The global managed security services market is expected to skyrocket to $101 billion in the next nine years, advancing at an eye-popping 18 percent compound annual growth rate, according to new data released by Persistence Market Research.
The research is particularly upbeat, considering many other analyst firms expect 12 percent to 16 percent annual MSSP market growth over the next few years. The upbeat Persistence forecast is a lead in to its new report on the market that classifies managed security services by application, market, drivers and such things.
What’s propelling the segment ahead so forcefully? Cost and complexity, Persistence said. It’s the ever-mutating complexity of threats increasingly plaguing security defenders along with the shortage of skilled security pros that prods companies to outsource to managed security service providers (MSSPs). An additional factor is the meteoric growth of the Internet of Things, giving another surface for hackers to attack and defenders to defend.
The growth of managed security services isn’t confined solely to outside factors: Highly valued solutions and services provided by the market’s specialists are tailored to combat destructive threats such as distributed denial of service attacks and ransomware. Persistence has also identified customized service, in which MSSPs provide services to meet regional requirements such as language support and data sovereignty, as a growing trend in the global managed security services market.
Banking, financial services and insurance (BFSI) outfits and other organizations that provide financial products and services are expected to command the largest application of managed security services, Persistence said. By the end of 2026, BFSI is estimated to generate close to $36 billion in managed security services revenue worldwide.
As for customers, large enterprises are projected to be the largest user of managed security services. By the close of 2026, enterprises are expected to produce nearly $65 billion in market value, the researcher said. At the end of the forecast period, intrusion detection/prevention technology and services are expected to hit nearly $26 billion in sales. Persistence expects web-based security services deployments to exceed $66 billion by 2026.
With a number of the leading managed security service providers based in the U.S., North America could reach $35 billion in segment revenue by 2026, up seven times from the $5.5 billion in 2016. At the same time, developing countries facing an increasing incidence of cyber crime offers significant revenue opportunities for MSSPs, the researcher said.
Key companies in the global managed security services market identified in the Persistence report include Accenture, AT&T, Check Point, Cisco, CSC, Fortinet, IBM, Intel, Symantec and Trustwave.