The global managed security services market size was estimated to be USD 28.43 billion in 2023 and is expected to reach at USD 143.56 billion by 2034 with a CAGR of 15.86% during the forecast period 2024-2034. Surge in number of new threats, rising government regulations, the proliferation of data generated by consumers, the expansion of technology & the scarcity of proficient cybersecurity professionals, the digital revolution has generated numerous new possibilities for cyberattacks, expanding cyber threat landscape particularly in the context of ransomware attacks, growing prevalence of outsourcing, increasing adoption of novel technologies like cloud computing, artificial intelligence, machine learning, DevOps, & others to adapt & keep pace with evolving trends, rising shift toward cloud technology, and increasing partnerships & collaborations within market players are some of the crucial factors fuelling the market growth.
Increasing partnerships & collaborations within market players is predicted to boost the market growth during the forecast period. Managed security service providers have demonstrated their effectiveness as solutions for organizations, assisting in safeguarding corporate internet assets, password files, critical emails, and networks. Consequently, the adoption of managed security services is on the rise among organizations of varying sizes, as businesses increase their investments in network protection. These providers offer cost-effective, reliable, and efficient security solutions to customer/client businesses, aiding in the protection of sensitive information and, consequently, their overall business operations. For instance, in June 2022, Alert Logic, a part of HelpSystems, has unveiled a strategic partnership with TD SYNNEX, a well-known IT distributor and solutions aggregator within the IT ecosystem. This collaboration aims to enhance its range of solutions by incorporating managed detection and response (MDR) capabilities. The agreement has the potential to establish Alert Logic as the preferred MDR provider for a worldwide network of technology partners, thus expanding its market presence and demonstrating the effectiveness of its partner program.
By security, data security was the highest revenue-grossing segment in the global managed security services market in 2023. Data security within IT companies is advancing to new levels in terms of regulating access to sensitive data. Organizations can reduce the risk of data theft by providing employee training and enhancing access control measures. Additionally, cloud security is predicted to grow at fastest CAGR during the forecast period owing to the growing adoption of cloud technology by modern business to expand their operations & integrate emerging technologies like IoT, Artificial Intelligence, Machine Learning, and others and increasing launch of advanced platforms. For instance, in November 2022, Fortinet, a renowned global provider of comprehensive, integrated, and automated cybersecurity solutions, has introduced the FortiGate Cloud-Native Firewall on Amazon Web Services (AWS). This firewall is designed to identify and respond to both internal and external malicious threats in real-time.
By service, managed DDoS was the highest revenue-grossing segment in the global managed security services market in 2023 owing to the rising need for specialized expertise, cost-efficiency, scalability, & the ability to adapt to the evolving threat landscape, rising prevalence of DDoS attacks, lack of internal knowledge & skilled security staff to prevent such attacks. Additionally, managed risk & compliance is predicted to grow at fastest CAGR during the forecast period owing to the increasing number of cyberattacks, rising implementation of stringent government regulations, organizations can develop strategies & enforce regulations to effectively address challenges associated with cyber theft, and surge in launch of advanced platforms. For instance, in September 2022, Check Point Software Technologies Ltd. has released Check Point Horizon, a suite of cybersecurity tools with a focus on prevention. This suite is designed to proactively prevent future cyberattacks and enhance defense across network and cloud endpoints.
By enterprise, small and medium-sized enterprises (SMEs) was the highest revenue-grossing segment in the global managed security services market in 2023 owing to the growing adoption of managed security services, rising need of data security help, and increasing mergers & collaborations within market players. For instance, in September 2022, Fujitsu Limited and its subsidiary, Fujitsu Australia and New Zealand, have acquired the cybersecurity company InPhySec in New Zealand. This acquisition aims to bolster their cybersecurity capabilities and provide professional services to assist customers in their digital transformation efforts, emphasizing the importance of robust security practices in the process. Additionally, large enterprise is predicted to grow at fastest CAGR during the forecast period owing to the rising inclination towards outsourcing services, surge in cyberattacks, increasing prioritizing security governance & compliance as data security & privacy regulations gain greater significance.
By vertical, BFSI was the highest revenue-grossing segment in the global managed security services market in 2023 owing to the widespread expansion of IT infrastructure and rapid industrialization. Cloud technology has emerged as a focal point for the future growth and innovation strategies of BFSI (Banking, Financial Services, and Insurance) firms. This shift is primarily driven by the significant transition to digital platforms for engagement and transactions. In response, banks have increasingly turned to outsourcing security services to meet their specific needs. Additionally, healthcare is predicted to grow at fastest CAGR during the forecast period owing to the healthcare organizations are actively working to address deficiencies in their security programs and enhance the protection of their critical systems and data within the broader IT environment. Healthcare providers are collaborating with Managed Security Service Providers to augment their security teams with the necessary processes, skilled personnel, and advanced tools. This partnership is becoming increasingly essential in the healthcare sector as security breaches and cyberattacks continue to escalate, posing significant risks to patient-sensitive information and, more importantly, people's lives. For instance, in May 2022, Palo Alto Networks and Deloitte have extended their existing strategic partnership to provide managed security services to their joint clients in the United States. This expansion involves making Palo Alto Networks' industry-leading cybersecurity technology portfolio accessible through outcome-based, managed services offered by Deloitte.
