Cyber Security as a Service Market Size (2024 - 2029)

The cybersecurity as a service market is experiencing significant growth due to increasing complexities in cybersecurity and rising cyber threats that exceed the capabilities of many organizations. This market expansion is driven by the need for specialized expertise in managing data protection and compliance, which is often beyond the scope of in-house IT teams. The surge in demand is further fueled by the escalating costs associated with data breaches and the loss of customer trust, which can have severe financial repercussions for businesses. Additionally, the COVID-19 pandemic has accelerated the need for these services, prompting enterprises to invest in or expand their cybersecurity offerings. The persistent shortage of skilled cybersecurity professionals also contributes to the growing demand for cybersecurity as a service.

Market Size of Cyber Security as a Service Industry

Cyber Security as a Service Market Forecast
Study Period 2019 - 2029
Base Year For Estimation 2023
CAGR 12.60 %
Fastest Growing Market Asia Pacific
Largest Market North America
Market Concentration Medium

Major Players

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*Disclaimer: Major Players sorted in no particular order

Cyber Security as a Service Market Analysis

The global cybersecurity as a service (CSaaS) market is expected to register a CAGR of 12.6% in the forecast period (2021 - 2026). The complexities that are associated with cybersecurity and the growing cyber threat are outstripping the abilities of most organizations. In current data compliance dominated economies, the legal complexities associated with protection and data security are far outside the remit and understanding of any IT expert.

  • Over the forecast period, the demand for CSaaS is expected to gain traction as it provides expertise and experience across people, processes, and technology, even encompassing a legal team with the expertise required to manage a breach from a compliance perspective. Also, CSaaS can be tailored to each organization's requirements from a strategic perspective to complete deployment.
  • In addition to this, the global cyber threats are on the rise, and the costs associated with each data breach are also on the rise. According to RiskBased Security, during the first half of 2019, nearly 4.1 billion records were exposed. According to Verizon Data Breach Investigation Report 2020, about 71% of the breaches were financially motivated, and 25% were motivated by espionage.
  • With the growing number of threats and data breaches, a serious concern for businesses worldwide is the loss of customer trust, which led to serious financial consequences for the companies. According to IBM, the average cost of lost business for organizations in 2019 stood at USD 1.42 million, and the total average cost stood at USD 3.92 million. The average time to identify a breach in 2019 was 206 days, and the average time to contain a breach was 73 days. This further leads to financial losses for a business.
  • Among all of the data breaches and attacks, malicious attacks caused the majority of the data breaches during 2019. Also, the number of malicious attacks have increased exponentially in the last five years. Enterprises are the target of malicious attacks, and especially smaller organizations were attacked frequently. According to Symantec, smaller organizations with less than 250 employees had the highest target of malicious attacks with a malicious email rate of 1 in 323.
  • Moreover, with the outbreak of COVID-19, the demand for cybersecurity as a service in the industry is surging, attracting enterprises to invest in either offering such solutions or expanding their service offering in the market further.
  • Data breaches continue to be the most significant cybersecurity concern and likely to continue during the forecast period; thus, cybersecurity is a primary concern for enterprises and businesses. Apart from this, the industry sees a shortage in the cybersecurity skill gap, with nearly two in three organizations reporting a shortage in IT security staff across the world. This is one of the factors augmenting the demand for cybersecurity as a service.

Cyber Security as a Service Industry Segmentation

Cyber security refers to preventive techniques utilized to protect and safeguard an organization's information system from cyber warfare espionage and terrorism. Nowadays businesses outsource their cyber security which is known as cyber security as a service (CSaaS). In CSaaS, a team of independent experts is constantly monitoring for unusual behavior on the organization’s systems, warning of threats and keeping the systems patched and backed up.

