Growing security risks and incidents of ransomware have been forcing enterprises across the Asia-Pacific (APAC) region to search for trusted and competent security services providers. Against this backdrop, managed security services (MSS) revenue in the region is estimated to reach US$17bn in 2024, according to the data and analytics company GlobalData.
Rohit Sharma, Senior Technology Analyst at GlobalData, comments: “The key factor driving the increased spending by enterprises on managed security services market is the rise in cyberattacks (including direct, indirect and induced), resulting in significant losses to enterprises. Additionally, due to lack of skilled cybersecurity professionals, enterprises are looking for trusted partners, thereby resulting in the growth of the segment.”
An analysis of GlobalData's Market Opportunity Forecasts Model reveals that banking, financial services and insurance (BFSI), and manufacturing industries accounted for a market share of 15% and 14%, respectively, of the overall MSS revenue in 2019. In 2024, both the BFSI and manufacturing industries are forecast to account for 15% and 13%, respectively.
However, healthcare vertical is projected to grow at the highest compound annual growth rate (CAGR) of 5.6% during the forecast period 2019-2024.
Mr Sharma continues: “The BFSI vertical is a major target for cybercrimes and digital frauds leading to a higher demand for managed security services. The demand for managed security services in the healthcare vertical is driven by the need to keep the patients’ data secure, stringent data security regulations and developments like remote patient monitoring.”
In terms of revenue, China is estimated to account for US$4.5bn in 2020. It would be the highest revenue accounting country by 2024, making for more than 33% of the MSS revenue. The key driver for the market is the increased emphasis by the government to raise cybersecurity awareness amongst the public and private enterprises.
Managed security services’ revenue in Indonesia and Australia is expected to witness the highest CAGRs of 5.2% and 1.3%, respectively, during the forecast period.
In Australia, growing need for organization security solution across verticals such as BFSI, healthcare, manufacturing, aerospace and defense is likely to drive the MSS market growth. Increasing government investment in security solutions and rising data breach concerns are some of the factors contributing to MSS market growth in the country.
Mr Sharma concludes: “Recent technological developments such as cloud, 5G, and IoT will further reduce the barrier between physical and digital world landscapes, eventually leading to the growth in MSS revenue.” (Source: GlobalData)