Security as a Service Market

Growing demand for cloud-based security services among SMEs is driving the market growth

Market CAGR for security as a service is driven by the growth of cloud-based technology. With the help of software-defined perimeters and other ancillary infrastructure technologies, businesses may build highly secure platforms in the cloud. The growth of the international cyber security industry is also being fueled by the issuance of specific guidelines and laws for cloud platform security by governments in numerous nations. Moving to cloud-based platforms like Software-as-a-Service (SaaS) and Infrastructure-as-a-Service (IaaS) is a common strategy for SMEs updating their applications and infrastructures.

Demand for Security as a service is expected to rise due to the issues mentioned above in the future.

Additionally, most small and medium-sized enterprises (SMEs) across all industries are prime targets for cybercriminals looking to exploit security flaws. When protecting cloud-based apps against cyberattacks like malware, phishing, and DNS data exfiltration, traditional appliance-based firewalls and security gateways just don't cut it. Security as a service in the public internet can safeguard data, people, and devices without the need for complex on-premises security infrastructure. Therefore, the increasing prevalence of Security as a service is fueling the expansion of the international market.

For instance, IBM declares that it has bought Polar Security, a leader in technology that helps businesses find, continuously monitor, and secure cloud and software-as-a-service (SaaS) application data. It helps solve the growing shadow data problem. As a result, the demand for Security as a service is predicted to grow throughout the forecasted time due to the rising demand for cloud-based technology. Thus, the driving factor is security as a service market revenue.

The Global Security as a Service Market Industry is poised for substantial growth in the coming years. With a projected market value of 15.1 USD Billion in 2024, the industry is expected to expand significantly, reaching 70.6 USD Billion by 2035. This growth trajectory suggests a compound annual growth rate of 15.03% from 2025 to 2035. Such figures indicate a strong demand for security solutions as organizations increasingly recognize the importance of safeguarding their digital assets. The market's expansion reflects a broader trend towards prioritizing security in business operations, driven by the need to address evolving cyber threats and regulatory challenges.

The increasing frequency and sophistication of cyber threats drives the demand for the Global Security as a Service Market Industry. Organizations face a myriad of risks, including ransomware attacks and data breaches, which can lead to significant financial losses. In 2024, the market is projected to reach 15.1 USD Billion, reflecting a growing recognition of the need for robust security solutions. As cybercriminals continue to evolve their tactics, businesses are compelled to adopt comprehensive security measures, often through service models that offer flexibility and scalability. This trend underscores the importance of proactive security strategies in mitigating potential threats.

The shift towards cloud-based solutions is a major driver of the Global Security as a Service Market Industry. As organizations migrate their operations to the cloud, they require security solutions that can protect their data and applications in this environment. Security as a Service offers scalable and flexible options that align well with cloud infrastructure. The market is expected to experience a compound annual growth rate of 15.03% from 2025 to 2035, indicating a robust demand for cloud security solutions. This growth is fueled by the increasing reliance on cloud services and the need for comprehensive security measures that can adapt to dynamic cloud environments.

The Global Security as a Service Market Industry is being propelled by the emergence of advanced technologies such as artificial intelligence and machine learning. These technologies enhance the capabilities of security solutions, enabling real-time threat detection and response. As organizations seek to bolster their security posture, they are increasingly adopting services that leverage these innovations. The integration of AI and machine learning into security frameworks allows for more proactive and adaptive security measures, which are essential in today's rapidly evolving threat landscape. This technological advancement is likely to play a crucial role in shaping the future of security services.

The Global Security as a Service Market Industry is significantly influenced by the need for regulatory compliance. Governments worldwide are implementing stringent regulations to protect sensitive data, particularly in sectors such as finance and healthcare. Organizations must adhere to these regulations to avoid hefty fines and reputational damage. As compliance requirements become more complex, businesses are increasingly turning to security as a service providers to ensure they meet these standards. This trend is likely to drive market growth, as companies seek solutions that not only enhance security but also facilitate compliance with evolving regulations.

