Managed Security Services Providers (MSSPs) Market Size, Share, Growth, and Industry Analysis, By Type (Managed Detection and Response (MDR), Managed Firewall, Managed SIEM), By Application (IT Security, Healthcare, Government, Financial Institutions, E-commerce), Regional Insights and Forecast to 2033

Managed Security Services Providers (MSSPs) Market Overview

The Managed Security Services Providers (MSSPs) Market size was valued at USD 39.6 million in 2024 and is expected to reach USD 78.44 million by 2033, growing at a CAGR of 8.92% from 2025 to 2033.

The global managed security services market reached approximately USD 34.2 billion in 2024, up from USD 32.82 billion in 2023. In 2022, the market size was around USD 27.2 billion, reflecting consistent year-over-year expansion. North America holds approximately 34.4–40% of the global market, with estimates of over USD 10 billion in value as of 2023.

Europe follows as the second-largest regional market, also surpassing USD 10 billion. Asia-Pacific is seeing rapid growth, with countries like India generating USD 6.2 billion in public cloud revenue in 2022. Data security services led the market in 2022 with USD 6.47 billion, while threat prevention services accounted for 29% of the global share in 2024. Among service providers, IT service companies represented 59% of the total MSSP market share, whereas telecom service providers showed the fastest growth trajectory.

Key industries driving demand include banking, financial services, healthcare, and government sectors. Around 80% of enterprises reported experiencing at least one data breach, primarily linked to cybersecurity workforce shortages. This continued demand from core sectors and evolving cyber threats is expanding the global MSSP landscape across all verticals and regions.

Key Findings

DRIVER: Escalating sophistication and frequency of cyber threats—malware, ransomware, phishing—forcing adoption of external security services.

COUNTRY/REGION: North America leads with 34–40% market share, followed by Europe.

SEGMENT: Threat prevention services hold approximately 29% market share; IT-service providers account for 59% share.

Managed Security Services Providers (MSSPs) Market Trends

The MSSP market continues evolving with growing demand for 24/7 threat detection, managed SIEM, MDR, firewall management, DDoS protection, and vulnerability assessments. In 2022, data security services alone contributed USD 6.47 billion, and in 2024, threat prevention services accounted for 29% of the market share. Managed SIEM and log management remain top offerings within this space. Asia-Pacific is rapidly expanding, driven by increasing digital transformation efforts. India's public cloud revenue reached USD 6.2 billion in 2022, with China and Japan experiencing substantial investment due to cybersecurity regulations and smart manufacturing initiatives. The Asia-Pacific region now contributes 12–17% of the global MSSP market share. North America dominates with 34.4–40% market share, led by advanced cloud infrastructure and cybersecurity regulations. Europe closely follows, contributing more than USD 10 billion in services. The Middle East and Africa, while smaller, are experiencing increasing adoption due to rising cybercrime activity. Banking and financial institutions, government agencies, and healthcare providers are major adopters. In the financial sector, MSSP adoption expanded in 2024, with this vertical showing a 14% increase in adoption rate. In healthcare, 64% of organizations reported cybersecurity breaches, yet only 48% had an incident response plan.

Managed Security Services Providers (MSSPs) Market Dynamics

This section explores the key forces shaping the MSSPs market, including growth drivers, restraints, opportunities, and challenges. As enterprises face escalating cyber threats and regulatory complexity, demand for managed services is rising sharply. The dynamics outlined below highlight the core factors influencing adoption trends, investment patterns, technological integration, and market limitations across global regions and industry verticals.

DRIVER

Increasing sophistication of cyber threats

Enterprises across sectors are facing highly complex cyberattacks, including ransomware, phishing, DDoS, and zero-day exploits. In 2023 alone, there were over 493 million ransomware attacks globally, with over 71% of organizations admitting they were not prepared for these threats. Managed Security Services Providers are in high demand as enterprises seek constant monitoring, real-time response, and forensic analysis. Over 66% of large enterprises now outsource key cybersecurity operations, particularly threat intelligence and vulnerability management.

