Managed Security Services Market Research Report Information By Service Type (IPS and IDS, DDOS, and Endpoint security), By Organization size (SMBs and Large Enterprise), By Deployment (Cloud and On Premise), By End-User (BFSI, Manufacturing, IT/ITES, Healthcare, Retail, Government) And By Region (North America, Europe, Asia-Pacific, And Rest Of The World) –Market Forecast Till 2030

Global Managed Security Services Market Overview

Managed Security Services Market Size was valued at USD 29.1 billion in 2022. The Managed Security Services market industry is projected to grow from USD 33.1 Billion in 2023 to USD 72.3 billion by 2030, exhibiting a compound annual growth rate (CAGR) of 13.9% during the forecast period (2023 - 2030). Increasing cybersecurity threats and lack of in-house expertise are the key market drivers enhancing the market growth.

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Managed Security Services Market Trends

• Increasing cybersecurity threat is driving the market growth

One of the key drivers of the Managed Security Services (MSS) Market CAGR is the increasing cybersecurity threats faced by businesses of all sizes. In recent years, cyber attacks have become more frequent, sophisticated, and damaging, making effective security solutions a critical need for businesses. Cybersecurity threats come in many forms, including malware, ransomware, phishing, social engineering, and insider threats. These threats can result in a variety of negative consequences, such as loss of sensitive data, financial losses, reputational damage, legal liability, and disruption to business operations.

HIPAA has reported that the healthcare sector in the United States has witnessed three major data breaches resulting in a loss of over 5.2 million patient records. These breaches affected organizations such as AccudocSolutions, UnityPoint Health, and the Employees' Retirement System of Texas. In today's digitally connected world, cybercriminals are taking advantage of the online landscape to target weaknesses in systems, networks, and infrastructure. This has resulted in significant economic and social impacts on individuals, businesses, and governments worldwide. Phishing, ransomware, and data breaches are among the most prevalent cyber threats, with new types of cybercrime constantly emerging. Cybercriminals are becoming increasingly organized and adaptable, leveraging new technologies and tailoring their attacks to their targets. According to the FBI's Internet Crime Report for 2021, the public reported 847,376 complaints of cybercrime to the FBI, representing a 7% increase from the previous year.

Furthermore, MSS providers can help businesses stay up to date with the latest security trends and technologies, which is important in a rapidly evolving cybersecurity landscape. MSS providers can also offer scalability and flexibility, enabling businesses to adjust their security solutions as their needs change. Thus, driving the Managed Security Services market revenue.

Managed Security Services Market Segment Insights

Managed Security Services Service Type Insights

The Managed Security Services Market segmentation, based on service type includes IPS and IDS, DDOS, and Endpoint security. The endpoint security segment is currently holding the largest market share in the global MSS market. Endpoint security refers to the protection of endpoints, such as laptops, desktops, and mobile devices, from cyber threats. The increasing use of mobile devices and remote work arrangements has led to a growing demand for endpoint security solutions. Additionally, the rise of cloud-based services has increased the need for endpoint security solutions to protect endpoints accessing cloud-based resources.

On the other hand, the DDOS (Distributed Denial of Service) segment is expected to grow at a faster CAGR in the forecast period. DDOS attacks are a growing concern for organizations worldwide as they can lead to significant business disruptions and financial losses.  

Managed Security Services Organization Size Insights

The Managed Security Services Market segmentation, based on Organization Size, includes SMBs and Large Enterprise. In 2022, Large Enterprises hold the largest market share in the global MSS market. Large Enterprises typically have more resources to devote to cybersecurity, as they often have more significant assets and a larger IT infrastructure to protect. Additionally, Large Enterprises are more likely to face sophisticated and targeted cyber attacks, making them more inclined to invest in robust security solutions.

However, the SMB segment is expected to grow at a faster CAGR in the forecast period. This growth can be attributed to the increasing awareness among SMBs regarding the importance of cybersecurity, as well as the growing frequency of cyber attacks targeting SMBs.

Managed Security Services Deployment Insights

The Managed Security Services Market data, based on deployment, includes Cloud and On-premise. In 2022, the Cloud deployment segment holds the largest market share in the global MSS market. Cloud-based security solutions offer several advantages over on-premise solutions, including scalability, flexibility, and cost-effectiveness. With the growing adoption of cloud-based services, more and more organizations are turning to cloud-based MSS solutions to protect their systems and data. The Cloud deployment segment is also expected to grow at a faster CAGR in the forecast period.  

Figure 1: Managed Security Services Market, by Deployment, 2022 & 2030 (USD billion)

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Managed Security Services End User Insights

The global Managed Security Services industry, based on end user, includes BFSI, Manufacturing, IT/ITES, Healthcare, Retail, and Government. In 2022, the BFSI (Banking, Financial Services, and Insurance) segment holds the largest market share in the global MSS market. This is because the BFSI sector is highly regulated and handles sensitive data, making it a prime target for cyber attacks. As a result, the BFSI sector invests heavily in cybersecurity solutions, including MSS, to protect its systems and data.

However, the Healthcare segment is expected to grow at a faster CAGR in the forecast period. This growth can be attributed to the increasing number of cyber-attacks targeting the healthcare sector, as well as the growing adoption of digital healthcare solutions.

Managed Security Services Regional Insights

By Region, the study provides the market insights into North America, Europe, Asia-Pacific and Rest of the World. The North American Managed Security Services market area will dominate this market, owing to quick adoption of managed security solutions by numerous enterprises and organizations as a result of rising security threats for sensitive information.

