Managed Security Services Market

Global Managed Security Services Market is valued at USD 32.04 Billion in 2021 and expected to reach USD 56.75 Billion by 2028 with a CAGR of 8.59% over the forecast period.

Scope of Global Managed Security Services Market

The global Managed Security Services Market refers to the remote monitoring and management of IT security functions by third-party service providers to effectively protect the sensitive data of organizations. The task of information security is becoming more complex with the growth of business in terms of size and structure and the use of social media, cloud services, big data, and various computer tools. The growing number of security attacks and malicious practices by organized cybercrime groups have increased the concern among organizations. In addition, increasing complexities in network infrastructure are becoming major barriers to data security management. In such a situation, managed security service providers have emerged as an attractive option for security work outsourcing organizations.

Furthermore, affordable, reliable, and effective security measures from managed security service providers help customer/client organizations to protect their sensitive information and alternatively their business. These services form a large part of the size of the managed security market. There is a growing trend to adopt BYOD in the workplace to improve productivity by allowing employees to access corporate data through personal devices. Lack of capital resources and skilled IT personnel have diverted organizations from in-house security management to outsourcing. In addition, compliance requirements for data security encourage organizations to outsource data security functions.

Since the outbreak of Covid-19, the demand for cloud-based solutions has increased significantly due to the adoption of remote working models by enterprises; however, various industries like retail, manufacturing, BFSI, and others have seen a significant decline in their revenue in 2020. As MSPs serve entrepreneurs working in such industries, they have also seen a slight decline in revenue and growth. Moreover, various end-user sectors are demonstrating their growing demand for express delivery of offerings that are driving cost increases in the managed security services market. For example; express delivery of products such as investigative medical products, clinical supplies, and patient samples is important for buyers in the healthcare sector.

Global managed security services market is segmented into deployment mode, application, and vertical. On the basis of deployment mode, the market is segmented into hosted or cloud-based MSS, on-premise or customer-premise, equipment (CPE) MSS, organization size, small- & medium-sized businesses, and large businesses. On the basis of application, the managed security services market is segmented into managed IPS and IDS, distributed denial of services (DDoS), Unified threat management (UTM), secured information & event management (SIEM), firewall management, endpoint security and others. On the basis of vertical, the managed security services market is segmented into banking financial services & insurance (BFSI), healthcare manufacturing, retail, telecom & IT and others.

The regions covered in this Global Managed Security Services Market report are North America, Europe, Asia-Pacific, and Rest of the World. Based on country level, the market of Managed security service is sub divided into U.S., Mexico, Canada, U.K., France, Germany, Italy, China, Japan, India, Southeast Asia, Middle East Asia (UAE, Saudi Arabia, Egypt) GCC, Africa, etc.

Global Managed Security Services Market Segmentation

By Deployment Mode

• Hosted or cloud-based MSS
• On-premise or customer-premise equipment (CPE) MSS
• Organization Size
• Small- & medium-sized businesses
• Large businesses

By Application

• Managed IPS and IDS
• Distributed Denial of Services (DDoS)
• Unified threat management (UTM)
• Secured information & event management (SIEM)
• Firewall management
• Endpoint Security
• Others

By Vertical

• Banking Financial Services & Insurance (BFSI)
• Healthcare
• Manufacturing
• Retail
• Telecom & IT
• Others

Managed Security Services Companies

• HP 
• Cisco Systems Inc.  
• Dell SecureWorks  
• AT&T  
• BT Group 
• Computer Science Corp.  
• Symantec Corp. 
• Fortinet Inc. 
• Check Point Software Technologies Ltd.  
• Others 

Increasing Number of Cyber Security Attacks is One of the Major Factors Driving the Market Growth

The increasing cases of cyber security attacks has led to the growth of the global managed security services market. Internet crime is currently on the rise through hacking. This includes some big and small businesses, as well as banks, hospitals. Data theft, money theft is on the rise. As a result, the demand for managed security services in the market is increasing. According to a report by Carbon Black, 88% of companies in the UK have had violations in the last 12 months. This is lower than Germany (92%), France (94%) and Italy (90%). A small business in the UK is successfully hacked every 19 seconds, according to Hiscox. There are around 65,000 attempts to hack small to medium sized businesses (SMBs) every day in the UK, of which around 4,500 are successful. This is about 1.6 million of the 5.7 million SMBs in the UK each year. Cisco estimates that 53% of SMBs experienced global security breaches in 2018.