RESTRAINT

Limited budget allocations in SMEs

Small and medium-sized enterprises (SMEs), which make up over 90% of all global businesses, struggle with the cost of implementing outsourced cybersecurity services. Despite rising threats, only 27% of SMEs globally have a cybersecurity budget aligned with enterprise risk levels. High service costs, integration complexities, and lack of awareness continue to hold back MSSP adoption. A study from 2023 reported that 48% of SMEs still rely on internal IT teams for cybersecurity, despite rising breach incidents. Additionally, implementation of advanced services such as MDR or threat hunting remains low in SMEs, primarily due to limited scalability and financial constraints.

OPPORTUNITY

Rise in cloud adoption and digital transformation

Cloud migration is at an all-time high, with over 94% of enterprises leveraging cloud infrastructure as of 2024. This rapid shift creates significant opportunities for MSSPs to offer cloud-native security tools, including firewall-as-a-service, cloud SIEM, and container security. Enterprises are moving to hybrid and multi-cloud models, with 67% of businesses using at least two cloud platforms. The complexity of securing these distributed environments makes MSSP services indispensable.

CHALLENGE

Rising costs of compliance and integration

As global cybersecurity regulations tighten, organizations are faced with the burden of meeting data privacy and compliance mandates like GDPR, HIPAA, and PCI-DSS. By 2024, over 74 countries had introduced data protection laws, complicating compliance strategies for multinational organizations. For MSSPs, delivering regulatory-compliant services requires continuous updates, audits, and certifications—resulting in rising operational costs.

Managed Security Services Providers (MSSPs) Market Segmentation

The Managed Security Services Providers market is segmented based on type and application. By type, MSSPs deliver specialized services including Managed Detection and Response (MDR), Managed Firewall, and Managed SIEM. By application, MSSP services are utilized across verticals such as IT Security, Healthcare, Government, Financial Institutions, and E-commerce.

By Type

• Managed Detection and Response (MDR): MDR has become one of the fastest-growing MSSP services, with more than 50% of enterprises expected to adopt MDR by 2025. The demand is driven by the need for advanced analytics, rapid threat detection, and incident response. MDR services accounted for over USD 6.29 billion in market share by 2024. Enterprises value MDR for its real-time monitoring, threat hunting, and forensic analysis capabilities. More than 60% of security operations centers (SOCs) in the US have adopted MDR solutions as of early 2024.
• Managed Firewall: Managed firewall services remain foundational in the MSSP offering stack. They accounted for approximately 24% of the MSSP market in 2023. With the rise of remote work and cloud networks, firewall management is more critical than ever. Over 70% of enterprises now outsource firewall management to MSSPs to ensure policy enforcement, intrusion prevention, and network segmentation. In addition, Next-Gen Firewall (NGFW) deployments grew by 15% YoY, driven by the need for application-level filtering and integrated threat intelligence.
• Managed SIEM: Managed SIEM continues to be widely adopted due to increasing regulatory requirements and audit demands. As of 2024, over 58% of enterprises are using SIEM-as-a-service models. This includes centralized log management, correlation, and alert generation across hybrid environments. Managed SIEM services grew significantly across healthcare and BFSI verticals, with 42% of large hospitals utilizing third-party SIEM platforms. The technology helps detect insider threats and reduces mean time to detect (MTTD) security incidents by over 32%.

By Application

• IT Security: This application segment dominates the market with widespread deployment in large enterprises. Over 80% of IT leaders consider MSSPs crucial for handling security operations. Enterprises with more than 1,000 endpoints often use MSSPs to manage infrastructure monitoring, vulnerability scanning, and endpoint protection.
• Healthcare: Healthcare remains a top vertical due to increased cyberattacks targeting patient data. Over 64% of healthcare organizations reported breaches in the past year. MSSPs offer compliance-driven solutions including HIPAA monitoring, device security, and managed incident response.
• Government: Public sector agencies are significant consumers of MSSPs, especially due to increasing geopolitical threats. Government contracts accounted for over USD 4 billion in global MSSP spending in 2023. MSSPs provide threat intelligence, infrastructure hardening, and 24/7 SOC operations.
• Financial Institutions: The BFSI sector requires strict compliance with regulations like SOX and PCI-DSS. Over 78% of banks outsource security operations to MSSPs to safeguard transaction data, ATMs, and digital banking channels.
• E-commerce: With over 12 million online retail sites globally, e-commerce platforms rely on MSSPs to protect against fraud, DDoS attacks, and payment system vulnerabilities. Over 55% of large e-retailers reported using MSSPs for real-time threat monitoring.

