SOC as a Service Market by Service Type (Managed SIEM and log Management, Vulnerability Scanning and assessment, Threat Detection & Incident Response, and GRC), Offering, Application, Sectors, Vertical and Region - Global Forecast to 2028
[392 Pages Report] The global SOC as a Service Market size is projected to grow from USD 6.7 billion in 2023 to USD 11.4 billion by 2028 at a CAGR of 11.2% during the forecast period. The SOCaaS market is witnessing significant growth driven by several factors. These factors encompass the escalating intricacy of cyber risks, swift progressions in technology, and the increasing adoption of practices like BYOD, CYOD, and WFH, along with intricate countermeasures against threats. Businesses are actively pursuing resilient SOCaaS resolutions to shield their data and activities while adopting contemporary methodologies and advancements in cybersecurity. In response to this demand, SOCaaS providers are leveraging the opportunity by furnishing inventive remedies to secure digital properties and guarantee the confidentiality and soundness of information. These trends collectively contribute to the expansion and importance of SOCaaS in the market. The SOCaaS market benefits from opportunities driven by leveraging the rise in cloud-based solutions adoption among SMEs and harnessing the power of AI, ML, and blockchain technologies for cyber defense advancements. These factors create favorable conditions for the market’s growth, with organizations seeking advanced solutions to safeguard their systems and valuable data, further contributing to the rising demand for SOCaaS solutions.
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In the context of the SOCaaS market, the advent of a recession introduces a twofold challenge and opportunity landscape. Typically regarded as a bastion of stability due to the perpetual nature of cyber threats, the SOCaaS market is not immune to the economic flux brought about by recessions. Organizations, prompted by financial prudence, may reevaluate their cybersecurity expenditure, potentially impacting the rate of SOCaaS adoption. However, this period of financial constraint also elevates the significance of robust cybersecurity, as threat actors capitalize on economic vulnerabilities. This duality prompts SOCaaS providers to navigate a complex path. To address these dynamics, providers must underscore the cost-effective nature of their services, emphasizing risk mitigation while also showcasing their capacity to counteract intensifying cyber threats adeptly. This balance will determine the sector’s ability to endure recessionary pressures and emerge stronger by aligning cybersecurity needs with fiscal realities.
COVID-19 Impact
The COVID-19 pandemic profoundly impacted the SOCaaS market, driven by the sudden surge in remote work and online activities. With the shift to work-from-home arrangements, organizations had to adopt SOCaaS tools and services to ensure business continuity rapidly. However, this rapid transition also exposed vulnerabilities and challenges in SOCaaS. Schools faced cybersecurity struggles as they transitioned to distance learning, leaving them susceptible to security breaches. Social engineering attacks increased, preying on people’s fears and reliance on online information. Small and medium-sized businesses facing financial constraints found it challenging to prioritize SOCaaS.
The rush to develop contact tracing apps and remote healthcare solutions also led to security oversights, making these platforms potential targets for cyberattacks. Furthermore, cloud-based video conferencing and entertainment platforms witnessed a massive increase in demand, requiring robust encryption and protection measures.
Socaas Market Dynamics
Driver: Complex Threat Response Drives Demand for SOCaaS
The journey from threat identification to protection is intricate in the cybersecurity domain. The process, known as “Cumbersome Administration After Threat Detection,” involves complex administrative steps post-detection. SOCaaS streamlines this process by leveraging specialized teams and advanced technologies to handle administrative tasks. This allows internal teams to focus on strategic decisions, accelerating response times and enhancing threat mitigation effectiveness. Thus, SOCaaS is a key driver in efficiently transitioning from threat detection to resolution, bolstering overall cybersecurity.
Restraint: Data Privacy and Compliance Concerns
As organizations consider adopting SOCaaS to enhance cybersecurity, data privacy, and compliance concerns arise due to entrusting data to external providers. Stricter data protection regulations like GDPR necessitate thorough scrutiny of SOCaaS practices to ensure data security. Neglecting data privacy and compliance can lead to financial penalties and reputational damage. Organizations must evaluate SOCaaS protocols, including encryption, access controls, and contracts. Secure data management is vital not only for compliance but also for building trust with clients. Prioritizing data privacy and compliance in SOCaaS adoption builds trust and accountability for sustained data security efforts.
