Global Security as a Service Market Growth Factors, Applications, and Forecast by 2024-2032

Security as a Service Market Size And Forecast

Security as a Service Market size was valued at USD 12.8 Billion in 2021 and is projected to reach USD 40.88 Billion by 2030, growing at a CAGR of 11.84% from 2023 to 2030.

The critical factors driving this growth are the surging demand for the bring-your-own-device culture in offices, the rising adoption of cloud solutions, and the rising implementation of strict government regulations mandating data security. The report offers a comprehensive analysis of key segments, trends, drivers, restraints, competitive landscape, and factors that are playing a substantial role in the market.

Global Security as a Service Market Definition

Security as a service is an outsourcing model for security management. The large service providers generally integrate their services into the organizations on a subscription basis that offers complete security and cost-effective solutions. The SaaS includes services such as malware protection and the delivery of antivirus software over the internet. Security as a service provides various benefits, including constant virus definition updates, outsourcing administrative tasks, greater security, and a web interface monitoring the environment. The availability of advanced security tools, access to contextual expertise, and cost-effective security are some of the salient features of the SaaS. However, the unavailability of reliable security tools and access to sensitive data from the SaaS vendors becomes a critical security concern.

Commonly, in systems with internal responsibility to maintain business security, solutions such as spam filtering and virus protection were provided locally by systems to ensure that all policies and security updates were adequately supported and installed. This customarily required ongoing costs for software licensing and installation costs for hardware. Security as a service has several advantages to organizations, such as a high level of security, regular virus updates, faster operations, and cost-effective solutions.

Global Security as a Service Market Overview

The adoption of cloud technology has grown prominently over the years, which has produced the need to have more cost-effective and protected security solutions. The strict government regulations have pushed the market to develop a better-integrated service complying with government regulations. The reluctance to share sensitive data, the availability of free-of-cost security services, and the hesitation toward cloud-based security by organizations limit the adoption of SaaS. An increase in e-businesses, rise in awareness about data security, growth in bringing your own device trend, and adoption of managed security practices create sufficient opportunities in the market. The increasing and dynamic nature of cybercrime poses a challenge to the growth of the SaaS market. Security as a service solution helps organizations filter emails carrying viruses on networks before these can reach devices or the organization’s internal network, reducing network traffic and improving the efficiency of email information. Small and medium businesses adopt security as a service solution because they have limited resources to run business applications and other business activities. Hence, small companies usually use cloud-based applications for their businesses. These cloud-based applications are seldom prone to risk due to a lack of authentication. This prompts them to use SaaS solutions for defending their cloud-based identities. This model also gives the option of hosted services so that third parties or solution providers can host the software and hardware of these small businesses in their data centers, which helps decrease the cost of IT setup and allows fast updates to user organizations.

In addition, organizations can use security-as-a-service solutions only to secure data that relies on their databases. However, at the same time, to ensure unstructured data, SaaS cannot be used, as users need first to identify and classify data and then save it in the database, which is a time-consuming process. Thus, some organizations avoid using security-as-a-service for unstructured data security, which is hampering market growth to some extent. The increasing risk of organized attacks is a significant challenge for the development of the security-as-a-service market. Businesses face many data hacking attacks and data breaches regularly. To stop such attacks, security solution providers continuously update their solutions more reliably. Although it is hard to avoid all attacks, businesses take necessary steps to reduce these activities such, as increasing the use of managed security services and limiting access to business information. But, due to the rise in dependency on third-party services such as managed security services. Many hacking groups provide planned hacking for secure applications, as they are significantly well-informed and alert about growing security solutions and breaches.

Small and medium enterprises continuously concentrate on narrowing their business models to gain business efficiency. Small and medium enterprises across verticals do not have valid security measures to safeguard their data, endpoints, networks, and applications. Cyber-attackers generally target them. These businesses still do not have advanced cybersecurity solutions to fight the evolving threat landscape. Advanced cyber-attacks bypass traditional security systems easily. Hence, Small and medium enterprises need to shift from conventional cybersecurity solutions to cloud-based cybersecurity solutions for defending their web and mobile applications and network infrastructure throughout the development, production, and implementation phases. The cloud deployment model provides flexibility, cost-effectiveness, and scalability, to streamline business operations. With Small and medium enterprises shifting their focus to cloud solutions, cloud-based data protection solutions. Service providers are expected to see substantial growth opportunities, such as safeguarding the data of Small and medium enterprises from security breaches and vulnerabilities.

Global Security as a Service Market Segmentation Analysis

The Global Security as a Service Market is Segmented on the basis of Application, Component, Organization Size, and Geography.

