An MSP is a third-party company that remotely manages a company’s IT environment and digital infrastructure. Managed services are used by all types of businesses, especially those running on lean operations and limited resources. MSPs fill the gaps for these resource-constrained organizations with things like:

• Endpoint management and monitoring

• Patching and software updates

• Cloud and SaaS support

• Data backups and disaster recovery

• User support and help desk services

• Security tools and threat detection 

For cybercriminals, MSPs have become lucrative targets. They’re seen as a single entry point to multiple business environments with privileged access to customers’ systems and sensitive data, so MSPs are a gold mine for bad actors looking to score sensitive data. 

According to recent market analysis, the global 2025 MSP market value is over $300 billion, with a 43.78% North American market share. It’s expected to expand to over $800 billion by 2032, a compound annual growth rate (CAGR) of 15%.

Several factors are driving this growth spurt:

• IT complexity: Tech stacks are more complex than ever, between on-premises networks, endpoints, identities, hybrid cloud platforms, applications, and shadow IT sprawl.

• Everyone’s a target: Cyber threats aren’t a distant worry anymore. In a recent study, 60% of respondents said that cybersecurity was the top challenge that led them to work with an MSP. If your business has an online presence, regardless of size or industry, you’re at risk. One breach can wreck a business, so they’re turning to experts to stay protected. 

• Remote work takeover: Remote and hybrid work are convenient for end-users, but this bigger attack surface means more security vulnerabilities for cybercriminals to exploit

For MSPs, this growth translates into massive business opportunities: providing critical IT support, security guidance, and oversight.

Here’s a look at trends shaping the MSP industry:

1. Supply chain security

Hacking an MSP can be a gateway to hundreds or even thousands of downstream MSP customer networks and data. This makes supply chain security one of the most critical managed IT services trends. 

Here’s a harsh reality check: In 2021, a supply chain ransomware attack against Kaseya’s VSA product took down 50-60 MSPs and over 1,500 of their customers. 

Want to learn more about supply chain risk in MSPs? Check out these resources from our Adversary Tactics team: 

• RMMs: A Gateway for Bulk Attacks on MSP Customers, Pt. I

• RMMs: A Gateway for Bulk Attacks on MSP Customers, Pt. II

Watch: Huntress Community Growth Strategist Tom Lawrence walks through the Tragic Quadrant, a ranking of the attacker tactics Huntress sees most, built from telemetry across more than 5 million endpoints and 15 million identities. He covers 11 tactics, how often each one hits, and the defense that stops it.

Get the full Huntress Tragic Quadrant report.

2. Hyper-automation and AI Integration

As threat actors get more creative and brazen, MSPs are leveling up with AI-powered tools that automate threat detection, response, and remediation. This helps security teams handle bigger alert volumes with fewer false positives, freeing up human experts to focus on the important stuff like threat hunting and customer support. 

3. Managed Security Service Providers (MSSP)

The MSP market is seeing increased demand for specialized security expertise as cyber threats become an unwelcome reality for many businesses. Managed Security Service Providers (MSSP) focus exclusively on cybersecurity, offering services like 24/7 monitoring, threat detection, vulnerability management, firewall and network management, compliance reporting and support, and incident response (IR). Many MSPs are creating new opportunities by either building out their own MSSP offerings or partnering with specialized firms to support their existing clients.

4. Co-managed IT

The relationship between MSPs and internal IT teams has shifted into a co-management situation. Instead of replacing internal teams, MSPs partner with them, bringing in specialized skills, tools, and manpower. MSPs and customers benefit from stronger partnerships, working together on strategic goals.

5. MSP Mergers and Acquisitions (M&A)

The MSP industry is currently in a consolidation phase, with a 50% growth rate in M&A activity in 2024. One of the main drivers? Shifting customer expectations around cybersecurity. No longer viewed as an add-on service, many businesses expect cybersecurity to be a regular part of their tech stack that MSPs manage. This can leave smaller MSPs lagging behind in automation, standardized processes, and specialized expertise, partially contributing to M&A growth.

The future for managed service providers is bright, but it will belong to those who are agile, security-minded, and customer-focused. The role of the MSP is quickly pivoting from a simple IT support provider on the sidelines to a strategic business partner.

As strategic advisors, they help clients navigate new digital pathways, adopt new technologies, and build resilient security stacks. 

Key priorities for future success are:

• A security-first culture: Every service, solution, and internal process is built on a foundation of security-first principles. This is non-negotiable.

• Strategic advisory services: Clients need guidance on everything from cloud strategy to data governance. MSPs who tap into this high-level advice will become invaluable.

• Embracing specialization: Whether it’s specializing in a specific industry (like healthcare or finance) or a technology (like IoT or AI), deep expertise will be a notable key differentiator for successful MSPs

Trends in the MSPindustry all point in one direction, and cybersecurity is at the heart of it all. It’s time to double down on security, invest in automation, and level up MSP services from basic support to strategic partnership. By staying informed and adaptable, MSPs cannot only protect their clients but also solidify their role as indispensable partners in the digital age.