Opportunity: Harnessing the Power of AI, ML, and Blockchain Technologies for Cyber Defense Advancements
The SOCaaS market is undergoing a transformative shift through the strategic incorporation of cutting-edge technologies such as AI, ML, and blockchain. This convergence offers unprecedented opportunities to enhance cyber defense capabilities. AI and ML enable SOCaaS providers to analyze vast data volumes swiftly and accurately, surpassing human abilities. It empowers proactive threat detection and even prediction of future attacks. Additionally, integrating blockchain technology ensures data integrity and transparency, strengthening collaboration between SOCaaS providers and organizations. This amalgamation enables SOCaaS solutions to offer advanced, adaptive security measures that keep pace with evolving cyber threats, heralding a new era of cyber defense sophistication.
Challenge: Limited Skilled Cybersecurity Professionals in the SOCaaS Market
A significant challenge confronting the SOCaaS market is enterprises’ shortage of skilled cybersecurity professionals. As the demand for robust cyber defense escalates, the lack of adept experts becomes a substantial barrier to unlocking the full potential of SOCaaS solutions.
In the face of an evolving threat landscape, a workforce well-versed in tackling intricate cyber challenges is imperative. However, the scarcity of cybersecurity professionals with the knowledge to effectively navigate threat detection, analysis, and response impedes the seamless adoption and utilization of SOCaaS solutions. Organizations contend with fierce competition for a limited talent pool possessing specialized skills to manage advanced security tools, interpret threat cues, and orchestrate efficient incident response strategies. This challenge is exacerbated by the rapidly changing cyber threat landscape, necessitating a constant learning curve for cybersecurity professionals. The shortage of skilled experts risks creating a disparity between the advanced capabilities of SOCaaS solutions and the capacity to maximize their benefits. As organizations prioritize safeguarding digital assets and sensitive data, the scarcity of proficient cybersecurity professionals emerges as a critical challenge, urging the pursuit of innovative resolutions.
SOCaaS Market Ecosystem
By Service Type, the threat detection and incident response segment accounts for the highest CAGR during the forecast period.
The threat detection and incident response segment achieved the highest CAGR in the SOCaaS market’s service type segmentation due to its pivotal role in countering evolving cyber threats. The following segment encompasses rapid threat detection, expert incident response, and proactive measures to prevent breaches. As cyberattacks grow in sophistication, organizations seek specialized services to identify and mitigate threats swiftly. SOCaaS offerings in threat detection and incident response provide real-time monitoring, advanced threat analysis, and efficient coordination in tackling security incidents. This demand, driven by the urgency to safeguard digital assets and maintain business continuity, positions the threat detection and incident response segment as a central driver of SOCaaS market growth during the forecasted period.
By Security Type, the endpoint security segment accounts for the largest market size during the forecast period
The endpoint security segment held the largest market size in the SOCaaS market’s security type segmentation due to its critical role in countering diverse and evolving cyber threats. Endpoints are common targets for attacks, especially with the rise of remote work, necessitating robust protection. SOCaaS’s endpoint security offers real-time monitoring, rapid threat detection, and incident response for devices like laptops, smartphones, and IoT gadgets. With data breaches and various attack vectors becoming more sophisticated, organizations prioritize endpoint security solutions for comprehensive protection. The demand, driven by the ubiquity of endpoints and the increasing complexity of threats, establishes the endpoint security segment as the largest in the SOCaaS market during the forecasted period.
By Vertical, BFSI vertical accounts for the largest market size during the forecast period.