By Size of Organization
Small and Medium Enterprises
Large Enterprises
By Security Type
Vulnerability and Security Assessment
Threat Intelligence and Business Analytics
Auditing and Logging
Continuous Monitoring and Encryption
Identity and Access Management
Other Security Types
By End-user Industry
Healthcare
BFSI
IT and Telecom
Government
Energy and Utilities
Other End-user Industries
Geography
North America
Europe
Asia-Pacific
Latin America
Middle East & Africa
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Cyber Security as a Service Market Size Summary

The cybersecurity as a service (CSaaS) market is experiencing significant growth, driven by the increasing complexity of cyber threats and the rising costs associated with data breaches. Organizations are finding it challenging to keep up with the evolving landscape of cyber threats, which has led to a surge in demand for CSaaS solutions. These services offer a comprehensive approach by integrating expertise across people, processes, and technology, including legal teams to manage compliance-related breaches. The market is further bolstered by the growing need for tailored cybersecurity solutions that align with the strategic objectives of organizations. The COVID-19 pandemic has also accelerated the adoption of CSaaS, as businesses seek to enhance their security posture in response to the surge in cyberattacks targeting critical infrastructure, particularly in sectors like energy and utilities.

North America leads the global CSaaS market, benefiting from high digitalization levels and a robust presence of cybersecurity vendors. The region's innovative technology adoption and the increasing need to safeguard IT infrastructures are key factors driving market growth. The competitive landscape is marked by rapid innovation, with numerous companies and startups developing advanced cybersecurity solutions. Notable developments include McAfee's enhancements to its cloud-native Mvision platform, which offers unified data and threat protection. The market's expansion is supported by regulatory frameworks and strategic partnerships aimed at strengthening cybersecurity measures across critical infrastructure sectors, particularly in response to the rising threat of cyberattacks.

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Cyber Security as a Service Market Size - Table of Contents

  1. 1. MARKET DYNAMICS

    1. 1.1 Market Drivers

      1. 1.1.1 Growing Incidence of Data Breaches

      2. 1.1.2 High Costs associated with On- premise Solutions

      3. 1.1.3 Increased Adoption from SME's

    2. 1.2 Market Restraints

      1. 1.2.1 Vulnerability of Cloud-based Applications to Cyber Crimes

    3. 1.3 Market Opportunities

      1. 1.3.1 Growing Trend of BYOD in Enterprises

    4. 1.4 Industry Ecosystem Analysis

    5. 1.5 Impact of COVID-19 on the CSaaS Industry

    6. 1.6 Emerging Case Studies and Implementation scenarios (Effect of CSaaS implementation among IT and Telecom and Retail Firms. Role of CSaaS in enabling Effective Threat Prevention and Mitigation among SMB's)

    7. 1.7 Cost Analysis of Data Breaches

  2. 2. MARKET SEGMENTATION

    1. 2.1 By Size of Organization

      1. 2.1.1 Small and Medium Enterprises

      2. 2.1.2 Large Enterprises

    2. 2.2 By Security Type

      1. 2.2.1 Vulnerability and Security Assessment

      2. 2.2.2 Threat Intelligence and Business Analytics

      3. 2.2.3 Auditing and Logging

      4. 2.2.4 Continuous Monitoring and Encryption

      5. 2.2.5 Identity and Access Management

      6. 2.2.6 Other Security Types

    3. 2.3 By End-user Industry

      1. 2.3.1 Healthcare

      2. 2.3.2 BFSI

      3. 2.3.3 IT and Telecom

      4. 2.3.4 Government

      5. 2.3.5 Energy and Utilities

      6. 2.3.6 Other End-user Industries

    4. 2.4 Geography

      1. 2.4.1 North America

      2. 2.4.2 Europe

      3. 2.4.3 Asia-Pacific

      4. 2.4.4 Latin America

      5. 2.4.5 Middle East & Africa

Cyber Security as a Service Market Size FAQs

The Cyber Security as a Service Market is projected to register a CAGR of 12.60% during the forecast period (2024-2029)

Armor Defense, Inc., McAfee Inc., IBM Corporation, Forcepoint LLC and FireEye Inc. are the major companies operating in the Cyber Security as a Service Market.

Cyber Security as a Service Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)