Managed Security Services Market by Type (Managed Detection and Response, Managed Identity and Access Management), Security Type (Cloud Security, Endpoint Security), Sector (BFSI, and Healthcare), and GeographyΓÇöGlobal Forecast to 2032.ΓÇÖ

 The growth of the managed security services market is driven by the growing adoption of managed security services in the BFSI sector, rising cybercrimes and ransomware attacks, the rising trend of BYOD (bring your own device) in enterprises, and government initiatives aimed at encouraging the adoption of managed security services. However, the lack of trust among enterprises in giving full control of their system architecture to third-party service providers restrains the growth of the managed security services market.

Furthermore, the rising demand for advanced cybersecurity measures and the increasing adoption of cloud-based solutions among SMEs are expected to create growth opportunities in the market. However, one of the major challenges for the players operating in this market is the lack of awareness and misconceptions regarding managed security services among potential customers.

The IT infrastructure has become more complex and heterogeneous with the introduction of new platforms, BYOD policies, CYOD trends, business applications, and other technologies. The rapid advancements in mobile computing have led to the growing popularity of BYOD and CYOD trends in corporate environments. With the growing adoption of BYOD, organizations are subscribing to cybersecurity solutions to protect devices, such as laptops, smartphones, tablets, and desktops, from cyber threats. There is a rising need to secure the devices inside the office premises and secure those with remote access to the corporate network. These factors significantly increased spending on managed security services, which is expected to drive the market's growth.

Growing Adoption of Managed Security Services in the BFSI Sector to Drive Market Growth

The BFSI sector is highly dependent on IT infrastructure for delivering services, such as mobile, online, and core banking. Identity fraud is a major concern when performing financial transactions through online banking portals and insurance apps. With consistent technological advancements across BFSI channels, banks and other financial services institutions face business outages or system failures, data breaches, and cyber-attacks. For instance, according to the VMware Carbon Black Threat Data report in May 2020, cyberattacks against banks and financial institutions increased by 238% globally between February 2020 and April 2020 amidst the COVID-19 crisis. To overcome such challenges, managed security services are an optimum solution for banks to use a cloud computing environment for faster recovery time, advanced threat detection, and data restoration. Hence, banks and financial institutions are investing heavily in incorporating managed security services to improve work agility and customer experience.

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The Managed Identity and Access Management Segment to Register the Highest CAGR

The rising security breaches & identity-related frauds, the growing need for identity and access management for IoT devices, and the increasing adoption of cloud-based identity management services are expected to support the growth of this segment. In addition, the benefits offered by managed security services, such as eliminating weak passwords, mitigating insider threats, advanced tracking of anomalies, multi-factor security, and reducing service cost, further support the growth of this segment.

The Cloud Security Segment to Register the Highest CAGR

Based on security type, the cloud security segment is projected to register the highest CAGR during the forecast period. The rising adoption of cloud data backup; rising need to protect data and connected devices from cyberattacks, malware, hackers, and unauthorized user access through cloud-based security services; and the increasing demand for advanced threat detection services across industries are expected to support the growth of this segment.

Based on sector, the healthcare segment is projected to register the highest CAGR during the forecast period. The rising adoption of telemedicine devices and remote healthcare services, the rising number of cyberattacks, and the increasing need for securing connected medical devices and effective managed security services measures are expected to support the growth of this segment.

The swift integration of cutting-edge and ever-evolving technology has empowered healthcare organizations to achieve more with fewer resources. However, the increased transmission of vast amounts of data in healthcare also heightens the risk of cyber threats. Given the sensitive nature of this data and the expanding attack surface, prioritizing effective cybersecurity is paramount for all healthcare organizations.Consequently, managed security services are deployed in various capacities to safeguard healthcare organizations' digital assets and fortify their IT infrastructure. There are several applications where managed services are applied in the healthcare industry, as follows:

• Managed detection of cyber threats and responses to those threats
• Security information and event management (SIEM)
• Cloud storage and management services to protect patient data stored in these servers.
• Networking options that allow access only to those authorized to view or manage patient data for an organization.
• Secure transmission options that will protect data on its way to other destinations, including insurance companies, healthcare providers, and patients themselves.
• Managed SD-WAN services to assist the company in managing data across several facilities or locations.
• Training and consulting for staff members and assessments of current measures in place to protect patient data.
• Constant monitoring of systems and transmissions to detect any unauthorized access or other cyber threats.
• Proactive protection for patient data to comply with HIPAA provisions.

Amid mounting cybersecurity apprehensions within the healthcare sector, managed security service providers are ramping up their offerings tailored specifically for healthcare organizations. As an illustration, in August 2022, Happiest Minds Technologies Ltd. (India) rolled out cybersecurity services targeting the healthcare vertical. These cybersecurity solutions for healthcare deliver comprehensive security services across the industry spectrum. They leverage a robust and established framework designed to address regulatory mandates, adhere to digital security standards, and integrate leading-edge tools and technologies. Such growing developments help to increase the growth of managed security services in healthcare during the forecast period.

Asia-Pacific to be the Fastest-growing Regional Market

The market in Asia-Pacific is slated to record the fastest growth rate during the forecast period. The infrastructural growth in APAC, especially in China, South Korea, Japan, and India; the rapid growth of regional economies; the rising adoption of advanced technologies such as cloud, AI, and machine learning; growing awareness regarding managed security services among small & medium-sized organizations; and government initiatives promoting the adoption of advanced managed security services contribute to the rapid growth of this regional market.

The report includes a competitive landscape based on an extensive assessment of the key growth strategies adopted by leading market participants in the last 3 to 4 years. The key players operating in the managed security services market are IBM Corporation (U.S.), Secureworks, Inc. (U.S.), AT&T Inc. (U.S.), NTT Corporation (Japan), Trustwave Holdings, Inc. (U.S.), Atos SE (France), CrowdStrike Holdings, Inc. (U.S.), Lumen Technologies (U.S.), F5, Inc. (U.S.), Fortinet, Inc. (U.S.), Kroll, LLC. (U.S.), CIPHER SECURITY LLC (U.S.), Nettitude Limited (U.S.), Ascend Technologies, LLC (U.S.), and Avertium, LLC (U.S.).

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