Managed Security Services Market

[389 Pages Report] The global Managed Security System (MSS) market size is expected to grow from USD 30.6 billion in 2023 to USD 52.9 billion by 2028 at a Compound Annual Growth Rate (CAGR) of 11.5% during the forecast period.

The expanding attack surface of cloud environments and the ever-growing number of interconnected devices (IoT) make traditional security approaches obsolete. MSS providers offer comprehensive security solutions designed for the cloud and IoT era. With increasing instances of advanced attacks like zero-day exploits and APTs, traditional security solutions struggle to keep pace. This creates a prime opportunity for MSS providers to offer unmatched defense with their expertise and advanced tools.

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Managed Security Services: Market Dynamics

Driver:  Constantly intensifying complexity of cyber threats.

The increasing complexity of cyber threats is a key catalyst driving the growth of the managed security services (MSS) market. In recent years, the cybersecurity landscape has witnessed a surge in sophisticated and multifaceted threats that demand advanced defense mechanisms. Cybercriminals are deploying highly intricate tactics, such as advanced persistent threats (APTs), zero-day exploits, and polymorphic malware, making it challenging for organizations to defend their digital assets adequately.

In response to this evolving threat landscape, organizations recognize the limitations of relying solely on in-house security measures. The shortage of skilled cybersecurity professionals exacerbates this challenge, prompting businesses to turn to MSS providers. These providers offer a comprehensive suite of services, including advanced threat detection, real-time monitoring, incident response, and expertise in handling diverse and complex cyber threats. MSS providers leverage cutting-edge technologies like artificial intelligence and machine learning to analyze patterns, detect anomalies, and respond swiftly to emerging threats.

Restraint:Enterprises reluctant to outsource operations

Enterprises opt for providers, a third-party service provider if they do not have enough in-house security expertise or budgetary constraints. Outsourcing security operations to a third-party service provider involves multiple considerations, such as the security of the third-party’s infrastructure, cybersecurity technology, real-time support, and the overall decision of migrating to security-as-a-service. The service provider’s infrastructure must be secured and advanced to combat the latest threats. Since the service provider’s infrastructure may hold vital data of multiple organizations, it is highly susceptible to repeated and complex attacks; this can be a deterrent for companies to hand over their data to these service providers.

In some instances, the top management of organizations may not be willing to let go of control over vital aspects of their infrastructure. Enterprises suspect managed security service providers when in control of entire system architectures, could be disadvantageous for organizations in case of a breach that limits the market growth. Further, factors such as hidden costs, quality of service provided, and lack of trust in service providers can also limit the growth of this market. However, according to industry experts, if providers can prove themselves to be consistently reliable to upper-level management, enterprises could develop both business motives & profits, thereby extending access to managed security service providers.

Opportunity: Growing adoption of cloud technology and IoT devices

IoT refers to a system of interconnected computing devices and machines that can transfer data over a network without human intervention. However, with the rapid development of IoT, the security concern for these devices has also increased. As more machines get connected to a single network, such connected devices are vulnerable to cyberattacks. For instance, in the automobile sector, companies are focusing on developing independent and self-driving cars. However, due to automation, the dependency of cars on software is set to rise, making the installed systems more susceptible to cyberattacks. IoT has become widespread, but integrating such devices with machines will increase malware attacks, which could compromise hefty amounts of money. Managed security services aim to keep enterprises informed of potential cyberattacks by continuously monitoring cyber threats, enabling enterprises to opt for preventive measures efficiently..

Many small and medium-sized enterprises (SMEs) and large corporations are choosing cloud computing due to its many benefits, including cost-effectiveness, dynamic access to data, and faster business processes. Cloud services offer unique features like security policy enforcement, various compliances, encryption, IAM, SIEM, and malware detection and prevention. This makes cloud computing an attractive option for businesses that want to have greater control over their data and infrastructure. These benefits have led to the increased adoption of cloud technology by SMEs and large enterprises, making it a cost-effective and efficient solution for these organizations. Additionally, managed security service providers can offer custom-based security solutions to enterprises who are looking to move their businesses to the cloud. Hence, the rising adoption of cloud technology and IoT devices among enterprises is expected to be a favorable opportunity in the coming years.

Challenge: Shortage of security professionals

The managed security infrastructure is becoming more complex as technology advances. There are several entry points for threats to surface in a virtual enterprise. Despite the surge in critical issues, limited trained professionals can understand and respond to sophisticated attacks. Due to an extreme shortage of qualified security talent, organizations are exposed to severe risks. Cyber threats target network vulnerabilities and use them to enter the enterprise network. With cyber-attacks rising, many new zero-day threats have emerged. The methods and techniques attackers use to penetrate an organization’s enterprise network remain undetected.

Due to low awareness of advanced cyber threats, organizations do not spend enough on their security infrastructure, which results in massive losses. Furthermore, companies with pressing security needs have observed a major shortage of qualified professionals, making them further vulnerable to cyberattacks and threats.

