Security as a Service Market Overview and Growth by 2028

The security as a service market is projected to reach US$ 34,854.10 million by 2028 from US$ 13,712.87 million in 2022. It is expected to grow at a CAGR of 16.8% from 2022 to 2028.

Security as a service is a technique to supply security solutions to an organization for data centers or regional gateways. As it helps enable secure access to apps, it has become a crucial approach for enterprises to increase their mobile and cloud deployments. To increase enterprises' application security, various security solutions are deployed. Data loss prevention (DLP), compliance solutions, advanced malware prevention, cloud access security brokers making decisions, and continuous monitoring are just a few of the security solutions offered. Service providers charge organizations a reasonable monthly fee for their services. Due to these benefits, end-use industries are increasingly approaching market players, which is anticipated to fuel the global expansion of the security as a service market. Organizations utilize security as a service extensively because it offers a number of advantages over traditional approaches, including speedier operations, ongoing virus updates, cost-effective solutions, and faster operations.

The global demand for security solutions is also growing due to the rising digitization and the use of cloud-based services across various industries. Many companies have recently adopted business apps, bring-your-own-device (BYOD) guidelines, choose-your-own-device (CYOD) trends, and other technology. Concern over the integrity and confidentiality of organizational data has grown due to these trends. Over 3.7 billion people use email globally, and 269 billion emails are sent daily as a result of the development of electronic marketing methods. This provides huge opportunities for hackers to send spam emails to users to obtain crucial information about them. Most security problems begin with phishing emails used by hackers to mislead victims into giving them access to accounts, logins, or financial information before moving on to technical hacks. Hence, the rising importance of cybersecurity strongly promotes the security as a service market growth.

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Security as a Service Market: Strategic Insights

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Impact of COVID-19 Pandemic on Security as a Service Market Growth

The continuous growth in the number of novel coronavirus-infected patients compelled government authorities to impose stringent lockdowns across the US and other regions in the first 3 quarters of 2020. The manufacturing sector witnessed severe losses due to temporary factory shutdowns while most enterprises were forced to shift towards remote working setups. The rising uptake of work-from-home policy triggered a rise in cyber-attacks and the requirement for protection from the same. Small and medium enterprises were forced to raise their expenditure on network security solutions. In lieu of such effects of the pandemic, the security as a service market size was positively impacted. In the US, a sharp increase was witnessed in phishing and malware distribution using COVID-19-themed lures and the registration of new domain names with coronavirus- or COVID-19-related terms.

The region also witnessed heightened online transactions, which further attracted cyber criminals. Hence, enterprises started focusing on cybersecurity infrastructure to protect customers and employees. This created great growth opportunities for market players. Microsoft reported that between February and May 2020, 19 million phishing and ransomware attacks with a Covid-19 theme were also detected in Asia Pacific. Since several individuals were forced to work from hastily created less secure environments during the pandemic, the growing use of cloud-based services became a hotspot for cyberattacks. Hence, COVID-19 positively influenced global security as a service market growth.

Market Insights – Security as a Service Market

Significant market prospects are created by the rise of e-business, growing awareness of data protection, the trend of bring-your-own-device (BYOD), and acceptance of managed security measures. The use of cloud technologies has grown significantly over time, which has increased the demand for more dependable and affordable security solutions. The IT infrastructure has grown more complicated and heterogeneous over the past 5 years due to the introduction of new platforms, BYOD regulations, CYOD trends, business apps, and other technologies. BYOD and CYOD trends are becoming more and more common in business settings due to the quick improvements in mobile computing. Organizations are signing up for security services to shield devices, such as smartphones, tablets, desktop computers, and laptops from cyber dangers as a result of the BYOD model's adoption. Such trends are inherently driving security as a service market.

Organization Size-based Insights

The security as a service market, by organization size, is segmented into large enterprises and SMEs (Small and Medium Enterprises). The SMEs segment is expected to register a higher CAGR during the forecast period. As per the World Bank, SMEs contribute ~40% of GDP and ~60% of total employment in emerging economies. With the rising number of SMEs focused on simplifying the operations and reducing the operational costs, the security as a service market players are witnessing a significant demand for security solutions from this segment. As digitalization opens newer avenues for the SMEs segment, a higher growth rate is forecasted for this segment in the security as a service market.

The security as a service market is analyzed on the basis of component, organization size, application, and vertical. Based on component, the market is bifurcated into solutions and services. By organization size, the market is segmented into SMEs and large enterprises. By application, the market is segmented into network security, endpoint security, application security, cloud security, and others. Based on vertical, the market is segmented into BFSI, Government & defense, retail, healthcare, IT & telecom, energy & utilities, manufacturing, and others. Based on geography, the security as a service market is primarily segmented into North America, Europe, Asia Pacific (APAC), the Middle East and Africa (MEA), and South America (SAM).

Security as a Service Market Regional Insights

The regional trends and factors influencing the Security as a Service Market throughout the forecast period have been thoroughly explained by the analysts at The Insight Partners. This section also discusses Security as a Service Market segments and geography across North America, Europe, Asia Pacific, Middle East and Africa, and South and Central America.

Security as a Service Market Report Scope

Security as a Service Market Players Density: Understanding Its Impact on Business Dynamics

The Security as a Service Market is growing rapidly, driven by increasing end-user demand due to factors such as evolving consumer preferences, technological advancements, and greater awareness of the product's benefits. As demand rises, businesses are expanding their offerings, innovating to meet consumer needs, and capitalizing on emerging trends, which further fuels market growth.

Market players density refers to the distribution of firms or companies operating within a particular market or industry. It indicates how many competitors (market players) are present in a given market space relative to its size or total market value.

Major Companies operating in the Security as a Service Market are:

1. Alert Logic, Inc.
2. Barracuda Networks, Inc.
3. IBM Corporation
4. McAfee LLC
5. Microsoft Corporation

Disclaimer: The companies listed above are not ranked in any particular order.

Alert Logic, Inc., Barracuda Networks, Inc., IBM Corporation, McAfee LLC, Microsoft Corporation, Radware, Trend Micro Incorporated, Clearswift, Silversky, Zscaler, Inc. are the key Security as a Service market players.

Market players are strongly focusing on mergers and acquisitions. Here is a snapshot of the recent developments in the Security as a Service market:

• In 2022, HelpSystems announced its plans to acquire Alert Logic to provide customers with a hybrid IT approach to address the shortage of cybersecurity skills.
• In 2022, IBM Corporation announced its plans to acquire Randori, a provider of offensive cyber protection and attack surface management. IBM intends to combine Randori's software with the extended detection and response (XDR) features of IBM Security QRadar, according to ITPro.