Cyber Security Managed Services Market Size, Share & COVID-19 Impact Analysis, By Service (Managed Detection and Response (MDR), Incident Management, Managed Vulnerability, Identity and Access Solutions, Others (End Point Management, Data Encryption)), By Enterprise Size (Small & Medium Size Enterprise, Large Enterprise), By Industry (BFSI, IT and Telecom, Retail, Healthcare, Government, Manufacturing, Travel & Transportation, Energy and Utilities, Others (Education, Media & Entertainment)), and Regional Forecasts, 2022-2029

The global cyber security managed services market size was valued at USD 12.52 billion in 2021. The market is projected to grow from USD 13.52 billion in 2022 to USD 25.77 billion by 2029, exhibiting a CAGR of 9.7% during the forecast period. The global COVID-19 pandemic has been unprecedented and staggering, with cyber security managed services experiencing higher-than-anticipated demand across all regions compared to pre-pandemic levels. Based on our analysis, the global market exhibited a moderate growth of 5.8% in 2020 as compared to 2019.

In the scope, we have considered cyber security managed services provided by key players such as BDO Global, Secureworks, Inc., Atos SE, Wipro, IBM Corporation, and Thrive.

Cyber security managed services review the structured and unstructured database to envisage and offer information based on hidden patterns, correlation, the fluctuating trends in the market, and more. For instance, in January 2020, BDO launched BDO Digital advisory business to address the middle market. With this launch, the company aims to deliver a comprehensive portfolio that includes transformation and technology solutions & services. These solutions include IT outsourcing, data analytics, change management, digital strategy, risk and compliance, cybersecurity, cloud services and solutions, and application development.

COVID-19 IMPACT

Growing Investment & Security Related Managed Services amid COVID-19 Pandemic Reinforced Market Growth

COVID-19 has obligated individuals and businesses to embrace remote working. With employees working from home, Virtual Private Network (VPN) servers have become necessary for organizations. Owing to this, cybercriminals across the globe undoubtedly are capitalizing on this crisis. There has been a rise in malspams, ransomware attacks, and phishing attacks, as hackers are using this crisis as bait to imitate brands, thereby misleading employees. For instance,

According to the Nuspire threat report, there were 26,156,165 exploitation events, 1,597,858 Malware events, and 1,620,910 Botnets events for 2020.

According to Hackmageddon, the total number of major global attacks reported in the news was higher in almost every month of 2020.

Owing to this scenario, companies considered opting for cyber security managed services, which positively influence the market growth. Additionally, rapidly evolving technological advancements have lured new variants of attacks. Traditional cyber security services are not able to affect these attacks. MSSPs are enhancing their security services to minimize these attacks and improve the organization's security resilience.

Existing providers are enhancing their service portfolios to address consumers' evolving needs. The market is also estimated to have new entrants in the managed security services sector. According to IDC, multiple security service providers, including operators have planned or are planning to enter the managed security services market to seize this opportunity.

Furthermore, there has been a rise in investments in the managed security service offerings sector. This rise in investments was driven by the inclination of companies toward becoming cyber resilient in the upcoming years. Implementing a zero-trust strategy among businesses has proven to propel market growth.

LATEST TRENDS

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Implementation of Zero Strategy Trend Prevailing in Global Market

The past few years have seen significant changes in cyber security practices due to the pandemic disruptions. Zero Trust is accelerating as an effective and leading cybersecurity strategy for businesses worldwide. This security model assumes breach and verifies the security status of endpoint, network, identity, and other resources based on all available data and signals. It depends on contextual real-time policy enforcement to attain the least privileged access and reduce cyber threats. Evolving technologies enable rapid prevention, remediation, and detection of attacks using large datasets and behavior analytics.

Companies have been embracing the Zero Trust model as it helps them manage most attacks and changes to the environment, especially with respect to IoT security. The below stats showcase the benefits of the Zero Trust strategy model.

Thus, continuous investments and implementing a Zero Trust strategy among providers are estimated to drive the global managed security services market in the coming years.

