Europe SOCaaS Market Size
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| Market Size (2024) | USD 3.14 Billion |
| Market Size (2029) | USD 6.27 Billion |
| CAGR (2024 - 2029) | 14.85 % |
| Market Concentration | Low |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Europe SOCaaS Market Analysis
The Europe SOCaaS Market size is estimated at USD 3.14 billion in 2024, and is expected to reach USD 6.27 billion by 2029, at a CAGR of 14.85% during the forecast period (2024-2029).
As businesses prioritize cybersecurity to protect their digital assets, the market studied has grown significantly in recent years. SoC as a service enables companies to contract out their security operations to specialized service providers by providing an integrated approach to threat detection, incident response, and continuous monitoring.
- Cyberattacks are increasing rapidly across emerging economies in terms of volume and complexity, where incident response units are pushing their limit in terms of time, skill, and resources to obtain actionable measures at the right time to avoid such incidents. At the same time, organizations are encountering an unparalleled number of security threats and risks with increasing numbers of employees, customers, and partners, thereby embracing new trends and innovations through digital transformation.
- The rise in the pay-per-use model adoption due to the capex reduction has emerged as a major driver for adopting SOC-as-a-service in European industries in the past few years. As the need for businesses to strengthen their security landscape rises across sectors, many are turning to pay-per-use subscription models. Over the past couple of years, organizations across sectors have been focusing on opex-first models rather than capex-heavy offerings owing to the reduction in capex.
- The SMEs in the region are rapidly migrating to the cloud owing to the rising need for scalability and flexibility. Cloud computing has enabled a new way of working, allowed more flexible, collaborative, and effective work, and accelerated the delivery of outputs in small and medium-sized enterprises to scale services and capacity up or down as needed without investing in their infrastructure. As organizations undergo significant cloud deployment, the security vulnerabilities associated with cloud deployment become increasingly evident, driving the demand for managed SOC services.
- A SOCaaS vendor will need access to a business's data to detect and respond to threats efficiently. Sharing large amounts of sensitive data could lead to data exposure and higher security risks for organizations.
- Additionally, SOC service providers will also need permission to store sensitive data. This may expose the organization to data leaks if the provider is compromised. Further, although organizations can typically monitor threat warnings internally, most data processing occurs outside the perimeter, restricting organizations' ability to store and analyze extensive historical data on identified threats and potential data breaches.
- Post-pandemic, the launch of new security operations centers across European countries witnessed significant growth, further indicating the growth in demand for security operation centers as a service among a broad range of industries across Europe.
- For instance, in September 2023, Wipro, a SOC-as-a-Service provider for banks, launched its Cyber Defense Center (CDC) in Dusseldorf, Germany, to fulfill the region's cybersecurity and compliance needs. With the rising threat of cyber-attacks and the growing importance of data protection, Wipro's Cyber Defense Center will offer its clients round-the-clock cybersecurity monitoring, incident response, and remediation support.
Europe SOCaaS Market Trends
Retail and Consumer Goods to be the Fastest Growing End-user Industry
- Small and medium-sized organizations (SMEs) with less than 1000 employees have become soft targets for cyber threats in Europe. This has increased the demand for the Security Operations Center as a Service (SOCaaS). Thus, SMEs are anticipated to occupy a significant share in terms of organization size in the market studied as they are increasingly implementing a subscription-based SOCaaS model for network monitoring, threat detection, and incident response.
- By outsourcing their security operations to SOCaaS companies, SMEs can save on staffing and training costs, sidestepping the financial burden of establishing and upkeeping an in-house security team. Moreover, European SMEs are increasingly turning to SOCaaS to counter ever-evolving cyberattacks, drawn by benefits such as specialized cybersecurity expertise, cutting-edge technologies, rapid threat detection and response, and the flexibility to scale security operations as required.
- The World Economic Forum's (WEF) 2023 Report states that smaller organizations are more likely not to have measures to identify vulnerabilities in their infrastructures and are more likely to suffer from budget constraints and a lack of trained experts to manage internal risk. This encourages them to follow a security approach where a third party addresses SOC via the cloud.
- In a recent report by the security solution provider Guardz, 57% of SMEs have experienced a cyber threat, with 29% reporting no cyber insurance. With cyberattacks targeting SMEs on the rise, 70% of respondents are confident that their businesses are resilient enough to withstand such threats. However, 44% of respondents believe that their antivirus solution fully protects their business, and 25% of companies admit not regularly training their employees on security monitoring capabilities.
- By the end-user industry, the IT and telecom sector is anticipated to witness increased adoption of SOCaaS in Europe. Rapid IT, AI, Big data, and communication development trigger significant cybercrime interest. According to The International Trade Administration (ITA), Europe, specifically Bulgaria, is a crucial target for cybercrime owing to its advanced Internet infrastructure. Several cities in Bulgaria, including Sofia, Plovdiv, Varna, and Bourgas, host many R&D centers, software development hubs, and shared centers and manage 24/7 international operations, increasing the risk of cyberattacks in Bulgaria.
