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Security-As-A-Service (SECaaS) Market - Growth, Trends, COVID-19 Impact, and Forecasts (2023-2028)

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  • 120 Pages
  • April 2023
  • Region: Global
  • Mordor Intelligence
  • ID: 4745422
The security-as-a-service market is expected to grow at a CAGR of 16.3% over the forecast period. The rise in the threats across enterprises and corporates and the subsequent increase in identity thefts have contributed to the highest demand for security-as-a-service solutions, driving the market considerably.

Key Highlights

  • With the improved business IT infrastructure, threats related to data (data breaches) are also rising, which demands advanced security solutions over traditional ones. With this trend gaining traction in the market, companies have started investing their resources in enhancing their advanced security offerings, fuelling the market’s growth significantly.
  • Businesses are increasingly migrating their data to the cloud and improving their information technology infrastructure, which increases the risks to their data. As a result, security solutions are in great demand to ensure data security. Furthermore, among the various solutions offered by the security-as-a-service solution, identity and access management (IAM) stood out to be the most significant, as it focuses on authentication, authorization, and administration of identities and audits.
  • Moreover, various key players are well-indulged in multiple strategic partnerships and collaborations. For instance, in February last year, Allot Ltd., a provider of innovative network intelligence and security-as-a-service (SECaaS) solutions for communication service providers (CSPs) and enterprises, declared a strategic collaboration agreement with Amazon Web Services (AWS). The relationship would allow CSPs to deploy new Allot cloud-native application workloads on AWS and extend their existing Allot deployments. The strategic collaboration would also augment the ability of CSPs to leverage the full suite of Allot cloud-native applications on AWS, delivering a scalable and consistent operating model for 5G cloud-based networks and services.
  • However, the rise in the vulnerability of cloud-based applications to cybercrimes could be a significant matter of concern that could restrict the market’s growth throughout the forecast period.
  • The COVID-19 pandemic led to dynamic changes in the corporate work culture, making working from home a new norm for millions of workforces. This sudden change in the working environment brought forth many security concerns for employees depending on their home networks and often their equipment to execute tasks. Due to such a functional style, confidential information is more likely to fall into an unsecured environment, driving the market’s growth rate exponentially.

SECaaS Market Trends

Secure Email Gateway is Expected to Hold a Significant Share

  • Electronic mail is the first-ever innovation in the internet world. In the current market scenario, most corporate communication occurs through emails, facilitating multiple functions like scheduling appointments, approving tasks, etc. With the internet becoming increasingly accessible, the total number of emails sent and received globally increased yearly. As per The Radicati Group, in 2021, an estimated 319.6 billion emails were sent and received daily worldwide. This figure is anticipated to rise to around 376.4 billion daily emails by 2025.
  • It gives immense scope to the hackers to send out spam emails to gain sensitive information from the user. Emails are even a significant target for social engineering attacks. In most security incidents, the breaches start with a phishing email, which the hacker uses to trick someone into giving them access to some account, log-in, or financial information. Then they proceed to a technical hack.
  • In January this year, a data leak described as containing email addresses for over 200 million Twitter users was published on a popular hacker forum for about USD 2. BleepingComputer confirmed the validity of many of the email addresses listed in the leak. Also, since July last year, threat actors and data breach collectors have been selling and circulating large data sets of scraped Twitter user profiles containing both private (email addresses and phone numbers) and public data on various online hacker forums and cybercrime marketplaces.
  • Also, in January this year, a new phishing campaign was uncovered, impersonating logistics giant DHL to try and steal Microsoft 365 credentials from victims in the education industry. Cybersecurity researchers from Armorblox recently discovered an effective phishing campaign, with more than 10,000 emails sent to inboxes belonging to a 'private education institution.' The email is made to look as if it's coming from DHL: it carries the company branding and tone of voice one might associate with the shipping giant. In the email titled 'DHL Shipping Document/Invoice Receipt,' the recipient is informed that a customer sent a parcel to the wrong address and that the correct delivery address needs to be provided.
  • As per the Anti-Phishing Working Group (APWG), around 23.6 % of phishing attacks worldwide were mainly directed toward financial institutions during the first quarter of the last year. On top of that, web-based software services and webmail accounted for around 20.5 % of attacks making these two the highest-targeted industries for phishing throughout the examined quarter.

