Home Technology Security as a Service Market Size, Share, Trends, Analysis, Growth, Report, 2031

Security as a Service Market

Security as a Service Market Size, Share & Trends Analysis Report By Component (Software, Services), By Application (Network Security, Endpoint Security, Application Security, Cloud Security, Others (Email Security, Web Security, Database Security)), By Organization Size (SMEs, Large Enterprises), By Verticals (Banking, Financial Services, Insurance, Government and Defense, Retail, Healthcare, IT and Telecom, Energy and Utilities, Manufacturing, Others (Travel and Hospitality, Education, Media, and Entertainment)) and By Region(North America, Europe, APAC, Middle East and Africa, LATAM) Forecasts, 2024-2032

Report Code: SRTE982DR
Study Period 2020-2032 CAGR 19.0%
Historical Period 2020-2022 Forecast Period 2024-2032
Base Year 2023 Base Year Market Size USD 16.9 billion
Forecast Year 2032 Forecast Year Market Size USD 81.3 billion
Largest Market North America Fastest Growing Market Asia-Pacific
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Market Overview

The global Security as a Service Market size was valued at USD 16.19 billion in 2023. It is estimated to reach USD 81.3 billion by 2032, growing at a CAGR of 19% during the forecast period (2024–2032). Security as a Service (SECaaS) is a cloud-based service model that provides enterprises with numerous security features via subscription. Rather than investing in and operating on-premises security infrastructure, businesses can use SECaaS to outsource security services to third-party providers. This method attempts to improve overall security posture, decrease complexity, and deliver scalable solutions to the changing threat scenario.

Furthermore, the digitization and acceptance of cloud services across a wide range of businesses has raised global demand for security solutions. In recent years, numerous companies have adopted business apps, BYOD policies, CYOD trends, and other technologies. Adoption of these policies increases employee flexibility and productivity. This has raised concerns regarding the privacy and reliability of the organization's data. Demand for Security as a service has increased dramatically to protect the Security of corporate data, which is projected to grow the Security as a service market.

Market Dynamics

Global Security as a Service Market Drivers

Increasing Cybersecurity Threats

The increase in cyber-attacks presents a massive problem for organizations across industries. Cybercriminals constantly evolve strategies, using sophisticated malware, ransomware, and phishing techniques to exploit system and network vulnerabilities. In reaction to the rising threat landscape, enterprises are turning to Security as a Service (SECaaS) to strengthen their defenses and reduce risks. According to Cybersecurity Ventures' 2023 research, the typical ransomware attack costs USD 1.85 million. According to the estimate, by 2031, a ransomware assault will take place every two seconds. This disturbing trend emphasizes the crucial necessity for enhanced security solutions.

Furthermore, phishing remains a prevalent danger, with fraudsters sending misleading emails to lure people into disclosing important information. SECaaS, including email security services, is critical for identifying and stopping phishing attacks. The Anti-Phishing Working Group (APWG) reported 1,286,208 phishing attacks during the second quarter of 2023. This was the APWG's third-highest quarterly total ever recorded. SECaaS companies address this issue by utilizing enhanced threat intelligence and real-time analysis. However, the APWG stated that phishing was decreasing.

Likewise, APTs are long-term and targeted cyber attacks designed to acquire unauthorized access to sensitive information. SECaaS vendors use advanced threat analytics to detect and eliminate APTs, protecting enterprises from long-term intrusion. The Verizon Data Breach Investigations Report (DBIR) said that APTs constitute a chronic danger, accounting for a sizable proportion of cybersecurity events. SECaaS technologies help to monitor and mitigate such threats continuously. The dynamic and evolving nature of cyber threats needs a proactive and adaptable strategy; consequently, the Security as a service market trend is predicted to climb during the forecast period.

Global Security as a Service Market Restraints

Data Privacy and Compliance Concerns

Outsourcing security operations to third-party service providers raises issues regarding data privacy and regulatory compliance, particularly in businesses with rigorous data protection rules. Organizations in highly regulated industries like finance and healthcare may hesitate to use SECaaS because of concerns regarding data handling, storage, and compliance with regional or industry-specific rules. In the healthcare industry, where sensitive patient data is handled, compliance with standards such as the Health Insurance Portability and Accountability Act (HIPAA) is critical. Healthcare businesses may be hesitant to implement SECaaS if they see possible hazards to patient privacy. According to the "HIPAA Journal," the healthcare industry has ongoing issues ensuring HIPAA compliance. Concerns concerning the Security and privacy of electronic protected health information (ePHI) may lead healthcare companies to exercise caution when implementing SECaaS. 