The BFSI vertical held the largest size in the SOCaaS market’s vertical segmentation due to its unique blend of factors. These include the sector’s handling of high-value data, stringent regulatory compliance demands like HIPAA, the escalating landscape of cyber threats, its complex digital transformation, vulnerabilities tied to healthcare IoT devices, the direct impact on patient safety, reputation preservation, and the imperative to protect critical research data. As healthcare advances in the digital age, SOCaaS is indispensable to ensure patient privacy, regulatory adherence, and uninterrupted, safe, and secure healthcare services. Thus, the convergence of challenges and demands positions the BFSI vertical as a pivotal driver of SOCaaS market growth in the forecasted period.
By region, North America accounts for the highest market size during the forecast period.
During the forecast period, North America commands the largest market share by region. This dominance is attributed to a confluence of factors, including the presence of key industry players, a heightened frequency of cyberattacks, the rapid adoption of cloud-based technologies, and the imperative to adhere to rigorous security regulations. North America’s substantial market size reflects its vulnerability to cyber threats, with notable cyberattack increases in recent years. This heightened risk and the region’s concentration of critical infrastructure and sensitive data have spurred the demand for robust security solutions like SOCaaS. Furthermore, the surge in cloud-based applications has amplified the need for enhanced cybersecurity, driving North American organizations to embrace SOCaaS for vigilant monitoring and protection. The region’s proactive response to compliance requirements further solidifies its position as a frontrunner in the SOCaaS market, as organizations turn to these solutions to meet stringent security standards.
Key Market Players
Some of the well-established and key market players in the SOCaaS market include NTT (Japan), Verizon (US), Lumen Technology (US), Atos (France), Fortinet (US), Thales (France), Kaseya (US), Cloudflare (US), AT&T (US), Arctic Wolf (US), Trustwave (US), Proficio (US), Airbus (France), ConnectWise (US), Clearnetwork, Inc (US)., Stratosphere Networks (US), eSec Forte (India), Cybersafe Solutions (US), eSentire (Canada), CyberSecOp (US), TECEZE (UK), Netsurion (US), Foresite Cybersecurity (US), Ascend Technologies (US), inSOC (US), SafeAeon (US), SOCWISE (Hungary), Wizard Cyber (UK), and Eventus Security (India).
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The study categorizes the SOCaaS market by service type, offering, application, sectors, verticals, and regions.
By Region:
Recent Developments
- In June 2023, AT&T (France) partnered with Vertek (US) to offer Unified Security Management (USM) Anywhere services to enterprises. The collaboration involved Vertek’s advanced SOC, providing proactive and predictive threat detection and mitigation services to safeguard clients from global cyber threats. Further, the SOC services offered by Vertek, powered by AT&T Cybersecurity’s platform, encompass real-time intrusion detection, monitoring, response, vulnerability scanning, behavioral monitoring, and SIEM and log management.
- In April 2022, NTT Communications (Japan) introduced “OsecT,” a cloud-based security service that visualizes and identifies security risks within control systems for factory production lines, primarily focusing on SMEs. The service’s visualization and detection capabilities aligned with the goals of SOCaaS by enhancing risk visibility and enabling prompt responses to anomalies. By addressing potential vulnerabilities in control systems, “OsecT” contributed to a more secure and resilient manufacturing environment, aligning with the broader objectives of the SOCaaS market.
- In October 2022, Arctic Wolf (US) extended its comprehensive security operations solutions to the Australian and New Zealand markets. This portfolio includes Managed Detection and Response, Managed Risk, and Managed Security Awareness, all seamlessly delivered through the Arctic Wolf Security Operations Cloud.
- In August 2022, Fortinet (US) and NEC Corporation (Japan) entered a global agreement to jointly build secure 5G networks for communication service providers (CSPs). This collaboration aimed to ensure secure and sustainable networking in the 5G era, addressing emerging threats and architectural shifts brought by increased data traffic and Multi-access Edge Computing (MEC). The partnership would focus on network security use cases and services crucial to 5G, such as Radio Access Network, Mobile Roaming, Gi-LAN/N6, and Telco/Edge Cloud Security. The combined strengths of Fortinet’s security solutions and NEC’s network integration capabilities would empower CSPs to protect against known and unknown threats while maintaining customer experience.