- The ITA states that there has been an increase in cyber-attacks against Bulgarian businesses, with 57% of Bulgarian organizations subject to cyberattacks once a day or once a month. In November 2023, Bulgaria announced the allocation of USD 2.2 million to help SMEs improve their detection and response to security threats. The initiative may enable the development of a network of national coordination centers, propelling the SOC-as-a-service market demand in the segment.
- In Europe, the increasing adoption of IT and cloud environments, particularly among SMEs, drives the market forward. As organizations manage the complexities of modern IT infrastructures—encompassing cloud, hybrid, and multi-cloud configurations—they face heightened security challenges. This landscape boosts the demand for SOC-as-a-Service. According to Eurostat, in 2023, 59% of medium-sized enterprises had adopted cloud computing services, a notable increase from 53% in 2021. In parallel, the proportion of small businesses utilizing cloud services grew by 3.8 percentage points, reaching 41.7%.
Germany Holds Significant Market Share
- Cybersecurity plays a crucial role in the security operations center landscape in the German portion of the European security operations center (SOC) as a service market. One of Europe’s strongest economies, Germany is committed to improving digital security and safeguarding private data by implementing SOC services.
- Germany has particular network security challenges because it is a hub for many businesses. The foundation of the German economy, the manufacturing sector, is especially open to cyber attacks. Industry 4.0, which refers to the increased interconnectedness of industrial systems, raises concerns about the possible impact of cyber attacks on critical infrastructure.
- For instance, in September 2023, according to the German Digital Association, Bitkom Germany lost EUR 206 billion (USD 224 billion) due to IT equipment and data theft and industrial and digital espionage and sabotage. This will be the third year the damage has exceeded EUR 200 billion.
- The country is witnessing growth in cyberattacks due to the increased interconnectedness of Internet of Things (IoT) devices and digital transformation across industries. To safeguard sensitive data and vital infrastructure in urban settings, SOC services are developing to secure these growing attack vectors. According to Microsoft, around 3 percent of the network intrusions in Germany are by nation-state or state-affiliated cyber threat actors.
- For instance, in November 2023, the Office for Information Security (BSI) in Germany gave a report on cybersecurity and IT in the nation. According to the analysis, the threat level is “higher than ever before,” with an average daily growth in malware types of 332,000 throughout the analyzed period, setting a record for the country.
- In August 2024, Bitkom, a trade association representing Germany's IT sector, unveiled its latest survey findings. The survey revealed that 80% of German businesses faced data or IT theft incidents, industrial espionage, or sabotage over the past year. Notably, 45% of these companies traced the cyberattacks or acts of industrial spying back to China.
- The survey highlighted that Russia was accountable for 39% of the attacks. It's worth noting that this figure for Russia has decreased from 46%, while China's attribution has seen a rise, now standing three percentage points higher than the 2023 survey. The survey estimated that acts of industrial espionage, encompassing cybercrime, cost the German economy a staggering EUR 267 billion (USD 297 billion) over the past year. This marks a significant 29% increase from the previous year's damages.
- Overall, the proliferation of Industry 4.0 and interconnected devices across industries in Germany, rising cyber attacks, and a dedication to ongoing innovation in the cybersecurity sector are all driving significant changes in the German country of the European security operations center (SOC) as a service market.
Europe SOCaaS Industry Overview
The European security operation center as a service market is fragmented, with vendors expanding their partner ecosystems and integration capabilities to enhance service offerings. The market is seeing a flurry of mergers and acquisitions, with companies collaborating with multiple enterprises to bolster security operations through continuous monitoring and early threat detection.
Some of the major players in the market are Thales, ConnectWise LLC, Atos SE, Fortinet Inc., and Wipro Limited among others.
Europe SOCaaS Market Leaders
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Thales
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Connectwise LLC
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Atos SE
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Fortinet Inc.
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Wipro Limited
*Disclaimer: Major Players sorted in no particular order
Europe SOCaaS Market News
- September 2024: Seceon, known for pioneering the first AI/ML-powered cybersecurity platform, announced a strengthened partnership with Exertis Enterprise. Together, they unveiled "Fortress (SOC),” a suite of managed security services. Exertis Cybersecurity, a division of Exertis Enterprise, is dedicated to cybersecurity. They promise industry-leading solutions underpinned by unparalleled expertise and support, ensuring partners benefit from cutting-edge, dependable cybersecurity technologies. Their newly launched Security Operations Center in Basingstoke, UK, is set to provide 24/7 cyber threat protection, aiming to shield organizations across the UK and EMEA from cyberattacks, reduce downtime and uphold rigorous cybersecurity compliance and regulatory standards.
