Updated Mar 17, 2026 by Drake Star Partners
The global MSP market is projected to grow from $305 billion in 2024 to $571 billion by 2033, driven by increasing demand for complex, cost-efficient IT solutions.
Q1 2025 saw 106 M&A transactions with disclosed values exceeding $1 billion, a notable increase from the $927 million recorded in Q1 2024.
AI-enabled automation is delivering significant operational efficiencies, including 30–50% reductions in costs, a 50% decrease in ticket workloads, and up to an eightfold increase in resolution speeds.
Strategic buyers are aggressively consolidating the market, with the top ten players each acquiring at least four MSPs during the first quarter.
Major Q1 2025 transactions include Sophos’s $859 million acquisition of Secureworks and NOS’s €152 million purchase of claranet.
IT consulting services dominate the M&A landscape, accounting for approximately 90% of all recorded transaction activity.
While AI adoption provides an 11% revenue uplift and 20% earnings growth, the industry continues to face significant hurdles regarding talent shortages and integration complexity.
The global MSP market is projected to grow from $305 billion in 2024 to $571 billion by 2033, driven by increasing demand for complex, cost-efficient IT solutions.
Q1 2025 saw 106 M&A transactions with disclosed values exceeding $1 billion, a notable increase from the $927 million recorded in Q1 2024.
AI-enabled automation is delivering significant operational efficiencies, including 30–50% reductions in costs, a 50% decrease in ticket workloads, and up to an eightfold increase in resolution speeds.
Strategic buyers are aggressively consolidating the market, with the top ten players each acquiring at least four MSPs during the first quarter.
Major Q1 2025 transactions include Sophos’s $859 million acquisition of Secureworks and NOS’s €152 million purchase of claranet.
IT consulting services dominate the M&A landscape, accounting for approximately 90% of all recorded transaction activity.
While AI adoption provides an 11% revenue uplift and 20% earnings growth, the industry continues to face significant hurdles regarding talent shortages and integration complexity.