The Global Managed Security Services Market size is expected to reach $85.9 billion by 2031, rising at a market growth of 15.2% CAGR during the forecast period.
The North America region witnessed 34% revenue share in this market in 2023. This dominance can be attributed to several factors, including many cybersecurity firms, significant investment in advanced security technologies, and a heightened awareness of cyber threats among businesses and government entities. The region’s robust regulatory framework and compliance requirements drive the demand for these services as organizations seek to protect sensitive data and maintain customer trust.
The major strategies followed by the market participants are Partnerships as the key developmental strategy to keep pace with the changing demands of end users. For instance, In May, 2024, IBM Corporation partnered with Palo Alto Networks. This partnership aims to enhance cybersecurity with AI, leveraging Cortex XSIAM and Watsonx to deliver advanced threat protection and automation.
Moreover, In September, 2023, Symantec, a division of Broadcom Inc., teamed up with Google Cloud, a cloud platform offered by Google, to integrate generative AI into its security platform, enhancing capabilities to detect and respond to cyber threats. This collaboration enhances cybersecurity by simplifying threat analysis and product operations with intuitive features.
These offerings aim to secure MSE’s IT environment and optimize cybersecurity across its sports teams, including the Washington Capitals, Wizards, and Mystics, by delivering strategic threat intelligence and emergency response capabilities. Companies such as IBM Corporation, Accenture PLC and Wipro Limited are some of the key innovators in Managed Security Services Market.
Additionally, Cybercriminals operate continuously, launching attacks at any time of day. This reality necessitates constant monitoring to detect and respond to threats swiftly. With organizations operating across multiple time zones, security vulnerabilities can arise outside regular business hours, making 24/7 monitoring essential for comprehensive protection. Therefore, the growing demand for 24/7 security monitoring and incident response capabilities propels the market’s growth.
The leading players in the market are competing with diverse innovative offerings to remain competitive in the market. The above illustration shows the percentage of revenue shared by some of the leading companies in the market. The leading players of the market are adopting various strategies in order to cater demand coming from the different industries. The key developmental strategies in the market are Partnerships, Collaborations and Agreements.
The Managed Security Services (MSS) market, remains competitive due to numerous small and mid-sized firms offering specialized solutions. These companies focus on niche areas like threat intelligence, vulnerability management, and compliance. Innovation, customization, and localized support drive competition, catering to diverse client security needs.
The North America region witnessed 34% revenue share in this market in 2023. This dominance can be attributed to several factors, including many cybersecurity firms, significant investment in advanced security technologies, and a heightened awareness of cyber threats among businesses and government entities. The region’s robust regulatory framework and compliance requirements drive the demand for these services as organizations seek to protect sensitive data and maintain customer trust.
The major strategies followed by the market participants are Partnerships as the key developmental strategy to keep pace with the changing demands of end users. For instance, In May, 2024, IBM Corporation partnered with Palo Alto Networks. This partnership aims to enhance cybersecurity with AI, leveraging Cortex XSIAM and Watsonx to deliver advanced threat protection and automation.
Moreover, In September, 2023, Symantec, a division of Broadcom Inc., teamed up with Google Cloud, a cloud platform offered by Google, to integrate generative AI into its security platform, enhancing capabilities to detect and respond to cyber threats. This collaboration enhances cybersecurity by simplifying threat analysis and product operations with intuitive features.
Cardinal Matrix - Market Competition Analysis
Based on the Analysis presented in the Cardinal matrix; Broadcom, Inc., Cisco Systems, Inc., Verizon Communications, Inc. are the forerunners in the Managed Security Services Market. In September, 2024, Verizon Communications partnered with Monumental Sports & Entertainment, a U.S.-based sports management company, to enhance cyber resiliency through services like Managed Security Information and Event Management (MSIEM), Rapid Response Retainer (RRR), and Cyber Security Incident Response Team solutions.These offerings aim to secure MSE’s IT environment and optimize cybersecurity across its sports teams, including the Washington Capitals, Wizards, and Mystics, by delivering strategic threat intelligence and emergency response capabilities. Companies such as IBM Corporation, Accenture PLC and Wipro Limited are some of the key innovators in Managed Security Services Market.
