|Study Period:||2018 - 2026|
|Fastest Growing Market:||Asia Pacific|
|Largest Market:||North America|
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The Managed Security Services Market was valued at USD 27.70 billion in 2020 and is expected to reach USD 64.73 billion by 2026, at a CAGR of 15.2% over the forecast period 2021 - 2026. Due to the pandemic Covid-19, businesses have changed the way they used to work. To maintain employees safety forced many corporations to change their regulations and policies. The inability to travel and cross borders and social distancing have forced businesses to change their current ways of functioning and reconsider operational choices. Remote working has increased the market for the managed security services.
- There are some threats which are not currently active, but pose a threat to the enterprise. Threat intelligence includes building a strong front gate against the attacker in the entire network chain. It also provides information and context about attack methodologies, such as the tools used to obscure a break in, how an attack hides inside network traffic or evades detection, the kind of data being stolen or malware being planted, and how an attack communicates back to its controller.
- Organizations are putting their reputation at risk by not addressing security awareness. In a Cisco conducted survey of 2000 respondents, 9% said that they do not have any dedicated cybersecurity professionals at their organizations,
- Managed security services in computing are network security services outsourced to any service provider. Many organizations hire managed security service providers (MSSPs) to undertake their security monitoring, as they do not have the necessary expertise or staff in -house . Maintaining any security monitoring infrastructure is complex and requires qualified staff to assess and respond continually.
- Moreover, organizations requiring custom security deployments, due to overly complex or expansive architecture, or specific implementation needs with disparate systems can significantly benefit from such services . Additionally, organizations relying on dynamic resource allocation generally require better automation to monitor the dynamic environments in which they operate effectively. Such complex automation needs can be managed by the services offered by players, like AT&T, Verizon, IBM, and SecureWorks .
- One of the major drivers of this market is the increasing costs of maintaining security infrastructure as well the growing cost of an average data breach . This can be especially catastrophic for smaller enterprises that do not have contingent funds for such circumstances . According to IBM, a breach of about 1 million records could cost a company USD 42 million in 2019 , while the loss of 50 million records could cost up to USD 388 million . Moreover, multiple independent researchers suggest that more quickly the breach is effected , lesser is the cost that an enterprise has to bear. Managed security services ensure a dedicated team that continuously monitors IT environments of their customers .
Scope of the Report
Managed security service providers offer managed security services (MSS) to manage and monitor the security aspects of the customers’ IT infrastructure. These services often enable the client organizations to reduce expenditure on either customer-premises equipment (CPE) or in-house security specialists, while receiving effective security management.
|By Deployment Type|
|By Solution Type|
|Intrusion Detection and Prevention|
|Distributed Denial of Services|
|By Managed Security Service Provider|
|IT Service Providers|
|Managed Security Specialist|
|Telecom Service Provider|
|By End-user Vertical|
|Government and Defense|
|Healthcare and Life Sciences|
|IT and Telecom|
|Other End-user Industries|
|Middle East and Africa|
Key Market Trends
Cloud Deployment to Dominate the Market
- The rapidly increasing adoption and implementation of the cloud for data storage and the introduction of the Big Data analytics are expected to contribute to the growth of the market . Additionally, the adoption of IoT technology in various end -user industries is expected to make their IT infrastructures complex to manage through resources available in -house . Moreover, the adoption of these technologies is increasing the attack surface and the threat sophistication associated with the attacks .
- Enterprise adoption of Microsoft Azure increased significantly from 43 % to 58 % , attaining a 35 % CAGR, while AWS adoption increased from 59 % to 68 % (RightScale 2018 ) . Additionally, 80 % of enterprises are both running apps on or experimenting with Amazon Web Services (AWS) as their preferred cloud platform (RightScale ; Flexera Software 2019 ).
- As a response to this increasing demand for cloud-based security services, Cisco introduced Umbrella for MSSPs. Umbrella is a cloud-delivered platform. It offers live threat intelligence pertaining to current and emerging threats. Umbrella has the capability of analyzing and learning from internet activity patterns, and uncover attackers’ infrastructure used for attacks, and ensures proactive blocking of requests to malicious destinations before any connection is established. Such solutions are expected to drive other vendors to extend their service range to accommodate emerging needs of the potential customer from the end users.
- The adoption of cloud-based services has been continually increasing in the US SMB ecosystem. According to an independent study, more than two-thirds of the businesses in the United States are expected to adopt cloud computing by 2020. This is expected to foster opportunities for the market in future.
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North America to Witness the Highest Growth
- The managed security services market is expected to be dominated by the North American region. The higher dependence of enterprises on cloud-based applications and investments by players in the country in security solutions are expected to drive the demand for managed security services in the United States.
