ConnectWise's RMM/PSA Market Share Shrinking as Rivals Creep Up

The remote monitoring and management and professional services automation (RMM/PSA) market continues to grow significantly while the market control of big companies like ConnectWise and Kaseya diminishes.

According to a new report by Canalys, the RMM/PSA market grew by 14% in the second quarter, maintaining a steady trend of growth. The top 10 vendors brought in more than $388 million in RMM/PSA revenue, a small increase over the previous quarter's $385 million.

However, the big players in RMM/PSA are seeing their dominance wane a bit. ConnectWise, the No. 1 vendor, saw its market share shrink from nearly 27% in the second quarter of 2023 to a little more than 24% in 2024's second quarter. N-able went from 12.5% to 11.4% during that same time period. Kaseya, while seeing its share decline slightly, did see significant (13.5%) growth in this space overall.

That said, the RMM/PSA market "remains very top heavy," Omdia principal analyst Devan Adams told Channel Futures. (Omdia, Canalys and Channel Futures are all owned by Informa.)

"The top five companies make up over two-thirds of the market share today, but this is beginning to wane as smaller players pick up share," said Adams, pointing to ConnectWise's acquisitions of data-protection companies Axcient and SkyKick as evidence of its overall growth. Kaseya, the No. 2 vendor in the RMM/PSA market, also saw its Kaseya 365 product line adopted by more than 4,000 MSPs, who used it to secure more than 5 million endpoints in that time period.

Related:No Big Changes: Manny Rivelo to 'Polish Corners' as New ConnectWise CEO

Omdia's Devan Adams

Of the major players listed in Canalys' report, NinjaOne might have the most to crow about. The company's RMM/PSA market share jumped from 8.4% to 9.4% over the course of the past year and it sported the largest overall growth during that time period.

Smaller companies like Atera and ManageEngine are slowly taking a share of the market for themselves, Adams said. Atera launched its new AI Copilot features this quarter, while ManageEngine added several new AI -powered solutions for handling contextual recommendations.

RMM/PSA Market Affected By AI, M&A

The RMM/PSA market was also affected by a few different trends in the second quarter of 2024. Personalized service delivery became more common as AI features helped MSPs with a number of repetitive tasks to ensure that clients get the insights they desired. There were also improved partner enablement initiatives, which help vendors supply MSPs with the necessary training to support the solutions they provide to their customers. Consolidation also remained a factor as vendors engaged in M&A to expand their offerings and provide tools, including RMM and PSA, on a grander scale.

Related:NinjaOne CEO: MSPs Face Big Challenges, But Opportunities Await