Managed Security Services Market Forecasts to 2030 – Global Analysis By Security Type (Cloud Security, Data Security, Network Security and Other Security Types), Enterprise Size (Large Enterprises and Small and Medium-sized Enterprises), Deployment Mode (

Managed Security Services Market Forecasts to 2030 – Global Analysis By Security Type (Cloud Security, Data Security, Network Security and Other Security Types), Enterprise Size (Large Enterprises and Small and Medium-sized Enterprises), Deployment Mode (Cloud and On-Premise), Application, End User and By Geography

According to Stratistics MRC, the Global Managed Security Services Market is accounted for $34.79 billion in 2024 and is expected to reach $75.17 billion by 2030 growing at a CAGR of 13.7% during the forecast period. Managed Security Services (MSS) refer to the outsourced monitoring and management of an organization’s security systems and infrastructure. Typically provided by third-party vendors, MSS offerings include proactive threat monitoring, detection, and response, along with risk management services to safeguard networks, systems, and data. MSS providers use advanced tools like Security Information and Event Management (SIEM), intrusion detection systems (IDS), firewalls, and vulnerability management solutions to identify and mitigate cyber threats in real-time.

According to a report from Palo Alto Networks’ Unit 42 security consulting group, the average ransomware payment climbed 82% to a record $570,000 in the first half of 2021 from $312,000 in 2020.

Market Dynamics:

Driver:

Growing complexity of IT environments

As IT environments become increasingly complex, the need for robust cybersecurity solutions has grown, making Managed Security Services (MSS) more critical. With businesses leveraging diverse technologies cloud computing, hybrid infrastructures, Internet of Things (IoT), and remote workforces traditional security models are often insufficient to protect against evolving threats. Furthermore, Mss providers offer specialized, proactive security management, ensuring constant monitoring, threat detection, incident response, and compliance with industry standards.

Restraint:

Limited capital funding in emerging economies

Limited capital funding in emerging economies significantly hampers the growth and adoption of Managed Security Services. These economies often face resource constraints, which makes it challenging for businesses to invest in advanced cybersecurity infrastructure and services. Without sufficient capital, businesses are unable to keep pace with the evolving threat landscape, leaving them vulnerable to cyberattacks. The lack of funding limits the ability to hire skilled cybersecurity professionals or invest in the latest technologies necessary for effective managed security. However, this creates a barrier to the implementation of comprehensive security frameworks, resulting in increased risks and slower digital transformation in these economies.

Opportunity:

Rising focus on core business activities

The growing emphasis on core business activities is substantially boosting the Managed Security Services (MSS) sector. As organizations focus more on their primary competencies—whether it's product development, customer service, or market expansion—they are increasingly outsourcing their cybersecurity needs to MSS providers. This allows businesses to leverage specialized expertise without diverting internal resources from strategic objectives. Managed Security Services offer a range of benefits, including proactive threat monitoring, rapid incident response, and advanced security technologies, all tailored to meet specific business needs. By relying on MSS providers, companies can ensure robust, scalable security while maintaining flexibility in operations. This trend is particularly crucial as cyber threats become more sophisticated and pervasive.

Threat:

Shortage of security professionals

The shortage of security professionals is significantly hindering the growth and effectiveness of Managed Security Services (MSS). As cyber threats continue to evolve in complexity and scale, organizations increasingly rely on MSS providers to safeguard their networks, data, and assets. However, there is a critical gap in the availability of skilled cybersecurity talent to meet this demand. This shortage makes it challenging for MSS providers to deliver timely, high-quality services, such as threat detection, incident response and vulnerability management. The lack of skilled professionals also leads to burnout among existing staff, further exacerbating the problem. With the global demand for cybersecurity experts far outpacing supply, organizations are struggling to build robust security teams capable of defending against sophisticated cyberattacks.

Covid-19 Impact:

The COVID-19 pandemic significantly impacted the Managed Security Services (MSS) industry, accelerating the demand for enhanced cybersecurity solutions as businesses shifted to remote work and digital operations. With the rapid adoption of cloud services, e-commerce, and digital collaboration tools, organizations faced increased cybersecurity risks, including data breaches, phishing attacks, and ransomware. This surge in cyber threats pushed businesses to rely more heavily on MSS providers to safeguard their networks, endpoints, and data. The pandemic also led to a shift in security priorities, emphasizing threat detection, incident response and 24/7 monitoring.

The Data Security segment is expected to be the largest during the forecast period

Data Security segment is expected to dominate the largest share over the estimated period, by addressing the evolving complexities of cyber threats and data protection. As organizations increasingly migrate to cloud environments and adopt hybrid IT infrastructures, securing sensitive data across multiple platforms has become a priority. MSS providers are integrating advanced technologies such as artificial intelligence, machine learning, and behavioral analytics to proactively detect and mitigate potential security risks. This shift allows businesses to stay ahead of emerging threats and comply with stringent data privacy regulations like GDPR and CCPA. By outsourcing security management to experts, organizations can focus on their core functions, knowing that their critical data is safeguarded through continuous monitoring, threat intelligence and rapid incident response capabilities.

The Healthcare segment is expected to have the highest CAGR during the forecast period

Healthcare segment is estimated to grow at a rapid pace during the forecast period. With the rise of cyberattacks targeting healthcare organizations, including ransomware and data breaches, MSS providers offer a comprehensive solution to protect networks, systems, and sensitive health information. Managed Security Services help healthcare organizations reduce the complexity of managing cybersecurity internally by leveraging expert resources and advanced technologies. They also assist in safeguarding patient confidentiality, ensuring compliance with standards like HIPAA, and minimizing the financial and reputational risks of a cyberattack.

