Security As A Service Market

Global Market Study on Security-as-a-Service (SaaS): Focus on Network and Cloud Security to Remain High

Security-as-a-Service Market Segmentation By Data Loss Prevention Software, Identity and Access Management Software, Encryption Software, Professional Services, Continuous Monitoring Services, Security Consulting Services Components with Network Security, Endpoint Security, Application Security, Cloud Security

About the Report

The global security-as-a-service (SaaS) market is projected to expand at an impressive CAGR of more than 18% over the forecast period of 2021 to 2031, and reach a market valuation of over US$ 61 Bn in 2031. Network and cloud security, together, are expected to hold around two-third of the overall market share.

Security-as-a-service, or SaaS / (SECaaS), has become increasingly popular for corporate infrastructures to scale their security needs as business grows, ease in-house security team’s responsibilities, and avoid the costs and maintenance of on-premise alternatives. Security-as-a-service offers benefits such as latest security tools and updates, faster provisioning and greater agility, reduced costs, and it also helps free up resources. Continuous innovations and upgrades made in SaaS offerings can help reduce the threat of cyber-attacks by providing solutions for network security, cloud security, and email security, as well as web security.

Persistence Market Research’s latest revised study covers comprehensive insights about market trends, value (US$ Mn) projections, recent developments, and dynamics in the SaaS market for the forecast period of 2021-2031. The report tracks the global value of security-as-a-service in 20+ high-growth markets, along with analyzing the impact COVID-19 has had on SaaS and the overall IT security industry.

This edition (2021-2031) brings readers up-to-date with key market developments, providing analysis on how stakeholders are reacting to change. Key industry metrics have been captured, and their impact on SaaS sales has been analyzed. The study also expands on the previous competitive landscape section, and readers will get to know the key strategies of established players as well as new entrants.

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Companies

  • Intel Corporation
  • Oracle Corporation
  • Cisco Systems Inc.
  • Trend Micro Incorporated
  • Proofpoint Inc.
  • Thales Group
  • Qualys Inc.
  • Alert Logic
  • Zscaler Inc.
  • Okta Inc.

Future Market Projections Look Bright

In this market study, the global security-as-a-service market expanded at a CAGR of 16.8% over the last 5 years (2016 to 2020), and is anticipated to witness growth in revenue from around US$ 9.7 Bn in 2020 to over US$ 61 Bn by 2031-end. The market is expected to experience enormous traction over the coming years owing to continuous product innovation by service providers.

Currently, end users across a broad spectrum of verticals, including banking financial services and insurance, healthcare, retail, IT & telecom, energy & utilities, and government are using SaaS to improve their efficiencies and protect infrastructure for security threats, and save money, as managed services such as security-as-a-service provides great value to organisations by improving bottom line and strengthening defenses. Owing to these factors, demand for SaaS is likely to surge, expanding at an impressive CAGR of more than 18% throughout the 2021-2031 assessment period.

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How is Availability of Subscription-based Models Fueling Demand for SaaS?

Security-as-a-service technology is a pay-as-you-go-service subscription model. This subscription-based model helps enterprises give all team members access to updated software and ensures that all use the same version. This model also provides flexibility to enterprises to scale-up and scale-down pricing as per their current need, storage, and capital. In a subscription-based model, enterprises can control their expected costs, as it provides a clearer picture of IT-related costs.

For instance Genetec – a video management provider – implemented the subscription-based security-as-a-service model within its organization and for its channel partners to minimize the company’s capital expenditure, along with providing secure solutions to clients on cloud.

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Which Factors are Driving Adoption of Security-as-a-Service?

Small and medium businesses (SMBs) are adopting security-as-a-service solutions because they have limited budgets to manage business applications and other business activities. Hence, small companies generally use cloud-based applications for their businesses. These cloud-based applications are sometimes prone to risk due to lack of authentication. This encourages them to use SaaS solutions for securing their cloud-based identities.

This model also provides the option of hosted services so that solution providers or third-parties can host the hardware and software of these small companies in their data centres, which helps in reducing cost of IT set-up and also enables fast updates to user organizations.

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How is Increasing Demand for Email Security Fueling Market Growth?

Email protection is a primary requirement among enterprises and individuals. Due to changes in working culture, employees prefer using their personal devices to access business emails outside the organization. Security-as-a-service solutions help organizations by filtering emails carrying viruses on networks before these can reach devices or the internal network of the organization, along with reducing network traffic and improving efficiency of email information.

