The global managed security services (MSS) market was valued at US$ 24.6 billion in 2021 and is expected to witness a robust growth rate of over 15% during the forecast period of 2022-2028. The regulations imposed for insufficient data privacy measures are anticipated to propel the growth of the MSS market across the globe. Moreover, organizations have started shifting towards allocating 25% or less of their security budgets towards MSS owing to the increasing cyberattacks and continuously evolving threat landscape. In addition, the scarcity of in-house talent and expertise and the upsurging need to overcome complex and targeted attacks are anticipated to further fuel the market growth. Besides, mega campaigns such as Smart Cities Initiative, Digital India, and Make in India are likely to augment MSS adoption.
The rise of IoT as well as the increasing expenditures towards the same will catalyze market growth in the forthcoming years
New business models and respective revenue streams in the IoT industry are expected to lead to a new wave of supporting IoT networks and sensor devices, further contributing to the growth of the global MSS market. Moreover, the application and software development activities are anticipated to hold the majority of investments, giving rise to opportunities for MSSPs to manage activity. Enterprises often lack access to cross-industry and cross-border security intelligence needed for effective threat visibility, contributing to the growth of the market. The other growing industries like Blockchain, Augmented Reality, AI, and IoT is expected to create ample opportunities for the global MSS market.
North America held the largest major share while the Asia Pacific is set to grow at the fastest growth
The Asia Pacific is expected to grow the fastest at a CAGR of over 17%, primarily driven by the increasing expenditure on managed services and growing industrialization across the economies of region such as China, India, South Korea, Indonesia, and Australia. North America is expected to grow the second fastest at a CAGR of 16% in the forecast period of 2022-2028. North America managed security services market is driven by the increasing volume, diversity, and sophistication of cyber threats aimed at expanding the exposure footprint. This is compounded by out-of-date security measures as well as difficulties with in-house staffing and adaptation.
In Latin America, Brazil holds the largest market followed by Mexico owing to the growing use of security asset management, threat intelligence, research, detection, and remediation services, where the former holds the largest share of the LATAM MSS market at more than 70%. However, in the European region, the UK, Germany, and France are the top 3 countries for MSS in terms of revenue. Europe’s manufacturing sector is expected to open a pool of opportunities for the MSS market in the region. In the MEA region, start-ups are expected to flood the market and medium enterprises are expected to catch up with the adoption of MSS owing to the increased regulations in the region.
Market Structure and Competitive Landscape
The global MSS market remains fragmented in recent times, however, a slight consolidation is expected in the coming years. More players are penetrating the marketplace due to the upsurge in technological advancements and increased attacks sophistication across the globe. Some of the key market players include IBM, Verizon, BT Global Services, AT & T, Atos SE, Hewlett Packard Enterprise, Dell SecureWorks, Symantec, Telefonica, Accenture, HCL Technologies, Swisscom, TATA consultancy services, Arcon, Cipher, Bae Systems, among others.
The above-mentioned players focus on simplifying the customer experience, encouraging investments in the cloud, leveraging emerging technologies, and providing beyond the conventional on-premise equipment solutions. The notable strategic transactions adopted by these players include well-planned acquisitions, expanding product portfolios, and increasing their expertise in their respective regions. Some of the key developments in the global MSS market include,
- In February 2019, Palo Alto is a provider of network security solutions and applications to enterprises, service providers, and government entities and acquired Demisto for US$ 560 million to expand its incident response portfolio.
- In February 2019, Carbonite has acquired Webroot for US$ 618 million in line with its growth strategy to enhance its stronghold in the data protection market by adding Webroot’s MSP channel to its Value-Added-Reseller channel, thereby increasing its overall service offerings to include the endpoint backup and recovery services.
- In May 2019, Orange acquired SecureLink, enabling Orange to strengthen its position in the European cybersecurity industry. The combined entity will explore synergies and provide complex security services needed by its customers globally.
Key Market Segmentation
RationalStat has segmented the global managed security services market on the basis of type, deployment mode, organization size, end use industry, and region.
