Managed Security Services Market Size, Share, and Industry Analysis By Security Type (Cloud Security, Endpoint Security, Network Security, and Others), By Services Type (Managed Identity & Access Management, Managed Vulnerability Management, Managed Detection & Response (MDR), Managed Firewall, Managed Risk & Compliance Management, and Others), By Enterprise Type (Large Enterprises and Small and Medium Enterprises (SMES)), By Vertical (BFSI, Healthcare, Manufacturing, IT and Telecom, Retail, and Others), and Regional Forecast, 2026-2034

The global managed security services market size was valued at USD 39.87 billion in 2025. The market is projected to grow from USD 44.39 billion in 2026 to USD 104.66 billion by 2034, exhibiting a CAGR of 11.32% during the forecast period.

The global managed security services market is experiencing rapid growth with the increasing threat of cyber-attacks and the demand for more sophisticated security solutions. Managed security services essentially enable entities that contract out monitoring, threat detection, and response in cybersecurity to protect their digital assets while at the same time complying with several security regulations.

• CISA (Cybersecurity and Infrastructure Security Agency) estimates that the U.S. cybersecurity industry, which includes managed security services, will reach USD 48 billion by 2024. NIST predicts that 60% of organizations in America will rely upon managed security service providers (MSSPs) for their endpoint security.

Industries such as finance, healthcare, and retail have been seeing growth in the adoption of managed security services as firms search for more cost-efficient alternatives to threats posed by changing security. Integration of artificial intelligence with MSS is yet another driving factor for the threat detection and response of this service, therefore helping to propel the market.

Managed Security Services Market Driver

Rising Cyber Threats and Cloud Adoption Drive MSS Market Growth

Organizations are investing in managed security services due to the ever-increasing cyber threats such as Petya and WannaCry. In Germany, 50% of companies will be engaging MSSPs for vulnerability management by 2024 (BSI). Regulation set by GDPR and HIPAA also add to the enormous increase in demand for MSS. As for the U.S., 32% are investing in managed cloud security services, says CISA. Most of the SMEs prefer outsourcing to cut the cost of money compared to in-house models and with the added benefit of using sophisticated security solutions.

Managed Security Services Market Restraint

Market Growth Persists Despite Workforce Shortages and Integration Challenges

The market for managed security services has grown spectacularly, but it still faces a number of challenges. The first is the lack of cybersecurity specialists, who restrict the application of MSS for numerous small firms. Though it is economical for big companies, MSS is an uphill task for small firms since it demands a lot of up-front investment and recurring service charges. Complexities of integration are another challenge since companies find it capital-intensive to integrate MSS solutions into current IT infrastructures. In addition, some organizations, particularly those in industries that handle sensitive data such as healthcare and finance, have been discouraged from outsourcing their security functions by higher issues of data privacy and control.

Managed Security Services Market Opportunity

MSS Market Growth Driven By AI, Cloud, and Demand

The expansion of MSS into emerging markets is a serious growth area for organizations in these regions, which are adopting some form of digital transformation. It is expected that by 2024, 45% of enterprises in India will have adopted MSSPs for cloud security management (MEITY). The increasing role of AI and machine learning in enhancing cybersecurity in MSS solutions has opened up new avenues for the market player.

Besides that, with hybrid cloud infrastructures gaining momentum, there is a growing demand for MSS designed to secure these environments. These days, incidents are taking place so often that people are forced to react and learn about threats, which in itself opens up new opportunities for MSS providers.

Key Insights

The report covers the following key insights:

• Cybersecurity Threat Landscape, By Key Countries
• Drivers, Restraints, Trends, and Opportunities
• Adoption of AI and Cloud-Based Security Solutions, By Key Regions
• Consolidated SWOT Analysis of Key Players
• Key Industry Developments (Mergers, Acquisitions, Partnerships)
• Overview: Regulatory and Compliance Framework

Segmentation

Analysis by Security Type

By security type, the market is divided into cloud security, endpoint security, network security, and others.

With companies moving workloads to the cloud, the demand for systems that can cater to this need is escalating. Cloud Security is expected to be crucial in deciding what impact the Managed Security Services Market will have in the future. This small fragment model contributes anticipated significant growth on the foundation of mounting cyber concerns as well as demand from statutes such as the GDPR and CCPA.

