Saudi Arabia Managed Security Services Market Size

Saudi Arabia Managed Security Services Market Analysis

The Saudi Arabia Managed Security Services Market size is estimated at USD 223.37 million in 2024, and is expected to reach USD 435.74 million by 2029, at a CAGR of 14.30% during the forecast period (2024-2029).

The managed security services industry is experiencing growth due to several factors, including increased cyber threats, stricter government regulations, and the vast amount of data consumers generate in the digital age. The rapid digital transformation has created numerous opportunities for cyber-attacks. In addition, the diversification of technology and a shortage of skilled cybersecurity professionals have opened new avenues for managed security service providers.

• The Internet of Things (IoT) has unlocked numerous opportunities while presenting new security challenges. Managed Security Service (MSS) providers are now delivering tailored IoT security management services to counter these threats. These services aim to protect connected devices and thwart potential breaches that could jeopardize entire networks. The emergence of IoT botnets, coupled with the surging number of connected devices, underscores the importance of this trend in the managed security services market.
• Saudi Arabia is witnessing a growing demand for energy. Accelerated economic and infrastructure growth is driving the demand for stable and reliable energy supply and management. Owing to such demand, companies such as ZIV and its mother company ALFANAR locally produced and delivered 550,000 smart meters to the Saudi Electricity Company (SEC) through the Group's EPC company Alfanar Construction. The data generated by smart meters lie in energy consumption, which requires robust security measures to protect sensitive information.
• Saudi Arabia grapples with a significant money laundering challenge, largely fueled by its immense wealth, its position as the top global oil exporter, and its prominent informal economy. These factors render the nation a magnet for illicit funds, frequently tied to corruption, smuggling, and financial fraud. Moreover, due to its strategic geopolitical location, Saudi Arabia contends with terrorism financing issues closely intertwined with money laundering activities.
• The lack of awareness about security services significantly hampers the growth of the Saudi Arabian managed security services (MSS) market. Managed security services encompass the monitoring and management of security systems and devices, including firewalls, intrusion detection systems, and security information and event management (SIEM) solutions, to protect businesses from cyber threats.
• While cost-cutting measures might be implemented, the requirement for cybersecurity remains crucial. As businesses navigate economic challenges, there may be a shift toward more cost-effective solutions and a heightened emphasis on protecting digital assets. Ultimately, the impact on the managed security market in Saudi Arabia during a recession involves a delicate balance between financial constraints and the imperative to maintain effective defenses against evolving cyber threats. According to the General Authority for Statistics, in Q4 2023, the Saudi economy contracted by 3.7%, largely due to a significant 16.4% drop in oil activities.