Banking, financial services, and insurance enterprises need highly complex IT infrastructure to maintain and manage data from trading instruments to record-keeping, as well as reporting and calculations. Apart from this, there are multiple stringent regulations and compliance that Banking, financial services, and insurance enterprises are supposed to comply with. Enterprises are highly charged for violation of these regulations. Hence, to avoid fines, enterprises require managed services. Financial transactions involve exchanging information with customers or internally; IT services are essential to their success.

Hence, banking, financial services, and insurance enterprises need managed security services to help provide services for ultra-low latency trading, market data, hosting, and infrastructure connectivity, and risk management solutions. Data encryption and secure backup are highly demanded by these enterprises, along with a full range of backup and disaster recovery (BDR) solutions to meet federal compliance regulations. managed security services are specialized in BDR for financial services and help these businesses protect sensitive information, mitigate downtime, and promote overall business continuity. Managed network, managed security, and managed IT infrastructure are the most popular managed services across the banking, financial services, and vertical insurance.

However, concerns regarding sharing the sensitive data may hamper the market growth. In spite of that, increasing use of mobile devices, growing demand for managed security services from small and medium enterprises and cost effectiveness may create more opportunities for the further growth of the global managed security services market.

Executive Summary

The managed security service market in terms of revenue was worth of USD 32.04 Billion in 2021. The global managed security service market is expected to grow at a significant growth rate due to the number of driving factors such as increasing adoption of BYOD and WFH trends, growing cyber-crimes across the globe, rising recent developments, and many more. A managed security service helps to protect businesses from several security threats. Managed security services (MSS) are recognized as network security services that have been outsourced to a service provider. Safety and risk leaders are progressively outsourcing their security platforms to managed security services providers. These are further advanced competencies, determine security impact and value, and lessen the difficulty. Certain of the services consist of intrusion detection, managed firewall, virtual private network, vulnerability scanning, and anti-viral services. Managed security services use high-availability safety operation centers (maybe from their own amenities or from other data center suppliers) to deliver 24/7 services planned to decrease the number of operational securities. MSS providers are a well-organized and cost-effective method to secure the data. They deliver cyber security monitoring and management, which may comprise intrusion detection, virus & spam blocking, firewalls, and virtual private network (VPN) management.  Managed security services also increase security expertise as well as lessen the workload of their in-house safety staff. There are wide variety of managed security services and providers in the market nowadays, so it is significant to recognize the needs of organizations and engage the best-managed security service providers to address them. In the late 1990s, the history of managed security service providers was began with Internet Service Providers.

The study provides a crucial view of the global managed security service market by segmenting the market-based service, deployment mode, industry verticals, and by region & countries. Based upon the service, global managed security service market is segmented IPS and IDS, distributed denial of services (DDoS), unified threat management (UTM), secured information & event management (SIEM), endpoint security, firewall management, and others. Based upon the deployment mode, global managed security service market is segmented into on-premises and cloud.  Based upon the industry verticals, global managed security service market is segmented into banking financial services & insurance (BFSI), healthcare, manufacturing, retail, telecom and information technology, and others.

