Now that the Channel Partners 2025 MSP 501 applications are closed, the fun part for me starts. We’re crunching numbers to find out just how healthy the MSP market was in 2024 and how strong the top MSPs expect it to be in 2025.

Looking at those aggregates and talking to MSP 501 winners for stories and in panels at the September MSP Summit provides a comprehensive picture of the health of the MSP market. We’ll explore the enormous opportunities for MSPs at the MSP Summit Sept. 15-17 in Orlando. But we’re already seeing signs that – despite economic and technology challenges – there are reasons for optimism. Positive signs are coming from sources such as global technology investment banker Drake Star, Kaseya’s TruePeer peer group and MSPs themselves.

“From an economic standpoint, it's perfect time to be an MSP,” said DVBE Technology Group CEO Rich McKinnon, pointing to an expansion of his MSP business to telco services and new international markets.

In its First Quarter 2025 MSP Market Report, Drake Star details strong momentum in the MSP market based on several factors:

· An increase in MSP M&A deals in the first quarter of 2025 to 107, with disclosed transaction value alone surpassing $1 billion. Ten strategic MSPs buyers acquired at least four smaller MSPs.

· The global MSP market value hit $305 billion in 2025 and Drake Star expects it to growth to $571 billion by 2033 with a 7.2% CAGR.

· The way AI is transforming MSPs through automation, chatbots and driving revenue boosts across key service areas.

Of course, taking advantage of the opportunities requires work from MSPs.

“The shift doesn’t come without challenges,” Drake Star partner Sam Levy wrote in the Q1 report. “Talent shortages in AI engineering and data science remain a hurdle, especially for smaller MSPs. Integrating AI across diverse platforms and ensuring explainability also adds complexity. … AI isn’t an add-on. It’s the engineer powering the next generation of MSPs. Those who embrace it early will lead the market in in performance, profitability and client loyalty.”

Kaseya leaders painted a positive picture of the MSP landscape during a Kaseya TruPeer event in London earlier this month.

Greg Jones, Kaseya SVP of MSP enablement for North America and EMEA, told Channel Futures that the vendor sees 16.5% organic growth. That increase in business indicates strong MSP performance. “Our go-to-market strategies through MSPs are firing on all cylinders,” Jones told Channel Futures.

That doesn’t mean there are no challenges. MSPs at the TruPeer event discussed ways to prepare for rapid economic and technology shifts. “The next three to five years will see the biggest shift in the MSP landscape. MSPs really need to adapt and pivot to stay ahead,” Jones said.

The MSP Summit will explore these issues with a theme: “MSP 3.0: The Trillion Dollar Revolution.” AI and the geopolitical economic challenges will be on the agenda. Register here.