Managed Security Services Set to Hit $15.4 Billion by the End of Year

The series of high-profile data breaches that have permeated a number of vertical markets over the past few years have forced many businesses to rethink their security tactics. Threats are on the rise, as are the number of government and industry security and privacy mandates, but many organizations lack the in-house expertise to meet these challenges.

These factors have led to a boom in the managed security services market, as companies turn to outside experts to secure their valuable assets. New data from ABI Research estimates the global market for managed security services will reach $15.4 billion by the end of this year, driven by rising threats and government regulations. And that translates to good news for managed security service providers, who are in an ideal position to capitalize on this growing need.

“An in-depth IT security strategy protects the entire network of an enterprise from infrastructure to applications to devices,” said Monolina Sen, senior analyst in digital security for ABI Research. “Continuous monitoring and threat detection tools have become essential. The key objective is to provide insight into all aspects of a business so that unusual activity is detected and data loss can be minimized.”

That type of security approach is essential in today’s business world, where BYOD is quickly becoming the norm and a host of geographically disparate users and devices need to be secured. While this may be a benefit in terms of productivity and operational cost savings, it also opens businesses up to a higher risk of security breaches. In 2014, for example, there was a 49 percent increase in data breaches and an alarming 78 percent increase in the number of data records stolen or lost when compared to 2013.

In addition to growing opportunities for MSSPs, some providers are also offering security-as-a-service through the cloud. This option is preferable for a number of businesses that want the peace of mind of not having to manage and maintain an on-premises solution. Cloud-based security can include web application security services as well as identity and access management (IAM) and security information and event management (SIEM). All of these services are growing in popularity, according to ABI, leading to major opportunities for security service providers.