SOC as a Service Market Statistics, 2031
The global soc as a service market size was valued at $4.6 billion in 2021, and is projected to reach $9.9 billion by 2031, growing at a CAGR of 8.2% from 2022 to 2031.
The rise in demand for work-from-home and remote working policies during the period of the COVID-19 pandemic aided in propelling the demand for better security and endpoint management policies, hence empowering the growth of the SOC as a service industry. However, data privacy and customization challenges of SOC as service platforms can hamper the SOC as a service market during the forecast period. On the contrary, the development of advanced communication technologies such as 5G communication networks and cloud technology is expected to offer remunerative opportunities for the expansion of the SOC as a service industry during the forecast period.
A security operations center (SOC) is a team of IT security experts who monitor an organization's complete IT infrastructure around-the-clock in order to identify cybersecurity incidents as they happen and take appropriate action. Security operations center as service offerings is intended for organizations that do not have an advanced IT security and response team.
The report focuses on growth prospects, restraints, and analysis of the global SOC as a service market trends. The study provides Porter’s five forces analysis to understand the impact of various factors, such as the bargaining power of suppliers, competitive intensity of competitors, the threat of new entrants, the threat of substitutes, and bargaining power of buyers on the global SOC as a service market share.
The SOC as a service market is segmented on the basis of service type, enterprise size, application area, industry vertical, and region. Depending on the service type, the market is classified into prevention services, detection services, and incident response services. Based on enterprise size, the market is bifurcated into large enterprises and SMEs. The application area covered in the study includes network security, endpoint security, application security, database security, and others. On the basis of industry vertical, the market is classified into, BFSI, healthcare, government and public sector, IT and telecom, retail, manufacturing, and others. Region-wise, it is analyzed across North America, Europe, Asia-Pacific, and LAMEA.
Depending on the service type, the prevention services segment dominated the SOC as a service market share in 2021 and is expected to continue this trend during the forecast period owing to the various government and industry standards that are put in place to ensure the safety of customer and user data. However, the detection services segment is expected to witness the highest growth in the upcoming years, owing to the rising number of cyber-attacks on business enterprises and public sector organizations.
The global security operations center as a service market has witnessed stable growth during the COVID-19 pandemic, owing to the rapid increase in remote working trends during the period. Moreover, business organizations were distracted trying to handle the global impact of the COVID-19 virus and additional security and risk management considerations that arose during the period, which further fueled the demand for building an advanced security operations center by combining AI/ML and user behavior analytics to monitor the spectrum of an organization’s IT infrastructure, including network, endpoints, and cloud, as a foundation to developing proactive protection, detection and response capabilities enforcing zero trust.
In addition, many key players have enhanced their platforms to build greater cyber resiliency and maximize the value of their existing security policies. For instance, in October 2022, Trellix, the cyber security company, announced the expansion of its XDR platform. The upgraded XDR engine provides security operations teams with enhanced playbooks for guided investigations, upgraded threat intelligence through the integration of McAfee and FireEye assets, and the launch of Trellix Event Fabric. Such factors propelled the growth of the global security operations center as a service market during the period of the pandemic.
Region wise, the SOC as a service market was dominated by North America in 2021 and is expected to retain its position during the forecast period, owing to high concentration of security services vendors in the region, which is expected to drive the market for SOC as a service within the region during the forecast period. However, LAMEA is expected to witness significant growth during the forecast period, owing to rapid economic and technological developments in the region, which is expected to fuel the growth of the SOC as a service industry in the region in the coming few years.
Top Impacting Factors
Demand for Network Security and Privacy is on the Rise
With the growing number of cyber-attack and threats on modern business enterprises, security operation centers are proving to be essential for safeguarding client data & information, maintaining the security of shared data, assuring dependable network performance, and defending against cyber-attacks. Moreover, access control, antivirus software, application security, network analytics, various types of network-security firewalls, VPN encryption, and others are being used to monitor the spectrum of an organization's IT infrastructure, including network, endpoints, and cloud, as a foundation for developing proactive protection, detection, and response measures. As a result, the demand for security operation services and privacy has increased in modern enterprise environments.
In addition, many key players have enhanced their platforms to build greater cyber resiliency and maximize the value of their existing security. For instance, in October 2022 Trellix, the cyber security company delivering the future of extended detection and response (XDR), announced the expansion of its XDR platform. The upgraded XDR engine provides security operations teams with enhanced playbooks for guided investigations, upgraded threat intelligence through the integration of McAfee and FireEye assets, and the launch of Trellix Event Fabric. Such factors propelled the growth of the global security operations center-as-a-service market during the period.