- In May 2021, Cloudflare (US) launched SOC as a Service, a security product, and a team of cybersecurity experts within Cloudflare. It combined its security products with a team of cybersecurity experts to provide 24×7×365 monitoring for security threats and operational disruptions. The service included triaging and responding to alerts, performing in-depth analysis, implementing countermeasures, and offering proactive engagement to keep organizations safe. Additionally, it collaborated with MSSPs to provide a comprehensive end-to-end security solution.
Frequently Asked Questions (FAQ):
What are the opportunities in the global SOCaaS market?
Leveraging the rise in cloud-based solutions adoption among SMEs and harnessing the power of AI, ML, and blockchain technologies for cyber defense advancements are creating market opportunities for the global SOCaaS market.
What is the definition of the SOCaaS market?
According to MarketsandMarkets, SOCaaS is defined as the outsourced or third-party services that provide 24x7x365 days of monitoring and managing a company's security infrastructure with the support of a security analyst. This security infrastructure includes SIEM/logs, devices, clouds, networks, and internal security and IT team assets.
Which region is expected to show the highest market share in the SOCaaS market?
North America is expected to account for the largest market share during the forecast period.
Who are the key players operating in the 5G security market?
Major vendors, namely, include NTT (Japan), Verizon (US), Lumen Technology (US), Atos (France), Fortinet (US), Thales (France), Kaseya (US), Cloudflare (US), AT&T (US), Arctic Wolf (US), Trustwave (US), Proficio (US), Airbus (France), ConnectWise (US), Clearnetwork, Inc (US)., Stratosphere Networks (US), eSec Forte (India), Cybersafe Solutions (US), eSentire (Canada), CyberSecOp (US), TECEZE (UK), Netsurion (US), Foresite Cybersecurity (US), Ascend Technologies (US), inSOC (US), SafeAeon (US), SOCWISE (Hungary), Wizard Cyber (UK), and Eventus Security (India).
What is the current size of the global SOCaaS market?
The global SOCaaS market size is projected to grow from USD 6.7 billion in 2023 to USD 11.4 billion by 2028 at a CAGR of 11.2% during the forecast period.
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The study involved significant activities in estimating the current market size for SOCaaS. Intensive secondary research was conducted to collect information about SOCaaS and related ecosystems. The industry executives validated these findings, assumptions, and sizing across the value chain using a primary research process as a next step. Top-down and bottom-up market estimation approaches were used to estimate the market size globally, followed by the market breakup and data triangulation procedures to assess the market segment and sub-segments in SOCaaS.
Secondary Research Process:
In the secondary research process, various sources were referred to for identifying and collecting information regarding SOCaaS. These sources include annual reports, press releases, SOCaaS software and service vendor investor presentations, forums, vendor-certified publications, and industry/association white papers. These secondary sources were utilized to obtain key information about the SOCaaS’s solutions and services supply & value chain, a list of 100+ key players and SMEs, market classification, and segmentation per the industry trends and regional markets. The secondary research also gives us insights into the key developments from market and technology perspectives, which primary respondents further validated.
The factors considered for estimating the regional market size include technological initiatives undertaken by governments of different countries, gross domestic product (GDP) growth, ICT spending, recent market developments, and market ranking analysis of primary SOCaaS solutions and service vendors.
Primary Research Process:
We have conducted primary research with industry executives from both the supply and demand sides. The primary sources from the supply side include chief executive officers (CEOs), vice presidents (VPs), marketing directors, and technology and innovation executives of key companies operating in the SOCaaS market. We have conducted primary interviews with the executives to obtain qualitative and quantitative information for SOCaaS.
The market engineering process implemented the top-down and bottom-up approaches and various data triangulation methods to estimate and forecast the market segments and subsegments. During the post-market engineering process, we conducted primary research to verify and validate the critical numbers we arrived at. The primary analysis was also undertaken to identify the segmentation types, industry trends, the competitive landscape of the SOCaaS market players, and fundamental market dynamics, such as drivers, restraints, opportunities, challenges, industry trends, and key strategies.
