Managed Security Services Market – Global Industry Size, Share, Trends, Opportunity, and Forecast, Segmented By Security (Cloud Security, End-point Security, Network Security, Data Security, Others), By Services (Managed SIEM, Managed UTM, Managed DDoS, Managed XDR, Managed IAM, Managed Risk & Compliance), By Enterprise Size (Large enterprises, SMEs) , By Vertical (BFSI, Healthcare, Manufacturing, IT & Telecommunications, Retail, Defense/Government, Others), By Region & Competition, 2021-2031F

Forecast Period	2027-2031
Market Size (2025)	USD 35.01 Billion
CAGR (2026-2031)	12.31%
Fastest Growing Segment	Managed UTM
Largest Market	North America
Market Size (2031)	USD 70.26 Billion

Market Overview

The Global Managed Security Services Market will grow from USD 35.01 Billion in 2025 to USD 70.26 Billion by 2031 at a 12.31% CAGR. Managed Security Services involve outsourcing the management and monitoring of security systems to external providers to safeguard digital infrastructure against unauthorized access. The market is primarily driven by the escalating frequency of malicious cyber attacks and the necessity for strict regulatory compliance which requires constant vigilance. Additionally, the critical shortage of in-house expertise forces organizations to seek external support. According to ISC2, in 2024, the global cybersecurity workforce gap reached approximately 4.8 million professionals. This substantial deficit compels enterprises to rely on managed services to ensure robust defense mechanisms are maintained despite internal staffing limitations.

A significant challenge impeding market expansion is the apprehension regarding data privacy and the relinquishing of administrative control. Companies in highly regulated industries often hesitate to share sensitive data with external partners due to the potential risk of supply chain breaches or mishandling of proprietary information. This lack of trust can delay the adoption of these services as organizations prioritize internal governance and data sovereignty over the operational efficiency offered by outsourced providers.

Key Market Drivers

The escalating sophistication and frequency of global cyber threats act as a primary catalyst propelling the Global Managed Security Services Market. Threat actors are increasingly leveraging advanced technologies, including artificial intelligence, to launch high-volume, automated attacks that overwhelm traditional internal defense perimeters. According to Check Point Research, July 2024, in the 'Cyber Attack Trends: 2024 Mid-Year Report', global cyber attacks increased by 30% year-over-year in the second quarter of 2024, reaching an average of 1,636 attacks per organization per week. This relentless surge in malicious activity necessitates continuous monitoring and rapid incident response capabilities that many enterprises cannot sustain independently, driving them toward managed providers. The financial stakes of inadequate protection are equally critical; according to IBM, in 2024, the global average cost of a data breach reached $4.88 million, incentivizing businesses to invest in external managed services to mitigate these substantial financial risks.

Simultaneously, the acute global shortage of skilled cybersecurity professionals severely limits the ability of organizations to maintain robust in-house security operations. As security architectures become more complex, the demand for specialized talent to manage cloud environments and regulatory requirements far outstrips the available supply, leaving critical vulnerabilities exposed. According to Fortinet, June 2024, in the '2024 Global Cybersecurity Skills Gap Report', 87% of organizational leaders attributed at least one security breach they experienced within the past year partially to a lack of cybersecurity skills among their staff. This talent deficit compels companies to partner with managed security service providers, allowing them to bypass recruitment challenges and gain immediate access to expert teams and advanced security operations centers required to safeguard their digital assets.

Download Free Sample Report

Key Market Challenges

The apprehension regarding data privacy and the reluctance to relinquish administrative control significantly impedes the expansion of the Global Managed Security Services Market. As organizations handle increasingly sensitive information, the requirement to grant third-party providers deep access to critical infrastructure creates a perceived vulnerability. This hesitation is largely rooted in the fear of supply chain attacks, where a security compromise within the service provider’s network could directly propagate to the client’s environment. Consequently, enterprises in highly regulated sectors often view outsourcing as an introduction of unnecessary risk rather than a protective measure, causing them to delay or reject external partnerships.

This lack of trust forces many organizations to prioritize internal governance and data sovereignty over the operational benefits of managed services, effectively stalling market adoption. The volatility of the current threat landscape exacerbates this caution, as businesses are acutely aware of the prevalence of security incidents. According to CompTIA, in 2024, 94% of businesses reported experiencing a cyberattack in the last year. This high frequency of incidents reinforces the desire for strict internal control, compelling decision-makers to manage security in-house despite the limitations of their existing resources.

Key Market Trends

The convergence of IT and Operational Technology (OT) is driving a critical demand for specialized managed services capable of protecting interconnected industrial environments. As legacy OT systems integrate with corporate networks to improve operational efficiency, they are increasingly exposed to sophisticated threats that traditional air-gapped defenses can no longer stop. This expanded attack surface necessitates providers that can deliver unified visibility and protection across both domains, ensuring that vulnerabilities in one area do not compromise critical infrastructure. According to Palo Alto Networks, March 2024, in the 'State of OT Security 2024' report, 70% of industrial organizations experienced a cyberattack on their operational technology environments within the previous year, underscoring the urgent necessity for these converged security strategies.