Endpoint Security is foreseen to grow to a greater scale in anticipation of rising remote working and the growing use of IoT devices. In addition, rising cyber threats toward endpoints, such as ransomware and malware attacks, would act as the driving force toward needing managed endpoint protection services.

Analysis by Services Type

By services type, the market is divided into managed identity & access management, managed vulnerability management, managed detection & response (MDR), managed firewall, managed risk & compliance management, and others.

Whether through preventive intelligence information about threats or providing quicker responses when incidents occur, it seems clear that Managed Detection & Response (MDR) will be the next big thing to dominate the marketplace. This segment is favored for its continuous monitoring and vulnerability lowering for real-time threat reduction.

The market for Managed Risk and Compliance Management is expected to grow substantially, as industries across sectors such as healthcare and finance substantially focus on regulatory compliance. This is also a result of stricter regulations such as HIPAA and PCI DSS, which require organisations to obtain Managed Compliance services.

Analysis by Enterprise Type

By enterprise type, the market is divided into large enterprises and small and medium enterprises (SMES).

The Managed Security Services Market is dominated by large enterprises mainly due to their huge budgets allocated to IT and the increasing demand to enhance their cybersecurity. These organizations rely on managed security services (MSS) providers for advanced security solutions as enterprise networks become more complex and sophisticated cyber threats become more frequent.

Small and Medium Enterprises (SMEs) are also expected to see immense growth as they look toward managed security services (MSS) providers to attain effective measures against cybersecurity risks without having to invest in internal security personnel. Cost-effectiveness and scalability of managed security solutions are thus entering the factors driving SME adoption of MSS.

Analysis by Vertical

By vertical, the market is divided into BFSI, healthcare, manufacturing, IT and telecom, retail, and others.

BFSI would likely dominate since, to keep sensitive customer data secured against any forms of cyber fraud, financial institutions are investing heavily in managed security services. The proliferation of digital banking and fintech solutions has substantially increased the demand for security.

Healthcare will observe significant growth, as EHRs need protection, and there are stringent requirements for data protection in regulations such as HIPAA. The increase in connected medical devices is also adding to the need for managed security services.

Regional Analysis

Based on geography, the market has been studied across North America, Europe, Asia Pacific, Latin America, and the Middle East & Africa.

Spending on managed security services is North America's responsibility, with strong growth in cybersecurity spending and regulations. The federal agencies of the U.S. plan to up their MSS expenditure by 18% in 2024 (CISA), while 45% of U.S. organizations have outsourced their security operations (NIST). In Canada, more than 30% of organizations are engaging MSSPs (CSA), resulting in regional growth.

Strict data protection laws and ever-increasing cyber threats in Europe feed corporate growth. MSSP expenditure by Germany for managed security services is expected to grow by 17% in 2024 (BSI), and managed security services will represent a 15% share of the U.K. cybersecurity market (U.K. government).

The typical economies of the Asia Pacific region seem to be the fastest-growing MSS markets due to an increase in digitization followed by incidents of growing cyber risks. The adoption of MSS in China will rise by 22% in 2024 (MPS, China), and 60% of Japanese organizations will outsource cybersecurity (SOUMU, Japan).

Key Players Covered

The report includes the profiles of the following key players:

• AT&T (U.S.)
• IBM (U.S.)
• Fujitsu (Japan)
• Atos (France)
• Secureworks (U.S.)
• DXC Technology (U.S.)
• Check Point Software Technologies (Israel)
• Fortinet (U.S.)
• Hewlett Packard Enterprise Development (U.S.)
• Verizon (U.S.)

Key Industry Developments

• In June 2025, Cisco introduced the Extended Detection and Response (XDR) solution as part of its MSS services. The offering uses network, endpoint, and cloud security in conjunction to improve threat detection and response. Through this launch, Cisco has again put emphasis on holistic cybersecurity solutions.
• In January 2025, IBM acquired Spanugo, a cloud security solutions provider. This acquisition thus strengthens IBM's managed security service capability with the ability to offer cloud security solutions. This makes IBM a leader in offering full-stack cybersecurity solutions to enterprises.
• In December 2024, AT&T signed a distribution agreement with Darktrace to integrate AI-driven security solutions into its range of managed security services. The partnership will see self-learning cybersecurity capabilities applied to deal with emerging cyber threats. Through this partnership, AT&T has upgraded its ability to provide businesses with the very best in advanced threat protection.