Following is the breakup of the primary research:
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Market Size Estimation Process:
Both top-down and bottom-up approaches were implemented for market size estimation to estimate, project, and forecast the size of the global and other dependent sub-segments in the overall SOCaaS market.
The research methodology that has been used to estimate the market size includes these steps:
- The key players, SMEs, and startups were identified through secondary sources. Their revenue contributions in the market were determined through primary and secondary sources.
- Annual and financial reports of the publicly listed market players were considered for the company’s revenue details and,
- Primary interviews were also conducted with industry leaders to collect information about their companies, competitors, and key players in the market.
- All percentage splits and breakups were determined using secondary sources and verified through primary sources.
Top-down and Bottom-up Approach-
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Data Triangulation
Data triangulation is a crucial step in the market engineering process for SOCaaS. It involves utilizing multiple data sources and methodologies to validate and cross-reference findings, thereby enhancing the reliability and accuracy of the market segment and subsegment statistics. To conduct data triangulation, various factors and trends related to the SOCaaS market are studied from both the demand and supply sides. It includes analyzing data from diverse sources such as market research reports, industry publications, regulatory bodies, financial institutions, and technology providers. By examining data from different perspectives and sources, data triangulation helps mitigate potential biases and discrepancies. It provides a more comprehensive understanding of the market dynamics, including the size, growth rate, market trends, and customer preferences.
Furthermore, data triangulation aids in identifying any inconsistencies or outliers in the data, enabling researchers to refine their analysis and make informed decisions. It strengthens the credibility of the market engineering process by ensuring that the conclusions drawn are based on robust and corroborated data. Data triangulation is a rigorous and systematic approach that enhances the reliability and validity of market segment and subsegment statistics in SOCaaS. It provides a solid foundation for informed decision-making and strategic planning within the industry.
Market Definition
As defined by MarketsandMarkets, SOCaaS is the outsourced or third-party services that provide 24x7x365 days of monitoring and managing a company's security infrastructure with the support of a security analyst. This security infrastructure includes SIEM/logs, devices, clouds, networks, and internal security and IT team assets.” Other popular terms related to SOCaaS are managed SOC, SOC, and third-party SOC.
Key Stakeholders
- Cybersecurity software vendors
- SOCaaS providers
- SOC providers
- Cybersecurity service providers
- Government agencies
- Independent Software Vendors (ISVs)
- Consulting firms
- System integrators
- Value-Added Resellers (VARs)
- IT security agencies
- Managed Security Service Providers (MSSPs)
Report Objectives
- To define, describe, and forecast the SOCaaS market based on service type, offering, application, sectors, verticals, and regions:
- To predict and estimate the market size of five main regions: North America, Europe, Asia Pacific, Middle East & Africa, and Latin America
- To analyze the subsegments of the market with respect to individual growth trends, prospects, and contributions to the overall market
- To provide detailed information related to the primary factors (drivers, restraints, opportunities, and challenges) influencing the growth of the SOCaaS market
- To analyze opportunities in the market for stakeholders by identifying high-growth segments of the SOCaaS market
- To profile the key players of the SOCaaS market and comprehensively analyze their market size and core competencies.
- Track and analyze competitive developments, such as new product launches, mergers and acquisitions, partnerships, agreements, and collaborations in the global SOCaaS market.
Customization Options
With the given market data, MarketsandMarkets offers customizations based on company-specific needs. The following customization options are available for the report:
Geographic Analysis
- Further breakup of the Asia Pacific market into countries contributing 75% to the regional market size
- Further breakup of the North American market into countries contributing 75% to the regional market size
- Further breakup of the Latin American market into countries contributing 75% to the regional market size
- Further breakup of the Middle Eastern and African market into countries contributing 75% to the regional market size
- Further breakup of the European market into countries contributing 75% to the regional market size
Company Information
- Detailed analysis and profiling of additional market players (up to 5)
Generating Response ...
Growth opportunities and latent adjacency in SOC as a Service Market