North America region is anticipated for the highest revenue share during the forecast period owing to the rising demand for outsourcing services, growing demand for cloud computing, network security, & data security, increase in the quantity, diversity, & intricacy of cyber threats aimed at expanding the range of vulnerabilities, and surge in launch of advanced systems. For instance, in April 2022, Ace Cloud Hosting (ACE), a global provider of cloud services for application hosting and virtual desktops, has introduced its Managed Security Services (MSS). Additionally, Asia Pacific region is predicted to grow at fastest CAGR during the forecast period owing to the surge in demand for outsourcing services, shortage of skilled cyber professionals, and rising investment by major market players. For instance, in February 2022, IBM has unveiled plans to increase its resources in the Asian-Pacific (APAC) region to assist businesses in preparing for and addressing the rising threat of cyberattacks. As part of this initiative, IBM is establishing the first IBM Security Command Center in the region. This center will focus on educating individuals at all levels, from the C-suite to technical staff, on cybersecurity response strategies through highly realistic simulated cyberattacks. Additionally, IBM is investing in a new Security Operations Center (SOC), which may become a part of the existing global SOC network, offering around-the-clock security response services to clients worldwide.
Increasing partnerships & collaborations within market players is predicted to boost the market growth during the forecast period. Managed security service providers have demonstrated their effectiveness as solutions for organizations, assisting in safeguarding corporate internet assets, password files, critical emails, and networks. Consequently, the adoption of managed security services is on the rise among organizations of varying sizes, as businesses increase their investments in network protection. These providers offer cost-effective, reliable, and efficient security solutions to customer/client businesses, aiding in the protection of sensitive information and, consequently, their overall business operations. For instance, in June 2022, Alert Logic, a part of HelpSystems, has unveiled a strategic partnership with TD SYNNEX, a well-known IT distributor and solutions aggregator within the IT ecosystem. This collaboration aims to enhance its range of solutions by incorporating managed detection and response (MDR) capabilities. The agreement has the potential to establish Alert Logic as the preferred MDR provider for a worldwide network of technology partners, thus expanding its market presence and demonstrating the effectiveness of its partner program.
By security, data security was the highest revenue-grossing segment in the global managed security services market in 2023. Data security within IT companies is advancing to new levels in terms of regulating access to sensitive data. Organizations can reduce the risk of data theft by providing employee training and enhancing access control measures. Additionally, cloud security is predicted to grow at fastest CAGR during the forecast period owing to the growing adoption of cloud technology by modern business to expand their operations & integrate emerging technologies like IoT, Artificial Intelligence, Machine Learning, and others and increasing launch of advanced platforms. For instance, in November 2022, Fortinet, a renowned global provider of comprehensive, integrated, and automated cybersecurity solutions, has introduced the FortiGate Cloud-Native Firewall on Amazon Web Services (AWS). This firewall is designed to identify and respond to both internal and external malicious threats in real-time.
By service, managed DDoS was the highest revenue-grossing segment in the global managed security services market in 2023 owing to the rising need for specialized expertise, cost-efficiency, scalability, & the ability to adapt to the evolving threat landscape, rising prevalence of DDoS attacks, lack of internal knowledge & skilled security staff to prevent such attacks. Additionally, managed risk & compliance is predicted to grow at fastest CAGR during the forecast period owing to the increasing number of cyberattacks, rising implementation of stringent government regulations, organizations can develop strategies & enforce regulations to effectively address challenges associated with cyber theft, and surge in launch of advanced platforms. For instance, in September 2022, Check Point Software Technologies Ltd. has released Check Point Horizon, a suite of cybersecurity tools with a focus on prevention. This suite is designed to proactively prevent future cyberattacks and enhance defense across network and cloud endpoints.
By enterprise, small and medium-sized enterprises (SMEs) was the highest revenue-grossing segment in the global managed security services market in 2023 owing to the growing adoption of managed security services, rising need of data security help, and increasing mergers & collaborations within market players. For instance, in September 2022, Fujitsu Limited and its subsidiary, Fujitsu Australia and New Zealand, have acquired the cybersecurity company InPhySec in New Zealand. This acquisition aims to bolster their cybersecurity capabilities and provide professional services to assist customers in their digital transformation efforts, emphasizing the importance of robust security practices in the process. Additionally, large enterprise is predicted to grow at fastest CAGR during the forecast period owing to the rising inclination towards outsourcing services, surge in cyberattacks, increasing prioritizing security governance & compliance as data security & privacy regulations gain greater significance.
