Managed Security Services Market Size, Growth Report, 2034

MANAGED SECURITY SERVICES MARKET OVERVIEW

The global Managed Security Services Market size was valued approximately USD 52.14 Billion in 2025 and will touch USD 138.09 Billion by 2034, growing at a compound annual growth rate (CAGR) of 10.23% from 2025 to 2034.

Managed Security Services (MSS) outsource cybersecurity to third-party providers. These services include monitoring, threat detection, vulnerability management, and data protection. MSS helps businesses stay secure from cyber threats while focusing on their core operations.

IMPACT OF KEY GLOBAL EVENTS

"De-globalization and Increased Focus on Local Security Solutions

De-globalization, with trade barriers and protectionism, is shaping the Managed Security Services (MSS) market. As countries focus on national security, demand for localized security services grows. Organizations want MSS providers who can meet local regulations, creating opportunities for providers to expand and offer tailored solutions, driving market growth.

LATEST TREND

Cloud-Native Security

With businesses moving to the cloud, MSS providers offer tailored protection for AWS, Azure, and hybrid environments. Features include automated cloud workload shielding and compliance monitoring to prevent misconfigurations and data leaks.

MANAGED SECURITY SERVICES MARKET SEGMENTATION

By Security Type

Based on Security Type, the global market can be categorized into Network Security, and Cloud Security.

Network Security: This means taking steps to keep computer networks safe, secret, and working right, stopping any attacks or unwanted access. Services like managing firewalls, detecting and stopping intruders, and building safe networks are part of this. With cyber threats getting smarter, more businesses need network security services to protect their inside and outside network systems.
Cloud Security: This is about safeguarding data, apps, and services in the cloud. It covers things like monitoring the cloud, encrypting content, managing who has access to what, and staying aware of threats. More businesses are using cloud computing, so they want ways to keep their cloud systems safe. The need for cloud security is shooting up as more organizations put their stuff in the cloud, making this a big part of the MSS market.

By Application

Based on application, the global market can be categorized into BFSI, Government & Defense

Healthcare, Retail, and IT and Telecom.

BFSI (Banking, Financial Services, and Insurance): This area needs strong security to keep financial info safe, stop fraud, and follow the rules. In banking, finance, and insurance, managed security services include managing risks, watching for rule breaking, and encrypting data. Cyberattacks on financial places are a big worry, so this part of the MSS market is growing fast as financial firms spend a lot on top-notch security.
Government & Defense: Governments and defense people have big security worries, like national security risks, data leaks, and cyber fights. MSS providers help protect key infrastructure, secret data, and gov't networks. The need for these services is going up because cyberattacks on governments and defense firms are happening more often.
Healthcare: Healthcare needs MSS to keep patient data safe, follow rules like HIPAA, and stop cyberattacks on medical gadgets. Hackers love going after healthcare places because they have valuable personal and medical info. Now that healthcare is getting more digital, there's a bigger need for security services to protect patient info and keep systems running smoothly.
Retail: Retailers deal with lots of customer data, like payment info, which makes them a hot target for hackers. In retail, MSS helps with catching fraud, following PCI rules, and stopping data leaks. As e-commerce grows fast, retailers need stronger cybersecurity solutions more and more.
IT and Telecom: IT and telecom firms need MSS to protect their setups, keep customer data safe, and make sure services are always available. As cloud computing gets more popular and IoT devices spread, this sector will need more MSS because companies want to guard their networks and data from cyber risks.

MARKET DYNAMICS

Market dynamics include driving and restraining factors, opportunities and challenges stating the market conditions.

Driving Factors

Rising Cybersecurity Threats

Nowadays, cyberattacks are happening more often and they're getting really tricky. That's a big reason why businesses are looking for Managed Security Services, or MSS. Companies are dealing with things like data getting stolen, ransomware attacks, and those sneaky advanced persistent threats. They need professionals help to protect their important data and their computer systems. MSS providers keep an eye on things all the time, they can spot threats, and they know how to respond when something bad happens. Since cybercrime is on the rise, every industry is realizing they need MSS. This has led to rapid growth in the MSS market.

Restraining Factor

High Implementation and Maintenance Costs

One big thing holding back the Managed Security Services (MSS) market is how expensive it is to set up and keep these services running. Businesses, especially small and medium-sized ones, often think it's hard to make sense of spending so much money right off the bat for MSS. These services need special computer setups, they require continuous technical help, and someone has to be watching over them all the time. All that adds up to a lot of ongoing costs. This financial strain can stop companies from using MSS, especially in industries where saving money is really important.

Opportunity

Integration of AI and Machine Learning in MSS

Putting artificial intelligence (AI) and machine learning (ML) into MSS is opening up new chances for innovation in this market. These techs make it easier and quicker to spot and respond to threats. They let MSS providers use automated systems to find anomalies, guess what might go wrong, and fix problems right away. As AI and ML get better, MSS will become more efficient and proactive. This tech boost could draw in more businesses that want top-notch security, making the market for MSS even bigger.

Challenge

Regulatory and Compliance Challenges

Complying with regulations is a big challenge in the MSS market. Companies have to follow different laws in various regions. Take Europe's GDPR and different countries' data sovereignty laws. MSS providers must make sure their services meet all these different standards. These varying rules make it really hard to have the same security practices across global networks. Providers have to find a way to get over these regulatory hurdles while still giving services that meet both local and international compliance requirements. This just adds more complexity and costs.

