Research on managed service providers 2025
This external research report details the UK managed service provider market, including its size and the range of services provided.
Documents
Details
Managed service providers (MSPs) play a critical role in the UK economy by offering core IT services to businesses. These organisations have unprecedented access to clients’ IT systems, networks, infrastructure and data.
This research report carried out by Frontier Economics and Glass.AI provides an updated assessment of the Managed Service Provider (MSP) market in the UK. The study aims to quantify the size and scope of the sector and assess the impact of including some MSPs within the scope of the Cyber Security and Resilience (CSR) Bill.
Key findings in the MSPs report
As of March 2025:
-
There were 12,867 active MSPs in the UK
-
UK MSPs were employing 343,762 individuals
-
These firms were generating an estimated £51 billion in revenue and £22.3 billion in Gross Value Added (GVA).
This research was published on 12 November 2025 as part of the introduction of the Cyber Security and Resilience Bill to Parliament. The Bill proposes that some MSPs be brought into scope of regulation, meaning they will need to meet robust cyber security requirements.
The report suggests around 1,214 MSPs could potentially be in scope of the Bill, depending on the definitions being used. The final details of the Bill will agreed by Parliament.
The government has introduced the Cyber Security and Resilience Bill to strengthen the UK’s cyber defences and build the resilience of our essential services, digital infrastructure and digital services.
As the number of hostile actors with the means, intent and capability to do harm to the UK has increased, our defences have become comparatively weaker. The Bill will make substantial improvements to this existing framework by bringing more entities into scope and putting regulators on a stronger footing so that they can carry out their important duties. This includes a proposal that some MSPs be brought into scope of regulation.
The research informs the government’s policy work to continue to strengthen UK cyber resilience and national security by protecting the services the public and businesses rely on every day.
It follows a similar previous report on the UK managed service provider market published in February 2024.