Security as a Service Market worth $16.5 Bn by 2023

Friday 15 February 2019, Amsterdam

The security as a service market size is expected to grow from USD 7.6 billion in 2018 to USD 16.5 billion by 2023, at a Compound Annual Growth Rate (CAGR) of 16.9% during the forecast period. The key factors driving the security as a service market include mandate to follow regulatory and data protection laws, increase in demand for cloud-based security solutions, and high cost and risks in managing on-premises security solutions.

The Security Information and Event Management (SIEM) segment to account for the highest market share in 2018
Security and vulnerability management is the procedure in which vulnerabilities in IT are identified and the risks of these vulnerabilities are assessed. It is a proactive approach to secure sensitive data by eliminating the weaknesses of the network security, which include contingent cyber threats, such as dormant malware attack and other advanced invasion techniques. The process includes the checking and identification of risks, along with mitigation and patching of the unwanted software program. Businesses rely on the solution to quickly assess and prioritize the vulnerabilities, along with scanning the network asset information, security configuration, and threat intelligence. With the increasing instances of cyber-attacks, Internet of Things (IoT) and connected device vulnerabilities, and growing pressure from cybersecurity regulations, the SIEM segment is expected to garner the highest revenue during the forecast period.

The application security segment is expected to grow at a higher CAGR during the forecast period
Application security solutions and services enable enterprises to secure their business-sensitive applications through greater visibility, control, and the use of existing security solutions, such as Identity and Access Management (IAM), web filtering, and application whitelisting, which enable the security of enterprise applications and software codes from external and internal threats, including web attacks, Distributed Denial of Service (DDoS), site scraping, and frauds. Business-sensitive applications are one of the primary targets of attackers, as they carry information about critical assets, as well as processes that are followed by an enterprise. Cloud-based application security solutions and services are providing cost-effective and scalability functionality to customers which is thereby inducing high growth in this market.

The BFSI vertical is expected to maintain the leading position in terms of revenue generation during the forecast period
Increased instances of spyware/keylogger, Trojans, viruses, ransomware, and other malware in the Banking, Financial Services, and Insurance (BFSI) vertical are driving the adoption of security as a service solutions. The BFSI vertical is also a major target for cybercriminals, as it holds sensitive information of employees, customers, assets, offices, branches, and operations. Furthermore, with stricter regulations, and increasing instances of frauds and cyber-attacks, the need for real-time detection and protection from advanced threat, and brand protection is driving the growth of the security as a service market in the BFSI vertical.

North America is expected to account for the largest market size during the forecast period
North America is expected to account for the largest market size in the overall security as a service market during the forecast period. The increase in the number of IoT and connected devices and vulnerabilities associated with them are some of the factors driving the adoption of security as a service solutions and services. The presence of many security as a service vendors, as well as, widespread awareness about these solutions would continue to account for the region’s highest market share during the forecast period.

The security as a service market comprises major solution providers, such as McAfee (US), Trend Micro (Japan), Zscaler  (US), International Business Machines Corporation (US), Microsoft (US), Clearswift (UK), Alert Logic (US) Cygilant (US), Barracuda Networks (US), Panda Security (Spain), Stratejm (Canada), Radware (China), Mindsight (US), Sentinel Technologies (US), and Happiest Minds (India). The study includes an in-depth competitive analysis of the key players in the security as a service market, along with their company profiles, recent developments, and key market strategies.