Security as a service is a part of the data protection services that allow the users to protect their integral data and stay away from malicious attacks such as malware, phishing, data breaching, and email spoofing, among others. The multiple benefits of security as a service includes the availability of the latest and updated tools, faster provisioning, and cost-effective nature. The interoperability, low cost of ownership, easy reporting, and web security is driving its demand among the SME's and key players in the developing countries.
The security as a service market is expected to grow with a CAGR of 19%.
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As stated by the Centre for Strategic Studies and International Studies, in June 2020, the Russian GRU-associated hackers exploited a vulnerability that enables them to take remote control of the U.S. servers. Another noteworthy incident stated was in May 2020, where the cybercriminals managed to steal USD 10 million from Norway's state investment fund in a compromised business email fraud that tricked an employee into moving money to a hacker-controlled account. Thus, the advanced security solution must comply with regulatory and data protection legislations, such as HIPAA, Payment Card Industry Data Security Standard (PCI DSS), Gramm-Leach-Bliley Act (GLBA), FISMA, Federal Trade Commission (FTC), GDPR, EU Agency for Network and Information Security (ENISA), and Homeland Security Act has driven the demand for security as a service.
The multiple benefits of cloud computing, such as reduced IT costs, efficiency in collaboration, easy access to updates, scalability, reduced risk of hardware loss, and data security, have increased the adoption of cloud services in companies. As stated by the Cloud Industry Forum, the cloud adoption rate in the U.K. is about 88%. As stated in the report entitled 'Cloud and its Operations' published by CompTIA Properties, LLC, around 91% of companies use cloud computing in their IT operations. Furthermore, the easy deployment and adaptability of the software services bolster the market growth.
Rising adoption of free security services provided by several companies, such as Kaspersky, Avast Free Antivirus, AVG Antivirus, Bitdefender Antivirus, Sophos Home, Microsoft Windows Defender Security Center, and Avira, restrains the market growth. These companies provide basic features, such as on-demand malware scan, on-access malware scan, malicious URL blocking, and phishing protection that helps protect the devices from small threats.
Based on component, the security as a service market is divided into software and services. The software segment holds the highest market share owing to the multiple benefits offered by the software and its higher deployment by the private companies to reduce data breaching and financial losses. The burgeoning use of premium software services by enterprises due to the increasing number of cyberattacks bolsters market growth. As stated by NortonLifeLock Inc., by 2023, cybercriminals are estimated to steal approximately 333 billion records in the U.S., which is equivalent to half of the total data.
By organization size, the security as a service market is divided into SMEs and large enterprises. The SMEs segment holds the largest market share on account of the rising number of small businesses and their dependence on cloud services. The National Federation of Self Employed & Small Businesses Limited states that small firms face approximately 10,000 cyberattacks per day. The growing adoption of cloud services in SMEs for its increased data security, cost-effective nature, reduced storage space, and easy access accelerates the market growth.
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North America dominates the security as a service market as the region is backed by the presence of the key players, such as McAfee, Zscaler, International Business Machines Corporation, Microsoft Corporation, Alert Logic Cygilant, Barracuda Networks, Stratejm, Mindsight, Sentinel Technologies, Okta, ProofPoint, Qualys, Symantec, Forcepoint, Fortinet, Kaspersky Lab, CipherCloud, DXC Technology, Cisco, AT&T, and Axcient. The region also possesses a technologically developed network and a surging number of cloud services and Internet users. As per the 'CISCO Annual Internet Report, 2018', the number of internet users in the region is expected to be 92% of the total population by 2023. The U.S. is one of the most widely targeted regions for cyberattacks, further driving the demand for security services in the country.
Asia-Pacific is anticipated to grow at a faster rate in the security as a service market on account of the increasing number of internet connections due to favorable government initiatives, such as the Digital India Campaign launched by the Government of India and the Digital Economy Promotion Agency by the Government of Thailand, among others. Additionally, rising government investments, such as the USD 21 billion funds set up by the Chinese government in November 2019 to support manufacturing technology, stimulates the growth of small and medium-sized enterprises in the region.