SECURITY AS A SERVICE MARKET ANALYSIS

Market Insight- Global Security-as-a-Service Market

Market Overview

The security as a service solution also referred to as SaaS is an outsourcing model used for security management in different organizations. The security as a service model can be deployed on monthly rental basis combined with scalable and customizable solution range. Generally, these security solutions include anti-virus, intrusion detection, authentication, anti-malware/spyware, penetration testing, and security event management. The SaaS solutions providers incorporate their cloud security services into corporate network, in order to offer cloud-base security services to different organizations. SaaS is being implemented in various enterprises, owing to its low cost and ease of management.

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The global security-as-a-service market was valued at US$ 5,635.4 Mn by the end of 2019 and is expected to grow at a CAGR of 17.1% over the forecasted period 2019-27.

Market Dynamics- Driver

1. Growing adoption of cloud computing is expected to drive growth of the global security-as-a-service market over the forecast period

Adoption of cloud computing for various applications such as email services, data backups, and ERP, CRM and collaboration services has increased significantly in the recent past. This, in turn, has increased implementation of SaaS in various enterprises. Cloud-based services are less expensive since they do not require IT infrastructure set up. Furthermore, cloud-deployment increases susceptibilities in software that can be easily accessed by unauthorized users. Hence, numerous enterprises are shifting towards implementation of security as a service solutions, in order to secure their workloads and valuable data without any risk on the cloud. Therefore, increasing adoption of cloud computing is expected to boost the global security-as-a-service market over the forecast period.

2. Increasing utilization of subscription-based model in various organizations is expected to propel the global security-as-a-service market growth during the forecast period

SaaS is a subscription model, which facilitates enterprises to provide all team members access to updated software and ensures that all members use the same version. Furthermore, this model offers flexibility to organizations to scale-up and scale-down expenses according to their current requirement, capital, and storage. The major advantage of subscription-based model is the enterprises can control expected costs since it provides a clearer picture of IT-related costs. For instance, in March 2016, For instance Genetec adopted the subscription-based security as a service in its organization and for its channel partners, in order to reduce the organization’s capital expenditure and provide security solutions to clients on cloud. Therefore, growing implementation of subscription-based models is expected to support the market growth in the near future.

North America region dominated the global security-as-a-service market in 2019, accounting for 41.2% share in terms of value, followed by Europe, and Asia Pacific, respectively.

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Source: Coherent Market Insights

Market Dynamics- Restraints

1. Growing threat of organized attacks is expected to restrain growth of the global security-as-a-service market over the forecast period

Increasing threat of organized and systematic attacks is a major restraining factor for the market. Organizations may face systematic attacks such as data breach and data hacking frequently. In order to curb these attacks, security as a service solutions providers need to constantly update their security solutions adequately. Although it becomes challenging to block every attack, enterprises can take essential steps to reduce these activities such as limiting access to business information and growing use of managed security services. However, increasing reliance on third-party services such as managed security services has increased the risk of systematic attacks. Moreover, many hacking groups provide planned hacking for secured applications as they are adequately informed and aware of increasing security solutions and breaches.

2. Challenges associated with unstructured data is expected to hamper growth of the global security-as-a-service market during the forecast period

Many organizations unstructured data is available in the form of audio, video, and emails, which are relatively challenging to categorize and search. This is majorly due to the data existing outside the databases. Although organizations can use security as a service solutions to secure data that relies on their databases, securing unstructured data becomes difficult them as users need to identify and classify data and then save it in database. The entire process is laborious and lengthy. Therefore, enterprises often avoid using security as a service solutions for unstructured data security, which in turn, is expected to hamper the global market growth in the near future.

Market Opportunity

1. Increased Internet of Things (IOT)-related services is expected to present major growth opportunity

Various organizations have started implementing IoT-based solutions, in order to make functioning sophisticated. IoT solutions providers are incorporating security as a services, in order to reduce cyber-attacks, identify threats, fix vulnerabilities before launching in the market. Moreover, growing application of security services in IoT has increased the demand for security as a service solution is expected to increase significantly and provide major growth opportunities in the near future.

2. Cost advantages offered by SaaS is expected to pose excellent business opportunities in the near future

Security as a service enables multi-users to share software and hardware. This, in turn, reduces their respective operational costs. Furthermore, these services can be offered over cloud and third-party management thereby aiding in reducing cost of maintenance and acting as replacement for IT infrastructure in an enterprise. These cost advantages offered by SaaS for small businesses are expected to offer major business opportunities for market players during the forecast period.  

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Source: Coherent Market Insights

In global security-as-a-service market, by Industry segment IT and Telecom sub-segment dominated the global security-as-a-service market in 2019, accounting for 34.7% share in terms of value, followed by healthcare, retail and consumer goods respectively.

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Source: Coherent Market Insights

Market Trends

1. High demand for security as a service solutions among large enterprises is a major trend

Large enterprises, similar to small enterprises, are increasingly moving towards cloud to gain advantages from cost benefits and provide easy accessibility of business information to workers and other business partners. Therefore, large enterprises are actively adopting security as a service solution to strengthen theft control and management of cyber-risk. According to Coherent Market Insights’ analysis, in North America, around 95% of large businesses have been using cloud-based security services for over a year to reduce their IT security and staff set up costs and to focus on other complex business issues.

2. Threats related to data loss in healthcare industry

In the recent, healthcare sector has become one of the most targeted industries of systematic cyber-attacks. This mainly due to availability of confidential and personal information of patients. The major data stolen from healthcare sector include information related to patients, bills and medical records, their medical history, etc. which can be misused cyber criminals to create fake IDs for claiming insurance and other gains. Furthermore, rise of bring your own device (BOYD) culture in healthcare industry has increased the use of personal devices and save information on cloud application that may or may not have adequate security and prone to viruses, cyber, and malware attacks. Therefore, healthcare sector is actively adoption security as a service solutions to curb and avoid data theft. For instance, Solutionary, a U.S.-based IT solution provider, offers security as a service solution to the healthcare sector to facilitate patient data protection, compliance service, and IT infrastructure monitoring.

Value Chain Analysis

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Competitive Section

Key players involved in the global security-as-a-service market are Proofpoint Inc., Okta, Inc., Gemalto NV, Qualys, Inc., Intel Security, Zscaler, Inc., Cisco Systems Inc., Alert Logic, Inc., Oracle Corporation, and Trend Micro Inc.

Key Development

1. Key players in the market are focused on product and service launches, in order to gain competitive edge in the market. For instance, in September 2019, Proofpoint Inc., a U.S.-based security solutions provider, introduced Targeted Attacked Protection (TAP) Dashboard that will provide department-level reports indicating the most attacked departments and very attacked people (VAP)
2. Major market players are focused on partnerships and collaborations, in order to enhance their market presence. For instance, in August 2016, Okta Inc. entered the partnership with Google to offer security to Google users on cloud. This partnership will enhance Google cloud-based offerings by integrating Okta’s identity and access management security solutions. This partnership help Okta to enhance its customer base.