Region with largest share:

North America region is poised to hold the largest share of the market throughout the extrapolated period. As businesses increasingly migrate their operations to the cloud, the demand for robust, scalable, and cost-effective security solutions rises. Cloud technology enables MSS providers to offer advanced security features such as real-time threat detection, automated responses, and data protection with greater flexibility and efficiency. This is particularly crucial in North America, where cyber threats are becoming more sophisticated and frequent. Furthermore, cloud-based MSS platforms provide businesses with the ability to protect their data and networks without heavy upfront investments in hardware or infrastructure.

Region with highest CAGR:

Asia Pacific region is estimated to witness the highest CAGR during the projected time frame. As more businesses and consumers in countries like India, China, and Southeast Asia adopt mobile devices, the need for robust cybersecurity solutions becomes more critical. Mobile devices are increasingly targeted by cyber threats due to their widespread use and the sensitive data they store. Managed Security Service Providers (MSSPs) are stepping in to offer advanced threat detection, risk management, and real-time monitoring to protect organizations from evolving cyber risks. Moreover, mobile-driven digital transformation in sectors like finance, healthcare, and retail is intensifying the demand for comprehensive security measures to safeguard mobile networks, applications, and endpoints. This shift towards mobile-first environments is not only fueling the demand for MSS but also creating new opportunities for security service providers to expand their offerings across the Asia Pacific market.

Key players in the market

Some of the key players in Managed Security Services market include Accenture plc, AT&T Inc, BAE Systems, Inc, BT Group plc, Capgemini SE, Cisco Systems, Dell Technologies Inc, Fortinet, Inc, HCL Technologies Limited, IBM Corporation, Infosys Limited, Tata Consultancy Services Limited, Verizon Communications Inc and Wipro Limited.

Key Developments:

In April 2024, Cyderes extended solution capabilities by entering into a mutual partnership with Ipseity Security, a top IAM organization. This acquisition has been long-awaited within our organization and even more so within our customers’ organizations. This strengthens our specialization in Cloud Identity, Access Governance, and Privileged Access Management and enables a wider extension of our service offerings across the full IAM spectrum; It also improves our capacity to perform well in the more intricate, multi-technical environments of large enterprises.

In January 2024, the MC² Security Fund, a subsidiary of The Chertoff Group, an established global security and growth advisory, and investment company, finalized the acquisition of Trustwave, a global cybersecurity and MSS leader. Having a long-time working experience in the cybersecurity industry, the ownership of MC² was in harmony with Trustwave’s goal of minimizing auditors’ exposure to cyber risk and to protect businesses against negative and potentially devastating effects of cyber operations.

In January 2024, Atturra partnered with Sydney-based startup MyCISO to underpin its managed service for security program management in the education and commercial sectors. The MyCISO SaaS platform is designed to power and deliver assessments and management of security programs.

In December 2023, Kyndryl, the world’s largest technology infrastructure services provider, announced two new security edge services developed jointly with Cisco to help customers improve their security controls and proactively address and respond to cyber incidents.

In November 2023, AT&T announced an agreement to create a standalone managed cybersecurity services business and a capital investment in that business from a Chicago-based investor - WillJam Ventures. Expected to close in 1Q24, the newly managed cybersecurity joint venture will hold associated managed security operations, select security software solutions, and security consulting resources.

In October 2023, Trustwave Holdings Inc. announced the launch of Trustwave Managed SIEM for Microsoft Sentinel. Trustwave’s latest offering is designed to help businesses using Microsoft Sentinel with improved security capabilities, optimized return on investment, and rapid response times.

In September 2023, IBM unveiled the next evolution of its managed detection and response service offerings with new AI technologies, including the ability to automatically escalate or close up to 85% of alerts, helping to accelerate security response timelines for clients.

In November 2022, Fortinet, a global leader in broad, integrated, and automated cybersecurity solutions, launched FortiGate Cloud-Native Firewall on Amazon Web Services to detect real time malicious internal and external threats.

In September 2022, Check Point Software Technologies Ltd., launched Check Point Horizon, a prevention-focused suite to prevent future cyberattacks and improve defense across the network and cloud endpoints.

In September 2022, Fujitsu Limited and Fujitsu Australia and New Zealand acquired New Zealand’s cybersecurity firm InPhySec, to strengthen the security practices and enable professional services to empower customers on their digital transformation journey.

Security Types Covered:
• Cloud Security
• Data Security
• Network Security
• Other Security Types

Enterprise Sizes Covered:
• Large Enterprises
• Small and Medium-sized Enterprises

Deployment Modes Covered:
• Cloud
• On-Premise

Applications Covered:
• Firewall Management
• Secured Information and Event Management
• Unified Threat Management
• Other Applications

End Users Covered:
• Healthcare
• Banking, Financial Services and Insurance
• Defense/Government
• Telecom & IT
• Other End Users

Regions Covered:
• North America
US
Canada
Mexico
• Europe
Germany
UK
Italy
France
Spain
Rest of Europe
• Asia Pacific
Japan
China
India
Australia
New Zealand
South Korea
Rest of Asia Pacific
• South America
Argentina
Brazil
Chile
Rest of South America
• Middle East & Africa
Saudi Arabia
UAE
Qatar
South Africa
Rest of Middle East & Africa

What our report offers:
- Market share assessments for the regional and country-level segments
- Strategic recommendations for the new entrants
- Covers Market data for the years 2022, 2023, 2024, 2026, and 2030
- Market Trends (Drivers, Constraints, Opportunities, Threats, Challenges, Investment Opportunities, and recommendations)
- Strategic recommendations in key business segments based on the market estimations
- Competitive landscaping mapping the key common trends
- Company profiling with detailed strategies, financials, and recent developments
- Supply chain trends mapping the latest technological advancements

Benchmarking of key players based on product portfolio, geographical presence, and strategic alliances