Information Technology (IT) Security as a Service Market Expected to Reach $49.7 Billion by 2032—Allied Market Research

According to a new report published by Allied Market Research, titled, “Information Technology (IT) Security as a Service Market," The information technology (it) security as a service market was valued at $15.3 billion in 2022, and is estimated to reach $49.7 billion by 2032, growing at a CAGR of 12.8% from 2023 to 2032.

Information Technology (IT) Security as a Service refers to the delivery of cybersecurity solutions and protective measures through a service-oriented model. Instead of organizations managing their security infrastructure and protocols internally, they can opt for third-party service providers to handle various aspects of their cybersecurity needs. These services include a wide range of offerings such as threat detection and response, firewall management, vulnerability assessments, identity and access management, data encryption, and ongoing security monitoring. IT security as a service leverages cloud-based technologies, allowing for scalable and flexible solutions that can adapt to the dynamic nature of cyber threats. This approach enables businesses to enhance their security posture without the need for extensive in-house resources, making it particularly attractive for smaller enterprises or those looking to supplement their existing cybersecurity capabilities. The service model often involves subscription-based payment structures, providing cost efficiency and allowing organizations to access the latest security technologies and expertise without large upfront investments.

In addition, the IT security as a service market is expected to witness notable growth owing to surge in incidence of data breaches, high costs associated with on-premise solutions, and increased adoption from SMEs. Moreover, the growing trend of BYOD in enterprises is expected to provide a lucrative opportunity for the growth of the market during the forecast period. On the contrary, vulnerability of cloud-based applications to cybercrimes limits the growth of the IT security as a service market.

On the basis of end user, BFSI dominated the information technology security as a service market size in 2022, owing to the adoption of advanced analytics and threat intelligence in IT security. The BFSI sector is leveraging data analytics and artificial intelligence to proactively identify and respond to cyber threats. However, energy and utilities are expected to witness the fastest growth, owing to the increased focus on securing critical infrastructure against cyber threats. As the industry becomes more interconnected and digitized, the risk of cyber-attacks on energy and utility systems grows, necessitating robust cybersecurity measures.

Region-wise, North America dominated the IT security as a service market share in 2022, owing to the increasing adoption of cloud-based security services, driven by the need for scalable and flexible solutions to address the diverse and sophisticated threats faced by organizations. The move toward Zero Trust Architecture, emphasizing continuous verification and strict access controls, is gaining traction as a proactive approach to enhance data protection. However, Asia-Pacific is expected to witness the fastest growth in the upcoming year, owing to the heightened adoption of cloud-based security services, driven by the region's robust digital transformation initiatives and the need for scalable, cost-effective solutions. As organizations embrace remote work and mobile technologies, there is a growing emphasis on securing endpoints and ensuring robust identity and access management.

The COVID-19 pandemic triggered a fundamental shift in the way businesses operate, with remote work becoming the norm for many organizations. This transition has brought about several implications for information technology security as a service industry. Firstly, the increased reliance on remote work has highlighted the need for robust endpoint security, secure access controls, and virtual private networks (VPNs) to ensure the confidentiality and integrity of sensitive data being accessed from various locations. The surge in remote collaboration tools has created new attack vectors, leading to an increased demand for security services that can safeguard video conferencing platforms, file-sharing applications, and other collaboration tools. Cybercriminals have capitalized on the uncertainty and fear surrounding the pandemic by launching COVID-themed phishing attacks, exploiting the situation to deliver malware or steal sensitive information. This has emphasized the importance of advanced threat detection and response capabilities provided by IT security services.

Moreover, the accelerated adoption of cloud services during the pandemic has raised concerns about data protection and secure cloud configurations. Organizations are increasingly turning to cloud security services to ensure that their data stored in the cloud is adequately protected, and compliance requirements are met. The healthcare sector, playing a critical role in pandemic response, faced unique challenges with the rapid adoption of telemedicine. Securing patient data and ensuring the privacy and integrity of healthcare communications became paramount, leading to a heightened focus on specialized healthcare IT security services.

Technological Advancements

Information Technology (IT) security as a service has witnessed significant technological advancements in recent years, enhancing its capabilities to safeguard organizations against evolving cyber threats. One notable advancement is the integration of artificial intelligence (AI) and machine learning (ML) into security services. These technologies enable advanced threat detection by analyzing vast datasets to identify patterns and anomalies indicative of potential security incidents. Automation has also played a crucial role, allowing for real-time responses to security events and streamlining routine tasks, thus improving overall efficiency. Cloud-based security solutions have evolved to offer scalable and flexible options, allowing organizations to adapt to dynamic work environments and effectively secure data across various platforms. In addition, advancements in encryption techniques and secure access controls contribute to strengthening data protection measures. Threat intelligence feeds, providing up-to-date information on emerging cyber threats, have become integral to proactive cybersecurity strategies. Blockchain technology is also making inroads, offering decentralized and tamper-resistant solutions for secure data storage and transaction verification. As IT security threats become more sophisticated, these technological advancements continue to shape and redefine the landscape, enabling IT security as a service to stay ahead of emerging challenges.

Key Findings of the Study

• By offering, the data loss prevention segment is anticipated to have fastest growth rate for IT security as a service market forecast.
• By end user, the healthcare segment is anticipated to have fastest growth rate for IT security as a service market analysis.
• By region, North America generated the highest revenue for IT security as a service market size in 2022.

The key players profiled in the IT security as a service industry analysis are include Check Point Software Technologies Ltd., Cisco Systems, Inc., Barracuda Networks, Inc., Broadcom, Radware, Trend Micro Incorporated, Cloudflare, Inc., Fortinet, Inc., Quick Heal Technologies Ltd, and Hewlett Packard Enterprise Development LP. These players have adopted various strategies to increase their market penetration and strengthen their position in the IT security as a service industry.