Simultaneously, the integration of Artificial Intelligence and Machine Learning is transforming threat detection capabilities within the managed services landscape. Service providers are increasingly deploying AI-driven analytics to automate incident response and process vast datasets, enabling them to identify anomalies with a speed and precision that manual monitoring cannot match. This technological shift is essential for maintaining resilience against high-velocity attacks that utilize automation to exploit the limitations of human-led security operations. According to Cisco, March 2024, in the '2024 Cybersecurity Readiness Index', 55% of organizations plan to invest in AI-driven technologies to enhance their security posture, reflecting the sector's definitive pivot toward intelligent, automated defense systems.

Segmental Insights

Within the Global Managed Security Services Market, the Managed Unified Threat Management segment is identified as the fastest-growing category. This rapid expansion is primarily driven by the increasing preference among small and medium-sized enterprises for integrated security solutions that reduce capital expenditure. Managed Unified Threat Management consolidates essential functions, such as firewalls and intrusion detection, into a single service, offering streamlined protection. Furthermore, strict compliance requirements related to the General Data Protection Regulation compel organizations to adopt these comprehensive services to ensure data privacy and mitigate liability without maintaining extensive internal security infrastructure.

Regional Insights

North America maintains a leading share in the global managed security services market, driven by the widespread adoption of cloud technologies and a high concentration of established service providers. The region is characterized by stringent regulatory requirements regarding data privacy, which necessitates external security management. Compliance mandates associated with the National Institute of Standards and Technology and regulations like the Health Insurance Portability and Accountability Act compel enterprises to invest in managed services. Additionally, the increasing frequency of cyber threats targeting corporate networks across the United States and Canada further sustains regional market expansion.

Recent Developments

• In September 2025, Wipro Limited expanded its strategic collaboration with CrowdStrike to launch a new AI-powered managed security service known as Wipro CyberShield MDR. This unified offering integrated the CrowdStrike Falcon Next-Gen SIEM platform with Wipro’s global security operations centers to deliver enhanced threat visibility and rapid response capabilities. The service was designed to address the challenge of disjointed security tools by providing a cohesive, automated solution for enterprise defense. This partnership enabled the organizations to offer their clients a more efficient and resilient security posture, leveraging advanced artificial intelligence to proactively detect and mitigate complex cyber threats.
• In February 2025, CrowdStrike published its annual Global Threat Report, which provided critical insights into the evolving cybersecurity landscape and adversary tactics observed throughout the previous year. The extensive research identified twenty-six newly emerged threat groups and highlighted a significant acceleration in attack breakout times, which dropped to an average of forty-eight minutes. The report also detailed a surge in state-sponsored activities and identity-based attacks. These findings served as a vital resource for managed security service providers, equipping them with the necessary intelligence to refine their threat hunting strategies and enhance their managed detection and response operations against modern risks.
• In October 2024, LevelBlue announced the introduction of four distinct security services tailored specifically for managed security service providers and managed service providers. These new offerings included Managed Threat Detection and Response, an Incident Response Retainer, Vulnerability Management, and Managed Endpoint Security. The initiative was designed to empower partners to expand their portfolios and capture new growth opportunities within the cybersecurity market without requiring extensive internal infrastructure investments. By providing these scalable, expert-backed solutions, the company aimed to help its partners deliver comprehensive, round-the-clock protection and strategic consulting to their end customers.
• In May 2024, Palo Alto Networks introduced a suite of advanced security solutions integrated with proprietary Precision AI technology designed to combat the rise of AI-generated cyber threats. These new capabilities were embedded across the company’s network security platforms, offering real-time protection by combining machine learning and deep learning techniques. The launch included the Precision AI Security Bundle, which provided advanced threat prevention and URL filtering services. This development significantly enhanced the tools available to managed security service providers, enabling them to offer more robust, AI-driven defense mechanisms to enterprise clients facing sophisticated digital adversaries.

Key Market Players

• IBM Corporation
• Cisco Systems, Inc.
• Broadcom Inc.
• Fortinet, Inc.
• Palo Alto Networks, Inc.
• Check Point Software Technologies Ltd.
• Verizon Communications Inc.
• Accenture PLC
• Dell Technologies Inc.
• DXC Technology Company

By Security	By Services	By Enterprise Size	By Vertical	By Region
Cloud Security End-point Security Network Security Data Security Others	Managed SIEM Managed UTM Managed DDoS Managed XDR Managed IAM Managed Risk & Compliance	Large enterprises SMEs	BFSI Healthcare Manufacturing IT & Telecommunications Retail Defense/Government Others	North America Europe Asia Pacific South America Middle East & Africa

Report Scope:

In this report, the Global Managed Security Services Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

• Managed Security Services Market, By Security:

• Cloud Security
• End-point Security
• Network Security
• Data Security
• Others

• Managed Security Services Market, By Services:

• Managed SIEM
• Managed UTM
• Managed DDoS
• Managed XDR
• Managed IAM
• Managed Risk & Compliance

• Managed Security Services Market, By Enterprise Size:

• Large enterprises
• SMEs

• Managed Security Services Market, By Vertical:

• BFSI
• Healthcare
• Manufacturing
• IT & Telecommunications
• Retail
• Defense/Government
• Others

• Managed Security Services Market, By Region:

• North America
• United States
• Canada
• Mexico
• Europe
• France
• United Kingdom
• Italy
• Germany
• Spain
• Asia Pacific
• China
• India
• Japan
• Australia
• South Korea
• South America
• Brazil
• Argentina
• Colombia
• Middle East & Africa
• South Africa
• Saudi Arabia
• UAE