- Additionally, according to IBM, the average total cost of a data breach in the United States is USD 8.19 billion, which is twice the global average. Critical industries, like healthcare, are reported to be the most expensive industry for data breach costs.
- Additionally, according to the Identity Theft Resource Center in the United States, the banking, business, and medical sector underwent a high number of data breaches and exposed records. The overall data breaches and records exposed in the United States in 2018 were 1,251. Payment Card Industry Data Security Standard (PCI DSS) compliance originally drove the adoption of cloud security solutions in large enterprises. This is expected to create opportunities for managed service deployments in future.
- The market for managed security services in North America is dominated by SecureWorks, Verizon, and AT&T, who own the majority of the market in the region. The market is experiencing a number of merger and acquisitions as well. AT&T’s acquisition of Alienvault and Accenture’s acquisition of the Symantec’s Cyber Security Portfolio are indicative of the growth that the market offers.
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The market is fragmented due to existing giants and many upcoming vendors who provide security services to prevent companies from attacks like network attack, Denial of services or even performing risk assessment.
- March 2021 - IBM Corporation announced enhanced suite of services designed to help organizations manage their cloud security strategy, policies and controls across hybrid cloud environments. The services bring together cloud-native, IBM and third-party technologies along with IBM expertise to help organizations create a unified security approach across their cloud ecosystems.
- January 2020 - NTT partnered with the UK government to develop a framework for the 5G network.
- March 2020 - BT Security partnered with Cisco’s managed SD-WAN solutions. The launch of a new managed software defined wide area network (SD-WAN) service for UK business customers, as it continues to develop its portfolio of converged business networking products.
Table of Contents
1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS
4.1 Market Overview
4.2 Market Drivers
4.2.1 Rising cyber crime, digital disruption and increased compliance demands
4.2.2 Need for Threat detection and Intelligence at an Early Stage is Driving the Market Growth
4.3 Market Restraints
4.3.1 Lack of Awareness of Security Services is Discouraging the Market Expansion
4.4 Industry Attractiveness - Porter's Five Force Analysis
4.4.1 Threat of New Entrants
4.4.2 Bargaining Power of Buyers/Consumers
4.4.3 Bargaining Power of Suppliers
4.4.4 Threat of Substitute Products
4.4.5 Intensity of Competitive Rivalry
4.5 Evolution and Key Trends in the MSSP Space
4.5.1 Key themes include Diversification of the vendor portfolio
4.5.2 Increasing focus on Threat detection and response
4.5.3 The commodification of MSS and Fragmented Nature of the market Artificial intelligence (AI) Integration, among others.)
4.6 Impact of COVID-19 on the Market
5. MARKET SEGMENTATION
5.1 By Deployment Type
5.2 By Solution Type
5.2.1 Intrusion Detection and Prevention
5.2.2 Threat Prevention
5.2.3 Distributed Denial of Services
5.2.4 Firewall Management
5.2.5 End-Point Security
5.2.6 Risk Assesment
5.3 By Managed Security Service Provider
5.3.1 IT Service Providers
5.3.2 Managed Security Specialist
5.3.3 Telecom Service Provider
5.4 By End-user Vertical
5.4.2 Government and Defense
5.4.5 Healthcare and Life Sciences
5.4.6 IT and Telecom
5.4.7 Other End-user Industries
5.5 by Geography
5.5.1 North America
5.5.3 Asia Pacific
5.5.4 Latin America
5.5.5 Middle East and Africa
6. COMPETITIVE LANDSCAPE
6.1 Company Profiles*
6.1.1 AT&T Inc.
6.1.2 Secureworks Inc. (Dell Technologies Inc.)
6.1.4 Trustwave Holdings Inc.
6.1.5 Alert Logic
6.1.6 IBM Corporation.
6.1.9 BAE Systems
7. VENDOR POSITIONING ANALYSIS
8. INVESTMENT ANALYSIS & MARKET OUTLOOK
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Frequently Asked Questions
What is the study period of this market?
The Managed Security Services Market market is studied from 2018 - 2026.
What is the growth rate of Managed Security Services Market?
The Managed Security Services Market is growing at a CAGR of 15.2% over the next 5 years.
Which region has highest growth rate in Managed Security Services Market?
Asia Pacific is growing at the highest CAGR over 2021- 2026.
Which region has largest share in Managed Security Services Market?
North America holds highest share in 2020.
Who are the key players in Managed Security Services Market?
Verizon Communications Inc., IBM Corporation, At&T Inc., Secureworks Inc, Symantec (Broadcom Inc) are the major companies operating in Managed Security Services Market.