Managed Security Services (MSS) Market - North America, Europe, EMEA, APAC : US, Canada, China, Germany, UK - Forecast 2023-2027

Managed Security Services (MSS) Market Forecast 2023-2027

The Managed Security Services (MSS) Market size is estimated to increase by USD 27.74 billion, growing at a CAGR of 12.88% between 2022 and 2027. The growth of the market depends on several factors, including an increase in the adoption of cloud-based services, increasing adoption of HPC systems by businesses and enterprises, and the growing need to improve the security of enterprises. Primarily, companies outsource services to third-party service providers. The market players that provide outsourced monitoring and management of security devices and systems are called managed security service providers (MSSPs). Some of the common services include managed virtual private networks (VPN), anti-viral services, firewalls, vulnerability scanning, and intrusion detection.

What will be the size of the Market During the Forecast Period?

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Market Segmentation

This market report extensively covers market segmentation by end-user (SMEs and large enterprises), deployment (cloud-based and on-premises), and geography (North America, Europe, APAC, South America, and the Middle East and Africa). It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.

By End-user

The SMEs segment is estimated to witness significant growth during the forecast period. There is increasing adoption across the SME segment at a rapid rate due to the continuous rise in data breaches and cyberattacks from hackers, resulting in disruption to their businesses. Additionally, cyberattacks including DDoS and ransomware can significantly impact the IT infrastructure of SMEs, which can result in catastrophic consequences for the business of SMEs. 

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The SMEs segment was the largest segment and was valued at USD 11.50 billion in 2017. Additionally, there is a growing popularity services across SMEs due to the complexities in cybersecurity and the proliferation of IoT devices. Furthermore, it is difficult for SMEs to set up IT infrastructure in-house due to budget constraints. Thus, there is an increasing preference among SMEs to outsource their service to MSSPs which can save infrastructural and operational costs, resulting in a rise in the adoption among SMEs. Additionally, several market players are investing heavily to offer enhanced services to users. Hence, such factors are expected to fuel the market of this segment which in turn will drive the market during the forecast period.

By Deployment

The increasing adoption of the cloud-based segment across enterprises will increase market during the forecast period. There is an increasing shift towards the cloud-based segment across SMEs as it offers r faster and more cost-effective solutions.  The main advantage of the cloud-based segment which fuels the adoption of this segment is that it does not need any software installation as the solution is maintained by the market players and can be accessed on a subscription basis. Hence, such benefits and advantages are expected to fuelsthis segment which in turn will drive the market during the forecast period.

Regional Overview

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APAC is estimated to contribute 32% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. Another region offering significant opportunities to market players is North America. One of the main factors which are significantly contributing the development due to the increasing number of targeted attacks by hackers on enterprise-critical data.

Moreover, some of the main countries which are significantly fuelling the market in North America are the US and Canada due to the factors such as the need for compliance with regulations imposed by the government due to the growing instances of cyberattacks on hosted servers. Furthermore, there is a growing adoption across enterprises in North America because of various threats in the region. Hence, such factors are expected to drive market in the region during the forecast period.

Market Dynamics and Customer Landscape

The market is witnessing rapid development, driven by the increasing demand for comprehensive cybersecurity solutions across various industries, including healthcare, BFSI, manufacturing, and retail. Healthcare facilities, in particular, are investing in in-house and cloud-based solutions to protect patient privacy and medical devices from cyber threats. MSSPs offer a range of services, including Unified Threat Management (UTM), Firewall Management, Endpoint, and Threat Monitoring, to combat malicious attackers and cyberattacks. With the rise of Industry 4.0 and IoT adoption, the need for robust network and data solutions has become paramount. Managed IPS, DDoS protection, and risk and compliance management services further strengthen organizations' defenses against evolving cyber threats in today's interconnected digital landscape.

Key Market Driver

One of the key factors driving the managed security services market growth is the increasing adoption of HPC systems by businesses and enterprises. Earlier, there has been an increasing adoption of high-performance computing (HPC) systems across various aerospace and defense companies, governments, laboratories, and research centers as they need to resolve highly complex tasks, including the simulation of the effects of airflow on a plane wing, the simulation of nuclear explosions, determining weather patterns, and several other scenarios.

However, several businesses and enterprises are extensively using  HPC systems due to their declining costs. the main advantage of HPC is it is used to streamline a business process by simplifying or eliminating unnecessary steps. Furthermore, Several businesses can obtain information faster by utilizing HPC systems due to their processing speed. Thus, it is positively impacting the growth. Hence, such factors are expected to drive market growth during the forecast period.

Significant Market Trends

A key factor shaping the market growth is the incorporation of predictive analytics. The use of statistical algorithms, data mining, artificial intelligence, and machine learning for predictions about unknown future events is referred to as predictive analytics. This is widely used for the detection of attacks and protection against advanced malware threats across an organization's network.

Additionally, it will notify the enterprise of any potential cyberattacks beforehand. Additionally, the implementation of predictive analytics also helps the organization minimize operational expenses and predict operating costs. Thus, it is positively impacting the MSS market growth. Hence, such factors are expected to drive market growth during the forecast period.

Major Market Restrain

Chances of failure during managed services implementation are one of the key challenges hindering the managed services market growth. There is a high chance of failure during the implementation phase which can pose a significant threat to the global managed services. Due to this issue, there is an increasing preference for traditional solutions across enterprises.

Additionally, the implementation of managed services across enterprises is a complex and time-consuming process that includes project management, vulnerability management, compliance, content management, event monitoring, access management, and managed devices. Therefore, such factors are expected to negatively impact the market growth. Hence, it is expected to hinder the market during the forecast period.

Market Customer Landscape

The market report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.

