Managed Security Services Market Size & Share, by Solution Type (Identity & Access Management, Firewall Management, Intrusion Detection & Prevention); Security Type (Network, Cloud, Endpoint, Application); Deployment Mode (On-premises, Cloud); Organization (Small & Medium-sized Enterprises, Large Enterprises); End-user (BFSI, IT & Telecommunications, Government & Defense) - Global Supply & Demand Analysis, Growth Forecasts, Statistics Report 2023-2035

  • Report ID: 4130
  • Published Date: Apr 12, 2023
  • Report Format: PDF, PPT

Global Market Size, Forecast, and Trend Highlights Over 2023-2035

Managed Security Services Market size is projected to surpass USD 62 Billion by the end of 2035, growing at a CAGR of 14% during the forecast period, i.e., 2023-2035. In the year 2022, the industry size of managed security services was over USD 25 Billion. The primary factor for market growth is the rising penetration of internet services and technological solutions in businesses. This is expected to increase the utilization rate of managed security services for keeping enterprises up-to-date with security issues, audits, and maintenance while preventing data thefts, breaches, cybercrime, and other cyber-related issues. A recent report that was published in 2022 stated that more than 90% of organizations and businesses around the world were calculated to be using some sort of digital initiative in their processes.

In the recent period, managed security services have been adopted by various enterprises as these solutions aid in the protection of corporate internet assets, password files, and confidential data. As a result, managed security services have been opted among organizations of all sizes which in turn is expected to expand the market size during the forecast period. Moreover, companies over the world are investing in network protection for securing their data which results in a higher adoption rate of managed security services in the next few years. Various advantages of managed security services such as its cheap and efficient security solution for customer and client businesses to help them secure their sensitive information and prevent data theft is anticipated to bolster its adoption rate in the assessment period. In addition to the aforementioned factors, the rapid escalation in cases of cybercrimes, hacking, phishing, thefts, and other crimes is estimated to drive the global managed security services market. Furthermore, the growing utilization rate of mobiles, IoT (Internet of Things) devices, and electronic products at workplaces along with the increase in electronic data worldwide are projected to create a positive outlook for the growth of the managed security services market.


Managed Security Services Market
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Managed Security Services Sector: Growth Drivers and Challenges

Growth Drivers

  • Growing Cases of Cyber Attacks and Cyber-Related Crimes – As organizations are being digitized nowadays, the number of cyberattacks, data thefts, phishing, hacking, identity theft, and other cyber-related crimes has grown considerably. As a result, businesses are opting for advanced solutions such as managed security services for protecting their vital documents, passwords, files, and other personal items of the enterprises. Therefore, with the increased number of cyberattacks occurring across the businesses present in the world, the adoption rate of managed security services is also anticipated to rise subsequently bringing favorable opportunities for market growth. For instance, it was calculated that in 2021, almost 86% of the organizations present in the world were affected by a successful cyberattack, which is an increase from 80% in 2020, and 70% of organizations in 2015. Also, it has been projected that by the end of 2023, approximately 95 cybercrime cases are estimated to occur per hour across the world, which is equivalent to 35 billion accounts.

  • Rising Amount of Data Being Produced Everyday – With the growing number of enterprises across the world, the amount of data being generated daily is also rising. This is generating the need for efficient solutions that could work and manage in the core network, secure confidential data, and introduce tight security for data protection. This aspect is estimated to bring in the need for managed security services for proper management and security of data being generated by the companies and aid in expanding the global market size during the forecast period. According to estimates, around 2.5 quintillion bytes of data were produced every day in 2021 worldwide.

  • Rapid Product Launches and Technological Advancement in Cyber Security Services by Key Players – Key players working in the field are working together to bring in technological advancement in cyber security services for better protection of data being produced by the companies. As a result, they are launching products and services to refine the managed security services in the corporate offices. For instance, recently, Intel, a global semiconductor chip manufacturer has launched the 6th-generation of vPro Chips. These powerful chips are made to revolutionize 'authentication security' by utilizing multiple levels and methods of authentication. It has up to 2.5 times the performance, 3 times the battery life, and 30 times the graphic performance of a system over a five-year-old system.

  • Rising Penetration of the Internet and Internet Users – According to data, it was revealed that ~ 63% of the global population used the internet by the first quarter of 2022.

  • High Usage of Internet of Things (IoT)Globally, about 8 billion Internet of Things (IoT) devices are expected to exist in 2020, almost tripling to more than 28 billion IoT devices in 2030.

  • Boost in the Information Technology (IT) Industry - It was calculated that in the year 2020, the global IT industry generated more than USD 5 trillion.

Challenges

  • Lack of Capital Resources – The implementation of managed security services in businesses requires a high amount of investment. This factor is expected to lower the adoption rate of the solution in enterprises with less amount of funds. Hence, this factor is anticipated to hamper the market growth during the forecast period.
  • Unavailability of Skilled IT Professionals
  • Reluctance and Trust Issues on Third-Party Applications

Managed Security Services Market: Key Insights

Base Year

2022

Forecast Year

2023-2035

CAGR

~14%

Base Year Market Size (2022)

~ USD 25 Billion

Forecast Year Market Size (2035)

~ USD 62 Billion

Regional Scope

  • North America (U.S., and Canada)
  • Latin America (Mexico, Argentina, Rest of Latin America)
  • Asia-Pacific (Japan, China, India, Indonesia, Malaysia, Australia, Rest of Asia-Pacific)
  • Europe (U.K., Germany, France, Italy, Spain, Russia, NORDIC, Rest of Europe)
  • Middle East and Africa (Israel, GCC North Africa, South Africa, Rest of the Middle East and Africa)
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Managed Security Services Segmentation

Deployment Mode (On-premises, Cloud)

The global managed security services market is segmented and analyzed for demand and supply by deployment mode into on-premises and cloud. Out of the cloud segment is estimated to gain the largest market share of about ~55% in the year 2035. The primary factor for segment growth is the rising adoption of cloud computing by companies around the world as well as the increased amount of data being stored in the cloud owing to its great advantages. For instance, in the year 2021, more than 65% of global enterprise infrastructure was cloud-based. Also, the numerous advantages of cloud solutions such as efficiency in managing data and effectiveness in storing a big amount of data for storing and protection from cyber threats are propelling enterprises to opt for cloud services for proper data management. Technologically advanced cloud solutions are very much effective in improving the managed security services and reducing the chances of cyberattacks and cyber-crimes in the long run which in turn, is anticipated to bring lucrative growth opportunities in revenue generation of the segment.

