Managed Security Services Market (By Security: Could Security, Endpoint Security, Network Security, Data Security; By Services; By Enterprise Size; By Vertical) - Global Industry Analysis, Size, Share, Growth, Trends, Revenue, Regional Outlook and Forecast 2023-2032

The global managed security services market was surpassed at USD 27.22 billion in 2022 and is expected to hit around USD 114.21 billion by 2032, growing at a CAGR of 15.42% from 2023 to 2032.  The managed security services market in the United States was accounted for USD 7.6 billion in 2022.

Key Pointers

• North America accounted for over 35% revenue share of the market in 2022 and is expected to grow steadily during the forecast period
• The Asia Pacific market is expected to register the highest CAGR of 18.22% from 2023 to 2032 due to the increasing demand for outsourcing services from third parties
• The cloud security segment is expected to mark the highest CAGR of about 18.02% over the forecast period. 
• The managed DDoS segment is anticipated to witness a CAGR of more than 18.73 % over the forecast period
• The SMEs segment is expected to attain the highest CAGR of 18.15% over the forecast period
• The large enterprise segment has the highest market share of 58% in 2022.
• The BFSI segment held the second-largest revenue share in 2022, accounting for around 15% of the overall market
• The healthcare segment held the third-largest revenue share in 2022, accounting for around 14.64% of the overall market.

Report Scope of the Managed Security Services Market

The growth of the managed security services industry is driven by the increased number of new threats, government regulations, and the proliferation of data generated by consumers. The digital movement has created a plethora of new opportunities for cyber-attacks. The diversification of technology and the shortage of skilled cybersecurity laborers has created new avenues for managed security services providers. Moreover, the growing cyber threat landscape and ransomware have propelled the demand for managed security services over the forecast period.

The managed security services capabilities include exposure assessment, detection and response, security monitoring, and operational services specific to security technology implementation and consulting. MSS providers offer a wide range of engagement models with technology-based management-driven experience. Managed security services have become the systematic approach to growing business requirements. Outsourcing has become prevalent and viable for many SMEs and large enterprises.

IT enterprises continuously install new technologies such as cloud computing, artificial intelligence, machine learning, DevOps, and many more to sustain and maintain balance with evolving modes. As a result, outsourcing services from managed security vendors helps organizations curtail cybersecurity threats. Moreover, managed security services encapsulate various features that enable organizations to manage and protect digital assets from cyber threats. Managed security services often integrate features, such as including 24/7 threat detection, rapid threat response, remote wipes, threat hunting capabilities, device encryption, and app management, to enhance security and compliance management.

Moreover, the COVID-19 pandemic has pressured digital ecosystems to safeguard data from malicious attackers. The threat landscape is shifting dynamically, and the continuous rise in cyberattacks coupled with a shortage of trained workforce and complexity is pushing organizations to outsource security-related services. As per IDC security services, 60% of organizations have adopted cloud technology services and migrated towards outsourcing managed security services.

The shift toward cloud technology has opened new ventures for managed security services market. For a few decades, Bring Your Own Device has been gaining a slow momentum in enterprises, and the advancement of Industry 4.0 is driving the expansion of managed security services. Post pandemic scenario has underlined the importance of stringent government regulations to strengthen digital security services. For instance, in SepteWipro collaborated with Palo Alto Networks to provide end-to-end security and next-generation security to secure critical data by offering easy-to-manage solutions.

Security Insights

The security market is segmented into four components: cloud security, endpoint security, network security, and data security. The data security segment led the market in 2022 with more than USD 6.47 billion in revenue. Data security in IT firms is reaching new dimensions in managing who can access sensitive data. Enterprises can mitigate the theft risk by training employees and improving access control.

The cloud security segment is expected to mark the highest CAGR of about 18.02% over the forecast period. Modern business is expected to gain transition as enterprises are shifting toward cloud adoption. Moreover, organizations are adopting cloud technologies to scale up with emerging technologies such as IoT, Artificial Intelligence, Machine learning, and others by providing more data storage and safety measures.

Service Insights

The managed DDoS segment is anticipated to witness a CAGR of more than 18.73 % over the forecast period.  The increasing demand for specialized skills, cost-effectiveness, scalability, and the capacity to keep up with the changing threat landscape drives the development of DDoS-managed security services. In recent years, DDoS attacks have increased in frequency and complexity. Hackers are constantly inventing new methods and resources for planning effective attacks. DDoS attacks must be efficiently addressed with specialized expertise and resources. Many businesses lack the internal knowledge and skilled security staff to prevent such attacks. Managed security service companies aim to launch dedicated staff members with in-depth knowledge of DDoS mitigation, providing a higher level of security than businesses can accomplish independently.

