Global Managed Security Services Industry Outlook

  • The global MSSP market was valued at $11.4 billion and expected to grow at a CAGR of around 12–14 percent in the next five years and reach approximately $25 billion by 2020 
  • Cloud-based content security currently accounts for about 55–60 percent of the total cloud-based security service revenue, and it is predominantly driven by the need to support a mobile/remote workforce

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Managed Security Services - Market Maturity

  • The North American region is the largest and the most mature managed security services market, which is closely followed by the European market 
  • APAC and LATAM are the emerging markets in this market space, and APAC is expected to exhibit rapid growth in the next five years

Global Managed Security Service - Industry Trends

  • Currently, cloud-based content security accounts for about 55–60 percent of the total cloud-based security service revenue. Cloud-based DDoS and SIEM services are also expected to gain traction in the next 18–24 months 
  • Most enterprises prefer to keep some of their core security functions in-house, but would prefer outsourcing security functions, such as compliance and application, and parts of network security, such as IDS/IPS, firewalls, UTM/NGFW and web application firewalls to service providers
  • The Big Data SIEM collaboration is expected to detect threats in real time and shorten incident response time. Automation is aimed at increasing consistency in the security processes by minimizing human error, which is one of the key reasons for security outages 
  • Regulations governing data security are becoming increasingly stringent and complex. In order to effectively comply with the regulations, enterprises are opting to outsource segments of their security categories

Supply Trends and Insights

Global/Regional Supplier

  • Fragmented supply market: The managed security service market is highly fragmented; however, in recent years, smaller, pure play security service providers have been subject to acquisition by large telecom providers and service providers. Large players are looking to enhance their service offerings by adding depth to their portfolio through these acquisitions
  • Adoption of cloud-based security services: Reduction of operation cost, increase in ease and flexibility of deployment, faster access to product and technology updates and the growing need to support a mobile or remote workforce are some of the key drivers propelling cloud-based security services

Analytics and Automation 

  • Role of analytics in security: Suppliers are offering a solution that makes use of analytics in information security. The integration of Big Data is expected to enable organizations to prioritize and focus on key threat sources by analysing the source data collected from various end points and reduce both risk and associated cost
  • Automation: Suppliers are also rolling out automation to enhance security functions in access management, configuration and change management, system monitoring and asset management 

Most adopted egagement model 

  • Most adopted engagement model: Regional sourcing is the most prevalent model, and enterprises typically opt for a partially outsourced model
  • Contract length: 3 – 4 years with a hardware refresh every 18 – 24 months