The Global SOC as a Service Market size is expected to reach $10.9 billion by 2028, rising at a market growth of 10.2% CAGR during the forecast period.
SOC as a service is a cloud-based solution that allows businesses to outsource the complete security operation, including endpoint management, network management, application management, database management, and server website management. It primarily provides the critical cyber security expertise required to combat sophisticated cyber-attacks. Moreover, this service offers commendable reaction and detection services for reducing threats early on. This cloud service is made up of a dedicated group of information security experts that are in charge of monitoring and evaluating the organization's security posture.
In terms of volume and complexity, cyber-attacks are fast expanding across emerging economies, and incident response units are straining the limits in terms of time, talent, and resources to obtain responsive measures at the correct time to prevent such incidents. Simultaneously, organizations face an unprecedented number of security threats and dangers as the workforce, customers, and partners grow, requiring them to embrace new trends and innovations via digital transformation. For instance, As per IBM, the average cost of a data breach across all industry sectors in 2020 will be multiple million dollars.
Enterprises may make fundamental changes in the way organizations manage and address threats and hazards in the business environments by implementing an intelligent SOC and an effective security service management architecture. The strategy gives managers a complete, end-to-end view of security issues, allowing users to improve response times and better protect the company's data. With proactive policy enforcement and audit & compliance reports, such solutions have also made it easier to comply with audit and compliance standards.
The demand for security services to combat various cyber risks and attacks is increasing within organizations as a result of the COVID-19 pandemic in 2020. During the COVID-19 pandemic, digital transformation in the banking, financial services, and insurance industries, as well as healthcare, government, and IT and ITeS, is accelerated. The adoption of the remote work trend has resulted in increased web and cloud traffic, which is why managed security services are blooming in every industry. Almost every industry around the globe has been badly impacted by the COVID-19 pandemic. Moreover, mobility restrictions have disrupted supply chains around the world, but it has created possibilities for the service industry and has had a favorable impact on the SOC's expansion as a service market. The COVID-19 pandemic has affected every part of society, including individuals and businesses.
Organizations have relied on cyber security in recent years to secure their digital assets from escalating cyber threats. Some of the most well-known cyber risks include phishing, ransom ware, phishing, malware, browser gateway frauds, and Distributed Denial of Service (DDoS), whaling, and spear phishing. Cyber terrorists assault endpoints, networks, data, and other IT infrastructure, causing massive financial losses to individuals, businesses, and governments. Cyber risks reduce business productivity by compromising essential IT infrastructure and sensitive data. As the outcome of the rapid growth of digital transactions across industrial verticals, the incidence of cyber-crime is increasing.
The regulatory landscape is becoming increasingly complicated, and enterprises must implement security controls and policies to attain and show regulatory compliance. While a managed SOC provider can help with regulatory compliance, using a third-party provider can make regulatory compliance more complicated and need trust in the service provider to execute the compliance-related responsibilities. Over the years, sophisticated cyber-attacks have wreaked havoc on businesses, resulting in tremendous financial losses. Organizations are constantly looking for SOCaaS subscriptions to counter such disruptive attacks. It is also necessary to adhere to current government data protection laws while using SOCaaS for cyber defense.
When companies lack in-house security knowledge or have budgetary constraints, organizations turn to SOCaaS and third-party service providers. While outsourcing security operations to third-party service providers, many factors must be considered, including the security of the third infrastructure, the party's expertise, up-to-date cyber-security technology, round-the-clock assistance, and the overall choice to migrate to security as a service. To counteract the latest threats, service providers must ensure that the infrastructure is secure and up to date. The infrastructure of service providers holds vital data from various organizations, and it is very vulnerable to repetitive and complicated attacks and this might be a deterrent for enterprises to hand up the data to such service providers.
Based on Type, the market is segmented into Vulnerability Assessment & Threat Detection and Incident Response. The Incident Response segment acquired a significant revenue share in the SOC as a Service market in 2021. Such services help businesses safeguard the systems from exploitation and data loss. The complexity of sophisticated technologies positively influences the demand of SOCaaS industry. The service provides a method for managing and responding to complicated cyber-attacks after they have been detected, as well as assisting businesses in recouping IT damages and data losses. It assists organizations in not just dealing with and managing the aftermath of assaults, but also in defining a clear set of protocols that must be followed prior to and during the security incidents.
Based on Vertical, the market is segmented into BFSI, IT & ITeS, Manufacturing, Telecommunications, Government & Public Sector, Healthcare & Life Sciences, Transportation & Logistics, Energy & Utilities, and Others. The Healthcare & Life Science segment garnered a significant revenue share in the SOC as a Service market in 2021. Healthcare businesses confront multiple issues, including safeguarding the privacy of Electronic Health Records (EHRs) and complying with various HIPAA compliance, which has aided the healthcare industry vertical's IT departments in upgrading security policies and processes to PHI. Medical equipment and pharmaceutical manufacturers, health insurance companies, commercial and governmental healthcare institutions, and diagnostic, preventative, remedial, and therapeutic service providers make up the healthcare vertical. Companies in such areas must manage personal health information and sensitive patient data, necessitating the use of high-security services.
Based on Component, the market is segmented into Professional Services and Solution. The professional services segment acquired the highest revenue share in the SOC as a Service market in 2021. Professional Services is a service offering for enterprises wishing to better understand and mitigate the dangers posed by today's focused attacks from sophisticated criminal organizations and determined human adversaries.