Market Growth Factors
Many organizations utilize multiple cloud service providers alongside on-premises infrastructures. This hybrid model increases the complexity of managing security across different platforms, challenging maintaining consistent security policies and practices. Companies often face difficulties integrating older systems with modern IT environments, which can create vulnerabilities if not managed correctly. Thus, the increased complexity of IT environments and the need for specialized security expertise drive the market’s growth.Additionally, Cybercriminals operate continuously, launching attacks at any time of day. This reality necessitates constant monitoring to detect and respond to threats swiftly. With organizations operating across multiple time zones, security vulnerabilities can arise outside regular business hours, making 24/7 monitoring essential for comprehensive protection. Therefore, the growing demand for 24/7 security monitoring and incident response capabilities propels the market’s growth.
Market Restraining Factors
However, Implementing these services often requires substantial initial investments in setup and configuration. This includes integrating security solutions with existing IT infrastructure, which can be complex and time-consuming. Organizations may need to invest in new security technologies and tools to complement the managed services, adding to the overall costs. This can include firewalls, intrusion detection systems, and endpoint protection solutions. In conclusion, high initial investment costs associated with these services impede the market’s growth.
The leading players in the market are competing with diverse innovative offerings to remain competitive in the market. The above illustration shows the percentage of revenue shared by some of the leading companies in the market. The leading players of the market are adopting various strategies in order to cater demand coming from the different industries. The key developmental strategies in the market are Partnerships, Collaborations and Agreements.
Driving and Restraining Factors
Drivers
- Increased Complexity Of IT Environments And The Need For Specialized Security Expertise
- Growing Demand For 24/7 Security Monitoring And Incident Response Capabilities
- Increasing Cybersecurity Threats And Breaches Worldwide
Restraints
- High Initial Investment Costs Associated With Managed Security Services
- Dependence On Third-Party Providers For Critical Security Functions
Opportunities
- The Shift To Remote Work And Its Impact On Cybersecurity Needs
- Rising Compliance Requirements Across Various Industries
Challenges
- Rapidly Evolving Cyber Threat Landscape Leading To Continuous Adaptation Challenges
- Complexity Of Integration With Existing IT Systems And Infrastructure
Enterprise Size Outlook
Based on enterprise size, this market is categorized into SMEs and large enterprises. The SMEs segment witnessed 45% revenue share in this market in 2023. As SMEs increasingly recognize the importance of cybersecurity in safeguarding their operations and customer data, they are turning to managed security services to enhance their defenses. Many SMEs lack the in-house resources and expertise to manage security, making managed services an attractive solution.Services Outlook
On the basis of service, this market is segmented into managed SIEM, managed UTM, managed DDoS, managed XDR, managed IAM, managed risk & compliance, and others. The managed SIEM segment procured 22% revenue share in the managed security services market in 2023. With the increasing volume of security data generated by modern IT environments, organizations are turning to managed SIEM solutions to effectively collect, analyze, and respond to security incidents.
Security Outlook
Based on security, this market is divided into cloud security, endpoint security, network security, data security, and others. In 2023, the endpoint security segment held 14% revenue share in the managed security services market. With the proliferation of remote work and the increasing use of personal devices for business purposes, the need to protect endpoints has become vital. This segment focuses on securing devices such as laptops, smartphones, and tablets from potential threats.Vertical Outlook
By vertical, this market is divided into BFSI, healthcare, manufacturing, IT and telecommunications, retail, defense/government, and others. The healthcare segment procured 19% revenue share in the managed security services market in 2023. As healthcare organizations continue to digitize patient records and adopt connected medical devices, the need for robust cybersecurity measures has become critical. The healthcare sector faces unique challenges, including the protection of sensitive patient information and the need to comply with regulations.Regional Outlook
Region-wise, this market is analyzed across North America, Europe, Asia Pacific, and LAMEA. The Asia Pacific region generated 29% revenue share in the managed security services market. This growth can be attributed to the rapid digital transformation across regional industries and increasing reliance on cloud services, mobile applications, and IoT devices. As businesses in Asia Pacific embrace these technologies, they also face rising cyber threats, prompting a greater demand for managed security services to protect their digital assets.Market Competition and Attributes
The Managed Security Services (MSS) market, remains competitive due to numerous small and mid-sized firms offering specialized solutions. These companies focus on niche areas like threat intelligence, vulnerability management, and compliance. Innovation, customization, and localized support drive competition, catering to diverse client security needs.
