Managed security services: Key market research findings
- Growing need to comply with stringent government regulations
- Increased demand for managed security services from SMBs
- Key vendors include AT&T, Dell, IBM, Symantec, and Verizon
Technavio’s market research analysts estimate the global managed security services market to grow at a CAGR of around 12% between 2016 and 2020. Much of the market’s growth comes from the high adoption of managed services as they provide convenience and service quality assurance for end-users. The implementation of managed security services is increasing rapidly because managed security service providers (MSSPs) can offer high levels of responsiveness and ensure quick fault resolution. In addition, the growing requirement for organizations to comply with strict regulations such as Payment Card Industry Data Security Standard, Gramm–Leach–Bliley Act, and Health Insurance Portability and Accountability Act will significantly contribute to this market growth in the coming years. APAC will be the fastest-growing region in the market during the forecast period because of the rising adoption of cloud-based managed security services by SMBs and large enterprises and growing instances of security threats.
The new market research report from Technavio provides a breakdown and analysis of the managed security services segments by technology.
“The presence of many small vendors mostly operating in niche markets has increased tye fragmentation in this market, resulting in high scope for M&A. The niche market players have superior technology, which has prompted large vendors to enter this market is through the acquisition of niche players. Some large vendors such as NTT Com Security and NTT DATA have already acquired players, and the trend will continue in the coming years. Moreover, with the increased competition to offer integrated solutions, vendors will increase their market presence through acquisitions,” says Amrita Choudhury, Lead Analyst, ICT, Technavio Research.
The cloud-based managed security services is anticipated to account for more than 56% of the total market share over the predicted period. Since cloud-based managed security services are easy to implement and maintain, their rate of adoption will witness a significant increase by 2020. Also, factors such as the growing preference of IT companies to reduce their IT expenditure and invest more in their core operations will result in the augmented adoption of cloud-based managed security services during the predicted period.
The leading vendors in global managed security services market are AT&T, Dell, IBM, Symantec, and Verizon. This market is competitive due to the presence of numerous small and large suppliers. In this market, the established managed security service vendors are expected to acquire niche vendors to expand their product portfolio and boost their market share.
A more detailed analysis is available in the Technavio report, Global Managed Security Services Market 2016-2020.
We can customize reports by other regions and specific segments upon request.
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