USD 26.89 billion
Report ID:
SQMIG45A2137 |
Region:
Global |
Published Date: August, 2024
Pages:
197
|Tables:
154
|Figures:
78
Managed Security Services Market size was valued at USD 31.36 Billion in 2022 and is poised to grow from USD 35.82 Billion in 2023 to USD 103.62 Billion by 2031, at a CAGR of 14.2% during the forecast period (2024-2031).
Global Managed Security Services Market has grown at a fast pace, in the last couple of years, due to the increasing security threats or risks and the increasing challenge of managing security of IT networks in today’s advanced world. It is impossible to understate the chilling fact that businesses, large and small, are being subjected to an unrelenting wave of cyber attacks, including malware and ransomware, advanced persistent threats, and data breaches. It has also new mechanisms of networking, such as cloud computing, growth of IoT technology, and changes in working environments introducing remote and hybrid working models, which introduces another area of consideration for the organizations and heightens security threats. In light of these emerging security threats and the growing compliance mandates toward IT security solutions, there has been a rising shift towards MSSPs for improving the security standards and protecting organizational resources. The MSSPs provide various services in security solutions, which include but are not limited to network security, cloud computing security, endpoint protection, and application security and other novelties in the market such as identity and access management, secular security information and event management (SIEM) and managed detection and response (MDR).
The lack of skilled cybersecurity personnel is one of the most significant factors that are developing the Managed Security Services Market globally. It is widely accepted that many organizations, particularly SMEs that are commonly plagued by budgets constraints, often experience significant issues in trying to identify and recruit the hopeful security professionals needed to monitor and control their IT systems. MSSPs fill this gap by giving clients direct access to an array of security professionals, cutting-edge technologies, and constant supervision and quick response to incidents while retaining the client’s abilities to channel their efforts towards business operations. Another factor enhancing the growth of the market is the rising need for CSP managed security services after subscribing to their cloud services and services security across hybrid IT infrastructure. With a shift in organizational frameworks to cloud-based models, there is need to address high-level security for data in the cloud as well as for the integration of local and cloud environments. On this front, MSSPs have been pioneering Cloud-First managed security services that include CASB, CSPM, and CWPP for cloud-based environments.
On the brighter future, the Managed Security Services Market is having a higher growth rate across the global platform and with the support of emerging technologies such as AI and ML, the MSSPs will be able to perform much effective detection, response, and threat mitigation on immediate basis. While organizations persistently grapple with the unending question of cybersecurity, there is a great need to be able to identify a total approach to the issue in organizations. Consequently, it is evident that innovative managed security services will only continue to rise hence strengthening the managed security service market position as an essential aspect of protecting companies and organizations from cyber threats across the globe.
Global Market Size
USD 26.89 billion
Largest Segment
Managed Detection and Response
Fastest Growth
Managed IAM
Growth Rate
15.95% CAGR
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Global Managed Security Services Market is segmented by type, service, organization size, security, vertical. By type, the market is segmented into fully managed, and co-managed. By service, the market is segmented into managed IAM, managed vulnerability management, managed risk and compliance, managed detection and response, managed firewall, managed SEIM and log management, and others. By organization size, the market is segmented into small and medium-sized enterprises (SMEs), and large enterprises. By security, the market is segmented into network security, cloud security, endpoint security, and application security. By vertical, the market is segmented into BFSI, government, healthcare & life sciences, telecommunications, IT & ITEs, retail and ecommerce, energy & utilities, manufacturing, and others. By region, the market is segmented into North America, Europe, Asia Pacific, Middle East and Africa, and Latin America.
Managed Security Services Market Analysis By Type
In the Managed Security Services Market, the Fully Managed segment dominates the industry. This segment provides comprehensive security solutions, where the service provider handles all aspects of the security infrastructure, including monitoring, management, and response. The dominance of the Fully Managed segment is due to its appeal to organizations seeking to outsource their entire security operations to experts, ensuring robust protection against evolving threats without the need for extensive in-house resources.
The Co-Managed segment is projected to be the fastest-growing segment during the forecast period. This rapid growth is driven by the increasing demand for collaborative security solutions, where the service provider and the organization share responsibilities. The Co-Managed model offers flexibility, allowing organizations to retain control over certain aspects of their security operations while leveraging the expertise and support of a managed service provider. This hybrid approach enables businesses to enhance their security posture efficiently and cost-effectively, thus accelerating the segment's growth.
