SOC as a Service Market Key Players and Forecast by 2030

The SOC as a service market size is projected to reach US$ 12.98 billion by 2030 from US$ 5.73 billion in 2022. The market is expected to register a CAGR of 10.7% during 2022–2030. The adoption of SOCaaS in the healthcare industry and technological advancement in SOCaaS are likely to remain a key trend in the market.

SOC as a Service Market Analysis

The rise in data breach cases in various organizations across the globe is considered one of the major factors propelling the SOC as a service market growth. Per IBM’s 2022 Cost of a Data Breach report, ransomware attacks grew in 2022, leading to a loss of approximately US$ 4.54 million. In addition, various organizations face a large number of cyberattacks worldwide. Finance institutions lose ~US$ 5.9 million per data breach, which is 28% higher than the global average. Thus, such growing cyberattacks in the financial sector are raising the adoption of SOCaaS. Also, healthcare organizations are adopting SOCaaS to protect sensitive patient data, which includes medical records and personal information. SOC 2 compliance helps healthcare organizations ensure they comply with federal requirements for protecting their sensitive data. Furthermore, as cyberattacks are increasing in SMEs, the demand for SOCaaS is expected to increase, creating future opportunities for the growth of the market.

SOC as a Service Market Overview

SOC as a service (SOCaaS) is a security model where a third-party vendor operates and maintains a fully managed SOC. It provides various security functions such as network monitoring, threat detection and intelligence, incident investigation and response, log management, reporting, and risk and compliance. By combining SOC with advanced technology such as artificial intelligence (AI) and automation, the SOC team can accurately identify, categorize, prioritize, and remediate security events. As data breach cases continuously increase, organizations must reduce the time spent on investigating false positives. They should focus more on the issues that pose a real threat to the business. In addition, SOCaaS operates continuously, providing 24/7 monitoring, detection, and response capabilities, which help tackle threats quickly, allowing organizations to reduce their breakout time, thus boosting the SOC as a service market growth.

SOC as a Service Market: Strategic Insights

SOC as a Service Market Drivers and Opportunities

Rising Demand for SOCaaS in the Finance Sector to Favor Market

Financial and banking institutes handle a vast amount of sensitive data, which makes them a prime target for cyberattacks. Also, digitalization and securing business continuity are highly prioritized in the finance industry. This increases the demand for SOCaaS solutions. SOCaaS providers help banks monitor networks and systems 24/7, ensuring quick detection and mitigation of potential security threats and reducing the data breach risk. In addition, SOCaaS providers also help banks to comply with various regulatory requirements. For instance, the Payment Card Industry Data Security Standard (PCI DSS) requires banks to have a robust security program. They can help banks meet such regulatory requirements by providing the needed monitoring, analysis, and reporting capabilities. Thus, the growing recognition of the essential need for comprehensive and exhaustive SIEM and threat intelligence solutions by banks is raising the demand for SOCaaS, thereby driving the market.

Increasing Adoption of AI and ML

The adoption of technologies such as artificial intelligence (AI) and machine learning (ML) is revolutionizing threat detection within SOCs. Both of these technologies automate tasks, enhance the personalization of security responses, and analyze vast amounts of data. Organizations struggle to detect and respond to incidents swiftly and accurately due to the increasing volume and complexity of cyber threats. Technologies such as AI and ML enable SOCs to analyze patterns and anomalies in security data and predict potential threats, which enables organizations to prioritize tasks effectively. Thus, increasing adoption of AI and ML provides growth opportunities for the SOC as a service market growth.

SOC as a Service Market Report Segmentation Analysis

Key segments that contributed to the derivation of the SOC as a service market analysis are the service type, enterprise size, application and industry.

• Based on the service type, the SOC as a service market is divided into prevention service, detection service, and incident response service. The prevention service segment will hold a significant market share in 2022.
• By enterprise size, the market is segmented into large enterprises and SMEs. The large enterprises segment held the largest market share in 2022.
• In terms of application, the market is segmented into network security, endpoint security, application security, and cloud security. The endpoint security segment is expected to grow with the highest CAGR over the forecast period.
• In terms of industry, the market is segmented into BFSI, IT & telecom, manufacturing, retail, government & public sector, healthcare, and others. The BFSI segment is expected to grow with the highest CAGR over the forecast period.

SOC as a Service Market Share Analysis by Geography

The geographic scope of the SOC as a service market report is mainly divided into five regions: North America, Asia Pacific, Europe, Middle East & Africa, and South & Central America.

North America contributes a noteworthy share to the global SOC as a service market owing to the wide presence of key market players such as Fortinet, Inc.; Verizon; AT&T; Arctic Wolf Networks Inc.; and Cloudflare, Inc. These players continuously develop and expand their service portfolio to attract new customers. For instance, in April 2023, Fortinet, Inc. launched FortiOS 7.4 to support organizations in building cybersecurity platforms across endpoint security, SOC automation, application security, identity and access, and threat intelligence. FortiOS 7.4 has new real-time response and automation capabilities that help the user increase effectiveness, improve efficacy, and accelerate time to resolve sophisticated attacks. In addition, Fortinet, Inc. expands Fortinet Security Fabric by adding new and enhanced products and capabilities that allow its users to advance threat prevention and coordinate response for a self-defending ecosystem across networks, clouds, and endpoints. Moreover, implementing IoT in business operations makes hyperconnectivity affordable to enterprises, which increases the demand for IoT among enterprises. According to Cisco, the US is expected to register 13.6 billion per capita IoT devices and connections by the end of 2023. The adoption of IoT devices and connections adds complexity for the SOC team to detect cyberattacks. The security team is already dealing with the ever-changing cybersecurity industry, implementing IoT in business operations, and creating challenges for the SOC team to understand patterns of cyberattacks.

SOC as a Service Market Regional Insights

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

SOC as a Service Market Report Scope

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

The SOC 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.

SOC as a Service Market News and Recent Developments

The SOC as a service market is evaluated by gathering qualitative and quantitative data post primary and secondary research, which includes important corporate publications, association data, and databases. A few of the developments in the SOC as a service market are listed below:

• Palo Alto Networks announced a new milestone in how security operations centers (SOC) secure the cloud. The innovations as part of Cortex XSIAM for Cloud bolster the Palo Alto Networks Cortex XSIAM platform to natively deliver Cloud Detection and Response capabilities in one unified solution, making Cortex XSIAM the industry's first SOC platform optimized for the cloud. (Source: Palo Alto Networks, Press Release, April 2024)

• Exclusive Networks, in partnership with Palo Alto Networks, announced the launch of Managed SOC as a Service, a revolutionary solution designed to empower Palo Alto Networks partners in EMEA to capitalize on the rapidly growing Managed Security Service (MSSP) market. (Source: Exclusive Networks, Press Release, March 2024)

SOC as a Service Market Report Coverage and Deliverables

The “SOC as a Service Market Size and Forecast (2020–2030)” report provides a detailed analysis of the market covering below areas:

• SOC as a service market size and forecast at global, regional, and country levels for all the key market segments covered under the scope
• SOC as a service market trends, as well as market dynamics such as drivers, restraints, and key opportunities
• Detailed PEST/Porter’s Five Forces and SWOT analysis
• SOC as a service market analysis covering key market trends, global and regional framework, major players, regulations, and recent market developments
• Industry landscape and competition analysis covering market concentration, heat map analysis, prominent players, and recent developments for the SOC as a service market
• Detailed company profiles