Moreover, security-as-a-service helps in streamlining email security tools by transferring them into single cloud service. In North America, especially the U.S., users are increasingly adopting SaaS solutions at a faster pace in order to improve email security.

Which Factors are Affecting the Adoption of SaaS?

Mounting risk of organized attacks is a major challenge for growth of the security-as-a-services market. Enterprises face many data breaches and data hacking attacks regularly. To prevent such attacks, security solution providers continuously update their solutions in a better manner. Although it is difficult to prevent all attacks, enterprises take necessary steps to minimize these activities such, as limiting access to business information and increasing use of managed security services.

However, due to rise in dependency on third-party services such as managed security services, the risk of organized attacks has increased. Many hacking groups provide planned hacking for secured applications, as they are significantly well informed and alert with regard to increasing security solutions and breaches.

In addition, organizations can use security-as-a-service solutions only to secure data that relies on their databases, but at the same time, to secure unstructured data, SaaS cannot be used, as users need to first identify and classify data, and then save it in the database, which is a time-consuming process. Thus, some organizations avoid the use of security-as-a-service for unstructured data security, which is hampering market growth to some extent.

Market Share Analysis

The SaaS market is estimated to be fragmented over the forecast period. This projected high fragmentation is attributed to revenue being generated by start-ups and established small- and medium-sized security-as-a-service solution providers. Market leaders are those companies that each hold a market share of over 10%. This group consists of giants such as Thales Group, Intel Corporation, and Cisco Systems, Inc.

Companies holding a market share of over 5% and below 10% are promising players. These firms are expected to showcase quick growth and harness the opportunities that the global market has to offer for business expansion and revenue generation. This group consists of companies such as Oracle Corporation, Proofpoint, and Trend Micro, Inc.

Companies that have a comparatively lower size with a market share less than 5% are focusing on attracting new clientele in foreign markets. Such emerging players are Alert Logic, Okta Inc. and Zscaler Inc., among others.

security-as-a-service-saas-market

Country-wise Insights

Why is Demand for IT Security Solutions Growing at a Significant Rate in Japan?

In Japan, the IT market is growing rapidly, due to which, demand for IT security solutions is increasing at a robust pace. Rising dependence on networks has led to increasing adoption of network security solutions. Due to businesses growing at a brisk pace, complexity in IT infrastructure is increasing, which companies are unable to control and manage. This is why companies are adopting security-as-a-service solutions. With this, companies can adopt SaaS for hosted as well as on-premise application security as per their business needs.

Why is there Rapid Adoption of SaaS among Different Verticals in Poland?

In Poland, the economy is growing significantly, due to which, investments in IT services have increased. Security companies in Poland are using local data centres to store information so that they can comply with local data privacy regulations. Moreover, industries such as BFSI, IT and telecom, and manufacturing are aggressively adopting cloud-based technologies to improve business process flexibility, increase collaboration, reduce capital expenditure, and automate software.

High adoption has increased the risk of data theft, malware attacks, and unauthorized access over the cloud. Hence, companies have started adopting security-as-a-service solutions for securing their documents over the cloud. For instance, banking organizations are moving towards the cloud for payments systems, due to which, they are adopting SaaS solutions for secure cloud-based payments.

How are Small Players Increasing their Presence in the United States?

In the United States, small security-as-a-service providers are offering solutions for identity and access management, and for single sign-on. These small players are targeting small and medium organizations to secure their applications on the cloud at a considerably low cost. These small players provide security solutions for software-as-a-service and strong authentication systems, and also help by providing integration services to existing platforms to manage and centralize information related to access, emails, and other business assets.

For instance, small companies in the U.S. in various sectors such as retail, healthcare, and customer credit have adopted SaaS solutions to comply with government security regulations.

Why is Demand for SaaS Increasing from SMBs across Germany?

In Germany, IT security solutions are generally used by individuals and small and medium businesses so as to reduce the risks of cyber threats and increasing organized attacks. Governments in countries in the region are also helping companies in taking the initiative of adopting IT security services by regulating security compliances and updating security-related policies. In Germany, the government is also implementing security-as-a-service solutions in public offices in order to motivate other industries and small businesses to adopt cloud-based SaaS solutions. For instance, the government has implemented the usage of electronic proof identity cards among citizens to avoid information breaches, with all information placed on the cloud along with appropriate security measures in place.