Managed Security Services Market Analysis By Organization Size
Large enterprises represent the largest segment in the global MSS market, commanding a significant share of the overall market. These organizations typically have expansive operations, diverse IT infrastructure, and substantial security requirements. They prioritize robust security solutions to safeguard their sensitive data, intellectual property, and customer information from cyber threats. With their extensive resources and established market presence, large enterprises have been at the forefront of investing in managed security services. They recognize the importance of proactive threat detection, incident response, and continuous monitoring, which are crucial elements of effective managed security services. This has led to a strong demand for MSS offerings tailored to the specific needs of large enterprises. The attractiveness of this segment lies in its size and potential for revenue generation. Large enterprises have the capacity to allocate significant budgets to enhance their cybersecurity posture, making them an attractive target for MSS providers. Additionally, due to their complex IT environments and regulatory compliance requirements, large enterprises often require customized solutions, which can further drive growth opportunities for MSS providers.
While large enterprises currently dominate the MSS market, the fastest-growing segment is SMEs. Small and medium-sized enterprises are increasingly recognizing the critical need for robust cybersecurity solutions as they become more digitalized and face a growing number of cyber threats. SMEs, despite their smaller scale, are not immune to cyberattacks, and a single security breach can have severe consequences for their operations and reputation. Aware of these risks, SMEs are now actively seeking cost-effective and comprehensive security solutions that can alleviate their security concerns and allow them to focus on their core business activities. The growth potential in this segment is immense. According to industry reports, SMEs represent a significant portion of the global business landscape, accounting for many enterprises worldwide. As awareness about cybersecurity risks continues to rise among SMEs, the demand for managed security services tailored to their unique requirements is set to skyrocket. Moreover, advancements in cloud-based security solutions, scalable service models, and managed detection and response (MDR) capabilities make MSS more accessible and affordable for SMEs. These further fuels market growth, as SMEs can now access enterprise-grade security services without having to bear the cost burden of establishing an in-house security team.
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North America accounted for 34.4% market share in 2023 and is expected to grow gradually during the forecast period (2024-2031). The region is expected to maintain dominance in the forecast period due to the rising outsourcing tendency among several tech players. Demand and supply of controlled services to meet consumers’ requirements and the growing need for clouds, networks, and data security to fuel economic growth in the region. The need arises from the increasing number, type, and sophistication of cyber threats aimed at increasing exposure footprint.
Asia Pacific is expected to grow at the highest CAGR of 18.2% from 2024 to 2031. This is also fueled by the growing need for skilled cyber professionals that the APAC region lacks to secure its digital assets. Large companies have adopted their own SOCs but are in continuous need of more human resources for staffing. These centers optimally as they are outsourcing services that are from MSSP vendors. large enterprises can afford to have dedicated, full-time cybersecurity teams, and trained security experts, whereas SMEs do not have the same luxury of the financial flexibility and have to outsource cybersecurity management and operations at a relatively affordable cost.
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Managed Security Services Market Drivers
Cyber Threats are Growing Complex
Regulatory Compliance Requirements
Managed Security Services Market Restraints
Data Privacy and Compliance Concerns
Lack of Transparency and Trust
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Global Managed Security Services Market is a highly competitive market, with the numerous players competing to gain more market share. It appears to be pretty much an oligopoly with dominant global system integrators and service providers, all boasting massive resources, technical know-how, and scale to provide a broad portfolio of MSS offerings. These players have embedded themselves as market leaders, many of whom have extensive offerings encompassing network security, cloud security, and even sophisticated threat intelligence and mitigation solutions. Apart from these established players, there are many regional and specialized MSSPs which can address the requirements of various enterprises depending on geographic locations or industry verticals. These resolved entities largely set themselves apart through superior compliance with regulatory procedures in the region, specialized safety solutions, or greater attention to their clients as opposed to their larger counterparts. This holds true because the MSSP market has evolved into a diverse network of providers catering to the security needs of all sizes and types of organizations to meet their security needs and budgets.
Moreover, there has been the emergence of close working relations between traditional MSSPs, new market entrants, technology providers, and cybersecurity professionals to expand the range and complexity of the security services being offered in the market. These partnerships mean that MSSPs can take benefits from state security technologies and knowledge, intelligence, and specialized skills to provide clients with better security solutions. Under these conditions, MSSPs are not standing still – they are diversifying and adding new services, as well as embracing novel security solutions and tools in order to follow the rapidly changing demand of clients. Rich business insight and market study have found that the focus and promise on end-to-end security services, aligned with the provision of rapid customer service, are critical competitive factors that are shaping the MSSP market.
