In 2016, the Asia-Pacific (APAC) managed security services (MSS) market maintained a strong growth momentum. New security challenges caused by the evolving threat landscape, such as ransomware, zero-day and targeted attacks, and compromised Internet of Things (IoT) are driving enterprises to invest more in risk management tools to gain cyber resilience. The increasing adoption of emerging technologies to facilitate digital transformation is also adding more security pressure for organizations. Many organizations are migrating applications, network infrastructure, and services into the cloud, which is causing a higher security concern. Majority of the businesses are facing a shortage of security professionals, skills, and expertise to cope with the new types of security challenges, which is driving them to outsource their daily security operations to MSSPs. With the shift from capital expenditure (CapEx) to operational expenditure (OpEx) continuing to take place among businesses, the adoption of MSS is expected to increase in the region. Many of the firms are shifting away from traditional IT management to more of an outsourcing-centric model to focus on revenue-generating business processes.

In addition to market growth analysis, the study highlights the driving forces of the managed security services (MSS) market. The shortage of cyber security professionals with strong expertise was the top factor driving enterprises to engage with MSSPs to help them cope with new security challenges. The evolution of advanced threats continued to cause greater operational pressure on companies, driving them to look at MSSPs to reduce the pressure and better security threat management. The introduction and amendment of cyber security laws and regulations are urging companies to focus more on regulatory compliance. The shift from CapEx to OpEx continued to take place across the APAC region, prompting companies to outsource parts of their security practices to focus more on the revenue-generating operations.

Market trends have been analyzed for the period 2015 to 2021, with 2016 as the base year. Hosted security services (HSS) and customer-premises equipment (CPE)-based management and monitoring services are the key service segments in this study. Vertical segmentation includes the government, banking, financial services, and insurance (BFSI), service provider, manufacturing, education, and other sectors including pharmaceuticals, retail, logistics, oil and gas, energy, mining, agriculture, Information Technology (IT)/ IT-enabled services (ITeS), eGaming, eCommerce, and business process outsourcing (BPO).

Companies mentioned in the MSS vendor analysis include NTT, IBM Security, Singtel Cyber Security, Verizon, NRI Secure, Telstra, LAC, SK Infosec, Symantec, Orange Business Services, Quann, BT, Tata Communications, Secureworks, NEC, AhnLab, IGLOO SECURITY, StarHub, CITIC Telecom CPC, Venustech, Tech Mahindra, and VADS. The countries included in this study are Australia, New Zealand, Singapore, Malaysia, Indonesia, the Philippines, Thailand, Vietnam, China, Hong Kong, Taiwan, India, Japan, and South Korea.

Key Issues Addressed

  • Is the MSS market growing? How long will it continue to grow, and at what rate?
  • Are the existing competitors structured well to meet customer needs?
  • What were the key services that were adopted the most by customers in the region in 2016?
  • How was the competitive landscape in Asia-Pacific?
  • Will MSSPs be replaced by the new trends, such as in-sourcing and cloud-based security services?
  • How will the market be shaped in the next 5 years?