Managed Security Services Market

Managed Security Services Market Outlook (2024 to 2034)

According to a new industry report released by Fact.MR, valuation of the global managed security services market is estimated at US$ 27.85 billion in 2024 and is projected to increase at a remarkable CAGR of 12.9% to reach a value of US$ 93.72 billion by the end of 2034.

New risks are increasing day by day, due to the quick deployment of automation technologies, 5G networks, and IoT devices. In such scenarios, managed security service providers play a crucial as they facilitate a smooth digital transformation along with securing businesses from these technologies or risks.

One of the key managed security services market trends is the increasing significance of strong cybersecurity measures. This is driven by the increasing number of high-profile data breaches. Businesses from different industries are widely adopting managed security services to decrease risks associated with cybercrime and safeguard private information.

Quickly expanding IT infrastructure in several regions, including the Middle East, East Asia, South Asia & Pacific, and Latin America is further contributing to the managed security services market growth. These services are gaining popularity in these regions as they help organizations in protecting their expanding digital ecosystems. Prominent companies involved in managed security service business are enhancing their offerings by adding advanced technologies, such as blockchain, machine learning, as well as artificial intelligence.

Key Market Growth Drivers :

• Organizations from all over the world are widely looking for strong security solutions because of the increasing complexity and number of cyber threats, such as ransomware, phishing, DDoS assaults, advanced persistent threats (APTs), and others. All these factors are responsible for managed security services market size expansion as these providers offer real-time threat monitoring, detection, responses, and others.
• All over the world, several governments and regulatory agencies are implementing stricter data protection laws, including GDPR, HIPAA, and PCI DSS. Because these standards require the need for specialist knowledge, companies are collaborating with managed security service providers.
• Growing utilization of cloud technology and the rising shift toward remote working environments are driving the need for managed security services as due to this attack surface for cybercriminals is increasing. Managed security service providers offer businesses the protection of their remote endpoints and cloud-based apps, among other dispersed settings.
• Managed security services are considered a more affordable option than establishing internal security teams and infrastructure, particularly for small and medium-sized enterprises.
• Businesses are widely obtaining customized services according to their size and changing security requirements as managed security service systems are scalable.
• Organizations are widely integrating proactive security tactics to avoid intrusions instead of reacting to problems after they happen. To allow predictive and preventive measures, MSS providers are using advanced technologies, such as AI, machine learning, threat intelligence, and others.
• Companies from several countries are facing issues related to a lack of qualified cybersecurity professionals, which is driving the demand for managed security services as they provide access to a network of skilled people and round-the-clock monitoring services.

Report Attribute	Detail
Managed Security Services Market Size (2024E)	US$ 27.85 Billion
Forecasted Market Value (2034F)	US$ 93.72 Billion
Global Market Growth Rate (2024 to 2034)	12.9% CAGR
North America Market Value (2024E)	US$ 7.97 Billion
East Asia Market Growth Rate (2024 to 2034)	13.5% CAGR
Private Cloud Deployment Segment Value (2034F)	US$ 59.79 Billion
BFSI Segment Value (2034F)	US$ 21.65 Billion
Key Companies Profiled	AT&T Cybersecurity; Palo Alto Networks; Cisco Systems; Secureworks; IBM Security; Fortinet; CrowdStrike; Check Point Software Technologies; FireEye; Raytheon Technologies; Alert Logic; Trustwave; McAfee.

Why are Organizations from All Over the World Adopting Managed Security Services?

“Need for Managed Security Services Rising Globally along with Growing Frequency of Cyber Threats”

Demand for managed security services is increasing along with the rising number and complexity of cyber threats. Organizations are focusing on securing their businesses and improving their cybersecurity from threats, such as ransomware, phishing, DDoS attacks, advanced persistent threats (APTs), and others. To protect businesses from risks, more companies are widely adopting managed security solutions as they address this requirement by providing real-time threat monitoring, detection, and response.

As mentioned in the managed security services industry analysis, the rising adoption of remote work culture and utilization of cloud technologies are further pushing the market in an upward direction. This shifting interest of individuals and organizations is beneficial for both, but they are also increasing the risk associated with personal data.

What Challenges are Faced by Managed Security Service Providers?

“Integrating MSS Solutions with Outdated Infrastructure Still Challenging for Providers”

Managed security service providers are facing problems related to the integration of these solutions with several companies' outdated systems and current infrastructure. These challenges arise due to compatibility problems, out-of-date technology, and different system architectures. Daily activities sometimes get disrupted throughout the transition phase due to its intricacy, which generally calls for a large investment of time, money, and technological know-how.

These difficulties discourage companies from implementing managed security services, especially if they don't have a well-defined plan or qualified staff to effectively oversee the integration process.

Country-wise Insights

The East Asia region is analyzed to account for 36.5% of the worldwide managed security services market share in 2024. The key reasons behind the East Asia region’s leading position are the increasing utilization of cloud computing and IoT, quick digitization, and rising cyber threats. Organizations in East Asia are widely adopting managed security services for their expertise and to protect their expanding attack surfaces as they increase their digital infrastructure.

What is the Demand Outlook for Managed Security Services in the United States?

“Rising Adoption of Cloud Technologies and IoT Devices Raising Need for Security Solutions to Improve Cybersecurity”

Attribute	United States
Market Value (2024E)	US$ 6.49 Billion
Growth Rate (2024 to 2034)	11.8% CAGR
Projected Value (2034F)	US$ 19.74 Billion

Businesses in the United States are now facing additional risks because of the fast adoption of cloud computing and IoT devices, which are increasing the surface for cyber threats. These companies are widely adopting managed security services to monitor and secure their expanding environment as they require specific cybersecurity solutions.