By vertical, BFSI was the highest revenue-grossing segment in the global managed security services market in 2023 owing to the widespread expansion of IT infrastructure and rapid industrialization. Cloud technology has emerged as a focal point for the future growth and innovation strategies of BFSI (Banking, Financial Services, and Insurance) firms. This shift is primarily driven by the significant transition to digital platforms for engagement and transactions. In response, banks have increasingly turned to outsourcing security services to meet their specific needs. Additionally, healthcare is predicted to grow at fastest CAGR during the forecast period owing to the healthcare organizations are actively working to address deficiencies in their security programs and enhance the protection of their critical systems and data within the broader IT environment. Healthcare providers are collaborating with Managed Security Service Providers to augment their security teams with the necessary processes, skilled personnel, and advanced tools. This partnership is becoming increasingly essential in the healthcare sector as security breaches and cyberattacks continue to escalate, posing significant risks to patient-sensitive information and, more importantly, people's lives. For instance, in May 2022, Palo Alto Networks and Deloitte have extended their existing strategic partnership to provide managed security services to their joint clients in the United States. This expansion involves making Palo Alto Networks' industry-leading cybersecurity technology portfolio accessible through outcome-based, managed services offered by Deloitte.
North America region is anticipated for the highest revenue share during the forecast period owing to the rising demand for outsourcing services, growing demand for cloud computing, network security, & data security, increase in the quantity, diversity, & intricacy of cyber threats aimed at expanding the range of vulnerabilities, and surge in launch of advanced systems. For instance, in April 2022, Ace Cloud Hosting (ACE), a global provider of cloud services for application hosting and virtual desktops, has introduced its Managed Security Services (MSS). Additionally, Asia Pacific region is predicted to grow at fastest CAGR during the forecast period owing to the surge in demand for outsourcing services, shortage of skilled cyber professionals, and rising investment by major market players. For instance, in February 2022, IBM has unveiled plans to increase its resources in the Asian-Pacific (APAC) region to assist businesses in preparing for and addressing the rising threat of cyberattacks. As part of this initiative, IBM is establishing the first IBM Security Command Center in the region. This center will focus on educating individuals at all levels, from the C-suite to technical staff, on cybersecurity response strategies through highly realistic simulated cyberattacks. Additionally, IBM is investing in a new Security Operations Center (SOC), which may become a part of the existing global SOC network, offering around-the-clock security response services to clients worldwide.
Segmentation: Managed Security Services Market Report 2023 - 2034
Managed Security Services Market Analysis & Forecast by Security 2023 - 2034 (Revenue USD Bn)
- Network Security
- Cloud Security
- Data Security
- Endpoint Security
- Others
Managed Security Services Market Analysis & Forecast by Service 2023 - 2034 (Revenue USD Bn)
- Managed XDR
- Managed SIEM
- Managed DDoS
- Managed IAM
- Managed UTM
- Managed Risk & Compliance
- Others
Managed Security Services Market Analysis & Forecast by Enterprise 2023 - 2034 (Revenue USD Bn)
- Large Enterprises
- Small And Medium-Sized Enterprises
Managed Security Services Market Analysis & Forecast by Vertical 2023 - 2034 (Revenue USD Bn)
- Retail
- BFSI
- Manufacturing
- Healthcare
- IT and Telecom
- Defense/Government
- Others
Managed Security Services Market Analysis & Forecast by Region 2023 - 2034 (Revenue USD Bn)
- North America
- U.S.
- Canada
- Europe
- Germany
- France
- UK
- Spain
- Italy
- Rest of Europe
- Asia Pacific
- China
- Japan
- India
- Australia
- South Korea
- Rest of APAC
- Latin America
- Brazil
- Mexico
- Argentina
- Rest of LATAM
- Middle East & Africa
- South Africa
- GCC
- Rest of MEA
Table of Contents
1. Research Methodology
2. Introduction
4. Market Environment Analysis
5. Market Dynamics
7. Managed Security Services Market: Security Estimates & Trend Analysis
8. Managed Security Services Market: Service Estimates & Trend Analysis
9. Managed Security Services Market: Enterprise Estimates & Trend Analysis
10. Managed Security Services Market: Vertical Estimates & Trend Analysis
11. Regional Market Analysis
12. North America Managed Security Services Market
13. Europe Global Managed Security Services Market
14. Asia Pacific Global Managed Security Services Market
15. Latin America Global Managed Security Services Market
16. MEA Global Managed Security Services Market
17. Competitor Analysis
18. Company Profiles
Companies Mentioned
- Cisco
- AT&T
- Rapid 7
- Fujitsu
- Wipro
- Fortinet Inc.
- Verizon
- IBM
- BAE Systems Inc.
- Palo Alto Networks
- Check Point Software Technologies
Table Information
| Report Attribute | Details |
|---|---|
| No. of Pages | 200 |
| Published | January 2024 |
| Forecast Period | 2023 - 2034 |
| Estimated Market Value ( USD | $ 28.43 Billion |
| Forecasted Market Value ( USD | $ 143.56 Billion |
| Compound Annual Growth Rate | 15.8% |
| Regions Covered | Global |
| No. of Companies Mentioned | 11 |
