For more in-depth analysis on each of these regions, please see the following region-specific studies:
• 2016 Managed Security Services in North America (K12F-74)
• EMEA Managed Security Services Market (MA60-74)
• Asia-Pacific Managed Security Services Market, Forecast to 2020 (P811-74)
• Managed Security Services Market in Latin America, Forecast to 2021 (K167-72)
The global MSS market grew 17.0% in 2016, after a 16.8% year-on-year increase in 2015. The trend for number of suppliers has remained on an upward path, while the combined market share of the top 3 participants has fallen. Mergers and acquisition activity continued in 2016, with several similar-sized companies pooling their expertise to compete with improved geographic scope, scale, and product breadth. At least 2 leading telecoms service providers (Vodafone and Deutsche Telekom) relaunched their security services in 2016, and every other security vendor is also offering services to counter an expected decline in the growth momentum for security hardware. All these supply-side activities are reflective of a buoyant market; however, the key to longevity and success is an MSS provider agile that is astute enough to stay ahead of the competition by demonstrating the following characteristics:
• Positioned to capture the next wave of higher value MSS: According to Frost & Sullivan’s research, the 2 growth MSS segments in the next 5 years are threat intelligence and research and detection services.
• Strong ability to retain security talent: Retaining security experts through not only competitive remuneration, but also with the nature of jobs by providing interesting, varied, and collaborative work.
• Grow the mid-sized market segment with the right pricing strategy: According to Frost & Sullivan’s research, the mid-sized market segment is relatively underdeveloped; largely ignored by many tier I MSS providers and underserved by the niche, pure-play vendors.
• A customer-centric approach: Retaining existing customers and attracting new ones by delivering solutions that meet customer demands.
• Technology-led approach to service delivery: Unburden tedious tasks from security staff through automation and a collaborative solution approach.