Among several optimistic factors contributing to the growth of managed security service market, highly increasing cyber-crime and cyber-attacks are some of the major factors significantly supplementing the market growth throughout the world. Nowadays, internet crime is on the rise through hacking, scamming day by day along with growing digitalization worldwide. With the digitization of the working world, the risks of hacker attacks and data theft are significantly spreading. For instance; according to Comparitech on June 29^th, 2021, there were more than 137.7 million new malware samples reported in 2020. Nearly 200 million ransomware attacks were observed in the first nine months of 2020. Also, as per the Security magazine 2020, the number of cyberattacks increased by 17% compared to Q1 2020 and compared to Q4 2020 with 77% being targeted attacks, the rise was 1.2%. Likewise, there are over 65,000 attempts to hack small to medium-sized enterprises each day in the UK. Growing data theft and money theft are considerably harming various big and small businesses, banks, organizations, and firms. The expanded risk of malware and other cyber-attacks is a major concern for cybersecurity professionals. Thus, many organizations are looking for managed security services that help them by providing security. Managed security services also reduce the complexity by securing the data. Owing to the robust safety concern, risk leaders are progressively outsourcing their security platforms to managed security services providers. In addition, with rapid change in technology and rising digitalization worldwide, businesses across the world are implementing new trends, such as BYOD for their employees. The surge in BYOD and WFH trends is estimated to propel the growth of managed security services market in upcoming years worldwide. However, lack of trust amongst enterprises in giving complete control of their system architecture to managed security service providers may hamper the growth of the market. Despite this, the growing adoption of cloud technology and IoT devices among people will create ample opportunities for the further growth of the global managed security services market worldwide.

The Application segment of the global managed security service market is dominated by Firewall management drive with the largest market share of 26.7 % in 2021. The deployment mode segment of the global managed security service market is dominated by Cloud drive with the largest market share of 86.3% in 2021. The industry verticals segment of the global managed security service market is dominated by Banking Financial Services & Insurance (BFSI) drive with the largest market share of 35.7% in 2021. The region & countries segment of global managed security service market is dominated by North America drive with the largest share of 38.9 % in the year 2021.

Trends

Managed Security Services, or MSS, is a third-party service that helps companies manage and manage organizational security practices. Managed Security Services (MSS) are also considered as a systematic approach to manage an organization's security needs. Services may be outsourced to other companies' network and information system security service providers in-house or outsourced. The major functions of the managed security service include round-the-clock monitoring and management of intrusion detection systems and firewalls, patch management and monitoring of upgrades, security assessments and security audits, and responding to emergencies. Products are available from a number of vendors to help organize and guide the process involved. This diverts the burden of carrying out tasks manually, which can be significant by staying away from administrators. Furthermore, businesses turn to managed security service providers to reduce their daily pressures on information security, such as targeted malware, theft of customer data, lack of skills, and lack of resources.

While managed security service offerings vary among MSPs, the most prevalent and major trends in the global managed security services (MSS) market are:

A) Advanced Endpoint Protection

Advanced endpoint protection using machine-learning or behavior analysis protects the system from file, file-less, script-based, and zero-day threats. Traditional, responsive endpoint security tools, such as firewalls and anti-virus software, rely on commonly known threat information to detect attacks. But advanced technology takes many steps forward, using more proactive technologies such as machine learning and behavior analysis to identify potential new or complex threats. Use advanced threat identification and blocking techniques based on factors such as their behavior and interaction with other suspicious software, blocking or including ""zero-day"" threats that may not have known or identifiable signatures. These platforms can also be integrated with other security tools to integrate event management and provide enterprise-wide visibility of suspicious behavior for security operations personnel. Organizations today need advanced protection from the growing sophisticated threat environment. Cybercrime is a very lucrative venture. Cyber Security Ventures estimates that the global cost of cybercrime will reach $ 6 trillion by the end of 2021, making it more profitable than global illicit drug trafficking. So, with so much money at stake, cybercriminals have become adept at finding new ways to infiltrate the IT system. For example, mixed attacks are common. These attacks use multiple, coordinated tactics, none of which would make traditional security systems look suspicious. Zero-day threats are another common type of attack that standard signature-based scans do not easily detect. According to McAfee Labs, about 400,000 new types of attacks are reported every day. Many of these involve minor changes to existing malware, but advanced endpoint protection is different enough to avoid a signature scan

An advanced endpoint security solution may include several, or all, of the following technologies or capabilities.

