Managed security services providers (MSSPs) offer affordable, dependable, and efficient security solutions to organizations to protect their corporate internet assets, password files, confidential emails, and networks. The global managed security services (MSS) market is expected to increase from $22.45 billion in 2020 to $77.01 billion in 2030, according to Allied Market Research. The market is forecasted to grow at a CAGR of 12.8% from 2021 to 2030. MSS is gaining popularity as more organizations are increasing their investment in network protection.
Top factors impacting the MSSP market
- Increasing cybercrime incidents
Bring-your-own-device (BYOD), cloud services, and other technical innovations are complicating the security processes. Businesses suffer financial as well as reputational losses following cyber-attacks. Implementing endpoint security is becoming important for data protection to prevent unauthorized data manipulation or software deployment. There has been an increase in the number of attacks on healthcare facility systems. Healthcare systems support a lot of endpoints and it is expensive to maintain an adequate security posture.
- Cost-effectiveness of MSS
Budget constraints are preventing most businesses to develop an in-house security infrastructure for protection from increasing cyber-crimes. Hence, these businesses are trying to outsource data security to MSSPs. This is cost-effective and enables companies to monitor real-time network traffic with the help of IT security specialists. MSSPs are easily accessible to organizations of all sizes, hence driving the growth of the MSSP market.
- Impact of Covid-19
Covid-19 is expected to positively impact the MSSP market. The digital boom following the Covid-19 outbreak has increased the risks of cyber-attacks. The increased number of cyber incidents after the pandemic is fuelling the MSSP market.
Segment-wise review of the MSSP market
Large enterprises will hold the largest share of MSS owing to the increased number of cyber-attacks and complex threats. They are looking forward to outsourcing their security services to third parties. In 2020, the BFSI sector accounted for the largest market share.
Other factors impacting the managed services market growth are:
- Increasing data security awareness
- The increased importance of digital business
- Rise in demand for customized services
Top winning strategies by key players in the MSSP market
The key strategies of the key players in the managed security services market are as follows
- Acquisition: This move is used by companies to own and control the stakes of other companies. This also helps the company get new customers, which expands the company’s geographical reach.
- Agreement: This strategy helps market players to enhance their capabilities and improve market outreach.
- Collaboration: This strategy helps two or more companies agree to cooperate with each other to achieve a common goal.
- Joint venture: A joint venture is a company or organization that is made up of two or more companies. These companies share things like ownership, returns, and risks. They also share decisions about how the company is run.
- Partnership: With this strategy, two or more companies agree to cooperate to move forward in their mutual interests.
- Product launch: This includes introducing newly developed solutions in the market.
Key players in the MSSP market are AT&T Intellectual Property, Broadcom, BT Group, Check Point Software Technologies, CISCO Systems Inc, DXC Technology Company, Fortinet Inc., Hewlett Packard Enterprise Development LP., IBM Corporation, SecureWorks Inc.
Image and source credits: Allied Market Research