Managed Service Providers (MSPs) are poised for growth in 2025, with profitability taking center stage, according to Kaseya's 2025 State of the MSP Industry survey.
Optimism abounds, particularly in Europe, where nearly three-quarters of respondents from the EMEA region anticipate revenue growth over the next three years. Greg Jones, Senior Vice President of MSP Enablement (EMEA), remarked, “This year's report provides some exciting and insightful figures that highlight the key trends shaping the MSP market. It’s good to see the optimism amongst European MSPs. One thing that could prove a challenge is finding the right talent, as staffing was cited as the top issue by 45% of EMEA respondents. However, embracing emerging trends such as automation through AI and proactively adapting to clients’ changing needs with co-managed security and cloud services will help MSPs stay ahead of the curve and drive profitability for long-term success."
The survey revealed that 91% of MSPs globally have prioritized profitability this year, despite concerns over acquiring new customers and expanding revenue streams. Gary Pica, founder of TruMethods, a Kaseya company, emphasized the importance of operational streamlining and automation in achieving sustainable, high-margin businesses.
Revenue optimism persists, with 67% of MSPs anticipating growth over the next three years. Smaller firms often thrive by leveraging niche expertise, while larger providers compete through co-managed services, including disaster recovery and cloud infrastructure management.Yet, the sector faces rising threats. AI-powered cyberattacks surged in 2024, affecting 32% of MSPs—surpassing supply chain and endpoint threats. The report underscores the dual role of AI: a tool for automation and security, but also a vector for sophisticated attacks.
Top-earning MSPs, defined as those surpassing $10 million annually, share a commitment to cloud migration, managed security services, and aligning growth strategies with client needs. Their success, built on technological foresight and efficiency, offers a roadmap for smaller players navigating a complex market landscape.
