The global managed security services market is estimated to reach approximately USD 58 Billion in revenue by 2031 by growing at a CAGR of ~15% over the forecast period, i.e., 2022 – 2031. The growth of the market is attributed to increasing internet penetration, security breaches and sophisticated cyberattacks, and growing trends of BYOD (bring-your-own-device) among organisations. For instance, in 2019, more than 4 billion records were compromised globally due to security breaches. Furthermore, managed security services provide many benefits, such as cost-effectiveness, deep & broad security protection, continuous security monitoring, and others, which are expected to foster the growth of the market further.
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Organisations are increasingly shifting toward outsourced security resources to gain security expertise and lessen the expenditure and workload of in-house security management. It has been estimated that enterprise security suite can cut off IT security management costs of organisations by nearly 40%. Managed security services provide outsourcing network services with a systematic channel for organizations to manage their security needs through in-house management or outsourced service providers. It helps organizations to monitor, maintain, and protect their ecosystem.
However, lack of capital resources and skilled IT professionals to handle challenging situations are likely to restrain the growth of the market. Moreover, reluctance and trust issues on third-party applications to share sensitive data may also challenge the market growth.
The market is segmented by solution type into identity & access management, firewall management, intrusion detection & prevention, distributed denial of services, endpoint security, unified threat management, secured information & event management, out of which, the intrusion detection & prevention segment is anticipated to hold the largest market share owing to the capability of this solution to secure network and monitor network traffic for signs of possible attacks.
The global managed security services market is further segmented on the basis of security type into managed application security, managed cloud security, and managed endpoint security. Managed cloud security segment is expected to witness high traction over the forecast period owing to increasing adoption of cloud solutions by enterprises which demand securing entire hybrid cloud with managed and advisory services. Managed endpoint security segment is also expected to witness significant growth on the back of high demand to protect enterprise endpoints with antivirus, data loss prevention, and encryption. It has been estimated that enterprise security suite can lower endpoint infection rates by over 50%.
Based on end-user, the market is segmented into BFSI, IT & telecommunications, government & defence, energy and utilities, manufacturing, healthcare, retail, and others, out of which, the BFSI segment is projected to witness exponential growth over the forecast period and hold the largest share of the market. BFSI sector is increasingly adopting managed security services on a large scale owing to stringent government rules and regulations on privacy, data security, and protection of citizens’ information. This sector has also been experiencing increasing incidences of cyberattack resulting in huge loss of data. Between 2018 and 2019, BFSI industry incurred the most cybercrime costs, with an average cost of nearly USD 18 Million.
The never-ending growth in internet accessibility around the world along with numerous technological advancements comprising 5G, blockchain, cloud services, Internet of Things (IoT), and Artificial Intelligence (AI) among others have significantly boosted the economic growth in the last two decades. As of April 2021, there were more than 4.5 billion users that were actively using the internet globally. Moreover, the growth in ICT sector has significantly contributed towards GDP growth, labor productivity, and R&D spending among other transformations of economies in different nations of the globe. Furthermore, the production of goods and services in the ICT sector is also contributing to the economic growth and development. As per the statistics in the United Nations Conference on Trade and Development’s database, the ICT good exports (% of total good exports) globally grew from 10.816 in 2015 to 11.536 in 2019. In 2019, these exports in Hong Kong SAR, China amounted to 56.65%, 25.23% in East Asia & Pacific, 26.50% in China, 25.77% in Korea, Rep., 8.74% in the United States, and 35.01% in Vietnam. These are some of the important factors that are boosting the growth of the market.
Geographically, the global managed security services market is segmented into five major regions including North America, Europe, Asia Pacific, Latin America and Middle East & Africa region. North America region is expected to hold the largest market share, with the U.S. dominating over the region, owing to increasing cases of security breach, higher dependence of enterprises on cloud-based applications, and increasing investments by players in the region in security solutions. In 2020, over 1000 cases of data breach were reported in the United States, with over 155 million people being affected by data exposure.
Asia-Pacific region is projected to witness fastest growth over the forecast period owing to growing number of cybercrimes and increasing efforts by several governments in the region to curb the rising cases. Furthermore, emerging economies, such as China and India are increasingly investing in IT infrastructure, which is expected to provide untapped business opportunities for market players.
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The global managed security services market is further classified on the basis of region as follows:
Our in-depth analysis of the global managed security services market includes the following segments:
FREQUENTLY ASKED QUESTIONS
Increasing internet penetration, security breaches and sophisticated cyberattacks, growing trends of BYOD, and safe and reliable benefits provided by managed security services are the major factors driving the market growth of the global managed security services market.
The market is anticipated to attain a CAGR nearly 15% over the forecast period, i.e., 2022-2031.
Lack of capital resources and skilled IT professionals to handle challenging situations, and reluctance and trust issues on third-party applications to share sensitive data are estimated to hamper the market growth.
Asia-Pacific region is expected to provide significant business opportunities for the growth of the market.
The major players in the market are IBM, SecureWorks, Inc., Verizon, Trustwave Holdings, Inc., Broadcom Inc., AT&T Inc., BAE Systems, CIPHER, Accenture, NTT Limited, and others.
The company profiles are selected based on the revenues generated from the product segment, geographical presence of the company which determine the revenue generating capacity as well as the new products being launched into the market by the company.
The market is segmented by solution type, security type, deployment mode, enterprise size, end-user, and by region.
The intrusion detection & prevention segment is anticipated to hold largest market size in value and witness a modest growth over the forecast period.
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