Saudi Arabia Managed Security Services Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)

Saudi Arabia Managed Security Services Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)

The Saudi Arabia Managed Security Services Market size is estimated at USD 223.37 million in 2024, and is expected to reach USD 435.74 million by 2029, at a CAGR of 14.30% during the forecast period (2024-2029).

The managed security services industry is experiencing growth due to several factors, including increased cyber threats, stricter government regulations, and the vast amount of data consumers generate in the digital age. The rapid digital transformation has created numerous opportunities for cyber-attacks. In addition, the diversification of technology and a shortage of skilled cybersecurity professionals have opened new avenues for managed security service providers.

Key Highlights

• The Internet of Things (IoT) has unlocked numerous opportunities while presenting new security challenges. Managed Security Service (MSS) providers are now delivering tailored IoT security management services to counter these threats. These services aim to protect connected devices and thwart potential breaches that could jeopardize entire networks. The emergence of IoT botnets, coupled with the surging number of connected devices, underscores the importance of this trend in the managed security services market.
• Saudi Arabia is witnessing a growing demand for energy. Accelerated economic and infrastructure growth is driving the demand for stable and reliable energy supply and management. Owing to such demand, companies such as ZIV and its mother company ALFANAR locally produced and delivered 550,000 smart meters to the Saudi Electricity Company (SEC) through the Group's EPC company Alfanar Construction. The data generated by smart meters lie in energy consumption, which requires robust security measures to protect sensitive information.
• Saudi Arabia grapples with a significant money laundering challenge, largely fueled by its immense wealth, its position as the top global oil exporter, and its prominent informal economy. These factors render the nation a magnet for illicit funds, frequently tied to corruption, smuggling, and financial fraud. Moreover, due to its strategic geopolitical location, Saudi Arabia contends with terrorism financing issues closely intertwined with money laundering activities.
• The lack of awareness about security services significantly hampers the growth of the Saudi Arabian managed security services (MSS) market. Managed security services encompass the monitoring and management of security systems and devices, including firewalls, intrusion detection systems, and security information and event management (SIEM) solutions, to protect businesses from cyber threats.
• While cost-cutting measures might be implemented, the requirement for cybersecurity remains crucial. As businesses navigate economic challenges, there may be a shift toward more cost-effective solutions and a heightened emphasis on protecting digital assets. Ultimately, the impact on the managed security market in Saudi Arabia during a recession involves a delicate balance between financial constraints and the imperative to maintain effective defenses against evolving cyber threats. According to the General Authority for Statistics, in Q4 2023, the Saudi economy contracted by 3.7%, largely due to a significant 16.4% drop in oil activities.

Saudi Arabia Managed Security Services Market Trends

Managed Detection and Response (MDR) Witness Major Growth

• Managed detection and response (MDR) is a cybersecurity service that provides continuous threat monitoring, detection, and active response to security incidents. It combines advanced technologies like AI and human expertise to identify and mitigate threats in real time. In Saudi Arabia, MDR is a key component of the managed security services market, helping businesses comply with regulatory standards and secure their digital infrastructure.
• As the country accelerates its digital transformation efforts, particularly in sectors like banking, energy, healthcare, and government, there is an increasing reliance on digital infrastructure, cloud services, and Internet of Things (IoT) systems.
• With this shift, the cyber threat landscape has also expanded, creating a growing demand for robust cybersecurity solutions to protect sensitive data and critical infrastructure from cyberattacks. According to Microsoft, between July 2022 and June 2023, approximately 9% of network intrusions in the Middle East and North Africa, attributed to the nation-state or state-affiliated cyber threat actors, targeted Saudi Arabia. This demand has paved the way for Managed Security Services to flourish, with MDR playing a pivotal role.
• The Kingdom's Vision 2030 initiative also plays a crucial role in driving the adoption of MDR services. The government aims to diversify the economy, digitize industries, and attract foreign investments, ensuring cybersecurity resilience is a top priority.
• To meet these goals, many companies in Saudi Arabia are increasingly outsourcing their security operations to managed service providers, enabling them to focus on core business activities while ensuring that their security needs are met. The shift to MDR services helps businesses respond to threats more efficiently without the need to build expensive, in-house security operations centers (SOCs)

Small and Medium-sized Enterprises (SMEs) Witness Major Growth

• SMEs often leverage managed security services to enhance their security posture without needing extensive in-house resources. By utilizing MSS, these businesses can focus on their core operations while ensuring robust cybersecurity measures are in place. This approach is particularly vital for SMEs in Saudi Arabia, given the increasing sophistication of cyber threats in the region.
• According to a report from the Small and Medium Enterprises General Authority (Monsha’at), the Saudi market witnessed a Q-o-Q increase of 3% in the number of small and medium enterprises (SMEs), reaching 1.27 million by the end of Q3 2023. This marks a significant rise of approximately 30% Y-o-Y compared to 978,400 in Q3 2022. Such a rise in SMEs in the region is expected to propel the market.
• Unlike large enterprises that may have the resources to invest in dedicated in-house security teams, SMEs often lack the financial and technical capabilities to effectively manage their cybersecurity needs.
• This has led to a rising demand for managed security services, which offer cost-effective, scalable, and comprehensive solutions tailored to the security requirements of smaller businesses. MSS providers offer round-the-clock monitoring, threat detection, vulnerability assessments, and incident response, allowing SMEs to mitigate risks without the burden of maintaining in-house expertise.

Saudi Arabia Managed Security Services Industry Overview

The Saudi managed security services market is competitive and fragmented, with major players such as IBM Corporation, Cisco Systems Inc., Sirar (Saudi Telecom Company), TechArch, and Accenture PLC.

The Saudi Arabian managed security services market is poised for significant growth, driven by rapid digitalization, an evolving threat landscape, and robust government initiatives aimed at strengthening the nation's cybersecurity infrastructure.

One of the key opportunities lies in the increased demand for cybersecurity solutions across critical sectors such as oil and gas, banking, and healthcare. With these industries being prime targets for cyberattacks, there is a rising need for advanced security solutions like threat intelligence, intrusion detection systems, and endpoint security.

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• The market estimate (ME) sheet in Excel format
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