Security as a Service Market, By Components

• Solution
• Services

Based on components, the market is segmented into Solutions and Services. The solution segment is further segmented into data loss prevention, encryption, identity and access management, security information and event management, and others. Also, the service segment is sub-segmented into consulting and support and maintenance. The solution market’s security information and event management segment are expected to have the highest market size during the outlook period. The demand for services is increasing as small and medium-sized enterprises, and large enterprises are concerned about securing access to their network, cloud, and applications. The support and maintenance services segment will have the largest market share to resolve technical issues and avoid breakdown time. The identity & access management category will demonstrate the fastest growth under the Components segment. Enterprises are procuring software as a service security solution for granting their employees access privileges, depending on their designation and protecting their cloud-based data.

Security as a Service Market, By Applications

• Network Security
• Database Security
• Application Security
• Cloud Security
• Others

Based on applications, the market is segmented into network security, database security, application security, cloud security, and others. Within the security type segment, the database security category will dominate the security as a service industry in the coming years. This can be owed to improved performance, low maintenance costs, and greater flexibility of cloud databases. But, as the cloud is highly vulnerable to cyberattacks, users struggle to secure their cloud database. Network security is a proactive way of securing a network from high-level threats by collecting and examining various network security event information. With the growing threat landscape, the demand for cloud-based security solutions for network security is rising.

Security as a Service Market, By Organization Sizes

• Large Enterprises
• Small & Medium Enterprises

Based on organization sizes, the market is segmented into large enterprises and small & medium enterprises. The small & medium enterprises segment is anticipated to grow at the highest CAGR during the projection period, owing to the rising incidences of cyber-attacks. Small & medium enterprises are small in terms of their size but cater to many customers globally. Comprehensive and robust security solutions are not implemented in small & medium enterprises due to financial constraints in these organizations. However, the large enterprise segment held the largest market share in 2021 in the global security as a service market. Within the enterprise’s segment, the large enterprise category held the largest share. This can be attributed to the vast volumes of data produced and consumed in these organizations and the rapid shift of large enterprises toward cloud technology, driving the requirement for strong cybersecurity measures.

Security as a Service Market, By Geography

• North America
• Europe
• Asia Pacific
• Rest of the world

Based on geography, the global security as a service market is bifurcated into North America, Europe, Asia Pacific, and the Rest of the world. The North American countries, followed by Europe, are expected to become the highest revenue-generating regions for security solutions and service vendors. Rising Internet of Things, Bring your own device, cloud adoption trends, and developing external and internal threats are some of the crucial factors anticipated to fuel the market’s growth in North America. The Asia-Pacific security service market is gaining traction as security solutions provide proactive security measures against evolving cyber-attacks. Small and medium enterprises and large-scale organizations in the Asia-Pacific region have become more aware of the increasing cybercrimes. They have started adopting security as a service solution and services to combat them.

Key Players

The “Global Security as a Service Market” study report will provide valuable insight emphasizing the global market. The major players in the market are Fortinet, Radware, Cisco Systems, Alert Logic, Trend Micro, Zscaler, McAfee, CipherCloud, Symantec Corporation, and Panda Security.

Our market analysis also entails a section solely dedicated for such major players wherein our analysts provide an insight to the financial statements of all the major players, along with its product benchmarking and SWOT analysis. The competitive landscape section also includes key development strategies, market share and market ranking analysis of the above-mentioned players globally.

Key Development

• In July 2021, Fortinet announced the expansion of its FortiGuard and FortiCare security services offerings, adding a new security service called FortiTrust.

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Reasons to Purchase this Report

• Qualitative and quantitative analysis of the market based on segmentation involving both economic as well as non-economic factors• Provision of market value (USD Billion) data for each segment and sub-segment• Indicates the region and segment that is expected to witness the fastest growth as well as to dominate the market• Analysis by geography highlighting the consumption of the product/service in the region as well as indicating the factors that are affecting the market within each region• Competitive landscape which incorporates the market ranking of the major players, along with new service/product launches, partnerships, business expansions and acquisitions in the past five years of companies profiled• Extensive company profiles comprising of company overview, company insights, product benchmarking and SWOT analysis for the major market players• The current as well as future market outlook of the industry with respect to recent developments (which involve growth opportunities and drivers as well as challenges and restraints of both emerging as well as developed regions• Includes an in-depth analysis of the market of various perspectives through Porter’s five forces analysis• Provides insight into the market through Value Chain• Market dynamics scenario, along with growth opportunities of the market in the years to come• 6-month post sales analyst support

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