The managed risk and compliance segment has dominated the market with the second-highest revenue of 4.34 billion in 2022 and is expected to keep leading the market segment over the forecast period. The segment's dominance can be attributed to the increasing number of cyberattacks across the globe and the stringent implementation of government regulations. The risk and compliance segment has gained traction as the organization can design strategies and implement regulations to overcome the challenges related to cyber theft.

Enterprise Insights

The SMEs segment is expected to attain the highest CAGR of 18.15% over the forecast period. Due to its increased adoption of managed security services. SMEs have smaller budgets than larger companies but still need data security help. Cybersecurity companies aim to offer simple, scalable solutions to cater to SMEs' IT competence levels SMEs need more resources to monitor their systems regularly, leaving them open to intrusions outside regular business hours.  Managed security providers are coping by offering round-the-clock monitoring and rapid incident response to ensure that potential security incidents are instantly identified and fixed.

The large enterprise segment has the highest market share of 58% in 2022. Large enterprises are majorly inclined towards outsourcing services. The rise in cyberattacks, which makes large firms susceptible to unexpected losses in revenue and reputation, is another crucial market factor driving market growth. Large organizations are inclined towards managed services to lower phishing attacks, the risk of data breaches, and other cyber threats. Large organizations aim to focus more on security governance and compliance as data security and privacy rules become more important. The managed security services facilitate the development of regulations and procedures to govern access to sensitive information and access while maintaining regulatory compliance.

Vertical Insights

The BFSI segment held the second-largest revenue share in 2022, accounting for around 15% of the overall market. The proliferation in the IT infrastructure and rapid industrialization worldwide are some of the key areas driving the demand for managed security services. Cloud technology has become a center for BFSI firms’ future growth and innovation strategy because of the dramatic shift toward the digital platform of engagement and transactions; banks have outsourced security services catering to their requirements.

The healthcare segment held the third-largest revenue share in 2022, accounting for around 14.64% of the overall market. Post-Pandemic healthcare organizations aim to fill in gaps in their security program and secure their vital systems and data throughout the broader IT ecosystem. The healthcare providers are teaming with a Managed Security Service Provider to bolster their security teams with the appropriate procedures, personnel, and tools. In the healthcare sector, breaches and cyberattacks are on the rise, and the truth is that patient-sensitive data and, more crucially, lives are at risk.

Regional Insights

North America accounted for over 35% revenue share of the market in 2022 and is expected to grow steadily during the forecast period. The region is expected to remain dominant due to the increased demand for outsourcing services from several tech giants. Managed service offerings to better meet individual needs and the increasing demand for cloud computing, network security, and data security are further expected to support regional growth. The growing number, variety, and complexity of cyber threats targeted at expanding exposure footprint drive market demand.

The Asia Pacific market is expected to register the highest CAGR of 18.22% from 2023 to 2032 due to the increasing demand for outsourcing services from third parties. MSS's growth is also primarily driven by the APAC region's shortage of skilled cyber professionals. Many large organizations have established their own Security Operations Centers (SOCs) but need more human resources to staff. These centers optimally as they are outsourcing services from MSSP vendors. SMEs typically do not have financial flexibility; hence, they rely on outsourcing their cybersecurity management and operations at a reasonable price range.

Managed Security Services Market Segmentations:

By Security 

• Cloud Security
• Endpoint Security
• Network Security
• Data Security
• Others

By Services 

• Managed SIEM
• Managed UTM
• Managed DDoS
• Mnaged XDR
• Managed IAM
• Managed Risk & Compliance
• Others

By Enterprise Size 

• Small and medium-sized enterprises
• Large enterprises

By Vertical 

• BFSI
• Healthcare
• Manufacturing
• IT and Telecom
• Retail
• Defense/Government
• Others

By Regional 

• North America
  • U.S.
  • Canada
• Europe
  • UK
  • Germany
  • France
  • Italy
  • Spain
• Asia Pacific
  • China
  • India
  • Japan
  • Australia
  • South Korea
• Latin America
  • Brazil
  • Mexico
  • Argentina
• Middle East & Africa
  • UAE
  • Saudi Arabia
  • South Africa