How many managed service providers are there in the UK?
The managed service provider (MSP) industry has seen significant growth in recent years, with businesses increasingly seeking external expertise to manage their IT infrastructure. However, determining the exact number of managed service providers in the UK can be challenging due to the dynamic nature of the industry. This article aims to provide an overview of the current landscape and shed light on the number of MSPs operating in the UK.
Market Growth and Expansion
The UK’s MSP market has experienced substantial growth, driven by the rising demand for IT services and the increasing complexity of IT environments. According to a report by Canalys, the UK managed services market is expected to grow at a compound annual growth rate (CAGR) of 7.2% between 2020 and 2025. This growth is attributed to various factors, including the adoption of cloud computing, the need for cybersecurity solutions, and the shift towards remote work.
Estimating the Number of MSPs
Estimating the precise number of managed service providers in the UK is difficult due to the absence of a centralized registry or comprehensive database. However, industry experts and market research firms have made several attempts to gauge the size of the market.
One of the most recent studies, conducted by the TechUK and KPMG, estimates that there are around 1,000 managed service providers operating in the UK. This figure includes both large multinational corporations and small to medium-sized businesses (SMBs) offering managed services.
Market Segmentation
The UK’s managed service provider market is segmented into various categories, including:
1. Infrastructure as a Service (IaaS): Providers offering cloud-based infrastructure solutions.
2. Platform as a Service (PaaS): Companies specializing in cloud-based platforms for application development and deployment.
3. Software as a Service (SaaS): MSPs focusing on delivering software applications over the internet.
4. Security as a Service (SECaaS): Providers offering cybersecurity solutions and services.
5. Managed Security Services (MSS): Companies specializing in managing and securing clients’ IT infrastructure.
Challenges and Opportunities
Despite the growth of the managed service provider market, several challenges persist. These include the need for continuous skill development, competition from large multinational corporations, and the evolving cybersecurity landscape. However, these challenges also present opportunities for MSPs to differentiate themselves and offer unique value propositions.
Conclusion
In conclusion, the managed service provider industry in the UK is a dynamic and rapidly growing sector. While it is challenging to determine the exact number of MSPs, estimates suggest there are around 1,000 providers operating in the market. As businesses continue to seek external expertise to manage their IT infrastructure, the UK’s MSP market is expected to witness further growth and innovation.
