SOC as a Service Market Size Analysis by Component (Solutions, Professional Services), Type (Detection Service, Prevention Service, Incident Response Service), Offering Type (Fully Managed, Co-Managed), Enterprise Size (Large Enterprises, SMEs), Application (Network Security, Application Security, Endpoint Security, Cloud Security), Industry Vertical (BFSI, Government and Public Sector, IT and Telecom, Healthcare, Retail, Manufacturing, Energy and Utilities) – Forecast to 2030

Market Overview

The global SOC as a service market size was valued at $4.4 billion in 2021, and it is expected to advance at a CAGR of 11.6% during 2021–2030, to reach $11.8 billion by 2030. The major factor credited for the growth of the market is the increase in the number of security breaches and cyberattacks. For instance, there has been a 50% year-on-year growth in cyberattacks globally. Also, the bring-your-own-device (BYOD) and work-from-home trends have boosted the market growth.

Furthermore, the COVID-19 pandemic has led to the increased adoption of SOCaaS solutions, as a result of around 600% rise in cybercrimes during the period, which included theft or embezzlement, data hacking, and destruction of data.

Detection Service Type of Security Operation Center as a Service Is Widely Used

The detection service category accounted for the largest market share, of around 37%, in 2021, and it is expected to gain momentum during the forecast period, owing to the increasing adoption of digital technologies. Additionally, targeted attacks are becoming more common as people rely more on digital information and share massive amounts of data, around the world. To minimize this, the demand for detection services across organizations is rising.

Market Outlook Based on Enterprise Size

Large enterprises have several operations; thus, they are always implementing new and developed technologies to detect, prevent, and respond to any kind of cyberattack. Furthermore, multinational organizations have extensive corporate networks and multiple revenue streams, therefore they implement SOCaaS solutions in large numbers, resulting in secure access to financial resources.

However, SMEs are expected to witness a significant surge of around 12% in the adoption of security operation center as a service during the forecast period. This growth can be attributable to the increasing cyberattacks on SMEs. In fact, 43% of cyberattacks are pointed at SMEs, but just 14% of the SMEs are equipped to defend themselves.

BFSI Sector Is Major End User in the Market

The BFSI sector is the largest end user in the market, which accounted for more than 45% of revenue share in 2021, as it is one of the most attractive industries for cybercriminals because of its nature of business. Typically, an employee of a financial service organization gets access to roughly 11 million files on the first day of work. This count rises to 20 million files for employees working in large enterprises.

Also, more than 70% of cyberattacks are targeted at the financial sector. For example, more than 30 billion accounts are expected to be breached by 2030. The organizations operating in the sector are largely prone to phishing attacks, which incur the cost of around $6 million per data breach.

Whereas, the healthcare sector is projected to contribute a significant share to the market revenue during the forecast period, rising substantially. Since healthcare organizations maintain a huge amount of Personally Identifiable Information Payment Card Industry (PII PCI) data for each patient for billing purposes, cybercriminals are attracted to these organizations, resulting in the need to implement the security operation center as a service.

Moreover, most of the PII PCI data is sent between hospitals, clinics, and laboratories unencrypted. Because of the widespread use of digital medical equipment, network administration has become critical to protect devices from malicious cyberattacks. In fact, in the last three years, more than 90% of healthcare organizations have experienced a cyberattack. SOCaaS solutions assist enterprises in this sector in securing the data of their customers and patients.

Regional Outlook

The North American SOC as a service market generated around 40% of revenue share in 2021, as it has the largest number of security operation center as a service vendor across the globe. The count of vendors has been increasing as the region has been witnessing the maximum number of data breaches and cyberattacks. Moreover, the increasing usage of cloud-based apps, technologies, and platforms necessitates the development of stronger security solutions, as these apps and platforms save the personal information of customers and companies as well as payment-related information. Furthermore, national governments in countries of the region propose specific budget allocations for promoting these solutions.

