The market for managed security and professional security services in the Americas will generate an 11.3 percent compound annual growth rate (CAGR) from 2021 to 2025, according to MarketsAndMarkets. Meanwhile, MSSP Alert's September 20221 research finds that the world's best MSSPs will grow roughly 16 percent in 2021 vs. 2020.
The MarktsAndMarkets report mentions at least five growth opportunities for managed security services providers (MSSPs) and professional services firms that focus on the security market. Those growth opportunities include the:
- Evolution of MSS Offerings in Line with XDR
- Convergence of IT and OT Security
- Services for Public Sector and Critical National Infrastructure (CNI) Organizations
- Expansion to Latin America
- Breach and Attack Simulation Technology
The report summary did not mention overall annual spending (in U.S. dollars) on managed and professional security services in the Americas.
Managed Security Services in the Americas: Key Takeaways for MSSPs
Here are MSSP Alert's key takeaways on each of those five market growth opportunities.
1. XDR (eXtended Detection and Response) software certainly is the rage. Generally speaking, XDR provides visibility across endpoint, network and cloud security tools. But MSSPs should proceed with eyes wide open. So-called "closed" XDR typically involves single-vendor end-to-end solutions. By contrast, Open XDR typically allows MSSPs to leverage the third-party endpoint, network and cloud security tools that they already have in place. The Open and Closed XDR approaches each have pros and cons for MSSPs to more closely consider. More: See all XDR news, analysis and research here.
2. The Convergence of IT and OT Security is real, but safeguarding operational technology is not for the faint of heart. Operational technology often requires MSSPs to learn specific vertical market systems outside of traditional endpoints, servers and network services. One example: Protecting the U.S. power grid.
3. MSSP Services for Public Sector and Critical National Infrastructure (CNI) Organizations also is a hot segment. But federal government-focused MSSPs in the U.S. will also need to navigate President Biden's executive order on cybersecurity -- which mentions IT service provider requirements multiple times. Plus, MSSPs and MSPs need to tackle evolving CMMC requirements.
4. MSSP Expansion to Latin America also requires all sorts of localized expertise. But if you poke around, you'll see MSSPs increasingly navigating the Latin America market...
5. Breach and Attack Simulation services also are hot. Instead of building such services from scratch, it may be wise for MSSPs to offer third-party productized services to end-customers. Where can MSSPs find such products? Follow the venture capitalist dollars, which are funding multiple breach and attack simulation startups.