Managed Security Service Provider MarketSize and Trends

Managed security service refers to network security services, which offers remote monitoring, management of IT security functions, intrusion detection, scanning & anti-viral services, and among others. Managed Security Services (MSS) are provided by the managed security service providers (MSSP), which aid client organizations including small and medium sized enterprises (SMEs) and large enterprises such as IBM Corporation, Integralis Inc., and AT&T, in management of security of their networks. Increasing number of cyber threats has led to adoption of managed security services by enterprises in various sectors such as BFSI, IT and telecommunication, and government, which is expected to aid in the market growth of managed security service providers. Managed security service providers are majorly focusing on balancing device management, incident response, risk, and compliance functions. Additionally, companies are providing customized services including language support and data sovereignty. Moreover, the providers are adopting network behavioral analysis and predictive analysis to detect threats and events likely to place in the future systems and networks.

Increasing number of cyber-attacks is a major factor driving for growth of the managed security service provider market

Several organizations and corporate entities are increasing focusing on adopting various solutions such as cloud –based solutions and networks, in order to improved their business operations. Companies in sectors such as BFSI, education, and information technology & telecommunications integrate cloud-based systems into their infrastructure to shift the processes online. Therefore, threat for cyber-attacks is increasing significantly. Companies rely security, as the threat to a system directly harms the internal work of the company. For instance, in February 2016, the cyber-attack on central bank of Bangladesh have resulted in loss of US$ 81.2 million. Therefore, increasing complexity of infrastructure regarding cyber-attacks is driving companies to adopt managed security services. Most of the enterprises are adopting cloud-based managed services, which is specifically used for email security, identity access management, and among others, in order to reduce the risk of data breach and cyber-attack. Additionally, managed security service providers have an advantage over internal information technology divisions as these have a better visibility in the threat landscape.

BFSI segment is expected to account for the largest market share over the forecast period

Consumers are increasing focusing on using bank applications through several platforms. Therefore, this makes the services highly susceptible to attacks. Demand for security is high, in order to avoid data breach. Moreover, cyber-attacks in the banking sector are also increasing. For instance, in 2014, the cyber-attack on the European Central Bank (ECB), which included breaching of sensitive personal information such as email addresses and the contact data. Therefore, data security and protection of sensitive information are the major factors driving growth of the BFSI industry. Therefore, adoption of managed security services for application is these sectors is increasing, as data breach and cyber-attacks could lead to high loss. BFSI industry is largely focusing on identify and access management, unified threat management, disaster recovery and others. Therefore, BFSI segment is expected to hold the largest market share and is project retain its dominance over the forecast period.