The U.S. leads the North American market, accounting the largest revenue share in 2021, and the country market is also expected to gain momentum during the forecast period. This growth is attributed to the rising adoption of SOCaaS solutions, due to the increasing identity thefts and cybercrimes in the country. The insurance industry is the most targeted sector followed by consumer goods & services and telecommunications. Additionally, the country has HIPPA laws and PCI DSS policies in place for privacy, security, and breach notification rules for organizations. These factors are boosting the market growth in the country.

On the other hand, the APAC market is expected to witness the fastest growth, advancing at a significant CAGR, during the forecast period. This can be because companies in the region are increasingly adopting security operation center as a service to combat cyberattacks. Moreover, an increase in cases of cybercrimes, a rise in cybersecurity awareness, a surge in training and legislation, and rapid digitization of operations are driving the regional market growth. For instance, on average, companies operating in the region are attacked by cybercriminals more than 50 times per week. Also, there has been approximately 160% year-on-year growth in cyberattacks.

In APAC, the Chinese market held the largest share in 2021 and it is also expected to witness the fastest growth during the forecast period. This is due to the government efforts to increase awareness about cybersecurity among both public and private sectors, along with the implementation of cybersecurity regulations in the country. For example, the Cyberspace Administration of China (CAC) issued the ‘New Measures for Cybersecurity Review’ in January 2022, which came into effect on February 15, 2022.

In addition, India is the second-fastest-growing market in the region, as the demand for these solutions is increasing against data breaches and cyberattacks. In 2020, the country accounted for more than 5% of all cyberattacks in the region. The major industries targeted by cybercriminals include BFSI, manufacturing, healthcare, and professional services. In fact, cybercriminals used public health information and relief effort including the vaccine supply chain to lure their targets.

Explore more about this report - Request free sample pages

Business Opportunities

SOCaaS vendors have been modernizing their offerings, due to the competition from new entrants, which have the potential to capture the market with their innovative and unique offerings such as:

• Cloud-based platforms
• Integrating data science with platforms
• High SOC maturity solutions, covering basic detection and prevention; context, control and coverage; basic hunting and APT; remediation and deep hunting; and other features

Key Strategic Developments of Market Players

In recent years, major players in the market have been actively involved in launching new services along with focusing on geographical expansion to enhance their market position. For instance:

• In June 2022, Fortinet launched a complete DRPS, FortiRecon. This uses a powerful combination of FortiGuard Labs cybersecurity experts, automation capabilities, and machine learning to manage companies’ risk posture and advise meaningful action to shield their enterprise assets, brand reputation, and data.
• In April 2022, Proficio launched ProSOC, an Open XDR solution that works with existing security tools and supports identity threat detection and response without proprietary sensors or agents.

Key Players in Security Operation Center as a Service Market Are:

• AT&T Inc.
• IBM Corporation
• Verizon Communications Inc.
• Nippon Telegraph and Telephone Corporation
• Proficio
• ConnectWise LLC
• Fortinet Inc.
• Atos SE
• Tata Consultancy Services
• Check Point Software Technologies Ltd.

Market Size Breakdown by Segment

The study offers comprehensive market segmentation analysis along with market estimation for the period 2017-2030.

Based on Component

• Solutions
• Professional Services

Based on Type

• Detection Service
• Prevention Service
• Incident Response Service

Based on Offering Type

• Fully Managed
• Co-Managed

Based on Enterprise Size

• Large Enterprises
• SMEs

Based on Application

• Network Security
• Application Security
• Endpoint Security
• Cloud Security

Based on Industry Vertical

• BFSI
• Government and Public Sector
• IT and Telecom
• Healthcare
• Retail
• Manufacturing
• Energy and Utilities

Geographical Analysis

• North America
  • U.S.
  • Canada
• Europe
  • Germany
  • France
  • U.K.
  • Italy
  • Spain
• Asia-Pacific (APAC)
  • China
  • India
  • Japan
  • Australia
  • South Korea
• Latin America (LATAM)
  • Brazil
  • Mexico
• Middle East and Africa (MEA)
  • Saudi Arabia
  • South Africa