MSP industry set for major growth through 2025: N-able report
MASSACHUSETTS, UNITED STATES — N-able’s second annual MSP Horizons Report paints a rosy picture for managed service providers (MSPs), with cybersecurity and artificial intelligence emerging as key growth engines. The collaborative study with Canalys offers a peek into what’s shaping the evolving MSP landscape.
Cybersecurity remains top revenue driver
By the close of 2025, the IT managed services market is expected to hit roughly $610 billion, with channel partners grabbing nearly all of that pie—about 98%. A whopping 59% of MSPs are looking at revenue jumps of 20% or more in 2025, while nearly 40% anticipate similar upticks in their managed services profits.
Cybersecurity management has muscled its way to the front of the pack as the main force driving future services. About 90% of those surveyed expect growth in cybersecurity managed services sales in 2025, up from 80% last year. Security-related offerings are poised to grab the lion’s share of managed services revenue, with third-party managed detection and response (MDR) topping the list of new services MSPs plan to roll out.
“A central theme of this year’s report is cyber resilience… [and] a constant trend remains: cybersecurity is a key revenue driver,” said John Pagliuca, N-able President and CEO.
“Conversations with MSPs worldwide make it clear that the line between IT operations and security operations has blurred. The leading MSPs differentiate themselves by addressing security across the entire attack lifecycle: from protection and detection to response and recovery. When it comes to cybersecurity, ‘good enough’ is no longer good enough.”
AI adoption and M&A activity accelerating
AI is catching on fast among MSPs, with just 6% of respondents not yet jumping on the generative AI bandwagon. Around 40% have already set up data governance rules and human oversight guidelines. Most are leveraging AI to streamline workflows and beef up their sales and ticketing processes.
The report also flags a dramatic spike in merger and acquisition interest, with 90% of those surveyed eyeing M&A activities—a massive leap from 44% the previous year. This surge stems from strategic goals like scooping up new skills and pushing into fresh territories.
John Joyce, Owner of CRS Technology Consultants, highlighted the report’s insights: “The cybersecurity piece is only going to continue to grow because we don’t have a choice. The report clearly highlights that many of us have been able to go on and build a piece of our business out of it, and I don’t see that changing. I see it only increasing.”
The MSP Horizons Report drew on a survey conducted in late 2024, gathering feedback from 451 B2B channel partners across EMEA, North America, APAC, and Latin America.
