Managed Security Services Market - Growth, Trends, COVID-19 Impact, and Forecasts (2023 - 2028)

The Managed Security Services Market can be segmented by Deployment Type (On-Premise, Cloud), Solution Type (Intrusion Detection and Prevention, Threat Prevention, Distributed Denial of Services, Firewall Management, End Point Security, Risk Assesment), Managed Security Service Provider (IT Services Providers, Managed Security Specialists, Telecom Service Providers), End-user (BFSI, Government & Defense, Retail, Manufacturing, Healthcare & Life Sciences, and IT & Telecom), and Geography.

Managed Security Services Industry Overview

Managed Security Services Market Summary
Study Period: 2018 - 2028
Fastest Growing Market: Asia-Pacific
Largest Market: North America
CAGR: 16.11 %

Major Players

Managed Security Services Market Major Players

*Disclaimer: Major Players sorted in no particular order

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Managed Security Services Market Analysis

The managed security services market was valued at USD 23.19 billion in 2021, and it is expected to reach USD 56.6 billion by 2027, at a CAGR of 16.11% over the forecast period. The COVID-19 outbreak is expected to impact the growth of managed security services market share positively. This is because, with the arrival of COVID-19, the use of managed security services is believed to enable enterprises to address security issues and facilitate secure information access while remote working. After the pandemic, the market is growing rapidly due to permanent work-from-home jobs and increased digitalization.

  • Managed security services in computing are network security services outsourced to any service provider. Many organizations hire managed security service providers (MSSPs) to undertake 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.
  • According to HIPAA, the top three data breaches in the healthcare sector in the United States witnessed a combined loss of more than 5.2 million patient records, including organizations like AccudocSolutions, UnityPoint Health, and the Employees' Retirement System of Texas.
  • Today, the world is more digitally connected than ever before. Cybercriminals use this online transformation to target online systems, networks, and infrastructure weaknesses. There is a massive economic and social impact on governments, businesses, and individuals worldwide. Phishing, ransomware, and data breaches are just a few examples of current cyber threats, while new types of cybercrime are always emerging. Cybercriminals are increasingly agile and organized – exploiting new technologies, tailoring their attacks, and cooperating in new ways. According to the FBI's Internet Crime Report 2021, 847,376 complaints of cybercrime were reported to the FBI by the public in 2021, a 7% increase from 2020.
  • The increasing complexity of cyber threats has driven the trend toward outsourcing one or more of an organization's security operations. When deciding between an internal and an outsourced Security Operations Center (SOC), many factors must be considered. The right choice may have critical consequences, as malicious code infiltrating a business system can now destroy an entire business.

Managed Security Services Industry Segments

The study captures evolving cyber threats and cyber laws. Key themes include the state of cybercrime and economic impact, enterprise spending, changing the MSSP landscape, the inclusion of AI for cybersecurity, industry attractiveness, and opportunities, among others. Managed security services offered by vendors are segmented on deployment and the solutions offered as a service. Based on these offerings, the market has been analyzed on the various applications these services have on the end-user industries. Market estimates represent revenue accrued through managed security services across regions. The estimates are adjusted based on the impact of the COVID-19 pandemic on the market.

By Deployment Type
On-Premise
Cloud
By Solution Type
Intrusion Detection and Prevention
Threat Prevention
Distributed Denial of Services
Firewall Management
End-Point Security
Risk Assesment
By Managed Security Service Provider
IT Service Providers
Managed Security Specialist
Telecom Service Provider
By End-user Vertical
BFSI
Government and Defense
Retail
Manufacturing
Healthcare and Life Sciences
IT and Telecom
Other End-user Verticals
By Geography
North America
Europe
Asia-Pacific
Latin America
Middle East & Africa

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Managed Security Services Market Trends

This section covers the major market trends shaping the Managed Security Services Market according to our research experts:

