02 - Where the market is
What the sector's own numbers say
12,867Active UK MSPs, March 2025
89%Of them micro or small firms
71%Say winning new clients is their hardest problem
£40 to £150Published per seat per month, UK SME support
Frontier Economics, working for DSIT, identified 12,867 active MSPs in the UK in March 2025, employing 343,762 people. The shape matters more than the headline: 65% are micro firms under ten people and 24% are small, while 321 large providers take 86% of the sector's £51 billion revenue. If you are a 10 to 100 person MSP you are competing in a very crowded middle, against several hundred firms in your region who describe themselves on their website in close to identical words. The economics, though, are forgiving of patient prospecting. Take the middle of the published UK range of £40 to £150 per seat per month: a forty seat client sits somewhere around £2,000 to £3,000 in MRR before projects, hardware or vCIO time, and managed clients are kept for years rather than months. That is the arithmetic that makes a per meeting fee a rounding error. Demand drivers are moving in your favour too. Cyber Essentials certificates issued between April 2025 and March 2026 reached 44,608, up 19.2% on the year, and the Danzell question set that replaced Willow on 27 April 2026 made MFA on cloud services mandatory rather than expected, which puts a dated compliance conversation in front of thousands of SMEs. CompTIA's research found 37.9% of organisations now use an MSP alongside an internal IT team rather than instead of one, so the co-managed door is often open where the full takeaway is not.
Sources: Frontier Economics for DSIT, Managed Service Providers Market Study, final report 1 May 2025. Kaseya 2026 State of the MSP Report, over 1,000 MSPs surveyed. MSP Success reader survey, December 2025. CyberSmart's compilation of IASME and NCSC Cyber Essentials certificate data. IASME guidance on the April 2026 Danzell question set. CompTIA Trends in Managed Services. M&A Signal 2026 MSP M&A Report. Per seat pricing ranges as published by UK providers including Connection Technologies and F1 Group, 2026.