SOC as a Service (SOCaaS) Market Size & Share Analysis - Trends, Drivers, Competitive Landscape, and Forecasts (2024 - 2030)

SOC as a Service Market Size

SOC as a Service Market Growth Drivers & Opportunities

BYOD Models Are Biggest Trends in Market

• A key trend in the security operations center as a service market is the BYOD working model.
• To offer employees more convenience and attract the youth, many multinational companies allow team members to work on their own smartphones, tablets, and laptops configured with enterprise applications.
• Moreover, the COVID-19 pandemic brought about a major shift in the working culture, with remote working models still prevalent around the world.
• This means an increase in the usage of private home networks, which can increase the chances of data breaches into enterprise systems as they operate outside the company’s network.

Growing Cybercrime Incidence Is Biggest Driver for Market

• The market is primarily driven by the increasing incidence of cybercrimes, including data breaches, DDoS attacks, malware and other kinds of viruses, and phishing. These attacks not only disrupt company operations, but also damage their finances and customer loyalty.
• As per studies, by 2025, cybercrimes are expected to cost victims a combined USD 10.5 trillion annually.
• Moreover, as per an article in The Independent, citing a survey conducted by the Department for Science, Innovation & Technology, almost half the businesses in the U.K. suffered some kind of cyberattack in 2023, with the total such incidents reported numbering over 2,000.
• Both large and small and mid-size enterprises are a risk from these events, which has been increasingly driving them to subscribe to SOC as a service.

Advanced Solutions Offer Business Opportunities

• SOCaaS vendors have been modernizing their offerings.
• This is due to the competition from new entrants, who have the potential to capture the market with their innovative and unique offerings.
• This includes 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.
• The integration of AI and ML further enhances the effectiveness of these solutions by allowing them to better predict attacks via the analysis of historical patterns.
• They can also take the necessary action on their own and even modify the response if needed.

SOC as a Service Market Analysis

Component Analysis

The solutions category dominates the market with a share of around 60%, whereas the service category is expected to witness higher growth rate of, of 14.1%, during the forecast period.

This is attributed to the rising need for monitoring, detection, prevention, and response services against cyberthreats. Outsourcing these services allows companies to limit their IT spending on computing and human resources, thus making operations more cost-effective. Further, with cyberattacks becoming increasingly complex, the demand for real-time threat monitoring and detection services continues to rise. All this can be linked to the increasing adoption of remote working models and cloud solutions around the world.

The following components have been analyzed:

• Solutions (Larger Category)
• Services (Faster-Growing Category)

Offering Type Analysis

The co-managed category holds the larger share, of around 80%, in 2024. This is because these solutions can be customized by organizations as per their workflows and specific use cases. Additionally, this model allows companies to leverage external advice to bolster their in-house IT security capabilities. Via this approach, enterprises generally utilize their internal IT resources for daily operations and decision making and offload the more-complex aspects of their IT security, such system upgrades and data backup, to third-party vendors.

The fully managed bifurcation is the faster-growing category in the coming years. This model allows companies to have their third-party vendors modify their IT security solutions as the nature of cybercrimes or their workload changes, without investing in an in-house IT security team. The reduction of the IT security workload on the in-house staff allows it to focus on the core operations of their company and be more involved more in the decision-making process.

The segment is bifurcated as below:

• Fully Managed (Faster-Growing Category)
• Co-Managed (Larger Category)

Service Analysis

The detection service category accounts for the largest market share, of around 40%, in 2024 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.

The prevention category will have the highest CAGR in the forecast period. This is attributed to the need for compliance with global data privacy laws, such as GDPR, ISO 27001, and HIPAA. Moreover, since the mere detection of the attack might not be enough to stop it, ultimately costing companies loads of money, enterprises are taking proactive steps to prevent such attacks from happening in the first place.

The following services are covered:

• Detection (Largest Category)
• Prevention (Fastest-Growing Category)
• Incident Response

Enterprise Size Analysis

Large enterprises lead the market in 2024. These companies 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.

SMEs are expected to witness the higher CAGR, of 15%, during the forecast period. This growth can be attributable to the increasing cyberattacks on SMEs. Around 43% of cyberattacks are pointed at SMEs, but just 14% of the SMEs are equipped to defend themselves. With the advent of cloud computing, several out-of-reach software solutions have become accessible to SMEs.

