Global Market Study on Managed Security Services: North America Market Expected to Expand 7X in Terms of Value by 2026 End


  • Published On : Nov-2016 |
  • Pages : 254 Pages |
  • Format :

Persistence Market Research analyzes the global managed security services market over a ten year period from 2016 to 2026 in a newly published report. The study demonstrates market dynamics and trends across regions that are expected to influence the current status and future prospects of the global managed security services market over the forecast period (2016 - 2026). The primary objective of the report is to offer information on market drivers, restraints, trends, opportunities, and value chain analysis; and updates on developments in the global managed security services market.

The report is categorically divided into five sections namely, by deployment type, by service type, by organization, by application type and by region, to understand and offer insights on the global managed security services market. The report provides analysis of the global managed security services market in terms of market value (US$ Mn).

The report starts with an overview of the global managed security services market which includes market description and taxonomy. Moreover, the value chain of managed security services and pricing models followed by managed security service providers for outsourcing the managed security services in the organization are also included in this section. Thereafter, analyses of key trends, opportunities, drivers and restraints from the supply and demand perspectives are included.

The section that follows analyses the overall market by providing the overall market size, absolute dollar opportunity and growth rate comparison of the overall market.

The next section describes the market on the basis of deployment type and presents the forecast in terms of value for the next 10 years. On the basis of deployment type, the global managed security services market has been segmented into:

  • Cloud-based deployment
  • Web-based deployment

Another section included in the report is on the basis of service type that analyses the market and presents the forecast in terms of value for the next 10 years. On the basis of service type, the global managed security services market has been segmented into:

  • IDS/IPS
  • DDoS
  • Threat Management
  • Firewall Management
  • Endpoint Security
  • Security Information and Event Management

The section that follows analyses the market on the basis of organization and presents the forecast in terms of value over the next 10 years. On the basis of organization, the global managed security services market has been segmented into:

  • Small & Medium Enterprise
  • Large Enterprises 

Another section included in the report is on the basis of application type that analyses the market and presents the forecast in terms of value over the next 10 years. On the basis of application type, the global managed security services market has been segmented into:

  • BFSI
  • Healthcare
  • Retail
  • Telecommunication
  • Others

The following section of the report includes analysis of the global managed security services market on the basis of region. The global managed security services market is segmented into seven key regions:

  • North America
  • Latin America
  • Eastern Europe
  • Western Europe
  • Asia Pacific Excluding Japan
  • Japan
  • Middle East and Africa

In the final section of the report, the managed security services market competitive landscape is included to provide report audiences with a dashboard view of the market players, based on categories of providers across the value chain, their presence in the managed security services portfolio and key differentiators. Some of the major market players featured in this section are IBM Corporation, Symantec Corporation, Fortinet, Inc., Computer Science Corporation, Accenture PLC, AT&T Inc., Intel Corporation, Cisco Systems, Inc., Checkpoint Software Technologies Limited, Trustwave Holdings, Inc.

Research methodology

To deduce market size, the report considered the average IT spending in managed security services across geographies. Furthermore, data points such as regional split and market split by deployment type, organization, service type and application type are analyzed and qualitative inputs from primary respondents have been incorporated to arrive at suitable market estimates. The forecast presented in the report evaluates the total revenue that is expected to be generated across the managed security services market over forecast period (2016–2026). When developing the market forecast, the starting point involved sizing up the current market, which forms the basis for forecasting how the market is anticipated to take shape during the forecast period. Given the characteristics of the market, PMR triangulated the data on the basis of various analysis based on both supply side and demand side.

It is imperative to note that in an ever-fluctuating global economy, we not only conduct forecasts in terms of CAGR, but also analyze the market on the basis of key parameters, such as Year-on-Year (Y-o-Y) growth, to understand the predictability of the market and identify the right opportunities in the managed security services market.

As previously highlighted, the market for managed security services is split into various segments, on the basis of deployment type, service type, organization, application type and region. All these segments have been analyzed in terms of Basis Point Share (BPS) to understand the individual segments’ relative contribution to market growth. This detailed level of information is important for identification of many key trends in the global managed security services market

Another key feature of this report is the analysis of the managed security services market by deployment type, service type, organization, application type and region and its revenue forecast in terms of absolute dollar opportunity. This is usually overlooked while forecasting the market. However, absolute dollar opportunity is critical in assessing the level of opportunity that a provider can look to achieve, as well as to identify potential resources from a sales perspective in the global managed security services market.

In order to understand key growth segments in terms of growth and performance of the managed security services market, PMR developed a market attractiveness index. The resulting index should help providers identify real market opportunities.

