Looking for an update on the state of the MSP market for 2025? ChannelE2E is headed to the Canalys Forum North America in Miami this week where the preeminent channel market research and analyst firm will be sharing all manner of forecasts and predictions for 2025 and beyond.
Last week, Chief Analyst Jay McBain shared Canalys’ quarterly report for the PSA and RMM markets, along with some updates to market share data for the major vendors in the space.
First, the combined PSA and RMM markets grew by 14% in Q2 year-over-year. The top five companies – ConnectWise, Kaseya, N-able, NinjaOne, and Atera – represent over two-thirds of the overall $388 million software market for MSPs.
Breaking it out, Canalys notes that there’s a major power shift that’s been happening among the top vendors in 2024. While all vendors in the market are growing, the market share leaders have seen their market share slide in Q2 2024 compared to the same quarter a year ago. Here's how it breaks out:
- ConnectWise market share dropped from 26.8% to 24.3%.
- Kaseya market share dropped from 22.9% to 22.7%
- N-able market share dropped from 12.5% to 11.4%
- NinjaOne’s market share grew from 8.4% to 9.4%
- All others combined had a market share of 29.4% last year, which grew to 32.1% this year.
Canalys is forecasting the managed services industry itself to grow from $548 billion in 2024 to $608 billion in 2025.
How many managed services companies are there today? Canalys said that there are now 337,000 companies that have at least one managed services contract. What’s more, there are 86,546 that drive more than 30% of their revenue as recurring (i.e., managed services).
Canalys said that North America makes up 45% of the managed services business, EMEA is at 29%, APAC is at 23%, and LATAM is at 3%.
Canalys’ list of additional PSA and RMM vendors includes ManageEngine, Syncro, Accelo, HaloPSA, Addigy, GoTo, Rev.io, Tarian, Barracuda MSP, Action1, Naverisk, Level, SuperOps.ai, and Zest.
While only one of the top four RMM/PSA companies is publicly held, Canalys offered revenue estimates for RMM/PSA sales at each company. ConnectWise Q2 revenue was estimated at $94 million, Kaseya/Datto at $88 million, N-able (which is publicly held) is at $44 million (a fraction of its reported $119 million in Q2 total revenues) and NinjaOne is at $37 million.