Global Managed Security Services Market Customer Landscape

Who are the Major Market Players?

Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.

Accenture Plc: The company offers managed security services such as the Accenture Managed Secure Cloud Foundation solution.

AT and T Inc: The company offers managed security services such as Secure Remote Access, Secure Web Gateway, SASE Branch, DDoS, and SentinelOne.

Atos SE: The company offers managed security services such as Managed Detection and Response an advanced managed security service that provides threat intelligence, and threat hunting.

The research report also includes detailed analyses of the competitive landscape of the market and information about 20 market companies, including:

• Capgemini Service SAS
• CrowdStrike Holdings Inc.
• Dell Technologies Inc.
• DXC Technology Co.
• F5 Inc.
• Fortra LLC
• Furukawa Electric Co. Ltd.
• Infosys Ltd.
• International Business Machines Corp.
• Kroll LLC
• Kudelski SA
• Kyndryl Inc.
• Lumen Technologies Inc.
• NTT Corp.
• Orange Cyberdefense SA
• ProSOC Inc.
• Singapore Telecommunications Ltd.

Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.

Segment Overview

The market report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027. 

• End-user Outlook 
  • SMEs
  • Large enterprises
• Deployment Outlook
  • Cloud-based
  • On-premises
• Geography Outlook 
  • North America
    • The U.S.
    • Canada
  • Europe
    • U.K.
    • Germany
    • France
    • Rest of Europe
  • APAC
    • China
    • India
  • South America
    • Chile
    • Argentina
    • Brazil
  • Middle East & Africa
    • Saudi Arabia
    • South Africa
    • Rest of the Middle East & Africa

Market Analyst Overview

The market is witnessing robust growth driven by the increasing complexity and sophistication of cyber threats across various sectors like BFSI, healthcare, manufacturing, retail, and telecom. Managed security services providers (MSSPs) offer solutions such as Managed IPS, Unified Threat Management (UTM), and Firewall Management to safeguard IT enterprises against evolving threats like DDoS attacks and new threats emerging from digital ecosystems and IoT (Internet of Things) devices. With the rise of cloud computing and DevOps practices, organizations are turning to MSSPs for cloud-based security solutions and operational services. The Managed Security Services Market is witnessing significant growth driven by increasing concerns over endpoint security, particularly in healthcare facilities. With the proliferation of medical devices and patient privacy regulations, threat monitoring and vulnerability monitoring have become paramount. Both in-house and cloud-based security solutions are in demand, with Managed Security Services Providers (MSSPs) offering expertise in distributed denial of services (DDoS) protection and cybersecurity. As the need for skilled cybersecurity professionals rises, outsourcing security monitoring and engagement models are gaining traction. Managed security services encompass network security, data security, and risk and compliance management, catering to various sectors including defense and government agencies.

Moreover, the market is witnessing rapid growth fueled by increasing concerns over cybersecurity threats in healthcare facilities. With the rise of distributed denial of service (DDoS) attacks and malicious attackers, healthcare organizations are seeking comprehensive security solutions. Managed security services providers (MSSPs) offer in-house and cloud-based security solutions, leveraging skilled cybersecurity laborers to combat cyber threat effectively. These services encompass IT security specialists, managed DDoS protection and managed risk and compliance solutions. Furthermore, MSSPs cater to the evolving landscape of cybersecurity in healthcare, addressing challenges such as bring your own device (BYOD) policies and IoT vulnerabilities. As defense and government sectors prioritize cybersecurity, the demand for managed security services continues to surge, ensuring robust protection for critical healthcare infrastructure. Moreover, the healthcare facility systems often rely on in-house or cloud-based security solutions to protect against cyber threats. Managed security services providers (MSSPs) play a crucial role in ensuring the security of telecom and IT infrastructures. The COVID-19 pandemic has accelerated the adoption of cloud technology, emphasizing the importance of cloud security and IoT security, particularly for defense or government organizations. Regular exposure assessment are essential to mitigate cyber risks in this evolving landscape.

Scope
Report Coverage	Details
Page number	166
Base year	2022
Historic period	2017-2021
Forecast period	2023-2027
Growth momentum & CAGR	Accelerate at a CAGR of 12.88%
Market growth 2023-2027	USD 27.74 billion
Market structure	Fragmented
YoY growth 2022-2023(%)	11.15
Regional analysis	North America, Europe, APAC, South America, and Middle East and Africa
Performing market contribution	APAC at 32%
Key countries	US, Canada, China, Japan, and Germany
Competitive landscape	Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks
Key companies profiled	Accenture Plc, AT and T Inc., Atos SE, Capgemini Service SAS, CrowdStrike Holdings Inc., Dell Technologies Inc., DXC Technology Co., F5 Inc., Fortra LLC, Furukawa Electric Co. Ltd., Infosys Ltd., International Business Machines Corp., Kroll LLC, Kudelski SA, Kyndryl Inc., Lumen Technologies Inc., NTT Corp., Orange Cyberdefense SA, ProSOC Inc., and Singapore Telecommunications Ltd.
Market dynamics	Parent market analysis, Market forecasting, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, and Market condition analysis for the forecast period.
Customization purview	If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized.

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What are the Key Data Covered in this Market Research Report?

• CAGR of the market during the forecast period
• Detailed information on factors that will drive the market growth and forecasting of the market between 2023 and 2027
• Precise estimation of the size of the market size and its contribution to the parent market
• Accurate predictions about upcoming market trends and analysis and changes in consumer behavior
• Growth of the market industry across Europe, North America, APAC, South America, and Middle East and Africa
• Thorough market growth analysis of the market’s competitive landscape and detailed information about vendors
• Comprehensive market analysis and report on the factors that will challenge the market research and growth of market companies

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