MDR will be the fastest-growing sector of managed security services.
Managed cyber services will be a gold mine for the channel in the coming years. Expect the global value of this market to reach nearly $50 billion by 2027.
That’s according to MarketsandMarkets, which expects a compound annual growth rate (CAGR) of more than 12% through 2027. It values the current market at slightly less than $28 billion.
Some factors driving market growth include increased usage of cloud technology and IoT devices in enterprises, and growing demand for strong and cost-effective security services to monitor security events.
MDR Services Most in Demand
The managed detection and response (MDR) segment should have the highest compound annual growth rate (CAGR) through 2027. MDR provides organizations with threat-hunting services and responds to threats when discovered. Security providers provide MDR customers access to their pool of security researchers and engineers, who are responsible for monitoring networks, analyzing incidents and responding to security cases.
Among key features of MDR services are continuous threat monitoring, detection and response, endpoint threat detection, threat intelligence, threat hunting, and incident analysis and response. IBM, Secureworks, Trustwave, RSI Security, Atos, Accenture, Proficio, CrowdStrike, Cyflare, and Avertium are some key MDR service providers.
Increasing demand for security from SMEs to improve their productivity and knowledge base has triggered vendors to provide services at a lower cost. Managed cyber services are the best fit for SMEs as cost-effectiveness is its biggest advantage. The adoption and acceptance by SMEs will help expand their customer base and enhance business efficiency. Governments are also taking initiatives to protect SMEs in their respective countries.
Look for IT spending in the SME segment to increase at a high rate, says MarketsandMarkets. The CAGR for IT spending by SMEs in EMEA between 2018 and 2023 should be nearly 4%, compared to less than 3% for the overall market. This rise is expected to give MSSPs a boost. Therefore, MSSPs are focusing on the SME segment to acquire potential customers.
By region, Asia Pacific should have the highest CAGR through 2027. Asia Pacific has a mix of developing and developed countries. Government regulations, increasing cybersecurity incidents, and cloud technology adoption in the region are driving market growth there.