Report: Global Managed Security Services Market Is Expected To Reach $29.9 Billion By 2020
Allied Market Research found cloud-based managed security service would grow faster.
According to a new report by Allied Market Research titled, "Global Managed Security Services Market -Deployment Mode, Organization Size, Application, Verticals, Trends, Opportunities, Growth, and Forecast, 2013-2020," the global managed security services market is expected to reach $29.9 billion by 2020, registering a CAGR of 15.8% during 2014-2020. The cloud-based managed security services (MSS) deployment model market would grow faster than the market for remotely monitored customer premises equipment MSS by 2020. Small- and medium-sized businesses would lead the adoption of cloud-based MSS due to cost constraints. North American region would continue to dominate the global market followed by Europe region in terms of market size by value.
Executives consider incidents of data thefts and cybercrimes as the greatest threats to their organization's reputation. Lack of capital and skilled IT resources needed to manage the data security are the major hindrances in protecting the information. Managed security services have emerged as lucrative option for delivering security asset monitoring and management, threat intelligence research, detection and remediation, and risk and compliance management solutions on shared basis to multiple clients. The cost-effectiveness and effective data security have been gaining traction for the managed security market.
Among various data security applications, endpoint security application would grow at the fastest rate, with growing adoption of BYOD policy at workplace. Improvement in production efficiency and enhanced employee satisfaction through utilization of mobile devices for accessing corporate data anytime and anywhere would contribute the growth of BYOD trend. Secured Information and Event Management (SIEM), an emerging technology solution suitable for automatic collection, correlation and analysis of log and alert data, would be the next popular application.
Growing regulatory compliances regarding protection of citizen's information globally, would stimulate the organizations to maintain the high data-security level. Banking, Financial Services and Insurance (BFSI) and telecom and IT sectors would be frontrunners in employing managed security services. Hospitals and physician clinics are also outsourcing security tasks with growing trend of electronic health records for improving patient safety, productivity and save costs. Rising threats to intellectual property would demand the enhanced security infrastructure in manufacturing industry with time.
North American region currently leading the market as the region has stringent regulations regarding information security. Though, North American and European regions are the mature markets, they would continue to maintain their leading position during the forecast period. Asia-Pacific and Middle East markets are gaining momentum with the formation of regulations regarding the data security. Big data analytics would be the critical for market growth across the world.
Key findings of the study:
- The global market for managed security services would grow due to growing complex cyber threats and cloud computing during the forecast period (2014-2020)
- Endpoint security application market would grow at the fastest CAGR of 24.5% during 2014-2020.
- Banking, Financial Services and Insurance (BFSI) sector would continue to maintain its leading position through 2020
- Cloud-based managed security services deployment model would overtake on-premise deployment model by 2016
- Asia-Pacific region would emerge as one of the most lucrative markets, in terms of growth
Leading Managed Security Services Providers (MSSP) including IBM, Dell SecureWorks, HP, and Cisco launching advanced and customized security solutions to help the clients in facing sophisticated attacks from organized cyber criminals. Recently, IBM and AT&T have introduced new service including security network infrastructure with advanced threat monitoring and analytics. Delivery of customized solutions as per the organization size and structure would be the crucial factor driving the market.