The Increasing Number of Cyber-attacks and Fraud Cases
Post the outbreak of the COVID-19 pandemic, the world has witnessed a significant increase in the number of cyber threats on business enterprises in the form of ransomware attacks, data breaches, and others. However, with the help of managed security operations centers that can monitor, prevent, detects, investigate, and responds to cyber threats around the clock, enterprises are optimizing their IT operations with ease. According to a study published in Cybercrime Magazine, in February 2022, total damages and ransoms collected by hackers and cybercriminals around the globe amounted to more than $6 trillion in 2021. The study also claims that these costs could grow every year and reach up to $10.5 trillion in the coming 5 years, growing at the rate of 15% each year.
In the aftermath of a cyber-attack, a SOC works to restore systems and recover any lost or compromised data. This may include wiping and restarting endpoints, reconfiguring systems, or, in the case of ransomware attacks, deploying viable backups in order to circumvent the ransom-ware. Such capabilities of a security operations center are boosting the demand for security operations center services.
Key Benefits for Stakeholders
- The study provides an in-depth analysis of the global SOC as a service market forecast along with current & future trends to explain the imminent investment pockets coupled with SOC as a service market analysis.
- Information about key drivers, restraints, & opportunities and their impact analysis on global SOC as a service market trends provided in the report.
- Porter’s five forces analysis illustrates the potency of the buyers and suppliers operating in the industry and SOC as a service market size is provided in the report.
- A quantitative analysis of the market from 2022 to 2031 is provided to determine the market potential as well as market Growth.
SOC as a Service Market Report Highlights
| Aspects | Details |
 Market Size By 2031 | USD 9.9 billion |
 Growth Rate | CAGR of 8.2% |
 Forecast period | 2021 - 2031 |
 Report Pages | 280 |
 By Service Type |
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 By Enterprise Size |
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 By Application Area |
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 By Industry Vertical |
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 By Region |
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 Key Market Players | NTT, Atos SE, IBM CORPORATION, Cloudflare, Inc., Verizon, Thales, AT&T, Arctic Wolf Networks, Fortinet Inc., Check Point Software Technologies |
Analyst Review
Demand for SOC as a service has been on a rise for the past few years and the market is expected to continue this trend in the coming years as well, due to the growing number of cyber-attacks and threats, such as ransomware attacks, data breaches, identity thefts, and DoS attacks that encourage enterprises to adopt managed security operation centers to effectively monitor, control, and manage their security policies. In addition, the growing demand for higher communication flexibility in many regions around the globe promising new opportunities for the growth of the SOC as a service market.
Key providers of the SOC as a service market such as IBM Corporation, Check Point Software Technologies, and Fortinet Inc. account for a significant share of the market. With larger requirements for scalability and security, various companies have optimized and enhanced their products and services to provide greater security and management. For instance, in September 2022, Check Point Software Technologies Ltd. announced the launch of Check Point Horizon – a industry-leading prevention-focused suite of security operations solutions and services that combines proactive management solutions for Managed Prevention and Response (MDR/MPR), Extended Prevention and Response (XDR/XPR), and Events. All of them are powered at the click of a button and supported by the industry’s top analysts, research experts, and innovative AI technology.
In addition, with increase in demand for security services, various companies are expanding their current service range with increasing diversification among customers. For instance, in April 2021, IBM Corporation announced collaboration with HCL Technologies (HCL) to help unify and streamline threat management for clients via a modernized security operation center (SOC) platform. HCL’s Cybersecurity Fusion Centers are anticipated to be designed to take advantage of IBM’s Cloud Pak for Security, to help create a unified security platform to connect security teams, tools, and processes across the threat lifecycle. This collaboration builds on HCL and IBM’s recent alliance expansion to help organizations with digital transformation.
Moreover, market players are expanding their business operations and customers by increasing their product range. For instance, in March 2022, Atos, a leading managed security services provider in Europe, announced the launch of a new next-gen Security Operations Center (SOC) in Sofia, Bulgaria, as part of the continuous expansion of its cybersecurity activities. The new center is Atos’ 16th next-gen SOC worldwide. It is designed to rapidly identify and limit the impact of security incidents for large organizations globally via 24/7/365 threat monitoring, detection, and targeted response supported by state-of-the-art technology with Artificial Intelligence (AI) and Machine Learning (ML) – ultimately strengthening Atos’ powerful global SOC network.
The global SOC as a service market size was valued at $4.56 billion in 2021
North America is the largest regional market for SOC as a Service
Network Security is the leading application of SOC as a Service Market
The increasing number of cyber-attacks and fraud cases
The key players profiled in the SOC as a service market analysis are Atos SE, AT&T, Arctic Wolf Networks, Check Point Software Technologies, Cloudflare, Inc., Fortinet Inc., IBM CORPORATION, NTT, THALES Group, and Verizon.
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