Managed Security Services is a systematic approach to manage the security needs of an organization by outsourcing its security services to third party vendors known as managed security service providers. These services are cost effective, provide skilled resources, network infrastructure, advanced security solutions and tools with adherence to compliance and regulatory requirements and 24 x 7 support and monitoring.

Managed security services consists of different types such as on-site consulting, perimeter management of the network of the client, vulnerability management, penetration testing, security audits and compliance monitoring, round the clock monitoring, intrusion detection system ,firewall management, threat management, DDoS attacks, security information and event management, end point security and  product resale, virtual private network and anti-viral services. Managed Security Services have applications in various end use industries such as banking and financial institutions, healthcare, retail, telecommunication and information technology, government, energy and utilities, industrial manufacturing and others.

The global managed security services market is expected to expand at a CAGR of 17.6% during the forecast period 2016 to 2026.

Market dynamics

An increasing need for advanced threat protection on the backdrop of the rise in the frequency of cyber security attacks is driving the market of managed security service providers. Moreover, it is cost effective for the organization to outsource their security needs to the managed security service providers, thereby attaining economies of scale. Cyber intelligence is the ability to respond rapidly to the real time incidents. This demands filtering of the appropriate thread feeds, understanding the security event log data, rejecting the inappropriate and insecure data and recommending the right means to handle the data. Many organizations don’t have the skill set and capabilities to support these functions. This requires partnering with the skilled security service provider which help in minimizing the risk, supporting the network capabilities and providing the skilled staff for constant monitoring and analysis. Organizations investing in building in-house network security infrastructure with the changing technology require considerable time to drive it to action. This demands the outsourcing of security services to service providers.

Managed security service providers find it difficult to scale their business as the core infrastructural elements i.e. the security tools and platforms don’t provide the level of scalability in the market. These services are not run based on the pre-packaged security technologies. Lack of backend tool integration further exaggerate the scalability limitation of the managed security service application. There is also a risk associated with handling of the critical and sensitive information of the company by outsourced security services professionals as there is always a risk of critical information getting leaked. These factors act as restraints to the global managed security services market.

Segment analysis

The overall managed security services market is estimated at US$ 19.98 Bn by 2016 and is expected to be valued at US$ 100.88 Bn by 2026, projecting a CAGR of 17.6% over the forecast period 2016 to 2026.  The market is further segmented on the basis of deployment type, service type, and organization and application type.

On the basis of service type, the market is segmented into IPS/IDS, DDoS, Threat Management, Firewall Management, End Point Security and SIEM. The end point security segment is expected to expand at a significantly high CAGR of 20.2% over the forecast period. This is attributed to the growing trend of “Bring Your Own device” which refers to the policy of permitting employee owned devices and mobile devices in the workplace, driving the growth of this segment during the forecast period. Moreover, digital and social innovation, cloud platforms, mobile solutions and Internet of Things are expected to expand the segment with a high CAGR during the forecast period.

The SIEM segment is estimated to be valued at US$ 4,202 million by 2016 and is expected to expand at a CAGR of 19.2% during the forecast period. The market is expected to grow due to advancements in data analysis which help in reducing response time and time to detect against any irregularities in the network devices and growth of cloud-based solutions which provides flexibility, scalability and low cost of deployment. The IPS/IDS segment is expected to account for the high market share during the forecast period.

managed security services market

Regional analysis

The North America Managed Security Services market is expected to expand 7X in terms of value over the forecast period, with projected CAGR of 18.8% during the forecast period. The market is estimated to be valued at US$ 5,487 Mn by 2016 and is expected to be valued at 35.218 Bn by 2026. United States being the headquarters of leading Managed Security Services companies is expected to continue to remain the largest market for Managed Security Services in the world. The U.S. is expected to account for 84.1% share by 2026 in the North America Managed Security Services market as compared to 72.7% share in 2015.

Key market players

Some of the key market players in the global managed security services market are IBM Corporation, Symantec Corporation, Fortinet, Inc., Computer Science Corporation, Accenture PLC, AT&T Inc., Intel Corporation, Cisco Systems, Inc., Checkpoint Software Technologies Limited, Trustwave Holdings, Inc.

Company Profiles

  • IBM Corporation
  • Symantec Corporation
  • Fortinet,Inc.
  • Computer Science Corporation
  • Accenture PLC
  • AT&T Inc.
  • Intel Corporation
  • Cisco Systems,Inc.
  • Checkpoint Software Technologies Limited
  • Trustwave Holdings,Inc.
  • Others

 

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