Demand for managed security services in the United States is further driven by a continuing shortage of qualified cybersecurity specialists, and increasingly businesses turn to experienced providers to handle their security needs. Therefore, increasing dependence on outsourced security services is positively affecting the market in the country, according to the managed security services industry outlook.

Why is the Need for Managed Security Services Growing in Several Sectors in Japan?

“Strong IT Infrastructure of Several Sectors Continuously Creating Demand”

Attribute	Japan
Market Value (2024E)	US$ 2.8 Billion
Growth Rate (2024 to 2034)	14% CAGR
Projected Value (2034F)	US$ 10.36 Billion

Well-established IT infrastructure in Japan, particularly in sectors, such as manufacturing, finance, technology, and others is driving the demand for managed security services. Companies from these sectors are advancing toward digitalization and modernization through advanced technologies, which is raising their cybersecurity risks.

For the critical operations and sensitive data in such organizations, they are finding safety in comprehensive specialized security services to increase demand for managed services to overcome evolving cyber threats.

Category-wise Insights

Based on application, demand for managed security services is projected to increase at a fast pace in the retail sector in comparison with others. This segment is analyzed to expand at 14.1% CAGR over the next ten years, as studied in the managed security services industry outlook.

This prominence is because cyber risks, including data breaches and payment fraud, are becoming more common and sophisticated. The possibility of cyberattacks is increasing as retailers are using digital technology more, such as point-of-sale systems and e-Commerce platforms.

Why is Demand for Public Cloud Deployment Increasing at a Notable Growth Rate?

“Increasing Adoption of Cloud Technologies across Several Industries”

Attribute	Public Cloud Deployment
Segment Value (2024E)	US$ 10.36 Billion
Growth Rate (2024 to 2034)	14% CAGR
Projected Value (2034F)	US$ 33.93 Billion

Increasing utilization of cloud technologies by companies of different industries is making a public cloud deployment segment a leader in the market. Public cloud platforms are gaining attention, particularly from SMEs as they avail scalable and inexpensive solutions. The use of these platforms provides flexibility in terms of resources that also be easily scaled according to demand.

Since public infrastructure is shared, it is susceptible to cyber risks and thus generates a corresponding demand for security services in the market. For this reason, enterprises are approaching managed security providers for strong features, such as threat monitoring, access control, and data protection.

Why is the Application of Managed Security Services Increasing in BFSI Sector?

“Handling Sensitive Data and Increasing Cyber Threats in BFSI”

Attribute	BFSI
Segment Value (2024E)	US$ 6.21 Billion
Growth Rate (2024 to 2034)	13% CAGR
Projected Value (2034F)	US$ 21.65 Billion

The BFSI (Banking, Financial Services, and Insurance) segment holds a sizable portion of the overall revenue. Its massive data sensitivity is also coupled with a high number of incidences wherein cyber-attacks target BFSI. These financial institutions are becoming prime targets for cybercriminals intending to rob customer data or finances and sometimes disrupt the services.

To manage the potential risks these organizations that are involved in the BFSI sector heavily rely on managed security service providers for 24/7 threat monitoring, fraud detection, and regulatory compliance as well as data protection. An essential service to the BFSI sector is managed security services, as they are significantly important in terms of transaction safeguarding, customer trust, and compliance with stringent regulations, such as the GDPR and PCI-DSS.

Competitive Landscape

Key players in the managed security service market are adding advanced solutions, such as cloud security, endpoint protection, AI-driven security, and threat intelligence to their service portfolios to remain competitive. They reach a wider clientele and tackle changing cybersecurity issues by broadening their product offerings, as discussed in the managed security services industry analysis.

• In December 2024, Interpres Security, a Gartner-recognized provider in Automated Security Control Assessments (ASCA) and Continuous Threat Exposure Management (CTEM) was acquired by CyberProof, a UST business.
• In December 2024, by incorporating Cyware Cyber Fusion capabilities into its current security operations, ECS, an IT systems integrator specializing in cybersecurity, data and AI, and enterprise transformation solutions, improved its managed security services (MSS). The design collaboration between ECS and Cyware, the top supplier of threat intelligence management, low-code/no-code automation, and cyber fusion solutions, has been extended with this integration.
• In October 2024, to improve the Managed Security Services (MSS) it offers its business-to-business (B2B) clients, Ooredoo, the top ICT and telecommunications provider in Qatar, announced a strategic alliance with Tech Mahindra, a top global supplier of technology consulting and digital solutions to businesses across industries.

Fact.MR provides detailed information about the price points of key providers of managed security services positioned across the world, sales growth, production capacity, and speculative technological expansion, in this new market report.

Segmentation of Managed Security Services Market Research

• By Deployment Type :

  • Public Cloud Deployment
  • Private Cloud Deployment

• By Service Type :

  • IPS/IDS
  • Distributed Denial of Services
  • Threat Management
  • End Point Security
  • Secured Information & Event Management
  • Others

• By Organization :

  • Small & Medium Enterprises
  • Large Enterprises

• By Application :

  • BFSI
  • Healthcare
  • Retail
  • Telecommunications
  • Others

• By Region :

  • North America
  • Western Europe
  • Eastern Europe
  • Latin America
  • East Asia
  • South Asia & Pacific
  • Middle East & Africa