The following are the categories of this segment:

• Large Enterprises (Larger Category)
• SMEs (Faster-Growing Category)

Application Analysis

Endpoint security dominates the market. This is attributed to the constant increase in the number of devices, including smartphones, tablets, laptops, and personal digital assistants, connecting to enterprise networks. They can be both the source or the target of cyberattacks on a company, which makes their monitoring, the detection of malicious activity, and responding to them vital.

Cloud security is the fastest-growing category during the forecast period. With the advent of high-bandwidth internet connections, enterprises and individuals are increasingly storing their data on cloud platforms to save on IT expenses. The preference for cloud computing is primarily driven by the growing trend of remote workforces, which raises the demand for enterprise asset mobility. Since clouds are majorly shared resources, they are highly vulnerable to all kinds of cyberattacks.

We have studied the below-mentioned applications:

• Network Security
• Application Security
• Endpoint Security (Largest Category)
• Cloud Security (Fastest-Growing Category)
• Others

End User Analysis

The BFSI sector is the largest end user in the market, accounting for around 45% revenue share in 2024, 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 USD 6 million per data breach.

The healthcare sector is expected to witness the highest CAGR 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.

The report contains analysis on the following end users:

• BFSI (Largest Category)
• Government and Public Sector
• IT and Telecom
• Healthcare (Fastest-Growing Category)
• Retail
• Manufacturing
• Energy and Utilities
• Others

North America Is Largest Market

• The North American SOC as a service market will generate around 35% revenue in 2024, 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.
• This is because 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, 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.
• The APAC market is expected to witness the fastest growth 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.
• Additionally, there has been approximately 160% year-on-year growth in cyberattacks.
• In APAC, the Chinese market is the largest 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.
• The Cyberspace Administration of China (CAC) issued the ‘New Measures for Cybersecurity Review’ in January 2022, which came into effect on February 15, 2022.
• India is the fastest-growing market in the region, as the demand for these solutions is increasing against data breaches and cyberattacks.
• The country accounts for more than 5% of all cyberattacks in the region.
• The major industries targeted by cybercriminals include BFSI, manufacturing, healthcare, and professional services.
• Cybercriminals used public health information and relief effort, including the vaccine supply chain, to lure their targets during the pandemic.

The geographical breakdown of the market is as follows:

• North America (Largest Regional Market)
  • U.S. (Larger and Faster-Growing Country Market)
  • Canada
• Europe
  • Germany (Fastest-Growing Country Market)
  • France
  • U.K. (Largest Country Market)
  • Italy
  • Spain
  • Rest of Europe
• Asia-Pacific (APAC) (Fastest-Growing Regional Market)
  • China (Largest Country Market)
  • India (Fastest-Growing Country Market)
  • Japan
  • Australia
  • South Korea
  • Rest of APAC
• Latin America (LATAM)
  • Brazil (Largest and Fastest-Growing Country Market)
  • Mexico
  • Rest of LATAM
• Middle East and Africa (MEA)
  • Saudi Arabia (Largest and Fastest-Growing Country Market)
  • South Africa
  • Rest of MEA

SOC as a Service Market Share

The SOC as a service market is fragmented because of a large number of companies providing these solutions. Moreover, since software, especially that deployed on the cloud, is not too expensive to create and share, even smaller companies can proliferate in this market. Additionally, end users generally have these services customized to their needs; this lack of standardization prevents any one company from wielding a clear dominance. Further, 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.

SOC as a Service Market Company News

• In August 2024, ConnectWise LLC announced plans to support managed service providers in obtaining Cybersecurity Maturity Model Certification (CMMC) Level 2 compliance.
• In June 2024, AT&T Inc. announced that the digital marketing company Omnicom had selected the former’s Dynamic Defense cybersecurity solution, available with AT&T Dedicated Internet.
• In June 2024, Proficio launched ProBAS attack and breach simulation service to help companies better prepare for and tackle cybercrime.
• In November 2023, Nippon Telegraph and Telephone Corporation acquired Sapphire, a U.K. based company that provides software and services for digital operations via partnerships with SAP, Infor SunSystems, ServiceNow, HxGN, and AWS.