The Global Security as a Service Market Industry is increasingly favored for its cost-effective solutions. Organizations, particularly small and medium-sized enterprises, often lack the resources to maintain in-house security teams. By outsourcing security services, these organizations can access advanced technologies and expertise without incurring the high costs associated with traditional security measures. This shift is expected to contribute to the market's growth, with projections indicating a rise to 70.6 USD Billion by 2035. The ability to pay for services on a subscription basis allows companies to allocate their budgets more efficiently, making security more accessible to a broader range of businesses.

By region, the study provides market insights into North America, Europe, Asia-Pacific, and the Rest of the World. The North American Security as a service market will dominate because the country has a growing cloud security infrastructure. In addition, there is a lot of understanding of the importance of cyber Security, and big businesses using cloud computing help the regional market grow.

Further, the major countries studied in the market report are The US, Canada, German, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.

Figure 3: SECURITY AS A SERVICE MARKET SHARE BY REGION 2022 (USD Billion)

Source: Secondary Research, Primary Research, Market Research Future Database, and Analyst Review

Europe’s security as a service market accounts for the second-largest market due to rising cybercrime activity. The widespread uptake of vulnerable new technologies like the Internet of Things poses serious security threats. Further, the security as a service market held the largest market share, and the UK security as a service market was the quickest-growing market in the European region.

The Asia-Pacific security as a service market is expected to grow at the fastest CAGR from 2023 to 2032 due to the increasing research and development efforts for security as a service sector and the rising number of small and medium-sized enterprises (SMEs) in the region is expected to increase the need for affordable security as a service solution. Moreover, China’s security as a service market held the largest market share, and the Indian security as a service market was the fastest-rising market in the Asia-Pacific region.

Leading market players are investing heavily in research and development to expand their product lines, which will help the security as a service market grow even more. There are some strategies for action that market participants are implementing to increase their presence around the world's footprint, with important market developments including new product launches, contractual agreements and acquisitions, higher investments, and collaboration with other organizations. To expand and survive in a more competitive and rising market climate, the security as a service industry must offer cost-effective items.

Manufacturing locally to minimize operational costs is one of the key business tactics manufacturer use in the security as a service industry to benefit clients and increase the market sector. In recent years, the security as a service industry has offered some of the most significant technological advancements.

Major players in the security as a service market, including Trend Micro (Japan), Zscaler (US), McAfee (US), IBM (US), Microsoft (US), Clearswift (UK), Alert Logic (US), Forcepoint (US), Sophos (UK), Barracuda Networks (US), Cygilant (US), Cisco (US), Fortinet (US), Panda Security (Spain), Radware (China), Mindsight (US), and others are attempting to grow market demand by investing in research and development operations.

Trend Micro, a world leader in cybersecurity, aids market expansion. Trend Micro's cybersecurity platform protects hundreds of thousands of organizations and millions of people across clouds, networks, devices, and endpoints. It uses decades of security expertise, study on threats, and constant innovation. In March 2023, Trend Micro, Inc. announced a world tour to more than 120 cities. It is part of the company's ongoing effort to help companies deal with rising cyber risks.

Trend Micro's Risk to Resilience World Tour aims to help companies learn how to take control of their risk and succeed in cyber resiliency by using a single cybersecurity platform.

Cisco is the undisputed leader in IT that safely links everything together to make anything doable. By assisting clients in reimagining apps, enabling hybrid work, securing the enterprise, transforming the infrastructure, and attaining sustainability goals, we hope to fuel a future accessible to all. In the United States or other countries, Cisco or its affiliates own the trademark rights to, use, and display the Cisco name and logo. Since our inception in 1984, we have focused on helping businesses with their toughest problems.

In June 2023, Cisco released a new Full-Stack Observability Platform, a vendor-neutral solution that takes advantage of the company's entire product line. To reduce corporate risk and improve customer satisfaction, it provides contextual, linked, and predictive insights.