The global managed security services market is expected to generate revenue of some $53.2 billion by the end of 2031, a 264% growth from the $14.6 billion the segment yielded in 2021, clipping along at a 14.2% compound annual growth rate (CAGR) to 2031, new research says.
The figures, produced by researcher Transparency Market Research, also show an allied market, the managed services consulting segment, is expected to produce sales of $28.2 billion by 2031, chugging along at a CAGR of 8.4%.
Transparency largely credits managed security service providers with catalyzing the growth by offering cybersecurity solutions in enterprises to secure advanced corporate networks. The study found that identity and access management (IAM) is a “remarkably lucrative segment” and the growing popularity of those solutions for enterprise-wide security is driving market share.
This segment currently accounts for roughly one-third revenue share of the market and is estimated to surpass a valuation of $26 billion by 2026, expanding at a CAGR of 16%.
New Opportunities for MSSPs
Other drivers are expected to push the market forward and open opportunities for MSSPs, the researcher said:
- The prevalence of work from home and bring-your-own-device has raised the concerns of cyber threats considerably, creating growth opportunities for managed security services providers.
- Demand for managed security services in the manufacturing, automotive and healthcare industries is growing at a rapid pace, which has prompted managed security services growth rate.
- The growing adoption of IoT cloud infrastructure by organizations has accelerated the need for managed security services for next-gen cybersecurity threats.
- Service providers in the managed security services market are leveraging innovative technology such as AI and machine learning platforms to enable their clients to gain resilience.
- Emphasis on zero-trust security models security approaches among organizations has been spurred by the lack of in-house security experts in many enterprises over the years.
The Bigger Picture
Here are some additional market projections:
- The industrial control systems security solutions market is anticipated to cross value of $54.8 billion by 2030, expanding at a CAGR of 11.5% during the forecast period
- The cloud application security & vulnerability management market is expected to register a CAGR of 14% between 2020 and 2030.
- The hardware security module market is projected to expand at a CAGR of 11.4% during the forecast period from 2020 to 2027.
- The messaging security market is likely to advance at a CAGR of 13% from 2019 to 2027, reaching a market size of roughly $8 billion by 2027
- The physical security services market is projected to rise at a CAGR of 11.7% during the forecast period 2017–2022. By 2022, the market could draw a valuation of $191.7 billion.