- By Type
- Security Asset Monitoring and Management (SAMM)
- Security Information & Event Management
- Managed Detection & Response
- Database Security & Disaster Recovery-as-a-service (DRaaS)
- Messaging & Email Security
- Security Consulting & Services
- Risk and Compliance Management (RCM)
- Risk Assessment & Visibility
- Digital Risk Management
- Vulnerability Assessment & Pen Testing
- Security Rating & Risk Analysis
- Security Awareness & Training
- Threat Intelligence, Research, Detection, and Remediation (TIRDR)
- Firewall, Network Analysis & Forensics
- Threat Intelligence
- Fraud & Transaction Security
- Software Defined Networking (SDN)
- Distributed Denial of Service (DDoS) Protection
- Advanced and Emergency Managed Security Services
- Identity Access Management (IAM)
- End Point Security
- Data Encryption, Privacy & Loss Protection
- Security Operations & Incident Response
- Security Asset Monitoring and Management (SAMM)
- By Deployment Mode
- On Premises
- By Organization Size
- Small and Medium Enterprises (SMEs)
- Large Organizations
- By End Use Industry
- IT & Telecommunications
- Healthcare & Lifesciences
- Retail & E-Commerce
- Government & Public Sector
- Travel & Hospitality
- Banking, Financial Services & Insurance (BFSI)
- By Region
- North America
- Latin America
- Rest of Latin America
- Western Europe
- Rest of Western Europe
- Eastern Europe
- Rest of Eastern Europe
- Asia Pacific
- South Korea
- ASEAN (Indonesia, Vietnam, Malaysia, etc.)
- Rest of Asia Pacific
- Middle East & Africa
- South Africa
- Rest of the Middle East & Africa
- North America
RationalStat has developed a state-of-the-art research methodology to crunch numbers and provide the best possible real-time insights to clients. We combine a varied range of industry experience, data analytics, and experts’ viewpoint to create a research methodology for market sizing and forecasting.
RationalStat combines a mix of secondary sources as well as primary research to assess the market size and develop a forecast. Key steps involved in accurately deriving the market numbers are:
- Defining the problem by understanding the type of market and data required by the client.
- Data gathering and collection through relevant paid databases, publicly available sources, company reports, annual reports, surveys, and interviews.
- Formulating a hypothesis to create market numbers, forecasts, influencing factors, and their relevance.
- Evaluating and analyzing the data by referring to data sources utilized and leveraged.
- Validating, interpreting, and finalizing the data by combining the details gathered from primary and secondary sources with the help of experienced analysts.
- Annual reports, company filings, investor presentations, product catalogs, and company documents
- Industry and market-related documents available in the public domain
- Paid database including Bloomberg, Factiva, S&P Capital IQ, FactSet, Refinitiv Eikon, ICIS, EUWID, and Thomson Reuters, among others.
- Whitepapers, research papers, and industry blogs.
Why Buy this Report?
The report is intended for Global Managed Security Services Market manufacturers and suppliers, government organizations, educational organizations, regulatory agencies, and market research firms, among others. The report provides an in-depth analysis of market size, consumption patterns, ongoing market trends and challenges, and future market opportunities. The report will serve as a source for a 360-degree analysis of the market thoroughly delivering insights to clients to find the right answers to their business questions.
Frequently Asked Questions (FAQs)
The Global Managed Security Services Market is expected to grow at a CAGR of approximately 15% during the forecast period 2022-2028.
The global market for managed security services was US$ 24.6 Billion in 2021.
Increasing government regulations and an upsurge in the IoT industry are some of the key trends in the global managed security services market.
North America is the leading region in the market.
Major companies operating in the Global Managed Security Services Market include IBM, Verizon, BT Global Services, AT & T, Atos SE, Hewlett Packard Enterprise, Dell SecureWorks, Symantec, Telefonica, Accenture, HCL Technologies, Swisscom, TATA consultancy services, Arcon, Cipher, Bae Systems, among others.