DRIVING FACTORS

Increasing BYOD Method and Cyber Security Risk to Drive Market Growth

With the advent of digitalization and rapid technological change, businesses around the world are implementing new trends, such as BYOD and CYOD, for their employees on laptops, tablets, smartphones, and more. These employees use smartphones, laptops, tablets, and other personal devices privately on networks to establish connections that can be easily compromised.

These personal devices are used for corporate information, increasing the potential for cyberattacks and creating a threat to an organization's security posture.

These devices are often used for personal business purposes and can be vulnerable to external malware and other cyber security attacks. The increased malware risk posed by BYOD users is a huge concern for cyber security experts. There is an increasing need for qualified professionals to monitor these devices 24/7 to combat security breaches.

Organizations employ managed cyber security services to mitigate the threat landscape to protect an organization from potential harm. Hence, the rise of BYOD and WFH is driving the market.

RESTRAINING FACTORS

Lower Budget and Expert Limitations for SMEs to Restrain Market Growth

The need for advanced services and increasing online security threats are growing significantly. Traditional network security services cannot protect organizations from the cloud, extended network, and endpoint security threats.

Aspects, such as the absence of experts and specialists in the further development and advancement of security services, are considered significant inhibitors. Additionally, the huge cost of updating and implementing internet security services and solutions hinders small & medium enterprises' adoption of managed security services.

SEGMENTATION

By Service Analysis

Surging Demand for Security Systems and Public Safety will Drive Market Growth

By service, the market is segmented into Managed Detection and Response (MDR), incident management, managed vulnerability, identity and access solutions, and others (endpoint management, data encryption).

Among these, incident management segment holds the major market share in 2021, and managed vulnerability segment is growing at the highest CAGR during the forecast period. Surging demand for security systems and public safety drives the need for incident management. Growth in vulnerability scan validations, contextualized vulnerability reporting, simplified regulatory compliance, cloud configuration, and container assessment contributes to managed vulnerability management growth. For instance, in March 2021, Kroll acquired Redscan, a cyber security services provider in the U.K. The acquisition of Redscan and its Extended Detection and Response (XDR) allowed the Security Operations Center (SOC) platform in the U.K.

By Enterprise Size Analysis

Rising Security Concerns in Large Enterprises will Drive Market 

Based on enterprise size, the market is segmented into SMEs and large enterprise.

Among these, large enterprise segment held the major market share in 2021, and SMEs segment is expected to grow at the highest CAGR during the forecast period (2022-2029). Growing security concerns and service offerings in SMEs contribute to market growth. For instance, in July 2022, Stc Bahrain offered SMEs cloud-based cyber security protection services.

Large companies are investing and launching managed security services in various regions, propelling large enterprises' growth.

By Industry Analysis

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Surging Demand for Digital Privacy Systems and Robust Security across IT & Telecom to Drive Market Forward 

By industry, the market is segmented into BFSI, IT & telecom, retail, healthcare, government, manufacturing, travel & transportation, energy & utilities, and others.

Among these, healthcare segment held the major market share in 2021. Across the healthcare industry, internet security solutions aid in providing data protection for customer healthcare records.

The IT & telecom industry is growing at the highest CAGR during the forecast period (2022-2029). This growth is owing to the rising demand for digital privacy systems and robust security across the IT & telecom industry. Telecommunication companies are mainly inclined to security breaches. They face extended attacks, in some cases, from foreign governments. Thus, the need for cyber security managed services is growing, which is considered for the IT & telecom industry. For instance, in September 2020, Liquid Telecom launched a cyber security unit that offers end-to-end managed services for digital security and is designed to secure customers' digitally transformed businesses, including networks, people, and systems.

REGIONAL INSIGHTS 

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Geographically, the market is segmented across five major regions, North America, Europe, Asia Pacific, the Middle East & Africa, and South America.

North America dominated with the highest global cyber security managed services market share in 2021. The rapid development of managed security services with the adoption of machine learning and artificial intelligence capabilities is expected to drive the market in the region. AI helps in delivering additional insights with enhanced services. For instance,

In May 2022, Netenrich announced Artificial Intelligence (AI) platforms for cloud security. This announcement will help Managed Security Services Providers (MSSP) focus on AI-based platforms.