North America to Account for a Major share

  • Regionally, North America is expected to hold a significant market share due to many SECaaS vendors. The US market houses the headquarters for the leading global cloud providers, and the country includes a considerable percentage of cloud storage. The data amount generated in the country led to a significant driver of adopting the security-as-a-service solution.
  • The increasing adoption of undefended modern technologies like the Internet of Things (IoT) and the escalation in cybercrime activity in North America gave rise to more damaging breaches. As per the Identity Theft Resource Center, in the first half of the last year, the total number of data compromises in the United States came in at around 817 cases. Meanwhile, throughout the same time, more than 53 million individuals were heavily affected by data compromises, which included data exposure, data leakage, and data breaches.
  • As a result, organizations are upgrading their IT and data security to avoid cyber-attacks. Well-funded intruders have developed sophisticated evasion techniques to remain undetected by the traditional security appliances and software deployed in the organizations. Many large enterprises in North America opt for cloud-based security service packages to decrease intruder evasion, including managed security services.
  • For instance, in November last year, AWS (Amazon Web Services), headquartered in Seattle, Washington, launched a new cybersecurity service, Amazon Security Lake, which automatically centralizes security data from the cloud and on-premises sources into a purpose-built data lake in a customer’s AWS account. Thus, customers could quickly detect and respond to security risks to take swift action to secure networks and data.
  • The increasing complexity of shielding infrastructure against advanced threats or cyberattacks forces various businesses to adopt security services. Targeted attacks have become increasingly complex in significant sectors like BFSI, healthcare, IT, and telecommunications. Additionally, the prominent C-Suite executives and policymakers in the United States are investing in security software, infrastructure, and emerging technologies, to protect the data from growing cybersecurity risks. The higher dependence on cloud-based applications and investments by players in the country in security solutions is driving the demand for the security-as-a-service market in the United States.

SECaaS Market Competitor Analysis

The SECaaS market is highly fragmented. Overall, the competitive rivalry among existing competitors is high. Moving forward, the product innovation strategy of large companies is boosting market growth. Some of the critical advancements in the area are:
  • December 2022 - Allot Ltd., a provider of innovative network intelligence and security-as-a-service (SECaaS) solutions for communication service providers (CSPs) and enterprises, declared that Far EasTone Telecommunications (FET) in Taiwan had introduced cybersecurity threat protection and comprehensive content control services for its mobile customers based on the Allot NetworkSecure solution. Allot is partnering with CommVerge for solution integration and ongoing local support.
  • May 2022 - Intel launched a new security-as-a-service (SeCaaS) product, mainly designed to provide remote verification of the trustworthiness of a computing asset in edge, on-premise, and cloud environments. The solution, Project Amber, is Intel’s latest effort to enhance its confidential computing services.

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  • The market estimate (ME) sheet in Excel format
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Table of Contents

1.1 Scope of the Study
4.1 Market Overview
4.2 Industry Value Chain Analysis
4.3 Industry Attractiveness - Porter's Five Forces Analysis
4.3.1 Bargaining Power of Suppliers
4.3.2 Bargaining Power of Buyers/Consumers
4.3.3 Threat of New Entrants
4.3.4 Threat of Substitute Products
4.3.5 Intensity of Competitive Rivalry
5.1 Market Drivers
5.1.1 Increasing Need for Advanced Cloud Security Solutions
5.1.2 Increasing Trend of BYOD in Enterprises
5.2 Market Restraints
5.2.1 Vulnerability of Cloud-Based Applications to Cyber Crimes
6.1 By Solution
6.1.1 Identity and Access Management
6.1.2 Secure Email Gateway
6.1.3 Secure Web Gateway
6.1.4 Vulnerability Management
6.1.5 Security Information and Event Management
6.1.6 Application Security Testing
6.1.7 Other Solutions
6.2 By Organization Size
6.2.1 Small and Medium Enterprises
6.2.2 Large Enterprises
6.3 Geography
6.3.1 North America United States Canada
6.3.2 Europe United Kingdom Germany France Rest of Europe
6.3.3 Asia-Pacific China India Japan Australia Rest of Asia-Pacific
6.3.4 Latin America
6.3.5 Middle East & Africa
7.1 Company Profiles
7.1.1 Barracuda Networks Inc.
7.1.2 Dell Technologies
7.1.3 IBM Corporation
7.1.4 Proofpoint Inc.
7.1.5 Sophos PLC
7.1.6 Trend Micro Incorporated
7.1.7 Websense Inc.
7.1.8 ZSCaler Inc.
7.1.9 McAfee (Intel)
7.1.10 Cisco Systems Inc.
7.1.11 Symantec Corporation
7.1.12 Qualys Inc.

Companies Mentioned (Partial List)

A selection of companies mentioned in this report includes, but is not limited to:

  • Barracuda Networks Inc.
  • Dell Technologies
  • IBM Corporation
  • Proofpoint Inc.
  • Sophos PLC
  • Trend Micro Incorporated
  • Websense Inc.
  • ZSCaler Inc.
  • McAfee (Intel)
  • Cisco Systems Inc.
  • Symantec Corporation
  • Qualys Inc.