Managed Security Services Market Forecast: How Fast Are MSSPs Growing?
The global Managed Security Services market is projected to grow from US$31.6 billion in 2020 to US$46.4 billion by 2025. That’s a compound annual growth rate (CAGR) of 8.0% during the forecast period, according to Markets and Markets.
The forecast is less ambitious than most of the data MSSP Alert has seen. Our general view is the MSSP market will grow roughly 12 percent to 15 percent annually through 2025. Near term, the Top 250 MSSPs are expected to grow roughly 15 percent from 2019 through the end of 2020, according to our research findings published in September 2020.
Meanwhile, the more traditional managed IT services provider (MSP) market serving SMB customers will grow roughly 8 to 10 percent annually, MSSP Alert sister site ChannelE2E believes.
MSSP Market Growth Forecast: SOCaaS, MDR, XDR
Still, it’s important to put all of those growth forecasts in proper context. As certain MSP and MSSP services mature and experience slower growth, other areas remain in rapid growth mode. Rapidly expanding areas to watch include Security Operations Center (SOC) as a Service (SOCaaS), managed detection and response (MDR), and the heavily hyped XDR (Extended Detection and Response).
Also of note: Growing demand for cybersecurity services won’t lift all boats. Some MSPs are struggling to build, staff, productize and price cybersecurity services. Also, some MSSPs are struggling to move beyond basic firewall monitoring and management.
Moreover, many large MSSPs are striving to pivot from people-heavy monitoring services toward home-grown software & software acquisitions. One example involves Secureworks, a Top 250 MSSP that has bet heavily on SaaS software development to transform its business. While top-line revenues are growing at less than 10 percent year over year, Secureworks’ revenue mix is shifting toward MDR services.
MSP Market Transition: Robotic Process Automation?
Also of note: More traditional MSP sectors such as help desk services appear ripe for disruption and automation. Among the areas we’re watching closely: Robotic Process Automation (RPA) and its potential to radically improve IT service desks, SOCs and customer interactions.