Cloud Deployment to Dominate the Market

  • IT decision-makers are typically confronted with issues surrounding regulatory compliance, security, and risk reduction as businesses in the throes of digital transformation undertake the inevitable yet daunting task of upgrading their on-premises IT infrastructure and moving some of their operations to the cloud. The shortage of skilled IT professionals on staff and the inability to stay updated with the recent tools, technologies, and practices exacerbates these corporate concerns. When network and data security threats are rising, managed security service providers (MSSPs) may help overwhelmed enterprises confront cloud configuration, risk reduction, and regulatory compliance.
  • The cloud-deployed managed security services are flexible and scalable. Furthermore, it enables the service provider to access, monitor, and even remotely repair any issues within the cloud environment. Continual monitoring ensures the quick and efficient resolution of problems. The shift to cloud-based managed security services is also aided by the increasing penetration of emerging technologies such as AI/ML, big data analytics, threat intelligence, and advanced automation platforms. Several market players are launching comprehensive services through innovation and collaboration to cater to the industry's evolving requirements.
  • In August 2021, Amazon Web Services launched a new partner competency for managed security service providers (MSSPs) and made their cloud software solutions and services available in the AWS Marketplace. The AWS Level 1 MSSP Competency, which AWS has been piloting for a year, creates a new baseline standard for managed security services that protect, monitor, and respond to security events of essential AWS resources and are delivered to customers as a fully managed service. According to the company, the new competency is designed to help partners differentiate themselves in a crowded security market and make it easier for customers to procure their services.
  • Furthermore, in July 2021, Tech Mahindra announced a managed security services provider (MSSP) partnership with cybersecurity company Palo Alto Networks. The agreement led to the expansion of Tech Mahindra's global partnership with the US-based multinational to provide a full suite of managed security services. As an MSSP, Tech Mahindra would offer complete visibility and control of the network, endpoint, and cloud security, including value-added services like risk assessment, posture management, workload protection, and orchestration to the company's customers.
  • Furthermore, in July 2021, Telus launched a new managed cloud security solution based on Palo Alto Networks' Prisma Access technology, allowing Canadian businesses to access data and apps from anywhere securely. Additionally, to assure network security and protection, the new managed cloud security solution offers firewall services, threat prevention, malware prevention, URL filtering, SSL decryption, and application-based policies. It also allows consumers to use SASE by connecting to Telus SD-WAN services.
Managed Security Services Market: Distribution of the Number of Clouds Organizations Use, Global, 2019-2021

Asia-Pacific to Witness the Fastest Growth

  • Digital transformation has become a top priority in the region. It is spreading rapidly as more companies implement formal strategies to support their efforts, driving the market demand.
  • Engaging outsourced managed services for a company's IT resources can be a way to ensure substantial budget savings, more resilient computing capacity, and more secure network uptime and performance. China Telecom Americas Corporation gives complete turnkey professional ICT services in 72 countries globally in partnership with major vendors, such as Juniper, Microsoft, Cisco, FSNetworks, IBM, VMware, and Huawei, among many more.
  • The increasing threats to cybersecurity in the region, including IT ransomware attacks, DDoS attacks, data exfiltration, and the increasing media coverage of high-profile cyberattacks, are compelling organizations in the country to adopt managed security services. Moreover, conventional industries are supported by policies to embrace digital transformation and enhance their adoption of IT technologies. Hence, their demand for internet data center services is also rising, further driving the market growth.
  • With the rapid development of AI, 5G, IoT, virtual reality, and the commercial application of these new technologies, the demand for data processing and information interaction is increasing, which may speed up the construction of data centers in the region and lead to the explosive growth of the industry.​​
  • Threats to the integrity, confidentiality, and obtainability of organization information are increasing exponentially in India, hence emphasizing the focus on providing a standardized model for information security based on a business risk approach to establish, implement, operate, monitor, review, maintain, and improve overall information security for customers.
  • In February 2022, IBM announced an investment in its resources to help businesses in the Asian-Pacific (APAC) region prepare for and manage the growing danger of cyberattacks. The new IBM Security Command Center, the first in the region, is expected to educate cybersecurity response strategies using extremely realistic, simulated cyberattacks to prepare everyone from the C-suite to technical personnel. The investment also includes a new Security Operation Center (SOC), which may be part of IBM's current global SOC network, providing security response services to clients globally 24/7.
Managed Security Services Market - Growth Rate by Region

Managed Security Services Market Competitor Analysis

The managed security services market is fragmented due to existing giants and many upcoming vendors who provide security services to prevent companies from attacks like network attacks, Denial of services, or even performing a risk assessment. This market is anticipated to encounter many partnerships, mergers, service launches, and acquisitions as organizations continue to invest strategically.

  • April 2022 - Ace Cloud Hosting (ACE), the global cloud services provider of application hosting and virtual desktops, announced the launch of Managed Security Services (MSS). Furthermore, Accenture acquired Symantec's cybersecurity services business to incorporate flexibility into security services. Additionally, Verizon integrated Blackberry Cylance's AI-based anti-virus solution into its security services portfolio. This integration is indicative of the increasing demand for AI-based cybersecurity solutions. Both these developments underscore the growth potential that the market offers.

Managed Security Services Market Top Players

  1. Secureworks Inc. (Dell Technologies Inc.)

  2. Symantec (Broadcom Inc.)

  3. Trustwave Holdings Inc.

  4. Alert Logic

  5. AT&T Inc.

*Disclaimer: Major Players sorted in no particular order

Managed Security Services Market Concentration

Managed Security Services Market Recent Developments

  • October 2022 - Palo Alto Networks and Deloitte announced their expansion of existing strategic alliance to provide managed security services to their shared US clients, making Palo Alto Networks one of the industry-leading cybersecurity technology portfolios available in Deloitte's outcome-based, managed offerings.
  • June 2022 - Alert Logic by HelpSystems announced a strategic agreement with TD SYNNEX, a prominent IT distributor and solutions aggregator for the IT ecosystem, to expand its portfolio of solutions with managed detection and response (MDR) capabilities. The deal could position Alert Logic as the preferred provider of full MDR to a global network of technology partners, broadening Alert Logic's market reach and proving the strength of its partner program.