Top Player’s Company Profiles in Managed Security Services Market
Managed Security Services Market Recent Developments
In December 2023, Kyndryl, the world’s largest technology infrastructure services provider, announced two new security edge services developed jointly with Cisco to help customers improve their security controls and proactively address and respond to cyber incidents.
In September 2023, IBM today unveiled the next evolution of its managed detection and response service offerings with new AI technologies, including the ability to automatically escalate or close up to 85% of alerts, helping to accelerate security response timelines for clients.
In April 2024, Cyderes extended solution capabilities by entering into a mutual partnership with Ipseity Security, a top IAM organization. This acquisition has been long-awaited within our organization and even more so within our customers’ organizations. This strengthens our specialization in Cloud Identity, Access Governance, and Privileged Access Management and enables a wider extension of our service offerings across the full IAM spectrum; It also improves our capacity to perform well in the more intricate, multi-technical environments of large enterprises.
In January 2024, the MC² Security Fund, a subsidiary of The Chertoff Group, an established global security and growth advisory, and investment company, finalized the acquisition of Trustwave, a global cybersecurity and MSS leader. Having a long-time working experience in the cybersecurity industry, the ownership of MC² was in harmony with Trustwave’s goal of minimizing auditors’ exposure to cyber risk and to protect businesses against negative and potentially devastating effects of cyber operations. ACQUISITIONS Clients received value from Trustwave’s market executing cybersecurity portfolio while mc² and the chertoff group, new to the market, had an impressive history of motivating security results and of creating value on the marketplace.
SkyQuest’s ABIRAW (Advanced Business Intelligence, Research & Analysis Wing) is our Business Information Services team that Collects, Collates, Correlates, and Analyzes the Data collected by means of Primary Exploratory Research backed by robust Secondary Desk research.
According to our global Managed Security Services Market analysis, the key market trend is the growing domination of Managed Detection and Response (MDR) services. This is driven by the increasingly complex cyberattacks overwhelming internal security teams, a cybersecurity skills shortage, and stricter data privacy regulations. Organizations are turning to MDR for its proactive threat detection, 24/7 monitoring by security specialists, and compliance assistance. This trend is expected to fast-track as cyber threats become more sophisticated and the cybersecurity talent gap persists.
Report Metric | Details |
---|---|
Market size value in 2022 | USD 31.36 Billion |
Market size value in 2031 | USD 103.62 Billion |
Growth Rate | 14.2% |
Base year | 2023 |
Forecast period | 2024-2031 |
Forecast Unit (Value) | USD Billion |
Segments covered |
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Regions covered | North America (US, Canada), Europe (Germany, France, United Kingdom, Italy, Spain, Rest of Europe), Asia Pacific (China, India, Japan, Rest of Asia-Pacific), Latin America (Brazil, Rest of Latin America), Middle East & Africa (South Africa, GCC Countries, Rest of MEA) |
Companies covered |
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Executive Summary
Market overview
Parent Market Analysis
Market overview
Market size
KEY MARKET INSIGHTS
COVID IMPACT
MARKET DYNAMICS & OUTLOOK
Market Size by Region
KEY COMPANY PROFILES
For the Managed Security Services Market, our research methodology involved a mixture of primary and secondary data sources. Key steps involved in the research process are listed below:
1. Information Procurement: This stage involved the procurement of Market data or related information via primary and secondary sources. The various secondary sources used included various company websites, annual reports, trade databases, and paid databases such as Hoover's, Bloomberg Business, Factiva, and Avention. Our team did 45 primary interactions Globally which included several stakeholders such as manufacturers, customers, key opinion leaders, etc. Overall, information procurement was one of the most extensive stages in our research process.
2. Information Analysis: This step involved triangulation of data through bottom-up and top-down approaches to estimate and validate the total size and future estimate of the Managed Security Services Market.
3. Report Formulation: The final step entailed the placement of data points in appropriate Market spaces in an attempt to deduce viable conclusions.
4. Validation & Publishing: Validation is the most important step in the process. Validation & re-validation via an intricately designed process helped us finalize data points to be used for final calculations. The final Market estimates and forecasts were then aligned and sent to our panel of industry experts for validation of data. Once the validation was done the report was sent to our Quality Assurance team to ensure adherence to style guides, consistency & design.
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With the given market data, our dedicated team of analysts can offer you the following customization options are available for the Managed Security Services Market:
Product Analysis: Product matrix, which offers a detailed comparison of the product portfolio of companies.
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Report ID: SQMIG45A2137
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