End User (BFSI, IT & Telecommunications, Government & Defense, Manufacturing, Healthcare, Retail, Energy and Utilities)

The global managed security services market is also segmented and analyzed for demand and supply by end-user into BFSI, IT & telecommunications, government & defense, manufacturing, healthcare, retail, energy and utilities, and others. Amongst these segments, the BFSI segment is expected to garner a significant share of around ~31% in the year 2035. The BFSI vertical is the major source of highly confidential information for customers about their financial data, user IDs, passwords, and other personal information. As a result, they require advanced solutions for the protection of these resources and critical information. Also, BFSI is mostly attacked by phishing attacks which are aimed at stealing login credentials, and DDoS attacks for sabotaging online payments. As managed security services are imperative for these types of financial institutions for improving the customer experience and protecting their customers against the consequences of a breach in security, the rapid growth of BFSI is anticipated to increase the growth of the segment.

Our in-depth analysis of the global market includes the following segments:

                By Deployment Mode

  • On-premises
  • Cloud

           By Solution Type

  • Identity & Access Management
  • Firewall Management
  • Intrusion Detection & Prevention
  • Distributed Denial of Services
  • Endpoint Security
  • Unified Threat Management
  • Secured Information & Event Management

         By Security Type

  • Network Security
  • Cloud Security
  • Endpoint Security
  • Application Security

         By Enterprise Size

  • Small & Medium-sized Enterprises
  • Large Enterprises

          By End User

  • BFSI
  • IT & Telecommunications
  • Government & Defense
  • Manufacturing
  • Healthcare
  • Retail
  • Energy and Utilities
  • Others

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Managed Security Services Industry - Regional Synopsis

North American Market Forecast

The market share of managed security services in North America, amongst the market in all the other regions, is projected to be the largest with a share of about ~35% by the end of 2035, owing to increasing cases of a 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 breaches were reported in the United States, with over 155 million people being affected by data exposure. Furthermore, region comprises the United States and Canada which have the most number of managed security services vendors with the most advanced infrastructure and high technological adoption in businesses. Also, the rising governing initiatives to protect critical infrastructure, systems, and data against ever-evolving cyberattacks are considered to positively contribute to market growth.

APAC Market Statistics

The Asia Pacific managed security services market is estimated to be the second largest, registering a share of about ~24% by the end of 2035. The primary factor for market growth in the region is the presence of developing businesses and enterprises which require advanced solutions for data and information protection. In addition, the high investment made by the government and key players operating in the market in the research and development sector for the development of advanced managed security services to eliminate the chances of data thefts, cyberattacks, hacking, phishing, and other cybercrimes is estimated to create a positive outlook for robust revenue generation of the market in the upcoming years. 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.

Europe Market Forecast

Further, the market in the European region, amongst the market in all the other regions, is projected to hold a majority of the share by the end of 2035. Along with the rising awareness about cybercrimes and their solutions, European countries are opting for managed security services for the protection of confidential data and important information which in turn is anticipated to increase the revenue generation for market growth during the forecast period. Also, the increasing internet penetration, security breaches, and sophisticated cyberattacks are estimated to bring lucrative growth opportunities for market growth during the assessment period.

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Managed Security Services Market Size
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Companies Dominating the Managed Security Services Landscape

top-features-companies
    • IBM
      • Company Overview
      • Business Strategy
      • Key Product Offerings
      • Financial Performance
      • Key Performance Indicators
      • Risk Analysis
      • Recent Development
      • Regional Presence
      • SWOT Analysis
    • SecureWorks, Inc.
    • Verizon
    • Trustwave Holdings, Inc.
    • Broadcom Inc.
    • AT&T Inc.
    • BAE Systems
    • CIPHER
    • Accenture
    • NTT Limited
    • Field Effect Software Inc.

In-the-news

In The News

  • Field Effect Software Inc., a global cyber security company specializing in providing intelligence-grade protection for SMEs, announced a new partnership with UK-based IT security reseller and managed service provider, RS22, to enable best-in-class cyber security protection for businesses to defend and stay ahead of disrupting cyberattacks.

  • To help organizations create a unified security approach and manage their hybrid cloud security strategy, IBM announced new and enhanced services that bring together cloud-native, IBM, and third-party resources.

 

 

Author Credits:  Abhishek Verma, Hetal Singh


  • Report ID: 4130
  • Published Date: Apr 12, 2023
  • Report Format: PDF, PPT

Frequently Asked Questions (FAQ)

Increasing internet penetration, security breaches, 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 size of managed security services is anticipated to attain a CAGR of ~14% over the forecast period, i.e., 2023-2035.

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 be the growth hindering factors for the market expansion.

The market in the Asia Pacific region is projected to hold the largest market share by the end of 2035 and provide more business opportunities in the future.

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, Field Effect Software Inc., and other key players.

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 garner the largest market size by the end of 2035 and display significant growth opportunities.
Managed Security Services Market Report Scope
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