Based on Offering Type, the market is segmented into Co-managed and Fully Managed. The Co-Managed segment procured the maximum revenue share in the SOC as a Service Market in 2021. This offering type is a service model for IT management that enable organizations and administrators to choose which IT services to retain in-house and which to outsource. Co-Managed Services is an IT paradigm that combines an internal IT team's convenience and strategic framework with a managed-service provider's support and thorough understanding.
Based on Organization Size, the market is segmented into Large Enterprises and Small & Medium Enterprises. The Small & Medium enterprise segment garnered a significant revenue share in the SOC as a Service market in 2021. The reason behind the tiny staff and limited financial resources, SMEs confront a variety of IT issues in the current environment. Because SMEs do not follow any formal security procedures, managed services are becoming increasingly required. When it comes to SMEs, cyber security is only considered after a cyber-attack has occurred. The usage of SOCaaS is projected to accelerate among small organizations. As SMEs need more security to improve the productivity and pool the knowledge base, providers have responded by offering services at a lesser cost. SOCaaS is the greatest option for SMEs because of its cost-effectiveness. SOCaaS adoption and acceptance by SMEs will help the company grow the customer base and improve the company efficiency.
Based on Application, the market is segmented into Endpoint Security, Network Security, Cloud Security, and Others. The endpoint security segment acquired the highest revenue share in the SOC as a Service Market in 2021. Endpoint security refers to the protection given by enterprise networks for endpoints like personal computers, laptops, cellphones, tablets, bar code readers, and point of sale (POS). Viruses, hackers, program tampering, and heap overflow are all frequent endpoint layer assaults. Financial, organizational, and workforce information is stored on devices connected to a platform, and it must be safeguarded from data loss or intrusion. SOCaaS solutions assist businesses in protecting endpoints and networking assets against malicious attacks.
| Report Attribute | Details |
|---|---|
| Market size value in 2021 | USD 5.6 Billion |
| Market size forecast in 2028 | USD 10.9 Billion |
| Base Year | 2021 |
| Historical Period | 2018 to 2020 |
| Forecast Period | 2022 to 2028 |
| Revenue Growth Rate | CAGR of 10.2% from 2022 to 2028 |
| Number of Pages | 354 |
| Number of Tables | 654 |
| Report coverage | Market Trends, Revenue Estimation and Forecast, Segmentation Analysis, Regional and Country Breakdown, Competitive Landscape, Companies Strategic Developments, Company Profiling |
| Segments covered | Type, Vertical, Component, Offering Type, Organization Size, Application, Region |
| Country scope | US, Canada, Mexico, Germany, UK, France, Russia, Spain, Italy, China, Japan, India, South Korea, Singapore, Malaysia, Brazil, Argentina, UAE, Saudi Arabia, South Africa, Nigeria |
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| Restraints |
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Based on Regions, the market is segmented into North America, Europe, Asia Pacific, and Latin America, Middle East & Africa. North America emerged as the leading region in the SOC as a Service with the largest revenue share in 2021. North America has the highest number of SOCaaS providers because it is the most afflicted region by cyber security breaches. Protecting enterprise-critical infrastructure and confidential data has become one of the primary problems as the globe moves toward inter connectivity and digitization. As more cloud-based apps, technologies, and platforms are adopted, the demand for stronger security solutions for such platforms is growing. The governments across this region have recognized information security as the most important economic and national security threat. Governments allocate specific budgets and mandate PCI DSS and HIPAA standards to make North America the most attractive market for different types of businesses.
Free Valuable Insights: Global SOC as a Service Market size to reach USD 10.9 Billion by 2028
The major strategies followed by the market participants are Acquisitions. Based on the Analysis presented in the Cardinal matrix; Verizon Communications, Inc. and AT&T, Inc. are the forerunners in the SOC as a Service Market. Companies such as IBM Corporation, Tata Consultancy Services Ltd., NTT Data Corporation are some of the key innovators in the Market.
The market research report covers the analysis of key stake holders of the market. Key companies profiled in the report include AT&T, Inc., IBM Corporation, NTT Data Corporation, Verizon Communications, Inc., Cloudflare, Inc., Fortinet, Inc., Check Point Software Technologies Ltd., Atos Group, Tata Consultancy Services Ltd., and Profico.
By Type
By Vertical
By Component
By Offering Type
By Organization Size
By Application
By Geography
The SOC as a service market size is projected to reach USD 10.9 billion by 2028.
Drastic growth in sophistication of cyber-attacks and security breaches are driving the market in coming years, however, enterprises showing a lack of faith in SOCaaS suppliers' full control of system architecture growth of the market.
AT&T, Inc., IBM Corporation, NTT Data Corporation, Verizon Communications, Inc., Cloudflare, Inc., Fortinet, Inc., Check Point Software Technologies Ltd., Atos Group, Tata Consultancy Services Ltd., and Profico.
The Vulnerability Assessment & Threat Detection segment dominated the Global SOC as a Service Market by Type in 2021, thereby, achieving a market value of $7.51 billion by 2028.
The BFSI segment is leading the Global SOC as a Service Market by Vertical in 2021, thereby, achieving a market value of $2.18 billion by 2028.
The North America market dominated the Global SOC as a Service Market by Region in 2021, and would continue to be a dominant market till 2028.
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