[Research Report] The SOC as a service market is expected to grow from US$ 5.73 billion in 2022 and is expected to reach US$ 12.98 billion by 2030; it is estimated to record a CAGR of 10.7% from 2022 to 2030.

SOC as a Service Market Analyst Perspective:

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.

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SOC as a Service Market: Strategic Insights

SOC as a Service Market

• 
  CAGR (2022 - 2030)

  10.7%
• Market Size 2022
  US$ 5.73 Billion
• Market Size 2030
  US$ 12.98 Billion

Market Dynamics

GROWTH DRIVERS

• Growing Cyberattack Incidents Across Various Industries
• Rising Demand for SOCaaS in Finance Sector

FUTURE TRENDS

• Adoption of SOCaaS in the Healthcare Sector
• Technological Advancements in SOCaaS

OPPORTUNITIES

• Growing Adoption of SOCaaS in SMEs
• Rising Need for Cloud Security

Key Players

• Fortinet Inc
• Atos SE
• NTT Data Corp
• Verizon Communications Inc
• Thales SA
• AT&T Inc
• Arctic Wolf Networks Inc
• Cloudflare Inc
• ESDS Software Solution Ltd

Regional Overview

• North America
• Europe
• Asia-Pacific
• South and Central America
• Middle East and Africa

Market Segmentation

Service Type

• Prevention Service
• Detection Service
• Incident Response Service

Enterprise Size

• Large Enterprises and SMEs

Application

• Network Security
• Endpoint Security
• Application Security
• Cloud Security

Industry

• BFSI
• IT & Telecom
• Manufacturing
• Retail
• Government & Public Sector
• Healthcare
• Others

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SOC as a Service Market Driver:

Rising Demand for SOCaaS in Finance Sector Drive SOC as a Service Market Growth

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.

Moreover, in recent years, financial institutions witnessed a large number of data breach cases. As of December 2022, finance and insurance organizations experienced ~566 breaches worldwide, which led to over 254 million leaked records. In addition, according to the State of Ransomware in Financial Services 2023 report released by Sophos, the ransomware attacks on financial services increased from 55% in 2022 to 64% in 2023, which is approximately double the 34% reported in 2021. Hence, due to the rise in data breach cases, various banks across the globe are integrating SOCaaS solutions. For example, RBL Bank recently integrated SOCaaS by NTT to mitigate known and unknown threats and to improve the security posture of the bank. Under this, NTT is managing the entire SOC requirements of RBL and a dedicated SIEM for the log analysis. 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.

SOC as a Service Market Report Segmentation and Scope:

The SOC as a service market is categorized on the basis of service type, enterprise size, application, and industry. Based on service type, the SOC as a service market is segmented into prevention service, detection service, and incident response service. In terms of enterprise size, the SOC as a service market is divided into SMEs and large enterprises. Based on application, the SOC as a service market is classified into network security, endpoint security, application security, and cloud security. Based on industry, the SOC as a service market is segmented into BFSI, IT & telecom, manufacturing, retail, government & public sector, healthcare, and others. By geography, the SOC as a service market is segmented into North America, Europe, Asia Pacific (APAC), the Middle East & Africa (MEA), and South America (SAM).

SOC as a Service Market Segmental Analysis:

Based on service type, the SOC as a service market is segmented into prevention service, detection service, and incident response service. The prevention service segment recorded the largest SOC as a service market share in 2022, whereas the detection service segment is anticipated to register the highest CAGR during the forecast period. Prevention service is a set of security measures and technologies that help the user to proactively identify and block cyberattacks and security threats before they cause harm to the system or data. These services involve different actions such as updating and maintaining existing systems regularly, updating firewall policies, patching vulnerabilities, hardening IT systems, and whitelisting and blacklisting to protect the user’s data from cyberattacks, thus fueling the segment growth in the SOC as a service market.

SOC as a Service Market Regional Analysis:

North America held the largest SOC as a service market share in 2022. 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.

Increasing government investment in advanced innovations in the technologies is driving the market. For instance, in December 2022, the Government of the US plans to turn the Middle American metro area into a hub for tech innovation. The government invested US$ 500 million in the Regional Technology and Innovation Hub program to convert countries of Middle America into essential centers of innovation. These centers are focused on research and development of new technologies such as IoT, AI, and ML to promote automation in the business. These technologies are highly vulnerable to cyberattacks and data breaches, which increases the demand for SOC as a Service among users to protect their data.

SOC as a Service Market Key Player Analysis:

Fortinet Inc, Atos SE, NTT Data Corp, Verizon Communications Inc, Thales SA, AT&T Inc, Arctic Wolf Networks Inc, Cloudflare Inc, ESDS Software Solution Ltd, and ConnectWise LLC are the key SOC as a service market players profiled in the report.

SOC as a Service Market Report Scope

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SOC as a Service Market Recent Developments:   

The SOC as a service market player, highly adopts inorganic and organic strategies. A few recent key market developments are listed below: 

• In 2023, Fortinet, one of the global cybersecurity leaders driving the convergence of networking and security, announced FortiSP5, the latest breakthrough in ASIC technology from Fortinet, propelling major leaps forward in securing distributed network edges. Building on over 20 years of ASIC investment and innovation from Fortinet, FortiSP5 delivers significant secure computing power advantages over traditional CPU and network ASICs, lower cost and power consumption, and the ability to enable new secure infrastructure across branch, campus, 5G, edge computing, operational technologies, and more.
• In 2023, Fortinet announced new and expanded services designed to help security operations center (SOC) teams "reduce their organizations' cyber risk while freeing up their time to focus on higher-priority projects."
• In 2021, Atos announced the launch of a new Managed Detection and Response (MDR) cybersecurity service for the media and entertainment industry, addressing media and video content piracy and protecting organizations against targeted cyber threats.