Managed Security Services Market, by Deployment Mode (Cloud, On-premises), Organization Size (Large Enterprises, Small and Medium-sized Enterprises), Vertical (Banking, Financial Services, and Insurance, Retail, Healthcare, Government, Utilities Manufacturing, Telecom, Others), Regional Analysis (North America, Europe, Asia-Pacific, LAMEA): Global Opportunity Analysis and Industry Forecast, 2019–2026

The Managed Security Services Market Analysis

Managed security services (MSS) is a third-party IT security provider for the purpose of data safety on the web, providing all the measures regarding cybersecurity. The motive behind hiring an outsourcing company is to keep the vital and confidential data, which can be leaked unknowingly or intentionally, safe and secure. The managed security services market is booming mainly because the market is becoming more competitive and multiple malpractices are being carried out over the internet via viruses, spam, or web intrusions.

Massively growing and evolving security threats are some of the factors driving the demand for MSS in the global market

Internet misconduct has risen to a staggering level raising alarms all across the globe for business houses of all sizes. Malpractices of all kinds, be it information leak or financial fraud, have created a huge challenge for the business houses. These factors  create a huge need for managed security services, which will ultimately drive the growth of the global market. Moreover, this highly advanced system includes vulnerability and configuration management, anti-virus protection, cloud security, and firewall management, which may bolster the growth of the global managed security services system during the forecast period. In addition, rapid technological advancements in IoT and cloud is also projected to boost the growth of the managed security system in the global marketplace. 

Threat volume, lack of skilled workforce, MSSP awareness and MSSP related complexity are causing restraints in the smooth market growth

Lack of skilled security expertise and the ever-changing face of online threat is anticipated to obstruct the growth of the global market. The lack of skilled IT professionals and less awareness of cyberattacks among the small and medium enterprises is also expected to hamper the global market growth, over the forecast period.

Increasing emphasis on technology advances are expected to create massive opportunities for MSS in the global market

The rising adoption of blockchain-based security may create huge opportunities in the global market. Blockchain technology allows its users to keep a track of all the business transactions at one place without any opportunity of window dressing or the information getting hampered. This has made the information available more credible and fast to access along with reducing the dependency on any third party. All these technological advancements in the sector of managed security services have been beneficial for the market growth as these sources of security are highly reliable. 

Managed Security Services Market, by Mode:

Cloud segment will be the most lucrative till 2026

The cloud segment for the managed security system will have significant growth in the global market, and is projected to collect considerable amount of revenue in the forecast period. Cloud systems have become the more popular security option amongst the business houses globally. Cloud solutions provides its users more flexibility, reliability, and security features in comparison to on-premise solutions. The upgrades and additions could be done remotely and the cloud system is cost-effective as compared to on-premise security. These factors are projected to augment the growth of the global market. 

Managed Security Services Market, by Organization size:

Large enterprises will contribute the most in MSS market growth

Large businesses will contribute the most to the growth of the managed security services market. The exponential growth in businesses such as healthcare, retail, and telecom is anticipated to create huge
demand for the managed security service system, which will eventually drive the global market growth. Moreover, most of the businesses that require Managed security services operate worldwide and usually account in the large enterprise sector. 

However,  amongst small and medium-sized businesses, a positive trend can be seen. With the growing cyberattacks and frauds even small and medium-sized business houses have found  it necessary to opt for managed security services to keep their workplace safe.

Managed Security Services Market, by Vertical:

BFSI segment will have the dominating share in the global market during the forecast period

BFSI segment is going to hold the largest share in the analysis period. The growth of this segment is mainly attributed to  the high level of confidential data, and security concerns. On the other hand, the

healthcare sector will have the fastest growth in the global MSS market over the forecast period. This is mainly because of confidentiality issues and threats of cyberattacks over potential leak risks of vital patient information, funds, medicines, and research work.

Managed Security Services Market, by Region:

North America will have a dominating market share in the forecast timeframe

North America managed security services market will have a significant share in the global market, during the analysis period. North American region contributes the most to the growing MSS market with  rising demand for security providers and more MSSPs  coming into existence . 

However, Europe has also shown positive trends for the MSS market growth. The Asia- Pacific region is not much behind in the need for MSS as this region has seen a significant rise in cyberattacks and threats in recent years. In addition,  growing technological innovations like IoT, cloud, and 5G have led the SMEs and large enterprises in the Asia Pacific (APAC) region to largely rely on MSS. Furthermore, cybersecurity incidents, supportive governmental policies, and  growing emphasis on the cloud technology are fostering the growth of managed security services in the region.

Key Participants in the Managed Security Services Market:

Merger & acquisition and advanced product development are the frequent strategies followed by the market players

Some of the most significant managed security services market players include Trustwave Holdings, Inc., DXC Technology Company, Broadcom., SecureWorks, Inc., INTERNATIONAL BUSINESS MACHINES CORPORATION, Alert Logic, Inc., BAE Systems., Wipro Limited, NTT Limited, and Verizon.

Market Players prefer inorganic growth strategies to expand into local markets. 

Managed security services market players are emphasizing more on merger & acquisition and advanced product development. These are the frequent strategies followed by established organizations. For instance, in January 2020, the Accenture has acquired Symantec’s Cyber Security Services business. This acquisition will help to improve the ability of managed security services as well as to  detect cyber threats. To emphasize more on the competitor analysis of market players, the porter’s five force model is explained in the report.

Source: Research Dive Analysis