Managed Security Services Market Size, Share Report, Analysis, Trends, Growth 2032

Managed Security Services Industry Prospective:

The global managed security services market size was evaluated at $28.84 billion in 2023 and is slated to hit $97.12 billion by the end of 2032 with a CAGR of nearly 14.44% between 2024 and 2032.  

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Managed Security Services Market: Overview

Managed security services are network security solutions that are outsourced to a service provider. They are also considered as a systematic approach for effectively handling the security requirements of an organization. These services can be carried out in-house as well as can be outsourced to the service provider that supervises network services & information system security services of other firms.

Various functions of managed security services include effective management of firewalls & intrusion detection systems and round-the-clock monitoring of these systems. Apart from this, managed security services also help in monitoring patch management, system updates, security audits, and security assessments along with effectively responding to contingencies.                                                  

Key Insights

• As per the analysis shared by our research analyst, the global managed security services market is projected to expand annually at the annual growth rate of around 14.44% over the forecast timespan (2024-2032)
• In terms of revenue, the global managed security services market size was evaluated at nearly $28.84 billion in 2023 and is expected to reach $97.12 billion by 2032.
• The global managed security services market is anticipated to grow rapidly over the forecast timeline owing to an escalating need for security monitoring and operations associated with the strict execution of security technology.
• In terms of security, the data security segment is slated to register the highest CAGR over the forecast period.
• Based on services, the managed DDoS segment is predicted to lead the segmental space in the forthcoming years.
• Based on enterprise, the large enterprise segment is predicted to contribute majorly towards the global market revenue in the upcoming years.
• Based on vertical, the BFSI segment is predicted to contribute majorly towards the global industry share in the ensuing years.
• Region-wise, the Asia-Pacific managed security services industry is projected to register the fastest CAGR during the projected timespan.

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Managed Security Services Market: Growth Factors

An increase in cyber terrorism activities can help the global market register exponential growth over the forecast period

The growing complexity of cyber threats is anticipated to prop up the expansion of the global managed security services market. Escalating the need for security monitoring and operations associated with the strict execution of security technology will scale up the growth of the global market. Furthermore, managed security solutions include a slew of features enabling firms to effectively manage & protect digital assets from various kinds of cyber terrorism.

Reportedly, managed security services include beneficial features such as rapid threat response, threat hunting abilities, 24/7 threat identification, device encryption, remote wipes, and app management for improving security & compliance management.

Managed Security Services Market: Restraints

Growing trends & policies witnessed among the private firms related to non-revealing of private information can restrict the global industry surge by 2032

A large number of firms do not want to share their private data and this can hinder the expansion of the managed security services industry.

Managed Security Services Market: Opportunities

A rise in cybercrimes can open a slew of growth avenues for the global market

An increment in cybercriminal activities along with cost-efficiency of managed security services and strict government law implementation for curbing cyber-attacks will open a slew of growth avenues for the global managed security services market. Apart from this, a rise in awareness about data security along with the surging significance of e-business along a surge in the demand for personalized services will create new facets of growth for the global market.

Managed Security Services Market: Challenges

Less awareness pertaining to benefits offered by managed security services can hinder the global industry surge

Lack of awareness about benefits of managed security solutions among the firms based in the emerging as well as under-developed economies along with rise in the costs of management security services can pose a huge threat to the expansion of the global managed security services industry in the years ahead.

Managed Security Services Market: Segmentation

The global managed security services market is divided into security, services, enterprise, vertical, and region.                                         

In security terms, the managed security services market across the globe is segregated into data security, cloud security, network security, and endpoint security segments. Furthermore, the data security segment, which garnered nearly two-thirds of the global market share in 2023, is projected to register the fastest yearly rate of growth in the forecast timespan. The expansion of the segment in the next couple of years can be owing to large-scale use of data security in IT companies and various other large & small firms to reduce risk of theft and trespassing along with enhancing access control to the staff.

On the basis of services, the global managed security services industry is segmented into managed DDoS and managed risk & compliance segments. Additionally, the managed DDoS segment, which amassed a major share of the global industry in 2023, is expected to dominate the segmental landscape in the coming eight years. The segmental surge from 2024 to 2032 can be as a result of a steep rise in the DDoS attacks with hackers consistently inventing new methods for intruding the network systems and gaining confidential information of the firm.  

Based on the enterprise, the global managed security services market is sectored into small & medium enterprises and large enterprises segments. However, the large enterprises segment, which accrued about 63% of the global market share in 2023, is anticipated to make notable contributions towards the global market proceeds over the assessment timeframe. The growth of the segment in the next few years can be attributed to an increase in cyber-attacks leading to massive revenue losses for the large enterprises. Moreover, large enterprises hire managed security services to reduce phishing attacks and risk of data violations.

Based on the vertical, the global managed security services industry is bifurcated into BFSI, defense/government, healthcare, IT & telecom, manufacturing, and retail segments. Moreover, the BFSI segment, which accumulated about 57% of the global industry share in 2023, is expected to make lucrative contributions towards the global industry revenue over the expected timespan. The growth of the segment in the forthcoming years can be credited to a rise in the use of cloud systems in BFSI segment along with shift of BFSI segment towards engaging of customers with the assistance of digital tools along with increasing business through online banking transactions. This has led to rise in the hiring of managed security services by banks and other financial institutions to protect their intangible assets by providing them a strong security with the help of managed security services.   

Managed Security Services Market: Report Scope

Managed Security Services Market: Regional Insights

North America is predicted to maintain the leading position in the global managed security services market in the upcoming years

North America, which accounted for nearly 65% of the global managed security services market earnings in 2023, is anticipated to establish a numero uno position in the global market in the years to come. Moreover, the market expansion in North America in the next couple of years can be a result of a humungous demand for outsourcing solutions from a spectrum of tech firms. Furthermore, huge demand for cloud computing, data security, and network security will augment the regional market surge.

The Asia-Pacific managed security services industry is anticipated to register the fastest CAGR in the forecast timespan. The progression of the industry in APAC can be ascribed to the rise in the need for outsourcing managed security solutions from vendors.  Furthermore, lack of availability of skilled cyber staff in developing economies of Asia can further accelerate the growth of the industry in Asia-Pacific.

Key Developments

• In the last quarter of 2022, Fortinet, a leading firm in cyber security solutions, introduced FortiGate Cloud-Native Firewall on Amazon web solutions for identifying real-time external as well as internal cyber-attacks.
• In the second half of 2022, Check Point Software Technologies Limited introduced Check Point Horizon, security operations that will help in preventing cyber-attacks along with enhancing network security.

Managed Security Services Market: Competitive Space

The global managed security services market profiles key players such:

• Rapid 7
• Fujitsu
• AT&T
• Verizon
• BAE Systems Inc.
• Cisco Systems
• Palo Alto Networks
• Check Point Software Technologies
• Fortinet Inc.
• IBM
• Wipro.

The global managed security services market is segmented as follows:

By Security

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

By Services

• Managed DDoS
• Managed Risk & Compliance

By Enterprise

• Small & Medium Enterprises
•  Large Enterprises

By Vertical

• BFSI
• Defense/Government
•  Healthcare
• IT & Telecom
• Manufacturing
• Retail

By Region

• North America
  • The U.S.
  • Canada
• Europe
  • France 
  • The UK
  • Spain
  • Germany
  • Italy
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Southeast Asia
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• Middle East & Africa
  • GCC
  • South Africa
  • Rest of Middle East & Africa