Managed Security Services Market Report - Table of Contents

  1. 1. INTRODUCTION

    1. 1.1 Study Assumptions and Market Definition

    2. 1.2 Scope of the Study

  2. 2. RESEARCH METHODOLOGY

  3. 3. EXECUTIVE SUMMARY

  4. 4. MARKET INSIGHTS

    1. 4.1 Market Overview

    2. 4.2 Industry Attractiveness - Porter's Five Forces Analysis

      1. 4.2.1 Threat of New Entrants

      2. 4.2.2 Bargaining Power of Consumers

      3. 4.2.3 Bargaining Power of Suppliers

      4. 4.2.4 Threat of Substitute Products

      5. 4.2.5 Intensity of Competitive Rivalry

  5. 5. MARKET DYNAMICS

    1. 5.1 Market Drivers

      1. 5.1.1 Rising Cyber Crime, Digital Disruption, and Increased Compliance Demands

      2. 5.1.2 Need for Threat Detection and Intelligence at an Early Stage Driving the Market Growth

    2. 5.2 Market Restraints

      1. 5.2.1 Lack of Awareness of Security Services is Discouraging the Market Expansion

    3. 5.3 Evolution and Key Trends in the MSSP Space

    4. 5.4 Assessment of the Impact of COVID-19 on the Market

  6. 6. MARKET SEGMENTATION

    1. 6.1 By Deployment Type

      1. 6.1.1 On-Premise

      2. 6.1.2 Cloud

    2. 6.2 By Solution Type

      1. 6.2.1 Intrusion Detection and Prevention

      2. 6.2.2 Threat Prevention

      3. 6.2.3 Distributed Denial of Services

      4. 6.2.4 Firewall Management

      5. 6.2.5 End-Point Security

      6. 6.2.6 Risk Assesment

    3. 6.3 By Managed Security Service Provider

      1. 6.3.1 IT Service Providers

      2. 6.3.2 Managed Security Specialist

      3. 6.3.3 Telecom Service Provider

    4. 6.4 By End-user Vertical

      1. 6.4.1 BFSI

      2. 6.4.2 Government and Defense

      3. 6.4.3 Retail

      4. 6.4.4 Manufacturing

      5. 6.4.5 Healthcare and Life Sciences

      6. 6.4.6 IT and Telecom

      7. 6.4.7 Other End-user Verticals

    5. 6.5 By Geography

      1. 6.5.1 North America

      2. 6.5.2 Europe

      3. 6.5.3 Asia-Pacific

      4. 6.5.4 Latin America

      5. 6.5.5 Middle East & Africa

  7. 7. COMPETITIVE LANDSCAPE

    1. 7.1 Company Profiles

      1. 7.1.1 AT&T Inc.

      2. 7.1.2 Secureworks Inc. (Dell Technologies Inc.)

      3. 7.1.3 Symantec (Broadcom Inc.)

      4. 7.1.4 Trustwave Holdings Inc.

      5. 7.1.5 Alert Logic

      6. 7.1.6 IBM Corporation.

      7. 7.1.7 Verizon

      8. 7.1.8 CenturyLink

      9. 7.1.9 BAE Systems

      10. 7.1.10 AtoS

      11. 7.1.11 Capgemini

      12. 7.1.12 Wipro

      13. 7.1.13 Fujitsu

    2. *List Not Exhaustive
  8. 8. VENDOR POSITIONING ANALYSIS

  9. 9. INVESTMENT ANALYSIS AND MARKET OUTLOOK

**Subject to Availability
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Managed Security Services Market Research FAQs

The Managed Security Services Market is studied from 2018 - 2028.

The Managed Security Services Market is growing at a CAGR of 16.11% over the next 5 years.

Asia-Pacific is growing at the highest CAGR over 2018 - 2028.

North America holds highest share in 2021.

Secureworks Inc. (Dell Technologies Inc.), Symantec (Broadcom Inc.), Trustwave Holdings Inc., Alert Logic, AT&T Inc. are the major companies operating in Managed Security Services Market.

Managed Security Services Industry Reports

In-depth industry statistics and market share insights of the Managed Security Services sector for 2020, 2021, and 2022. The Managed Security Services research report provides a comprehensive outlook of the market size and an industry growth forecast for 2023 to 2028. Available to download is a free sample file of the Managed Security Services report PDF.

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