There’s some new market data out of Canalys on the MSP sector, specifically the PSA/RMM market. Quoting the post:
“In 2025, the overall market will hit $608 billion globally, at a growth rate of 13% y/y. Robin Ody and his team at Canalys (part of Omdia) are tracking over 340,000 companies globally offering managed services, with 96,000 of them achieving over 30% of their revenue as recurring.
To put this into perspective – managed services will be 1.5X larger than the entire SaaS industry as well as 1.5X larger than all of the hyperscalers combined. In fact, it will represent over 15% of business and government IT budgets (including hardware, software, and services) this year.”
While the PSA/RMM market is growing at 17.8% y/y, the growth isn’t evenly distributed, ranging from flat to 72.4% y/y growth. N-Able posted a point one percent growth year over year, while Kaseya showed 20.1% growth. NinjaOne, 52.7%, HaloPSA 72.4%, and ConnectWisse 3.1%. All others 17.8%.
Your top five – ConnectWise, Kaseya, NinjaOne, N-Able, and HaloPSA, with ConnectWise retaking the top spot and N-Able dropping to number four.
In growth news, Nerdio has surpassed $100 million in annual recurring revenue, achieving this milestone in just over five years. This significant growth reflects an 85% year-over-year increase as enterprises increasingly transition to cloud-based solutions for managing Microsoft technologies. The company, which specializes in automated end-user computing management, has added over 400 new enterprise customers within the past year, serving more than 15,000 organizations across over 50 countries.
Why do we care?
Because the MSP industry has officially become too big to ignore—yet also too fragmented for comfort. The Canalys data predicts managed services will reach $608 billion globally in 2025—more than SaaS and larger than hyperscalers. That marks a shift in the industry: managed services are no longer just a part of the larger IT ecosystem—they are now the main player.
But beneath the headline growth lies a more important truth: the PSA/RMM platform war is far from settled.
The range in platform growth—from flat (N-Able) to triple-digit scale-ups like HaloPSA—highlights a highly volatile competitive landscape. No vendor is dominant across all segments. ConnectWise has regained the top spot, but not by outgrowing its competitors—in fact, some smaller players are running circles around incumbents. NinjaOne’s 52.7% and HaloPSA’s 72.4% year-over-year growth indicate that agility, user experience, and vertical focus are driving significant customer shifts.
The flat growth from N-Able (0.1%) and slow growth from ConnectWise (3.1%) may indicate market saturation, pricing resistance, or platform complexity. For IT service providers, this means vendor selection is more strategic than ever. Choosing a PSA/RMM platform isn’t just about features—it’s about future potential, partner experience, and ecosystem alignment.
First, I want to discuss Kaseya. Kaseya reported 20.1% year-over-year growth in the PSA/RMM segment, according to Canalys, solidifying its position among the top five vendors—despite ongoing, widespread community disapproval. Kaseya’s growth is largely driven by acquisitions and bundling. Their ownership of Datto, Unitrends, IT Glue, ID Agent, Spanning, and others gives them a huge opportunity for cross-selling and offering discounts. This strategy appeals to new MSPs looking for a “one-stop shop,” budget-conscious providers willing to sacrifice user experience or vendor transparency for perceived value, and resellers motivated by sales commissions and partner margins. It’s not driven by love—it’s about lock-in and leverage. Many of the loudest critics are mid-size to larger MSPs in North America. However, Kaseya is aggressively expanding beyond that core, especially in markets where alternatives are less developed or well-known. The Canalys growth figure probably includes global expansion, where vendor perception often lags behind growth incentives.
We can also add a bit more about N-Able since it is publicly traded. Market share growth in Canalys probably focuses on PSA/RMM licenses sold or deployed. Even if N-Able boosts revenue through price increases, upsells, or security services, the Canalys metric stays flat if they are not gaining more logos or seats in their core PSA/RMM. N-Able highlights their security and endpoint management products, along with their push toward cloud management in earnings calls. If you’re looking for a modern, fast-changing PSA or RMM, N-Able might not be the right fit. Their focus and roadmap clearly prioritize security and cyber-resilience. However, if you’re already using N-Able and want to improve your Microsoft Cloud and security posture management, their current focus could benefit you.
Disclosure: I’m an N-Able Shareholder.
Then there’s Nerdio’s breakout: reaching $100M ARR with 85% YoY growth. That’s not just impressive—that’s disruptive. It demonstrates a strong demand for platforms that streamline Microsoft’s complex cloud ecosystem, especially in enterprise and midmarket sectors. Nerdio’s focus on Intune, AVD, and automation has made it the main “Microsoft Cloud MSP enablement” platform. If you’re manually managing M365 and endpoint tasks, you’re falling behind.
The true growth lies in automation, UX-first platforms, and cloud-native alignment. That’s why NinjaOne, HaloPSA, and Nerdio are gaining momentum. If your platform stack still feels like a patchwork of legacy tools and duct tape, now is the time to reassess. And not just for functionality—also for roadmap alignment and partner momentum.
For vendors, the message is sharper: you are not entitled to your install base. Aggressive innovation, cleaner UI, better onboarding, and flexible pricing are winning share.
The MSP opportunity is significant—but only for those not anchored to the past.