Category-wise Insights

How is High Adoption of Cloud Computing in BFSI Industry Boosting Adoption of SaaS?

Banking organizations are rapidly expanding their customer services through mobile platforms that are running on the cloud. Other financial companies are also making use of social platforms such as Twitter and Facebook to engage potential customers. Banks are also using YouTube and emails to promote their services and increase awareness among customers, which increases the risk of data theft or hacking. Banks use the private and public cloud for various banking applications, which also increases the risk of cyber-attacks. This increases the need for security solutions over the cloud to reduce associated risks. Many private banks are using security-as-a-service models for email encryption, data loss prevention, and network protection.

Will High Risk of Data Loss in Healthcare Industry Catapult Growth of SaaS?

The healthcare industry has become one of the most targeted industries for cyber-attacks due to the availability of confidential and personal information of patients. Data stolen from the medical sector includes information related to patients, their medical history, bills, and other records, which can be misused by cyber criminals to create fake IDs for claiming insurance or other gains. Moreover, due to increased usage of BYOD in the healthcare industry, staff and employees use their personal devices and save information on cloud-based applications that do not have appropriate security and are prone to viruses and cyber-attacks. Hence, the healthcare industry is progressively adopting security-as-a-service solutions to avoid data loss and theft.

Competitive Landscape

Security-as-a-service players rely on multiple expansion strategies to enhance penetration across lucrative markets. These include collaborations with major players, product launches, acquisitions, partnerships, and strengthening of regional and global distribution networks.

  • For instance, in September 2020, Proofpoint and CyberArk, a privileged access management company, collaborated to safeguard high-risk users. This partnership will bring more security solutions for organizations, which will enable them to identify their much attacked people (VAPs) by applying additional security policies.
  • In December 2020, Thales Group and Google Cloud collaborated to deliver more problem-solving solutions in digital identity and security. This collaboration will help in ensuring sensitive data and secure public and private clouds to improve data privacy.

Some of the leading companies providing security-as-a-service are:

  • Intel Corporation
  • Oracle Corporation
  • Cisco Systems Inc.
  • Trend Micro Incorporated
  • Proofpoint Inc.
  • Thales Group
  • Qualys Inc.
  • Alert Logic
  • Zscaler Inc.
  • Okta Inc.

*The list is not exhaustive, and only for representational purposes. Full competitive intelligence with SWOT analysis available in the report.

Report Scope

Attribute

Details

Forecast Period

2021-2031

Historical Data Available for

2016-2020

Market Analysis

US$ Mn for Value

Key Regions Covered

  • North America
  • Europe
  • Middle East & Africa
  • Rest of the World

Key Countries Covered

  • U.S.
  • Canada
  • Germany
  • Italy
  • France
  • U.K.
  • Spain
  • GCC
  • South Africa

Key Segments Covered

  • Component
  • Application
  • Vertical
  • Region

Key Companies Profiled

  • Intel Corporation
  • Oracle Corporation
  • Cisco Systems Inc.
  • Trend Micro Incorporated
  • Proofpoint Inc.
  • Thales Group
  • Qualys Inc.
  • Alert Logic
  • Zscaler Inc.
  • Okta Inc.

Customization & Pricing

Available upon Request

Key Questions Answered in Report

  • How will the security-as-a-service market expand until 2031?

Persistence Market Research projects the market to register a CAGR over 18% across the 2021-2031 assessment period. Continuous innovations and upgrades made in product portfolios can help attract a wide range of customers operating in different industry verticals.

  • What are the major challenges for SaaS providers?

Organizations can use security-as-a-service solutions only to secure data that relies on their databases, but at the same time, to secure unstructured data, SaaS cannot be used, as users need to first identify and classify data, and then save it in the databases, which is time-consuming.

  • Who are the leading players in the security-as-a-service landscape?

Prominent players operating in this space include Intel Corporation, Oracle Corporation, Cisco Systems Inc., Trend Micro Incorporated, Proofpoint Inc., Thales Group, Qualys Inc., and Alert Logic, among others.

  • What are the major trends impacting market growth?

Increasing adoption of SaaS solutions to improve email security and avoid data loss & theft.

  • Which region is expected to be at the forefront in this market?

North America is dominating the global market; however, the market in East Asia is anticipated to expand at a significant rate over the forecast period.

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