Asia Pacific is expected to grow with a remarkable CAGR during the forecast period, owing to increasing investments by government, key players, and foreign investors in various smart city projects, blockchain projects, and others. According to a report by Symantec Corporation, India, an online security firm, has been placed among the key 10 nations to witness maximum cyber security breaches. Also, as per a global survey, India holds the third rank in terms of the number of internet users across the globe, followed by the U.S. and China. This historical and available statistical data will help the SMEs adopt cyber security services across their business units in Asia Pacific.

Additionally, increasing adoption of software-defined IT infrastructure and collaboration, partnership, and service upgrades are some factors pushing the European market growth. For instance, in May 2022, Thales entered into an agreement with Sonae Investment management to acquire two European cyber security companies, Excellium and S21sec. This acquisition helped to complete Thales’ cyber security portfolio and support its incident detection and response services as well as consulting and integration services.

The market growth of cyber security managed services in the Middle East and South America is mainly driven due to increasing economic significance value of security, which led to strengthening the national cyber security investment of the countries in the region. Nations, such as Qatar, Oman, the UAE, Bahrain, and others, are powerfully moving toward digitization in the security and observation area, which is projected to increase the cyber security managed services market growth.

KEY INDUSTRY PLAYERS

Strategic Acquisition to Boost Market Expansion of Key Players

Leading players provide cyber security managed services across all business segments. Key market players are expanding their reach, upgrading their tools and services, and enhancing the performance of their security services.

By working together, companies gain expertise and expand their business by reaching a large customer base. Key players are focused on increasing market share and customer reach through strategic acquisitions. For example,

In May 2022: Microsoft and BDO will extend their strategic association, where both companies will partner to deliver solutions for BDO customers across the globe.

In April 2021: Secureworks collaborated with Dell Technologies to launch a new subscription-based service expected to provide remediation and protect customers' IT environments against cyber security threats. The solution, TaegisXDR, provides security across data center networks, endpoint devices, and cloud environments, improving the user's security posture.

List of the Key Companies Profiled:

• BDO Global (Belgium)


• Secureworks, Inc. (U.S.)


• Atos SE (France)


• Wipro (India)


• IBM Corporation (U.S.)


• Tata Consultancy Services Limited (India)


• AT&T Intellectual Property (U.S.)


• Trustwave Holdings, Inc. (U.S.)


• Thrive (U.S.)


• SecurityHQ (India)


• ECI (U.S.)

KEY INDUSTRY DEVELOPMENTS:

• June 2022: Singtel’s standalone subsidiary, Trustwave, launched two latest worldwide managed detection and response security services, MDR Elite and MDR, intending to help businesses keep pace with evolving cyber-attacks. Organizations can use these new solutions to monitor their hybrid cloud spaces for active security anomalies and threats.


• May 2022: SecurityHQ collaborated with SentinelOne, a cybersecurity solutions vendor. The company’s managed endpoint security service integrates SentinelOne’s technology for detecting unknown behavioral-based threats and signature-based across all known MITRE ATT&CK TTP.


• February 2022: Tata Consultancy Services launched an integrated suite of cyber defense that provides overall predictive and visibility capabilities to safeguard and respond against advancing risks. It is a complete package of cyber security services offered on a single platform to give leaders agility and confidence to expand their digital enterprises.


• December 2021: Eze Castle Integration (ECI) has expanded its footprint into Canada. This expansion has resulted from mid-market financial firms' demand for the company’s managed services. The services comprise a comprehensive portfolio primarily designed for the industry.


• November 2021: AT&T launched a unified, managed cyber security offering intending to help the U.S. federal agencies to protect and modernize their IT infrastructure. This launch aligns with the Trusted Internet Connection (TIC) 3.0 cyber security guidance.

REPORT COVERAGE

An Infographic Representation of Cyber Security Managed Services Market

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The research report includes prominent regions across the globe to get a better knowledge of the cyber security managed services industry. Furthermore, it provides insights into the most recent industry and market trends, as well as an analysis of technologies adopted quickly on a global scale. It also emphasizes some of the growth-stimulating restrictions and elements, allowing the reader to obtain a thorough understanding of the industry.

REPORT SCOPE & SEGMENTATION