Managed Security Services Procurement Intelligence Report, 2023 - 2030 (Revenue Forecast, Supplier Ranking & Matrix, Emerging Technologies, Pricing Models, Cost Structure, Engagement & Operating Model, Competitive Landscape)

Managed Security Services Category Overview

The global managed security services category is anticipated to grow at a CAGR of 15.4% from 2023 to 2030. It is witnessing growth owing to the factors such as rising adoption of services offered in the category due to increase in security breaches, stricter government laws pertaining to data security, rise in complex cyberattacks, growing requirement for economical & reliable platform to monitor security incidents, and rising need for security intelligence & early threat detection tools. However, restricted capacity to offer services for incident response and thread hunting, and insufficient technical know-how and skilled manpower may hinder the growth of global category. In addition, these services can be very helpful to the enterprises that need specialized security deployments because of their very large or complicated architecture or because they have particular implementation requirements involving several systems.

Technologies that are driving the global category include cloud-based security, AI (artificial intelligence) & ML (machine learning), MDR (managed detection & response), zero trust security, DevSecOps, IoT (internet of things), blockchain, and email authentication. Cloud-based security, such as CASBs (cloud access security brokers) CSPM (cloud security posture management), and CWPP (cloud workload protection platforms), are now being offered by managed security services providers (MSSPs). These services give enterprises visibility into their security posture and assist them in safeguarding their cloud environments. In addition, the delivery of security services is being revolutionized by AI and ML. By utilizing these technologies, MSSPs may automate security procedures, identify and address threats more quickly, and lower the possibility of human mistake. MSSPs are offering predictive analytics and threat intelligence through AI and ML, which can assist enterprises in staying ahead of new threats.

The category for managed security services is fragmented and highly competitive with the presence of several global players offering plethora of services. The category has become more active as clients continue to grow internationally and strategic players pick up new competencies. In addition, enhancing and broadening the scope of offerings has emerged as a prime investment opportunity for private enterprises, uniting several small and medium-sized firms to augment the magnitude and cooperate with these divisions. It is projected that the industry will witness a large number of joint ventures, mergers & acquisitions, and service introductions as businesses continue to make strategic investments in order to satisfy client demands. Buyers in the industry possess high negotiating capability as the presence of large pool of service providers offers them opportunity to select the best option based on number of services and price.

Software & hardware costs (expenses associated with purchasing and managing security tools, such as antivirus, firewalls, intrusion detection systems, etc.), labor costs, and services cost (expenses associated with consulting and support) are the major cost components for managed security services category. Key factors that influence the price of the services offered in the category includes how big a business or network is, the intricacy of a business enterprise’s network architecture, and the quantity and gravity of the risks that the business could encounter. Furthermore, the pricing model that players in the industry follow include per-data usage pricing (costing over USD 9 - USD 499 per user / device / month), per-device pricing (costing over USD 74 - USD 249 per user / device / month), per-user pricing (costing over USD 74 - USD 249 per user / device / month), cloud-based pricing (costing over USD 124 - USD 299 per user / device / month), and tiered pricing (costing over USD 29 - USD 149 per user / device / month).

North America region dominates the global managed security services category, holding over 34.4% of global market share. Growth of the category in the region is being propelled by the presence of numerous managed security services providers (MSSPs), and growing demand from various tech titans for outsourcing services. It is supplemented by managed service options that better address individual demands and the rising need for data protection, network security, and cloud computing. In addition, the Asia-Pacific region is anticipated to witness the fastest growth rate over the projected timeframedue to the dearth of internal security specialists and the short supply of security equipment to shield data from sophisticated cyberattacks. Furthermore, assessing the specialization and relevant experience possessed by an MSSP, ensuring that an MSSP leverages latest technologies & tools that offer effective security, looking for customer feedback / testimonials of MSSP, and comparing prices offered for different services by MSSPs are some of the best sourcing practices considered in this category.

Managed Security Services Procurement Intelligence Report Scope