Further, the major countries studied in the market report are The U.S., Canada, German, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.

Figure 2: MANAGED SECURITY SERVICES MARKET SHARE BY REGION 2022 (%)

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Europe Managed Security Services market accounts for the second-largest market share due to the increasing adoption of digital solutions and stringent data protection regulations such as GDPR. Further, the German Managed Security Services market held the largest market share, and the UK Managed Security Services market was the fastest growing market in the European region

The Asia-Pacific Managed Security Services Market is expected to grow at the fastest CAGR from 2023 to 2030. This is due to the increasing adoption of digital solutions, growing number of cyber threats, and increasing government initiatives to improve cybersecurity. Moreover, China’s Managed Security Services market held the largest market share, and the Indian Managed Security Services market was the fastest growing market in the Asia-Pacific region.

For instance, in Feb 2022, IBM has announced its investment in strengthening its resources to aid businesses in the Asia-Pacific (APAC) region to prepare for and manage the mounting threat of cyberattacks. To provide cybersecurity response strategies using realistic simulations of cyberattacks, IBM has established the first IBM Security Command Center in the region. The investment will also cover the establishment of a new Security Operation Center (SOC) that may be a component of IBM's current global SOC network. This SOC will offer security response services to clients worldwide round the clock.

Managed Security Services Key Market Players & Competitive Insights

To facilitate the growth of the Managed Security Services market, leading market players are making significant investments in research and development to broaden their product portfolios. In addition, they are engaging in various market developments such as launching new products, entering into contractual agreements, undertaking mergers and acquisitions, increasing investments, and collaborating with other organizations to expand their global presence. In order to thrive in an increasingly competitive market environment, the Managed Security Services industry needs to provide cost-effective solutions to its customers.

In recent years, the Managed Security Services industry has offered some of the most significant advantages to cybersecurity. Major players in the Managed Security Services market, including IBM (US), Fortinet (US), Rapid 7 (US), BT Group (UK), Dell SecureWorks, Accenture, and others, are attempting to increase market demand by investing in research and development operations.

IBM is a multinational technology company that provides a range of hardware, software, and services, including Managed Security Services (MSS). IBM Security offers a comprehensive range of security solutions and services, such as threat management, vulnerability management, incident response, and compliance management. The company's MSS offerings are designed to provide customers with 24/7 monitoring, threat detection, and incident response services to protect against a range of cyber threats. IBM has a global network of Security Operations Centers (SOCs), staffed with security experts, who provide proactive threat monitoring and response services to help customers quickly detect and respond to security incidents.

 Accenture is a multinational professional services company that offers a range of consulting, technology, and outsourcing services, including Managed Security Services (MSS). Accenture Security provides end-to-end cybersecurity solutions and services to help organizations protect against cyber threats, comply with regulations, and reduce risk. The company's MSS offerings include threat monitoring and intelligence, incident response and recovery, identity and access management, and vulnerability management.

Key Companies in the Managed Security Services market include

• IBM (US)


• Fortinet (US)


• Rapid 7 (US)


• BT Group (UK)


• Dell SecureWorks


• Accenture


• Solutionary Inc. (US)


• Verizon Communications (US)


• CenturyLink (US)


• Symantec Corporation (US)


• Wipro


• HP Enterprises (US)


• CSC (US)


• Deloitte


• AT&T (US)


• Trustwave (US)


• Others

Managed Security Services Industry Developments

October 2022 Palo Alto Networks and Deloitte have announced an expansion of their existing strategic alliance to offer managed security services to their mutual clients in the United States. This move will make Palo Alto Networks one of the leading cybersecurity technology portfolios available in Deloitte's outcome-based managed services. The partnership aims to provide comprehensive cybersecurity solutions to organizations through the combination of Palo Alto Network's industry-leading technology and Deloitte's expertise in managed services.

July 2022 HelpSystems' Alert Logic has entered into a strategic agreement with TD SYNNEX, a well-known IT distributor and solutions aggregator for the IT ecosystem. The collaboration aims to expand the range of solutions offered by TD SYNNEX with the addition of managed detection and response (MDR) capabilities from Alert Logic. This partnership has the potential to establish Alert Logic as the preferred provider of full MDR services to a global network of technology partners, thereby increasing its market share and showcasing the effectiveness of its partner program.

Managed Security Services Market Segmentation

Managed Security Services Service Type Outlook

• IPS and IDS


• DDOS


• Endpoint security

Managed Security Services Organization Size Outlook

• SMBs


• Large Enterprise

Managed Security Services Deployment Outlook

• Cloud


• On Premise

Managed Security Services End User Outlook

• BFSI


• Manufacturing


• IT/ITES


• Healthcare


• Retail


• Government

Managed Security Services Regional Outlook

• 
  

  North America

  
  
  
  
  • US
  
  
  • Canada
  
  
  
  


• 
  

  Europe

  
  
  
  
  • Germany
  
  
  • France
  
  
  • UK
  
  
  • Italy
  
  
  • Spain
  
  
  • Rest of Europe
  
  
  
  


• 
  

  Asia-Pacific

  
  
  
  
  • China
  
  
  • Japan
  
  
  • India
  
  
  • Australia
  
  
  • South Korea
  
  
  • Australia
  
  
  • Rest of Asia-Pacific
  
  
  
  


• 
  

  Rest of the World

  
  
  
  
  • 
    

    Middle East

    
    
  
  
  • 
    

    Africa

    
    
  
  
  • 
    

    Latin America