Market Ecosystem

Managed SIEM and Log Management hold the highest market share during the forecast period.

Managed SIEM and log management services offer a strategic solution, allowing organizations to leverage specialized expertise and advanced technologies effectively to defend against sophisticated cyber threats. Many industries have stringent regulatory requirements regarding the protection of sensitive data. Managed SIEM and log management services to help organizations meet these compliance requirements. The need for compliance with regulations such as GDPR, HIPAA, and others drives managed SIEM and Log management segment.

BFSI segment to hold the highest market share during the forecast period.

BFSI institutions are subject to stringent data privacy and security regulations, creating immense pressure to implement comprehensive security measures. MSS providers ensure continuous compliance monitoring and reporting, easing the burden for BFSI organizations. BFSI organizations often engage with third-party vendors for various services. Managed security services extend their oversight to assess and manage the security risks associated with third-party relationships.

North America accounts for the largest market share during the forecast period.

By region, North America is estimated to hold the highest market share during the forecast period. North America is a hotbed for cyber security innovation, with major players like Cisco, Palo Alto Networks, and CrowdStrike driving new technologies and approaches. The cybersecurity landscape in North America is constantly threatened by sophisticated cyberattacks and data breaches. Also, rising adoption of cloud technologies is further driving the demand for specialized cloud security within managed security services offerings.

Key Market Players

The MSS market vendors have adopted various organic and inorganic growth strategies, such as new product launches, services upgrades, partnerships and agreements, business expansions, and mergers and acquisitions to strengthen their offerings in the market. The major vendors in the global IBM (US), NTT (Japan), Accenture (Ireland), DXC Technology (US), Secureworks (US), Trustwave (US), Atos (France), Orange Cyberdefense (France), Fujitsu (Japan), AT&T (US), Verizon (US), Capgemini (France), HPE (US), Cisco (US), TCS (India), Kudelski Security (Switzerland), F5(US), Infosys (India), Lumen Technologies (US), Crowdstrike (US), Kroll (US), Nokia Networks (Finland), Trend Micro (Japan), Cipher Security (US), RSI Security (US), SecurityHQ (UAE), TrustNet (US), LightEdge (US), Nettitude (US), Teceze (US), CyFlare (US), Ascend Technologies (US), Avertium (US), DigitalXRAID (UK). The study includes an in-depth competitive analysis of these key players in the MSS market with their company profiles, recent developments, and key market strategies.

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Scope of the Report

This research report categorizes the MSS market to forecast revenues and analyze trends in each of the following subsegments:

By Service Type:

• Managed IAM
• Managed Vulnerability Management
• Managed Risk and compliance
• Managed detection and response
• Managed Firewall
• Managed SIEM and Log Management
• Other service type

By Type

• Fully Managed
• Co-Managed

By Organization size

• Large Enterprises
• SMEs

By Security Type

• Network Security
• Cloud Security
• Endpoint Security
• Application Security

By Vertical

• BFSI
• Government
• Healthcare & Life Sciences
• Telecommunications
• IT and ITeS
• Retail and eCommerce
• Energy and Utilities
• Manufacturing
• Other Verticals

By Region:

• North America
  • US
  • Canada
• Europe
  • UK
  • Germany
  • France
  • Italy
  • Spain
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • Australia & New Zealand
  • Rest of Asia Pacific
• Middle East & Africa
  • GCC Countries
    • UAE
    • Saudia Arabia
    • Rest of GCC Countries
  • South Africa
  • Kenya
  • Rest of Middle East & Africa
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America

Recent Developments:

• In November 2023, Rapid7 chose TruVisor as its exclusive distributor for cybersecurity solutions in the ASEAN and India regions. This partnership aims to enhance their joint customers' cybersecurity capabilities through Rapid7’s security platforms. This strategic collaboration is significant in the growing cybersecurity market in these regions.
• In November 2023, Accenture acquired Innotec Security, a privately held company specializing in cybersecurity-as-a-service, cyber resilience, and cyber risk management, expanding its capabilities and footprint in Spain. Innotec Security was previously owned by parent company Entelgy Group. The acquisition of Innotec Security—which also has a presence in Barcelona, Seville, and the Basque Country—will add 500 cybersecurity professionals to Accenture Security’s workforce of 20,000 professionals globally, making Accenture Security one of the top managed security services (MSS) players in Spain.
• In August 2023, DXC Technology signed an IT Infrastructure Services Agreement with AT&T; under the agreement, DXC will manage AT&T’s midrange IT infrastructure, which spans AT&T’s enterprise compute, storage, backup, and recovery environments. DXC will also provide system, database, storage administration, hardware architecture, and maintenance across these environments.
• In June 2023, Secureworks unveiled the Taegis XDR (Extended detection and response), and Taegis Managed XDR for OT (operational technology) offerings to help industrial organizations protect against cyber threats. Taegis XDR combines IT security telemetry with OT intelligence and uses analytics and machine learning to help organizations identify threats and prioritize the most serious ones.

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