Regional Outlook for the Managed Security Services Providers (MSSPs) Market

The global MSSPs market shows varying adoption rates and growth patterns across regions. North America leads with the highest market share due to early digitalization and strict cybersecurity regulations. Europe follows closely, driven by GDPR compliance and enterprise-level cybersecurity maturity. Asia-Pacific is the fastest-growing region, supported by expanding cloud adoption, rising cyber incidents, and digital transformation initiatives.

• North America

North America dominates the MSSPs market with an estimated 34–40% of global share, driven by widespread enterprise cloud adoption, increasing ransomware incidents, and strong regulatory oversight. In 2023, the U.S. alone reported over 2,200 data breaches, affecting more than 350 million records. Over 70% of large enterprises outsource cybersecurity services, with widespread deployment of managed SIEM and MDR solutions.

• Europe

Europe is the second-largest MSSPs market, exceeding USD 10 billion in 2023. The region’s market strength is anchored in stringent regulations, notably the General Data Protection Regulation (GDPR), driving enterprise demand for compliance-centric services. Germany, the UK, and France are major markets, with over 60% of large organizations investing in MSSPs. The financial services and manufacturing sectors show strong adoption, particularly for managed firewall and endpoint security.

• Asia-Pacific

Asia-Pacific is the fastest-growing MSSPs market, with demand accelerating in India, China, Japan, and Southeast Asia. India’s public cloud market reached USD 6.2 billion in 2022, creating significant MSSP opportunities in cloud security. Over 55% of APAC enterprises have reported cyberattacks within the past year, intensifying demand for managed detection and response services. The region’s MSSP growth is also supported by government initiatives like India’s Digital Personal Data Protection Act and Japan’s Cybersecurity Strategy.

• Middle East & Africa

The Middle East & Africa (MEA) MSSPs market is smaller but rapidly expanding, driven by digital government programs and rising cyber warfare risks. In 2023, over 37% of Gulf Cooperation Council (GCC) organizations experienced ransomware attacks. Governments across Saudi Arabia, UAE, and Qatar are investing heavily in MSSPs to protect critical infrastructure, financial services, and oil and gas sectors. African nations like South Africa and Nigeria are increasing adoption of managed SIEM and incident response services amid rising phishing and fraud attempts.

List of Top Managed Security Services Providers (MSSPs) Companies

• AT&T Cybersecurity (USA)
• Verizon Business (USA)
• IBM Security (USA)
• Accenture Security (Ireland)
• Deloitte Cyber Risk Services (UK)
• KPMG Cybersecurity (Netherlands)
• PwC Cybersecurity (UK)
• EY Security Services (UK)
• Cognizant Security (USA)
• Wipro Security (India)

AT&T Cybersecurity (USA): Among the top two MSSPs, AT&T Cybersecurity supports more than 130 countries, with advanced SOC capabilities, and handles over 30 billion daily security events.

IBM Security (USA): A global leader offering SIEM, MDR, and threat intelligence, IBM Security has deployed MSSP services across 133 countries and manages over 1 trillion events monthly for clients worldwide.

Investment Analysis and Opportunities

The MSSP market is experiencing significant capital inflows as organizations globally increase spending on cybersecurity outsourcing. In 2023, total investment in managed cybersecurity services surpassed USD 40 billion, with over 58% of large enterprises allocating specific budgets for MSSP contracts. Venture capital firms and private equity investors are increasingly funding MSSP startups and platform vendors. For example, multiple cybersecurity providers received investment rounds exceeding USD 200 million in 2023 to expand threat intelligence and MDR platforms. The managed cloud security segment presents a strong investment opportunity. With over 94% of enterprises using cloud infrastructure, the need for dedicated cloud-native security tools such as Cloud Access Security Brokers (CASB) and Cloud SIEM has surged. In response, MSSPs are heavily investing in integrating cloud threat detection tools into existing SOC platforms. Enterprises with hybrid cloud environments increased MSSP service adoption by 32% year-over-year in 2024. Geographically, Asia-Pacific is attracting more investment due to untapped markets in India, ASEAN, and Oceania. India's cybersecurity market saw over USD 1.9 billion in investment in 2023, much of it targeting MSSPs focused on cloud, data compliance, and identity management services. In China, MSSPs are scaling services to support state-owned enterprises, manufacturing, and fintech sectors.

