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The cyber security managed services market size was valued at USD 14.48 billion in 2022 and the market is projected to grow from USD 15.78 billion in 2023 to USD 32.68 billion by 2030, exhibiting a CAGR of 11.0%. North America dominated the global market with a share of 43.3% in 2022.
Cyber security managed services are a service model that cybersecurity service providers provide to monitor and manage security devices, systems, and Software-as-a-Service (SaaS) applications. It reviews structured and unstructured databases to predict and offer information based on hidden patterns, correlation, and fluctuating trends in the market.
It consists of services such as managed detection and response, incident management, managed vulnerability, identity, and access solutions or compliance knowledge without needing an expensive security operations center. It also helps to prevent breaches over automated incident response, decrease alert fatigue for in-house resources, remove complexity in security, and offer compliance governance.
Furthermore, with increasing cyberattacks, such as ransomware and data breaches, organizations are shifting toward security services to increase protection by deploying security gateways over the cloud or on-premise infrastructure. For instance,
In our market study, we have studied cyber security managed services offered by market players such as Atos SE, IBM Corporation, TATA Consultancy Services Limited, Secureworks, Inc., Trustwave Holdings, Inc., Check Point Software Technologies Ltd., and others.
Growing Investment and Demand for Security Related Managed Services amid Pandemic Strengthened Market Growth
COVID-19 has shifted business operations to remote working, which caused a significant impact on both IT infrastructure requirements and the attack surface. This significantly stressed security teams to support general IT operations and technologies to adapt to changing risks. For instance,
Hackmageddon stated that the total number of major global attacks reported in the news was higher almost every month of 2020.
Owing to this situation, companies considered choosing cyber security managed services, positively influencing the market growth. Additionally, rapidly growing technological advancements have attracted new variations of attacks. Traditional cyber security managed services are not able to distress these attacks. MSSPs enhanced their security services to minimize these attacks and improve the organization's resilience. For instance,
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 the cyber security managed services market growth.
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Implementation of Zero Strategy Trend Prevailing in Global Market
There have been significant changes in cyber security practices due to pandemic disruptions. Zero Trust is accelerating as an effective cybersecurity strategy for businesses globally. This security model accepts breaches and validates the security status of the endpoint, network, identity, and other resources based on all data and signals. It depends on contextual real-time policy enforcement to attain the least privileged permission and reduce cyber threats. Developing technologies enable rapid prevention and detection of attacks using large datasets and behavior analytics.
Companies have been implementing the Zero Trust model as it helps them manage most attacks and changes to the environment, especially with respect to Internet of Things (IoT) security. The below statistics 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.
Increasing BYOD Method and Cyber Security Risks to Drive Market Growth
With the advent of digitalization and rapid technological changes, businesses around the world are implementing new trends, such as Bring Your Own Devices (BYOD) and Choose Your Own Device (CYOD), for their employees on laptops, tablets, smartphones, and more. These employees use smartphones, tablets, laptops, 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 threatening an organization's security posture.
These devices are often used for personal business purposes and can be exposed to external malware and other cyber security attacks. The increased malware risk of 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 detect security breaches.
Organizations employ cyber security managed services to mitigate the threat landscape to protect an organization from potential harm. For instance,
Hence, adoption of BYOD and WFH by the organizations and consumers drives the market growth.
Lower Budget and Expert Limitations for SMEs to Restrain Market Growth
The need for advanced services and online security threats are growing significantly. Traditional network security services cannot protect organizations from the cloud, extended network, and endpoint security threats. Cyber security threats have increased in the regions, and Small & Medium-Sized Businesses (SMBs) have become easy targets due to lack of awareness and resources. The absence of experts and specialists in further developing and advancing security services is a significant inhibitor. For instance,
Additionally, implementing internet security services & solutions and the high cost of updating hinder small & medium enterprises' adoption of managed security services.
Surging Demand for Security Systems and Public Safety will Drive Market Growth
The market is segmented by service into Managed Detection and Response (MDR), incident management, managed vulnerability, identity and access solution, and others (end point management, data encryption).