MANAGED SECURITY SERVICES MARKET REGIONAL INSIGHTS

North America

North America is a big player in the Managed Security Services (MSS) market because it has great tech, smart cybersecurity rules, and lots of cloud services. With more cyber threats and tough laws, especially in banking, healthcare, and government, businesses there need MSS more and more. Many companies are now hiring MSS experts to boost security and save money. Plus, the U.S. and Canada spend a lot on IT and cybersecurity, and people are more aware of cyber risks, so MSS will keep growing there.

Europe

Europe's MSS market is growing steadily. Businesses there need better cybersecurity to deal with cyber threats and meet strict data protection laws such as GDPR. Sectors like banking, healthcare, and the government are using MSS to stay compliant and safeguard sensitive information. The rise of cloud technology and digital transformations is also giving a boost to the market. However, the fact that each European country has its own set of cybersecurity laws makes it really difficult for MSS providers to adapt and carry out their services smoothly.

Asia

Asia's MSS market is booming because tech is advancing fast and cyber risks are growing. As businesses use IoT, AI, and cloud tech, they need better cybersecurity. Cybercrime and data breaches worry companies in IT, manufacturing, and finance, so they're turning to MSS. But, some countries face problems like not having enough cyber experts, tough laws, and differing tech standards. Despite these issues, Asia's focus on data protection and government efforts to improve cybersecurity will keep the MSS market growing.

KEY INDUSTRY PLAYERS

Key Players Drive the Market through Innovative Technologies and Collaboration

MSS market competition is competetive. Many players offer different cybersecurity solutions. Big IT firms, security specialists, and small local companies all compete. Advanced tech like AI for threats, keeping up with laws, and flexible services help them stand out. Working with cloud providers and mixing with other IT services also boost their market share. As threats change, companies that innovate, scale, and react fast will win.

List of Top Managed Security Services Market Companies

AT&T
BAE Systems, Inc.
Cisco
Check Point Software Technologies
Fortinet, Inc.

KEY INDUSTRY DEVELOPMENTS

In April 2024, Cyderes extended solution capabilities by entering into a mutual partnership with Ipseity Security, a top IAM organization. This acquisition has been long-awaited within our organization and even more so within our customers’ organizations. This strengthens our specialization in Cloud Identity, Access Governance, and Privileged Access Management and enables a wider extension of our service offerings across the full IAM spectrum; It also improves our capacity to perform well in the more intricate, multi-technical environments of large enterprises.

In January 2024, the MC² Security Fund, a subsidiary of The Chertoff Group, an established global security and growth advisory, and investment company, finalized the acquisition of Trustwave, a global cybersecurity and MSS leader. Having a long-time working experience in the cybersecurity industry, the ownership of MC² was in harmony with Trustwave’s goal of minimizing auditors’ exposure to cyber risk and to protect businesses against negative and potentially devastating effects of cyber operations. ACQUISITIONS Clients received value from Trustwave’s market executing cybersecurity portfolio while mc² and the chertoff group, new to the market, had an impressive history of motivating security results and of creating value on the marketplace.

In December 2023, Kyndryl, the world’s largest technology infrastructure services provider, announced two new security edge services developed jointly with Cisco to help customers improve their security controls and proactively address and respond to cyber incidents.

In September 2023, IBM today unveiled the next evolution of its managed detection and response service offerings with new AI technologies, including the ability to automatically escalate or close up to 85% of alerts, helping to accelerate security response timelines for clients.

In June 2024, Ontinue, an AI-driven provider of managed extended detection and response (MXDR) services, has forged a strategic alliance with Oxfam. Oxfam, a renowned global non-profit, is dedicated to combating inequality and striving to eradicate poverty and injustice. By partnering with Ontinue, Oxfam aims to bolster its cybersecurity measures. This collaboration promises enhanced efficiencies, round-the-clock protection, quicker response times, and an optimized utilization of Oxfam's existing Microsoft Security investments. Given their mission, non-profits like Oxfam often manage sensitive data, including donor information, financial records, and millions of personal details of those they assist.

In March 2024, BT and Zscaler have expanded their partnership, making BT the first global service provider to offer a comprehensive suite of managed security services. These services are built on Zscaler's AI-driven Zero Trust Exchange cloud security platform. With this collaboration, BT can now provide its customers with innovative solutions that simplify IT infrastructures and reduce cyber-attack vulnerability. This empowers businesses to be more agile, efficient, resilient, and secure. Additionally, Zscaler will furnish BT Group with security solutions to safeguard its operations. This move bolsters BT's security and enriches its expertise in assisting customers with Zscaler's offerings.

REPORT COVERAGE

The study encompasses a comprehensive SWOT analysis and provides insights into future developments within the market. It examines various factors that contribute to the growth of the market, exploring a wide range of market categories and potential applications that may impact its trajectory in the coming years. The analysis takes into account both current trends and historical turning points, providing a holistic understanding of the market's components and identifying potential areas for growth.

MSS market is growing because cyber threats are getting worse. Businesses need round-the-clock security help to fight these threats. Cloud tech and digital changes also make MSS more important. As more companies hire third-party providers for cybersecurity, MSS market will keep expanding, especially with stricter laws and privacy worries worldwide.

In the future, MSS market will keep innovating, especially with AI and machine learning. This will make security services more automated and efficient. With cybersecurity being a top priority for businesses, MSS demand will grow. Providers will create custom solutions for industries like finance, healthcare, retail, and government. But, there might be problems like not enough skilled people, privacy worries, and tough laws. MSS providers will need to keep adapting and investing to overcome these challenges.