Security as a Service Market Expected to Reach $75 Billion by 2032—Allied Market Research

According to a new report published by Allied Market Research, titled, “Security as a Service Market," The security as a service market was valued at $13 billion in 2022, and is estimated to reach $75 billion by 2032, growing at a CAGR of 19.4% from 2023 to 2032.

Security as a Service (SECaaS) is a business model in which a service provider integrates their security services into a corporate infrastructure on a subscription basis at a lower cost than most individuals or corporations can provide on their own when the total cost of ownership is considered. It enables businesses to outsource cybersecurity management to an external supplier. Outsourced security solutions include services such as data loss prevention, antivirus administration, and intrusion detection.

Furthermore, SECaaS has become critical for modern IT security. Potential vulnerabilities increase as firms grow digitally. This necessitates adaptive security solutions, which SECaaS provides. It offers security as a dynamic service that changes in response to an organization's demands and the ever-changing security landscape.

The increase in cyber risks has increased demand for security services, boosting security as a service market. The risk of cyber-attacks has increased significantly as more organizations and individuals connect online. This escalating threat landscape has led to higher adoption of security as a service solution, where organizations outsource their security needs to specialized providers. Furthermore, with the rise in complexity of cyber threats, there is a surge in demand for advanced security solutions, propelling the expansion of the SECaaS market. Traditional security measures are frequently insufficient to protect against fraudsters' shifting techniques, pushing firms to seek more complex and dynamic ways. In addition, the increasing usage of cloud-based services is the primary driver of the security as a service market's growth. However, concerns regarding data privacy and security in outsourcing models are having a major effect on the growth of the SECaaS market. Moreover, the difficulties of effectively integrating SECaaS into current IT infrastructure is restricting the market's growth. Many firms struggle to integrate these security solutions with their existing systems, resulting in operational disruptions and compatibility challenges. On the contrary, rise in demand for advanced threat intelligence and analytics solutions is expected to propel the security as a service industry in the upcoming years.

On the basis of enterprise size, the large enterprises segment acquired a major share in 2022. The security as a service market is experiencing rapid expansion, particularly among large enterprises, owing to the constantly evolving and complex nature of cyber threats, which made traditional security approaches ineffective. As a result, businesses are turning to innovative and customizable security solutions. However, the small and medium-sized enterprises segment is the fastest-growing segment during the security as a service market forecast period. Small and medium-sized organizations have difficulty with managing complicated in-house security systems due to limited resources and skills. As a result, security as a service is growing as an attractive option, offering advanced security without requiring a large initial investment.

Region-wise, North America dominated the market in 2022, owing to the increase in demand for advanced security solutions in the region. Moreover, the rise in cyber threat incidents and the requirement for strong security measures propelled enterprises to adopt SECaaS models, which provide them with scalable and cost-effective security solutions. However, Asia-Pacific is considered to be the fastest-growing region during the forecast period. This is attributed to the diverse and evolving threat landscape in Asia-Pacific that has increased the awareness of organizations regarding the importance of robust security measures, driving the adoption of security as a service models.

The COVID-19 pandemic had a notable impact on the security as a service market size. Initially, businesses faced uncertainties, leading to a heightened awareness of cybersecurity threats as remote work surged. This prompted increased adoption of security services to protect sensitive data and networks. As companies adapted to remote work models, the demand for cloud-based security solutions, a key component of security as a service, witnessed significant growth.    

Key Findings of the Study

• On the basis of component, the solution segment accounted for the highest security as a service market share, in terms of revenue in 2022.
• On the basis of industry vertical, the BFSI segment attained the highest market share in 2022.
• On the basis of region, North America generated the highest revenue in 2022.  

The key players operating in the security as a service market analysis include Oracle Corporation, Proofpoint, Inc., Qualys, Inc., Okta, Sophos Ltd., Microsoft Corporation, IBM Corporation, Trend Micro Incorporated, Cisco Systems, Inc., and Forcepoint. These players have adopted various strategies to increase their market penetration and strengthen their position in the security as a service industry.