- July 2024: SonicWall introduced its new Managed Security Services suite, specifically designed for European Managed Service Providers (MSPs), Managed Security Service Providers (MSSPs), and other collaborators. This launch is complemented by a newly set up, locally-based Security Operations Center (SOC) that operates 24/7. The local SOC presence allows for a nuanced understanding of regional cyber threats, regulations, and business dynamics, enhancing its threat detection and response capabilities. This move highlights SonicWall's commitment to its partners and expands its offerings to include EMEA-based Managed Detection and Response (MDR), Security Operations Center services (SOCaaS), and a range of other managed security services, all in partnership with MSPs and MSSPs.
Europe SOCaaS Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET INSIGHTS
4.1 Market Overview
4.2 Assessment of the Impact of and Recovery From COVID-19 on the Industry
4.3 Impact of Macroeconomic Trends on the Industry
5. MARKET DYNAMICS
5.1 Market Drivers
5.1.1 Rise in the Adoption of Pay-per-use Model Owing to Reduction in Capex
5.1.2 Rapid Adoption of Cloud Deployment in SMEs
5.1.3 Mobile Workforce and Associated Vulnerabilities
5.2 Market Restraints
5.2.1 Challenges Associated With Data Control and Total Cost of Ownership
5.3 Analysis of Key Innovations and Advancements in Cybersecurity Related Practices
5.4 Key Use Cases
5.5 Services Offered Through Socs in the Region
5.6 Key Challenges Related to Market Entry in the Region
6. MARKET SEGMENTATION
6.1 By Organization Size
6.1.1 SMEs
6.1.2 Large Enterprises
6.2 By End User
6.2.1 IT and Telecom
6.2.2 BFSI
6.2.3 Retail and Consumer Goods
6.2.4 Healthcare
6.2.5 Manufacturing
6.2.6 Government
6.2.7 Other End Users
6.3 By Country
6.3.1 Austria
6.3.2 Bulgaria
6.3.3 Belarus
6.3.4 Croatia
6.3.5 Slovenia
6.3.6 Germany
7. COMPETITIVE LANDSCAPE
7.1 Company Profiles
7.1.1 Thales
7.1.2 ConnectWise LLC
7.1.3 Atos SE
7.1.4 Fortinet Inc.
7.1.5 Wipro Limited
7.1.6 Cloudflare Inc.
7.1.7 Plusserver
7.1.8 Ontinue Inc.
7.1.9 Teceze Limited
7.1.10 Sophos Ltd
- *List Not Exhaustive
8. INVESTMENT ANALYSIS
9. FUTURE OF THE MARKET
Europe SOCaaS Industry Segmentation
The Europe SOC-as-a-Service market is defined based on the revenues generated through the fully managed SOC services to manage network, cloud, or end-point protection offered through the cloud on the subscription-based model in Europe. The study also focuses on further analysis of specific countries in the region.
The Europe SOC-as-a-Service market is segmented by organization size (SMEs, large enterprises), by end-user (IT and telecom, BFSI, retail and consumer goods, healthcare, manufacturing, government, and other end users), by country (Austria, Bulgaria, Belarus, Croatia, Slovenia, Germany, and Rest of Europe). The report offers market forecasts and size in value (USD) for all the above segments.
| By Organization Size | |
| SMEs | |
| Large Enterprises |
| By End User | |
| IT and Telecom | |
| BFSI | |
| Retail and Consumer Goods | |
| Healthcare | |
| Manufacturing | |
| Government | |
| Other End Users |
| By Country | |
| Austria | |
| Bulgaria | |
| Belarus | |
| Croatia | |
| Slovenia | |
| Germany |
Europe SOCaaS Market Research FAQs
How big is the Europe SOCaaS Market?
The Europe SOCaaS Market size is expected to reach USD 3.14 billion in 2024 and grow at a CAGR of 14.85% to reach USD 6.27 billion by 2029.
What is the current Europe SOCaaS Market size?
In 2024, the Europe SOCaaS Market size is expected to reach USD 3.14 billion.
Who are the key players in Europe SOCaaS Market?
Thales, Connectwise LLC, Atos SE, Fortinet Inc. and Wipro Limited are the major companies operating in the Europe SOCaaS Market.
What years does this Europe SOCaaS Market cover, and what was the market size in 2023?
In 2023, the Europe SOCaaS Market size was estimated at USD 2.67 billion. The report covers the Europe SOCaaS Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Europe SOCaaS Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Europe SOCaaS Industry Report
Statistics for the 2024 Europe SOCaaS market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Europe SOCaaS analysis includes a market forecast outlook to for 2024 to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
