stats show that the MSP industry is thriving and has a lot of potential for growth and innovation. If you are looking for a reliable and experienced MSP to help you with your IT needs, contact us today, and let us show you how we can make your business more successful.