Internet is turning out to be a major facilitator for many of the operations of the businesses. Many of the departments like sales and marketing, research & development, operations have been using internet to improve their efficiency. Growing use of Internet means, multiple users accessing the company’s digital assets at the same time. On a positive note, this would improve the efficiency of the entire company, but growing network activity would also mean, need for more monitoring and management of events across the company’s digital assets. The incident response team of the company come under immense pressure and this would hamper quality of their work. This would also invite risk of data breaches as the manual detection of suspicious activities would amount to lapse of crucial time that would otherwise save the company from cyber-attacks.

Use of manual processes are generally time consuming and would not be as accurate as the automated processes. And any delay in timely detection of cyber threats would result the data thefts and other related security breaches. To counter these issues, many of the enterprises these days are actively adopting necessary IT security solutions which includes Security Information and Event Management (SIEM). The demand for SIEM solutions are steadily increasing, thanks to the growing security threats. Also, the existing compliance regulations are prompting many of the businesses to adopt these solutions voluntarily in order to avoid hefty fines.

Security Information and Event Management is a combination of Security Information Management (SIM) and Security Event Management (SEM). While SIM is responsible for collection of login information and other related data and generate an automated report for further analysis, SEM draws some analysis and trends from the information events that has occurred. Combined together, SIEM provides a comprehensive real time analysis of on-going activities and report these activities to the company personnel automatically so that the company can initiate any preventive measures in case of detection of any suspicious activities or cyber-attacks. Implementation of Security Information and Event Management solutions is happening among enterprises to adhere to certain compliance standards. In countries like the USA and UK, the existing compliance standards makes it mandatory for companies to have certain IT security solutions which includes SIEM as well.

Several of the IT product based companies, Network Security companies, IT security companies and cloud service provider companies dominate the service provider market and many of the new start-up companies are also entering the arena by introduction of cloud based SIEM solutions.

Security Information and Event Management Market Growing Steadily With growing frequency of attacks, security monitoring solutions like SIEM is expected to flourish further.

The introduction of cloud based SIEM solutions and also the Hybrid SIEM solutions would also add to the growing market.

North America - Highest Revenue Contributor with Highest Adoption Rate; Europe and APAC - A "yet-togrow" Market.

As always, North America, especially countries like the USA and Canada have been the top adopters of this technology and the region contributes the most in terms of revenue. The main reason being, that businesses here are vulnerable to attacks and the frequency of attacks is way too high when compared to other regions.Europe and Asia-Pacific market have limited adoption and the revenue generated from them is comparably low. Europe, in particular is showing some positive signs of growth but the revenue generation is still less.

Asia-Pacific market, on the other hand is a mixed bag, where businesses of developed countries like Japan and Singapore are adopting the solutions, but growth still lags in countries like India and China. Going forward, as the business related activities here heats up, the rate of adoption is expected to go up.

On-Premise SIEM solutions losing its market share to Cloud and Hybrid SIEM.

No doubt on-premise SIEM solutions contribute the most to the overall SIEM market. But, due to the complexities involved in terms of adoption, high initial investment costs and introduction of cloud based and hybrid SIEM solutions is driving businesses away from on-premise deployment model. The adoption rate of cloud and hybrid SIEM solutions is higher and is expected to grow further. This is because, going forward, all those enterprise level businesses who earlier adopted on-premise SIEM solutions would also start partially adopting cloud based solutions. Along with this, small and medium businesses across the globe are also expected to start adopting these solutions.

Enterprises are the major consumers, Financial Services are the top adopters.

Enterprises are the major consumers of these solutions as they are the most frequently targeted end-user segment of all. These businesses also consists of large number of employees who use Internet to reach out to their customers. This has prompted them to adopt SIEM solutions which can reduce the manual tasks and automatically detect the risks or any other abnormal events.

Among the verticals, Financial Services companies have emerged as the major users of these solution. Many of banking, insurance and other finance related companies across the globe are facing innumerable attacks every day-in and day-out. To counter these, many of these businesses have been implementing these solutions. Businesses in this vertical are known to seek advanced forms of Security Information and Event Management solutions as well.

The Underlying ChallengesOne of the greatest challenge for growth of SIEM market is the complexities involved in implementation of SIEM solutions, the skilled workforce required to effectively manage them and the high initial investment costs. A majority of these issues is now being addressed by the introduction of cloud and hybrid SIEM solution. But the user base of SIEM solutions now require more effective solutions which can counter the sophisticated attempts of attacks by early detection and reporting. Another notable issue is to educate the customers about the effectiveness of such solutions especially in the emerging markets. Most of these markets having limited technological exposure and do not dedicatedly use them in their operations. Convincing the customer about the necessity of such solutions would be another major challenge that provider companies have to concentrate upon.

With introduction of cloud based SIEM solutions and with making the existing solutions customer friendly, most of these challenges can be successfully addressed by the provider companies. The R&D teams of the solution providers have to constantly enhance their product features in order to deliver what the customer actually wants.