Moreover, banking organizations must follow stringent data protection standards to protect customers' financial information. These firms may hesitate to use SECaaS if they are unsure how their data will be handled or whether the chosen service provider can ensure compliance with financial data protection rules. The General Data Protection Regulation (GDPR) and regional financial data protection legislation impose considerable obligations on financial organizations. According to a Statista poll, 66% of firms are concerned about data privacy and confidentiality when evaluating cloud-based security solutions.

Global Security as a Service Market Opportunity

Cloud Security Adoption

As enterprises shift their operations and data to cloud environments, there is a growing requirement for comprehensive cloud security solutions. Security as a Service (SECaaS) companies has a significant opportunity to deliver specialized services geared to the unique problems of cloud computing, assisting organizations in protecting their digital assets. The widespread usage of cloud services such as Infrastructure as a Service (IaaS), Platform as a Service (PaaS), and Software as a Service (SaaS) necessitates the development of specialized cloud security solutions. SECaaS suppliers can concentrate on providing services that address the unique security needs of cloud-based infrastructures. Gartner predicts that global spending on cloud services will continue to increase. The increasing reliance on cloud resources highlights the importance of robust cloud security solutions.

As cloud use grows, fraudsters increasingly target cloud environments for specific vulnerabilities such as misconfigurations, data breaches, and illegal access. In 2023, fraudsters used 312% more genuine remote monitoring and management (RMM) products. Furthermore, fraudsters can carry out incursions in as little as seven minutes. SECaaS providers can interface with and enhance cloud-native security capabilities that major cloud service providers offer. This connection improves the entire security posture of enterprises that use the cloud.

Regional Analysis

North America Dominates the Global Market

The global security as a service market analysis is conducted in North America, Europe, Asia-Pacific, the Middle East and Africa, and Latin America.

North America is the most significant global security as a service market shareholder and is estimated to grow at a CAGR of 19.3% over the forecast period. North America dominates the security industry as a service industry, owing to the presence of essential firms such as McAfee, Zscaler, International Business Machines Corporation, and Microsoft Corporation. The region also has a technologically advanced network and increasing cloud services and Internet users. According to the 'CISCO Annual Internet Report, 2018', the region's internet users will account for 92% of the total population by 2023. Intense competition and U.S. government cyber security standards have also encouraged the business to develop a superior service that complies with government regulations, which is projected to raise demand for Security as a service. 

Additionally, according to a January 2023 CompTIA blog article, the United States is the most frequently targeted country for cyberattacks, with 46% of global attacks directed at Americans. According to BlackBerry research from November 2023, the United States, Canada, Japan, Peru, and India are among the most targeted countries, generating demand for security services. Furthermore, critical C-Suite executives and legislators in the United States invest in security software, Infrastructure, and future technologies to protect data from rising cybersecurity threats. The increased reliance on cloud-based applications and investments by domestic players in security solutions are driving demand in the security-as-a-service market in the United States. 

Asia-Pacific is anticipated to exhibit a CAGR of 19.5% over the forecast period. Asia-Pacific is expected to grow faster in the security as a service market due to increased internet connections and favorable government initiatives, such as the Government of India's Digital India Campaign and Thailand's Digital Economy Promotion Agency. In 2023, the Indian government set the door for the widespread adoption of cloud services. Large financial institutions, like HDFC Bank, IDFC Bank, Kotak Mahindra, Bank of Baroda, and Axis Bank, have switched to local clouds for operations and customer service management. 

Furthermore, increased government investments, such as the USD 21 billion fund established by the Chinese government in November 2019 to boost manufacturing technology, promote the growth of small and medium-sized firms in the region.