Machine learning: -

Machine learning, a range of artificial intelligence, analyzes large amounts of data to learn the specific behavior of users and endpoints. Machine learning systems can then detect abnormal behavior and either alert IT personnel or trigger automated security processes, such as being at risk, isolating endpoints, or issuing warnings. Machine learning is the main way to identify advanced hazards at endpoints as well as new or zero-day hazards.

Security Analysis: -

Security analysis tools record and analyze data from Endpoint and other sources to detect potential threats. Safety analyzes can help IT professionals investigate security breaches or inconsistent activity and determine what damage has occurred. The IT department can use security analyzes to understand what vulnerabilities have led to the breach and what action IT can take to prevent future attacks.

Real-time threat intelligence: -

Advanced security will have the ability to use real-time threat intelligence from outside security vendors and agencies. Real-time updates on the latest types of malware, zero-day threats, and other trending attacks reduce the time from the first visit to threat prevention.

IoT security: -

Smart, connected devices such as industrial controls, medical imaging systems, office printers, and network routers are ubiquitous. According to data company IHS Markit, the number of Internet of Things (IoT) devices worldwide will reach 125 billion by 2030. Many of these connected devices lack security and are vulnerable to cyber-attacks. Presumably, an insecure device could provide hacker entry into the entire network. In the case of industrial control, an insecure device can enable an attacker to disable major systems such as electrical grids. Security measures for these emerging endpoints may include whitelisting to block unauthorized software or IP addresses and file integrity monitoring to scan for unauthorized changes in configuration or software.

Endpoint Detection and Response (EDR): -

EDR is not a very new technology, but it is more important today because of the increasing risks in sophistication. EDR constantly monitors for suspicious endpoint or end-user behavior and collects endpoint data for threat analysis. EDR solutions can provide automated response features, such as cutting off infected endpoints from the network, ending suspicious processes, locking accounts, or deleting malicious files.

B) E-mail Security:-

Many sophisticated cyber-attacks specifically target SMBs. SMB needs advanced protection from these attacks. MSPs can help meet the security needs of their SMB customers by offering advanced MSP email security services that are highly effective in protecting end users from highly malicious email and web threats, namely phishing attacks and ransomware. Furthermore, MSPs (Managed Service Providers) are key components of the global supply chain with customers in all vertical areas, such as retail, wholesale and critical infrastructure. MSP is an attractive target for cyber criminals. If the cyber-attack is successful and accesses the MSP system, cybercriminals have access to their client's entire network. Domino effects can occur downstream if the compromise in an MSP is not reduced enough.

Advantages of E-mail Security: -

• Increases average revenue per user–By E-mail security solutions can add revenues of up to 20% per customer with gross margins of 15-50%
• Increase customer loyalty– E-mail security help customers to increase value by delivering comprehensive protection from emerging threats while maintaining superior Internet and email performance and accessibility.
• Maintenance-free service– As fully managed, cloud-based services, E-mail security required minimal deployment requirements and zero maintenance. E-mail security service feature sets and infinite scalability help to fulfill the requirements of all customers.

C) Data Loss Protection (DLP):-

Data loss protection (DLP) is a set of tools and procedures used to ensure that sensitive data is not lost, misused or accessed by unauthorized users. DLP software classifies regulated, confidential, and commercial critical data and identifies violations of policies defined by organizations or in predefined policy packs, usually driven by regulatory compliance such as HIPAA, PCI-DSS, or GDPR. Once those violations are identified, the DLP implements measures, including alerts, encryption, and other protective actions, to endanger the organization by preventing end users from accidentally or maliciously sharing data. Data loss prevention software and tools monitor and control endpoint activity, filter data flows across corporate networks, and monitor data in the cloud to protect rest, speed, and usage. The DLP provides reports to meet compliance and auditing requirements and to identify areas of vulnerability and inconsistency for forensic and incident response. Furthermore, data loss protection solution solves three main objectives that are common pain points for many organizations: personal information protection/ compliance, intellectual property (IP) protection, and data visibility.

