Managed Security Services Market 2022 - Market Size & Forecast, Industry Trends, Manufacturers Analysis, & Opportunities 2030

The global managed security services market is estimated to expand at a compounded annual growth rate (CAGR) of 15.0% during the forecast period 2022-2030.

Managed security services (MSS) refer to the outsourcing an organization’s IT infrastructure to outside or third-party service providers for round-the-clock monitoring, maintenance, and protection of sensitive data using a systematic path. It includes enabling security checks & audits, handling intrusion detection systems and firewalls, and responding to emergencies. While receiving effective security management, the reliable and cost-effective security solutions from MSSPs help the client organizations to diminish expenditure on CPE or in-house security specialists.

GROWTH DRIVERS:

The primary factors driving the growth of the global managed security services market include: the increasing acceptance of managed security services among businesses of all sizes; the growing trends such as BYOD, CYOD, and WFH among organizations; the burgeoning incidences of cybercrime activities & security breaches across enterprises all around the globe; the ever-growing complex risk and compliance requirements; the proliferating adoption of cloud technology and IoT devices; the rising demand for robust and cost-effective security services among enterprises to monitor and manage security events and the continuous up-gradation and innovation in existing managed security services.

Additionally, the costs of maintaining security infrastructure and that of an average data breach have been rising tremendously over the last few years. The problem gets even worse for smaller enterprises, who do not have any contingent funds allocated to such circumstances. For this reason, the adoption of managed security services is essential and is expected to subsequently rise in the upcoming years, which, in turn, is expected to augment the growth of the overall managed security services market during the forecast period.

Moreover, the managed security services market is witnessing a steep rise in the number of partnerships, mergers & acquisitions and collaborations between players in the market. They are adopting these measures to expand their global footprints by gaining access to the superior technologies held by the niche and small players. Parallelly, the small players in the market, especially in the emerging countries are becoming heavily dependent on the larger companies due to lack of knowledge and are relying on them for providing services. This growing number of partnerships between major and niche market players is slated to boost the managed security services market in the forthcoming years.

Furthermore, other factors such as: the surging digital transformation across industries; the escalating spending of businesses on network security; the proliferating usage of electronic devices in the healthcare sector coupled with the increasing requirement of advanced data protection to secure patients data; and the introduction of new products by leading industry players are also expected to create ample growth opportunities for the managed security services market during the forecast period.

However, factors such as the dearth of competent security professionals to handle challenging; stringent information security regulations by governments across the globe and the reluctance of organizations to share sensitive data with third-party service providers are projected to hinder the growth of the global managed security services market to a certain extent during the forecast period 2021-2030.

MANAGED SECURITY SERVICES MARKET SEGMENTATION:

By Security Type:

·         Managed IAM

·         Managed Vulnerability Management

·         Managed Risk and Compliance

·         Managed Detection and Response

·         Managed Firewall

·         Managed IDS/IPS

·         Managed Encryption

·         Managed SIEM

·         Others Security Type

o   Managed Unified Threat Management

o   Managed DDoS

o   Managed DLP

 

By Service Type:

·         Fully Managed Security Services

·         Co-Managed Security Services

 

By Organization Size:

·         Large Enterprises

·         SMEs

 

By Vertical:

·         BFSI

·         Government

·         Healthcare

·         Telecommunication

·         IT and Enterprises

·         Retail

·         Energy and Utilities

·         Manufacturing

·         Other Verticals

o    Education

o    Travel And Hospitality

o    Media And Entertainment

By Deployment Mode:

·         Hosted Or Cloud Based Managed Security Services

·         On-premise or Customer Premise Equipment (CPE) Managed Security Services

 

By Region:

·         North America

·         Europe

·         Asia Pacific

·         Latin America

·         Middle East and Africa

 

Based on vertical, the BFSI segment dominated the global managed security services market in 2021. The segment is anticipated to further retain its dominance over the forecast period. Factors such as the surging regulatory requirements for the confidentiality and safety of sensitive citizens' data, the growing need for improving the protection of online services from cyberattacks and the proliferating adoption of managed security services by the BFSI sector are predominantly attributed to the segment’s growth.

However, the healthcare segment is anticipated to witness the highest CAGR in the market during the forecast period.

                                                    

Based on security type, the managed IPS & IDS segment held the largest share in the global managed security services market in 2021. The segment is expected to maintain its position in the market during the forecast period on account of the increasing adoption of managed IPS & IDS owing to its capability of monitoring network traffic for signs of a possible attack.

 

Based on deployment type, the hosted or cloud based managed security services segment led the global managed security services market in 2021. The segment is anticipated to continue with the ongoing trend over the forecast period owing to the burgeoning demand for cloud-based security services, the escalating adoption and implementation of cloud for data storage, and the advent of big data analytics.

 

Based on organization size, the large enterprises segment accounted for the largest share of the global managed security services market in 2021. The segment is projected to maintain its lead in the market over the forecast period on account of the surging need for advanced protection among large enterprises. However, the SMEs segment is anticipated to register the highest CAGR in the global managed security services market during the forecast period. The growing security spending among SMEs, the lack of IT staffing to handle complex security threats, and the surging awareness among these enterprises about security threats are attributable to the growth of this segment.

 

REGIONAL OUTLOOK:

The North American region captured the largest share of the global managed security services market in 2021. The region is poised to retain its dominance over the forecast period on account of factors such as: the rapidly increasing number of cybercrimes; the escalating developments in the information technology sector in the region; the early adoption of new and emerging technologies, including managed security services; the presence of well-established managed security services providers; the increasing reliance of enterprises on cloud-based applications and the rising investments by major players in security solutions in the region. The U.S. and Canada are the major contributors to the growth of the market in the region.

 

The European region held the second-largest share in the global managed security services market in 2021. This region is also expected to maintain its position in the market over the forecast period. The surging number of cross-border transactions; the proliferating adoption of managed security services by various industry verticals; the introduction of new data protection act by the U.K. government; and the increasing focus of countries on taking effective steps to ensure data protection in the region are majorly ascribed to the growth of the managed security services market in the region.

                                                

The Asia Pacific region is estimated to attain the highest CAGR in the managed security services market during the forecast period. The major factors responsible for the growth of the market in the region include the highest number of data breaches and ransomware attacks; the high adoption of MSS; the rising number of government regulations on cyber security; the growing IT security spending by the majority of the developing countries; the presence of the largest manufacturing base companies, the increasing deployment of cloud and the spurring investment in IT infrastructure development in the region. Countries such as India, China, and Japan are the major contributors to the region.

 

KEY COMPANIES IN MANAGED SECURITY SERVICES MARKET:

·         Wipro Limited

·         Accenture

·         Trustwave Holdings Inc.

·         Lumen Technologies

·         NTT

·         SecureWorks Inc.

·         BT Group plc

·         Atos SE

·         Infosys Limited

·         Verizon Communications Inc.

·         Cipher Security

·         Nuspire

·         International Business Machines Corporation (IBM)

·         Hewlett Packard

·         AT&T Inc.

·         Computer Science Corporation (CSC)

·         Dell Secure Works Inc

·         Cisco Systems Inc

·         Fortinet Inc

·         Other Players