The European market for Security as a service is predicted to expand dramatically throughout the projection period, according to Security as a Service Market insights. The potential for cyberattacks has grown steadily as internet users have increased to 460 million, accounting for more than 90% of Europe's total population. Investments in Security have risen in recent years. The industry's expansion has been supported by increased awareness among the European Union and the governments of various EU countries, SMEs, and mid-caps. Most firms in Europe are small and medium-sized organizations undergoing digital transformation with the help of EU funding.

Latin America holds a significant market share. The use of IoT technology in Latin America's industrial environment is increasing. The potential for exploitation grows as Latin America joins the rest of the globe in embracing the digital revolution. The region is home to the world's fourth-largest mobile market. Internet use is widespread in the area, with 50% of the population online at any given moment. The entire government procurement process is conducted electronically in several Latin American countries. The Internet of Things (IoT), which will enable computers and a wide range of other intelligent equipment and sensors to be wirelessly monitored and controlled, will constantly increase associated risk. As more people in Latin American countries get internet connections, the number of enterprises implementing various security solutions is expected to increase.

Report Scope

Report Metric Details
By Component
  1. Software
  2. Services
By Application
  1. Network Security
  2. Endpoint Security
  3. Application Security
  4. Cloud Security
  5. Others (Email Security, Web Security, Database Security)
By Organization Size
  1. SMEs
  2. Large Enterprises
By Verticals
  1. Banking, Financial Services, Insurance
  2. Government and Defense
  3. Retail
  4. Healthcare
  5. IT and Telecom
  6. Energy and Utilities
  7. Manufacturing
  8. Others (Travel and Hospitality, Education, Media, and Entertainment)
Company Profiles Cisco Systems Inc. Microsoft Corporation Intel Corporation Broadcom Inc. IBM Corporation McAfee LLC Trend Micro Incorporated Qualys Inc. Sophos Group plc Citrix Systems Inc. Alert Logic Inc. ScienceSoft USA Corporation
Geographies Covered
North America U.S. Canada
Europe U.K. Germany France Spain Italy Russia Nordic Benelux Rest of Europe
APAC China Korea Japan India Australia Singapore Taiwan South East Asia Rest of Asia-Pacific
Middle East and Africa UAE Turkey Saudi Arabia South Africa Egypt Nigeria Rest of MEA
LATAM Brazil Mexico Argentina Chile Colombia Rest of LATAM
Report Coverage Revenue Forecast, Competitive Landscape, Growth Factors, Environment & Regulatory Landscape and Trends
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Segmental Analysis

The global security as a service market is segmented based on component, application, organization size, verticals, and region.

The market is further segmented by components into Software and Services.

Software accounts for the largest share of the market.


The software segment has the largest market share due to the numerous benefits provided by the software and its increased use by private enterprises to avoid data breaches and financial losses. SECaaS software includes various solutions for protecting digital assets, networks, and sensitive data from cyber-attacks. This encompasses antivirus software, firewalls, intrusion detection and prevention systems, encryption tools, and security analytics platforms. The software component of SECaaS is critical for enabling proactive and reactive security measures, including real-time threat detection, incident response, and ongoing monitoring. Organizations may use SECaaS software to strengthen their defenses, adapt to emerging threats, and maintain a resilient security posture without requiring extensive on-premises equipment. According to NortonLifeLock Inc., by 2023, cybercriminals are expected to steal nearly 333 billion records in the United States, accounting for half of all data.


The SECaaS model's services include outsourced administration, monitoring, and assistance from security experts to ensure that security solutions are implemented and operated successfully. These services are critical in improving enterprises' overall security posture without needing them to manage complex security processes internally. SECaaS services include managed Security, consulting, threat intelligence, incident response, and compliance management.

The market can be bifurcated by application into Network Security, Endpoint Security, Application Security, Cloud Security, and Others (Email Security, Web Security, Database Security).

Network Security is the most common application in the market.

Network Security

The network security segment is expected to account for most of the market. Network security is a proactive method that protects a network from hostile threats by collecting and analyzing various types of network security event data. With the rising threat landscape, a growing demand for cloud-based network security solutions protects the network by limiting device management access to terminals.

Endpoint Security

Application Security as a Service focuses on safeguarding software applications across their entire development lifecycle. This includes detecting and fixing vulnerabilities, employing secure coding techniques, and ensuring applications resist cyber-attacks. SECaaS suppliers provide solutions such as application scanning, code analysis, and security testing to assist enterprises in securing their software applications and safeguarding against potential attacks and breaches.