D) Security Framework and Compliance Auditing: -

The security framework and compliance audit will provide a roadmap for the organization’s key information security vulnerabilities and identify where the organization is meeting and where it is not meeting the criteria it has set. Security audits are important for developing risk assessment plans and mitigation strategies for organizations dealing with sensitive and confidential data of individuals. Moreover, a security audit is a comprehensive assessment of a consumer organization's information system; typically, this assessment measures the security of a consumer information system against industry best practices, externally established standards, or an audit checklist of federal regulations. Security framework and compliance auditing evaluates an organization's security controls in relation to the following:

• The physical components of the customer organization's information system and the environment in which the information system is located.
• Customer system administrators have already implemented applications and software, including security patches.
• With network vulnerability, information evaluation, it travels to different points inside and outside the customer organization’s network.
• Human dimensions, including how employees collect, share, and store highly sensitive information.

E) Identity Access Management (IAM) and Single Sign-On (SSO):-

Identity and Access Management (IAM) is a security framework that helps organizations identifies network users and control their responsibilities and access rights, as well as control situations where privileges are issued or denied. IAM generally refers to authorization and authentication capabilities such as: Single sign-on (SSO) to give MSP users the ability to sign in with a single set of credentials to access multiple services and resources. Multi-factor authentication (MFA) so MSPs can provide more assurance of a user's identity by requiring the user to provide two or more factors as proof of identity. And access management so that MSPs can ensure that only the right people have access to the right resources. These capabilities are fundamental to ensurE security in a world where network perimeters are no longer reliable or relevant. But the following identity security capabilities are equally important for many organizations: directory identity verification, consent collection and data privacy management, risk management, personal identification, API security, and self-service for users and developers. These advanced capabilities provide additional protection against emerging threats, help MSP comply with increasing regulations, and provide users with the experience they expect.

F) Anti-Malware: -

Managed anti-virus/anti-malware is an inexpensive, minimal touch protection to protect users' computers inside and outside the user's facility. Reducing human variables with the help of automated anti-virus software is the first step to protecting organization and business continuity. In addition, managed anti-virus solutions go beyond what antivirus organizations can buy off the shelf. This enables not only the ability to stop previously known threats from the system, but also to detect zero-day threats (or previously unknown threats) by monitoring the file structure and detecting changes with next-general intelligence. Furthermore, as ransomware and phishing attacks become more prevalent, it is absolutely important to protect the business. Combined with remote management and monitoring and data backup software, managed anti-virus solutions can instantly alert the organization to system threats, isolate the risk, and return to business as quickly as possible. And, it provides comprehensive exploitation prevention by blocking the techniques used to distribute managed anti-virus malware, steal credentials, and escape detection, thus avoiding hackers and zero-day attacks that deter the organization.

Benefits of Anti-malware solutions: -

• Reduces Risk: - By building on best practices and leveraging state-of-the-art technology, organizations hosted infrastructure will be safer and more secure.
• Enables Compliance: - Anti-malware helps an organization to meet compliance requirements including Fed RAMP, PCI-DSS, and HIPAA/HITECH
• Simplifies Management: - By relying anti-malware security, organization staff is freed from the burden of having to evaluate solutions and manage procurement, updates, maintenance, training, licensing, and certification.
• Delivers Confidence: - Anti-malware solution is monitored 7×24 by a dedicated team of security experts, giving organizations to peace of mind that organizations network and devices are protected and a best practices system of checks and controls is being followed.