New Product Development

The MSSPs market has witnessed significant product development over the last two years, particularly focused on automation, cloud-native capabilities, and unified threat management platforms. In 2023, over 62% of MSSPs launched new security service offerings, while 35% updated their existing platforms with AI and machine learning features. One key trend in product innovation is the shift toward Managed XDR (Extended Detection and Response). MSSPs have started integrating telemetry from endpoints, networks, cloud, and identity systems into unified platforms. These platforms deliver correlation, prioritization, and automatic remediation. More than 40% of MSSPs added XDR features in 2024, enabling faster response and broader visibility across the attack surface. MSSPs are also expanding MDR solutions for small and mid-sized businesses. New lightweight MDR platforms were launched in 2023, tailored for organizations with fewer than 500 endpoints, allowing cost-effective deployment of advanced analytics and 24/7 threat hunting. Cloud-native security tools have also evolved. MSSPs introduced managed Kubernetes and container security services as more than 65% of organizations moved workloads to containerized environments. In addition, several MSSPs rolled out managed solutions for securing SaaS apps such as Microsoft 365, Salesforce, and Google Workspace, addressing increasing risks from shadow IT.

Five Recent Developments

• IBM Security launched a global XDR service in Q4 2023, supporting over 133 countries and integrating threat telemetry across cloud and endpoint systems.
• AT&T Cybersecurity upgraded its Threat Manager platform in 2024, processing over 30 billion security events per day with advanced AI detection.
• Accenture Security completed the acquisition of Innotec Security in late 2023, expanding its cybersecurity workforce by 500 professionals in Southern Europe.
• Verizon Business introduced a managed Zero Trust platform in Q1 2024, supporting identity segmentation and cloud perimeter control for enterprise clients.
• Wipro Security rolled out its Cyber Defense Center in Singapore in 2023, boosting APAC threat monitoring coverage for over 150 enterprise clients.

Report Coverage of Managed Security Services Providers (MSSPs) Market

This report comprehensively covers the global Managed Security Services Providers (MSSPs) market across segments, regions, service types, and verticals. The analysis spans a broad spectrum of managed services including SIEM, MDR, firewall, IAM, endpoint protection, DDoS mitigation, threat intelligence, and compliance services. The scope includes assessment across five key verticals—IT Security, Healthcare, Government, Financial Institutions, and E-commerce—each analyzed based on adoption trends, threat exposure, compliance needs, and investment scale. For instance, the BFSI sector reports over 78% MSSP penetration, driven by real-time monitoring and regulatory compliance needs. Similarly, 64% of healthcare providers report data breaches, increasing reliance on outsourced managed services. Coverage extends to regional market performance, detailing MSSP activity in North America, Europe, Asia-Pacific, and the Middle East & Africa. North America holds the largest market share, estimated at 34–40%, due to enterprise cybersecurity awareness and regulatory environments. Europe contributes over USD 10 billion in MSSP revenues, with strong adoption in GDPR-compliant services. Asia-Pacific is the fastest-growing region, driven by public cloud adoption and data localization rules. The Middle East & Africa show rising MSSP demand due to increased geopolitical cyber threats. The report also segments the market by service type: Managed Detection and Response (MDR), Managed Firewall, and Managed SIEM. MDR accounts for over USD 6.29 billion, driven by demand for proactive threat identification. Managed Firewall covers 24% of total MSSP share, while SIEM adoption spans over 58% of enterprises globally. Market dynamics are analyzed, including drivers such as the increase in sophisticated cyber threats, with over 493 million ransomware attacks reported in 2023. Key restraints include budget limitations in SMEs, where only 27% have dedicated cybersecurity budgets. Opportunities emerge from cloud transformation, with 94% of enterprises using cloud platforms. Challenges include high compliance costs and integration issues, with 42% of companies reporting obstacles in service adoption.

Frequently Asked Questions