The market is sub-segmented into SMEs and large Enterprises based on organization size.

SMEs generate the most revenue in the market.


The SME sector has the most significant market share because of the growing number of small firms and their reliance on cloud services. SECaaS products for SMEs are intended to provide comprehensive and cost-effective security solutions tailored to smaller enterprises' unique needs and resource restrictions. According to the National Federation of Self-Employed & Small Businesses Limited, small businesses are targeted by around 10,000 cyberattacks daily. SMEs' growing acceptance of cloud services due to their better data security, cost-effectiveness, reduced storage space, and ease of access drives market expansion.

Large Enterprises

Large Enterprises in the SECaaS market have broad activities, complex IT infrastructures, and a greater volume of data and users. SECaaS options for large companies are often more sophisticated and geared to meet the broad and dynamic nature of their cybersecurity needs.

Based on verticals, the market is fragmented into Banking, Financial Services, Insurance, Government and Defense, Retail, Healthcare, IT and Telecom, Energy and Utilities, Manufacturing, and Others (Travel and Hospitality, Education, Media, and Entertainment).

Banking, Financial Services, and Insurance account for the largest share of the market. 

Banking, Financial Services, Insurance

The BFSI sector of the Security as a Service (SECaaS) market includes financial institutions, banks, insurance firms, and other businesses that provide financial services. Security is critical in BFSI due to the sensitive nature of financial transactions, client data, and the continual threat of cyberattacks. SECaaS solutions for BFSI often incorporate strong encryption, identity management, fraud detection, and compliance management capabilities. The purpose is to protect financial information, prevent unwanted access, and comply with industry rules.

Government and Defense

Government and defense organizations have unique and demanding security requirements, distinguishing them from other verticals in the SECaaS market. These organizations manage sensitive information, national security data, and essential Infrastructure. SECaaS solutions for government and defense may include secure communication routes, threat intelligence, and continuous monitoring to detect and prevent cyber threats. Compliance with government laws and standards is a primary concern in this area.

Market Size By Component

Recent Developments

  • December 2023- Cisco acquired Isovalent to define the future of multi-cloud networking and security.
  • September 2023- Symantec, a division of Broadcom Inc. (NASDAQ: AVGO), collaborated with Google Cloud to integrate generative AI (gen AI) into the Symantec Security platform in a phased rollout that will provide customers with a significant technical advantage in detecting, understanding, and remediating sophisticated cyberattacks.

Top Key Players

Cisco Systems Inc. Microsoft Corporation Intel Corporation Broadcom Inc. IBM Corporation McAfee LLC Trend Micro Incorporated Qualys Inc. Sophos Group plc Citrix Systems Inc. Alert Logic Inc. ScienceSoft USA Corporation Others

Frequently Asked Questions (FAQs)

What is the estimated growth rate (CAGR) of the Security as a Service Market?
Security as a Service Market size will grow at approx. CAGR of 19% during the forecast period.
Some of the top prominent players in Security as a Service Market are,McAfee (the U.S.), Trend Micro (Japan), Zscaler (the U.S.), International Business Machines Corporation (the U.S.), Microsoft Corporation (the U.S.), Clearswift (the U.K.), Alert Logic (the U.S.), Cygilant (the U.S.), Barracuda Networks (the U.S.), Panda Security (Spain), Stratejm (Canada), Radware (China), Mindsight (the U.S.), Sentinel Technologies (the U.S.), Happiest Minds (India), Okta (the U.S.), Proofpoint (the U.S.), Qualys (the U.S.), Symantec (the U.S.), Sophos (the U.K.), Egress Technologies (the U.K.), Forcepoint (the U.S.), Fortinet (the U.S.), Kaspersky Lab (the U.S.), CipherCloud (the U.S.), DXC Technology (the U.S.), Cisco (the U.S.),AT&T (the U.S.),Axcient(the U.S.)  , etc.
In the Security as a Service Market, North America has established itself as the market leader with a significant market share.
The Asia Pacific region is projected to exhibit the highest rate of growth in the Security as a Service Market.
The global security as a service market is segmented based on component, application, organization size, verticals, and region.

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