Recent Strategies Deployed in the Market
- Jul-2024: SecureWorks Corp. launched Taegis ManagedXDR Plus, offering tailored cybersecurity solutions for mid-market companies. This new service empowers organizations to improve cyber resilience with customized alerting, threat hunting, and proactive security services. Frost & Sullivan, a business consulting firm, highlighted the enhanced prevention and response capabilities, underscoring SecureWorks’ leadership in Managed Detection and Response (MDR) services, ensuring companies can tackle cyber threats without compromising their budget.
- Apr-2024: Cisco Systems Inc. introduced Hypershield, its most substantial security innovation. This new software-based solution ensures the security of AI workloads spanning data centers and clouds, providing autonomous segmentation and upgrade functionalities, utilizing eBPF and AI to improve security and operational effectiveness.
- Mar-2024: Cisco Systems Inc. took over Splunk Inc., boosting security and observability through a unified digital perspective. This merger ensures improved security, observability, networking, AI, and economic benefits, delivering transformative solutions for customers across diverse industries.
- Jan-2024: Check Point Software Technologies Ltd. unveiled a new Program focused on enhancing partner specialization and growth. It aims to streamline tiering, transparent pricing, cumulative discounts, and elevated deal registration incentives, empowering partners to offer advanced AI-powered cybersecurity solutions.
- Jan-2024: Sonicwall, Inc acquired Banyan Security, enhancing its SSE offerings with zero trust security, catering to Fortune 100 firms and small businesses transitioning to SSE solutions like ZTNA. Together, they'll provide SASE solutions for partners, adapting to customers' evolving cloud journeys.
List of Key Companies Profiled
- IBM Corporation
- Cisco Systems, Inc.
- Check Point Software Technologies Ltd.
- Broadcom, Inc. (Symantec Corporation)
- Wipro Limited
- Verizon Communications, Inc.
- SecureWorks Corp. (Dell Technologies, Inc.)
- Accenture PLC
- BT Group plc
- SonicWall, Inc.
Market Report Segmentation
By Enterprise Size
- Large enterprises
- SMEs
By Services
- Managed UTM
- Managed SIEM
- Managed DDoS
- Managed XDR
- Managed IAM
- Managed Risk & Compliance
By Security
- Cloud Security
- Data Security
- End-point Security
- Network Security
- Other Security
By Vertical
- BFSI
- Healthcare
- Manufacturing
- IT & Telecommunications
- Retail
- Defense/Government
- Other Vertical
By Geography
- North America
- US
- Canada
- Mexico
- Rest of North America
- Europe
- Germany
- UK
- France
- Russia
- Spain
- Italy
- Rest of Europe
- Asia Pacific
- China
- Japan
- India
- South Korea
- Singapore
- Malaysia
- Rest of Asia Pacific
- LAMEA
- Brazil
- Argentina
- UAE
- Saudi Arabia
- South Africa
- Nigeria
- Rest of LAMEA
Table of Contents
Chapter 1. Market Scope & Methodology
Chapter 2. Market at a Glance
Chapter 3. Market Overview
Chapter 4. Competition Analysis - Global
Chapter 5. Global Managed Security Services Market by Enterprise Size
Chapter 6. Global Managed Security Services Market by Services
Chapter 7. Global Managed Security Services Market by Security
Chapter 8. Global Managed Security Services Market by Vertical
Chapter 9. Global Managed Security Services Market by Region
Chapter 10. Company Profiles
Companies Mentioned
- IBM Corporation
- Cisco Systems, Inc.
- Check Point Software Technologies Ltd.
- Broadcom, Inc. (Symantec Corporation)
- Wipro Limited
- Verizon Communications, Inc.
- SecureWorks Corp. (Dell Technologies, Inc.)
- Accenture PLC
- BT Group plc
- SonicWall, Inc.
Methodology
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