- Security services protect governments, businesses from cybercrime
- Managed security services expected to reach more than $47 billion
- Cloud-based security the fastest growing segment
In 2016, the security services industry had revenue totaling $230.6 billion globally, according to MarketLine. From 2012 to 2016, this represented a compound annual growth rate (CAGR) of 7.9%.
Over the period 2014-2019, the market is predicted to grow at a CAGR of 10.13%, according to TechNavio. Security services are used by government organizations and businesses to provide protection from data and identity theft, worms, malware and other sophisticated threats, and to protect critical business information, email and the internet from unauthorized access.
They provide such features as access management, application and messaging security, encryption, endpoint monitoring, identity and intrusion detection and vulnerability scanning.
Managed Security Services
A related field is managed security services. This market was valued at $17.52 billion in 2015, according to Stratistics MRC, and is forecasted to reach $47.75 billion by 2022. This represents a CAGR of 15.3%.
Managed security services is provided on a client’s premises or is outsourced to a company that specializes in networking and information system security. Services include anti-virus, content filtering, data archiving and restoration services, incident management, information security risk assessments, intrusion detection systems, network boundary protection that includes managed services for firewalls, security monitoring, and VPNs. The cloud-based security service is expected to be the fastest growing segment.
Growth in the managed security services market is influenced by numerous factors including the rising demand for cloud services, the increase in cybercrimes and threats, security staffing and budgeting restrictions on the organizations, increasing requirements to meet compliance and data protection laws, and an increase in the number of applications in the market.
Nonetheless, the market does faces challenges. Cyber attackers are more sophisticated than ever and often are funded; businesses must comply with requirements and policies; it is difficult to find, train, and retain InfoSec professionals; customers are resistant to share confidential information with managed security services providers; and automation and scalability limit growth.
Meanwhile, WikiLeaks founder Julian Assange said in March he would help the private sector.
“After considering what we think is the best way to proceed and hearing these calls from some of the manufacturers, we have decided to work with them to give them exclusive access to additional technical details we have, so that fixes can be developed and pushed out,” Assange said during a press conference. “Once this material is effectively disarmed by us, we will publish additional details about what has been occurring.”
Global Security Services Market
- In 2016, the industry’s most lucrative segment was manned security. Revenue was $148.8 billion, equivalent to 64.6% of the overall industry value.
- The sustained security threat perception globally will fuel robust growth in the market.
- North America will continue to be the largest managed security services market followed by Europe. Asia Pacific is forecasted to see the most growth because of rapid adoption of these services.