Managed Detection and Response (MDR) holds the highest CAGR during the forecast period. Cyberthreats have become complex and well-known for their stealth and ability to penetrate challenging defenses. Various threat actors use Artificial Intelligence (AI) tools to design engineering websites, such as phishing emails, thus making them even more dangerous. MDR is a cybersecurity service that completely improves the organization’s security by taking on advanced cyber threats and eliminating them. Various organizations collaborate with an MDR service provider to enhance organizational security and get a better ROI on their security investments. For instance,
Increasing Adoption of Managed Security Services by Large Enterprises to Lead the Market Growth
Enterprises are rapidly changing, requiring cyber resilience in their digital journeys to protect their businesses. Based on enterprise type, the market is segmented into Small & Medium Enterprise (SME) and large enterprise.
The large enterprise segment captures a large market share, as they are the early adopters of managed security services due to their distributed and complex IT infrastructure. It provides a secure and builds resilient security programs and maintains confidence in their readiness.
The adoption of managed security services by SMEs is gradually increasing, as they are often targeted due to ransomware, phishing, Denial-of-Service, and other threats as their security setups are simple and easy to breach. Large companies invest and launch managed security services in various regions, propelling large enterprises' growth. For instance,
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Surging Demand for Digital Privacy Systems and Robust Security across IT & Telecom to Drive the Market Forward
Based on industry, the market is segmented into BFSI, IT & telecom, retail, healthcare, government, manufacturing, travel & transportation, energy and utilities, and others.
The IT & telecom segment is expected to grow at the highest CAGR during the forecast period. This growth stems from the rising demand for digital privacy systems and strong security across the IT & telecom industry. Telecommunication enterprises are mainly prone to security breaches. They face extended attacks, in some cases, from external governments. Thus, the need for cyber security managed services is growing, which is considered for the IT & telecom industry. For instance,
The healthcare segment held the major market share in 2022 due to increasing adoption of security services to lessen the evolving cyber threats and protect patient data. The healthcare segment is collaborating with various key players by integrating the services to help strengthen overall network security and protect electronic health records in various ways. For instance,
North America Cyber Security Managed Services Market Size, 2022 (USD Billion)
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Geographically, the market is categorized into five key regions, North America, South America, Europe, the Middle East & Africa, and Asia Pacific.
North America dominated the global cyber security managed services market share in 2022. 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 the additional insights and enhance the services. For instance,
Asia Pacific is expected to grow with a remarkable CAGR during the forecast period, owing to increasing investments by the government, key players, and foreign investments in various blockchain projects and others. MSS and shared services are adopted across verticals and industries for partial or complete workloads. The offerings by the market players help in creating attractive benefits and flexibility, thereby experiencing significant surge in demand for these services.
Additionally, increasing adoption of software-defined IT infrastructure and collaboration, partnership, and service upgrades is pushing the market growth in Europe. For instance,
The market growth of cyber security managed services in the Middle East and South America is mainly driven due to increasing economic importance of security, which strengthened the national cyber security investment of the countries in the region. Oman, Qatar, the UAE, Bahrain, and others are moving toward digitization in the security and observation area, which is projected to grow the market.
Strategic Acquisition by the Key Players to Boost Market Expansion
Key players of cyber security managed services, such as BDO Global, Atos SE, Wipro, Secureworks, Inc., IBM Corporation, Tata Consultancy Services Limited, Trustwave Holdings, Inc., and others, are focused on expanding their presence by launching specific solutions and services to attract a large customer base, thereby increasing sales. Moreover, key players are focused on increasing market share and reach customers through strategic acquisitions.
List of Key Companies in Cyber Security Managed Services Market:
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 and 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.
CAGR of 11.0% from 2023 to 2030
Value (USD billion)
By Service, Enterprise Type, Industry, and Region
By Enterprise Type
The market is projected to reach USD 32.68 billion by 2030.
In 2022, the market was valued at USD 14.48 billion.
The market is projected to grow at a CAGR of 11.0% during the forecast period.
The Managed Detection and Response (MDR) segment will lead the market.
Increasing BYOD method and cyber security risks are the key factors driving the market growth.
BDO Global, Secureworks, Inc., Atos SE, Wipro, IBM Corporation, Tata Consultancy Services Limited, Trustwave Holdings, Inc., Thrive, SecurityHQ, ECI, and Check Point Software Technologies Ltd. are the top players in the market.
North America is expected to hold the highest market share.
By industry, healthcare is expected to grow with a remarkable CAGR during the forecast period.
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