Managed Security Services Market to Grow at a CAGR of 14.7%

Cybersecurity threat landscape is evolving and attackers are using next-generation, sophisticated tools to exploit victims’ devices. Increased complexity of threats and attacks, and the emergence of technologically-advanced cyber criminals are forcing companies to upgrade their security systems constantly. To administer their security processes, enterprises are looking for third-party service providers, due to the various reasons, such as lack of in-house experts and the need to reduce the cost of managing the services internally. Managed Security Service Providers (MSSPs) provide these security specialized services to enterprises. MSSPs’ offer various services ranging from infrastructure establishment to security management.

MarketsandMarkets expects the Managed Security Services market size to grow from USD 24.05 billion in 2018 to USD 47.65 billion by 2023, at a Compound Annual Growth Rate (CAGR) of 14.7% during the forecast period.

Cyber-attacks are rapidly increasing and harming the critical assets of organizations. MSSPs are offering a variety of services to protect the sensitive information and prevent the data loss. These services help to combat advanced threats and vulnerabilities and secure the infrastructure in organizations. The various types of MSS include managed Identity and Access Management (IAM), managed risk and compliance management, managed encryption, managed Data Loss Prevention (DLP), managed Unified Threat Management (UTM), managed firewall, managed antivirus/anti-malware, managed Intrusion Detection System (IDS) and Intrusion Prevention System (IPS), managed security and vulnerability management, managed SIEM, managed disaster recovery, managed Distributed Denial of Service (DDoS), and others, such as managed web filtering, managed application whitelisting, and managed patch management. The managed encryption segment is expected to grow at the highest CAGR among components. The major objective of encryption is to provide confidentiality and integrity of digital data stored in computer or in transit. The advanced managed encryption services are integrated with other MSS to provide enhanced data protection at a low cost. These services protect user data on both cloud environment and on-premises. This, in turn, is expected to drive the demand for managed services.

The managed application security segment is expected to grow at the highest CAGR in the MSS market by security type during the forecast period. The segment includes software security and code security from external and internal threats, such as web attacks, DDoS, site scraping, and fraud. It works with a set of security policies to protect mobile and web applications as well as confidential information from both random and targeted application security attacks. With the rapidly increasing number of mobile devices, the managed application security services market is expected to grow.

The SMEs segment is expected to grow at a higher CAGR in the MSS market by organization size during the forecast period. Organization size generally dictates the budget and structure of security measures implemented in the MSS market. SMEs are mainly adopting the MSS to protect their data and secure their applications from vulnerabilities and attacks. Cybercriminals take advantage of the poor security in the SMEs by using automation techniques to target their enterprise networks. SMEs are looking for advanced MSS to reduce their costs, minimize the time, and utilize resources optimally.

The healthcare is expected to be the fastest-growing vertical in the MSS market. Healthcare companies need high security measures to manage personal health information and critical data about patients. Therefore, data security has been of utmost importance to this vertical. Stealing financial data has always been the primary target of cyber-attackers, but these days medical data is also becoming one of the major targets. Moreover, due to highly proliferated digital medical devices, network management has become essential to save the devices from malicious attacks. Social security numbers, insurance IDs, addresses, credit card information, and medical details are at risk of cyber threats because they usually contain valuable data. The BFSI vertical is expected to account for the largest market share in the overall Managed Security Services market. The BFSI vertical is also a prime target for cybercriminals, as it holds very sensitive information of employees, customers, assets, offices, branches, and operations. Therefore, the vertical is always on the lookout for advanced cybersecurity products and services.

The Asia-Pacific (APAC) region is expected to grow at the highest CAGR during the forecast period. APAC comprises a mix of developed and developing countries. The region is highly concerned with increasing security spending, owing to the ever-growing threat landscape. In recent years, the APAC region has witnessed significant economic growth, political transformation, and social change. Due to the increasing sophistication levels of threats, India, Japan, and Singapore have all updated or introduced new national cybersecurity policies. With the evolving threat landscape, the demand for cybersecurity and MSS is expected to grow in the APAC region. North America is expected to account for the largest market share in the overall MSS market, due to the presence of major MSS market players in the region.

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