G) Two-Factor Authentication: -

Managed two-factor authentication services cloud-based two-factor authentication solutions significantly reduce ongoing maintenance and administrative costs of authentication by displaying attractive return on investment (ROI) for any organization. Furthermore, managed two-factor (2FA) protects against phishing, social engineering and password brute-force attacks, and protects user’s login from attackers who take advantage of weak or stolen credentials. Additionally, two-factor authentication (2FA) is a fundamental component of the zero trust security models. To protect sensitive data, organizations need to verify that they are users who try to access that data. 2FA is an effective way to protect against many security threats that target user passwords and accounts, such as phishing, brute-force attacks, credential exploitation and more.

H) Managed Firewall: -

Managed Firewall is a third-party service that prevents unauthorized network access while allowing service users to access verified external data. Managed Firewall Vendor provides online risk detection / prevention services that reduce the risk of outside access to data stored in network data, VPNs, servers, emails, workstations (e.g. laptops) and e-commerce customer portals. The three main types of firewall are proxy firewalls, traditional firewalls and next generation firewalls. The main advantage of a managed firewall is replacing the in-house solution with a dedicated remote centralized service. This outsourced and cost-effective method of ensuring consistently maintained online security consensus and purpose-built levels allows businesses to focus on all in-house staffing on key objectives. Depending on the level of service required, Managed Firewall services could combine several key aspects of online protection relevant to needs of the service user. Managed Firewall features include: Log monitoring, VPN configuration, Patch management, Ticketing and tracking services and Restricted data flow settings (inbound/outbound). This multi-layered defense approach provides robust cyber security features both at the edge of a business network and from the core of the business network. However, a centralized managed firewall offers: reduced costs, automated software updates, 24/7 proactive security alerts, maintenance & firmware updates, and reporting (service users typically benefit from weekly or monthly reports, in which the reports serve to outline the nature and origin of all security threats aimed at the business, as well as detailing the action taken to prevent unauthorized access to the business network).

I) Managed Remote Access Service: -

RAS or Remote Access Services are provider-based solutions that enable internet-enabled devices to connect to the company's IT infrastructure from remote locations. In a world where employees are becoming more and more mobile, the importance of establishing secure end-to-end communication while maintaining the security and integrity of corporate networks is crucial. Enterprise remote access solutions allow employees to integrate seamlessly and efficiently with company databases and other sensitive information. Access is possible from a smartphone, remote internet connection, Wi-Fi and even a home office. Additionally, almost every business sector and industry organization now demand optimized network management capabilities for multiple, geographically-dispersed locations and satellite offices. Many companies today seem to lack the in-house staff of IT professionals with the skills and technical expertise needed to oversee the design and implementation process.

By Regional & Country Level:

North America

• U.S.
• Canada

Europe

• U.K.
• France
• Germany
• Italy

Asia Pacific

• China
• Japan
• India
• Southeast Asia

Latin America

• Brazil
• Mexico

Middle East and Africa

• GCC
• Africa
• Rest of Middle East and Africa

Report Analysis	Details
Historical data	2018 - 2021
Forecast Period	2022 - 2028
Market Size in 2021:	USD 32.04 Billion
Base year considered	2021
Forecast Period CAGR %:	8.59%
Market Size Expected in 2028:	USD 56.75 Billion
Tables, Charts & Figures:	175
Pages	300
Key Players/Companies	HP, Cisco Systems Inc, Dell SecureWorks, AT&T, BT Group, Computer Science Corp, Symantec Corp, Fortinet Inc, Check Point Software Technologies, Others.
Segments Covered	By Deployment Mode, By Application, By Vertical.
Regional Analysis	North America, U.S., Mexico, Canada, Europe, UK, France, Germany, Italy, Asia Pacific, China, Japan, India, Southeast Asia, South America, Brazil, Argentina, Columbia, The Middle East and Africa, Africa, Rest of the Middle East and Africa