SOC-as-a-Service Market

Key Points Covered in SOC-as-a-Service Market Survey

• Market estimates and forecast 2016-2031
• Key drivers and restraints impacting market growth
• Segment-wise, Country-wise, and Region-wise Analysis
• Competition Mapping and Benchmarking
• Market Share Analysis
• Key Product Innovations and Regulatory Climate
• COVID-19 Impact on SOC-as-a-Service and how to Navigate
• Recommendation on Key Winning Strategies

Download a Comprehensive Report Snapshot

2016-2020 SOC-as-a-service Market Outlook Compared to 2021-2031 Forecast

Increasing adoption of managed System on a Chip (SOC) is likely to drive the market over the coming years. Demand for SOC-as-a-service will rise at 24.3% CAGR between 2021 and 2031 in comparison above 22.7% CAGR registered during 2016-2020, finds FMI.      

Day-by-day many companies are turning to managed service providers (MSPs) to help address the technical gaps. The traditional SOC model, known for its high barrier to entry with significant upfront investment costs, and high-priced training programs is also shifting, to the managed SOC services. Many organizations lack the resources to staff a fully functional SOC with 24/7 network monitoring and skilled personnel to respond to a security incident.

A managed SOC or SOC-as-a-Service provider is a third-party provider that helps an organization to fill the gaps related to their cybersecurity staffing needs. By taking advantage of outsourced security, an organization can reap several operational and security benefits.

Managed SOC remotely performs monitoring and protection of the organization’s network while investigating and responding to any security incidents. These services offer flexible pricing, speedy on-boarding, and on-demand access to high-quality, qualified talent. Thus, organizations are increasingly adoption managed SOC services to protect their organizational assets from cyber threats.

How is Growing Popularity of IoT and Rising Security Breaches Impacting Market Growth?

Companies across the world are experiencing crippling security breaches, the wave of compromised data is on the rise. Attacks like phishing and ransomware have doubled in the last few years, with higher data breach severity amid rising sophistication, stealth and persistence of cyber criminals.

According to a KPMG survey, business leaders cited phishing attacks (50 percent) and ransomware attacks (31 percent) as having the biggest impact on their organization in the 2020 fiscal year.

Adopting SOC-as-a-Service can improve the security and consumers’ trust in organization.  Cloud-based SOCs platforms offer assurance regarding accurate threat detection and helps prevent them in real time, which in turn is boosting sales of SOC-as-a-service.

The introduction of IoT has connected everything to the internet. The security landscape is constantly evolving as emerging threats continue to target enterprise networks and IoT devices. IoT users and software designers are adopting a wide range of current and future technology solutions to tackle the cyber-attack risk associated with IoT devices. Developers of these solutions will need to take a lead role in making their devices and solutions as secure as possible to deliver a more secure and safe IoT environment.

To overcome these security concerns, SOC providers are continuously trying to develop advanced SOC platforms to mitigate security concerns within organizations. SOC providers are also integrating information on latest malware, botnets, zero-day, exploits, phishing and other cyber threats to help organizations to safeguard their IoT infrastructure. Hence, growing popularity of IoT is anticipated to propel sales SOC-as-a-Service.   

Country-wise Insights

How Big is the Opportunity for SOC-as-a-service Adoption in the U.S.?

North America is predicted to remain one of the most attractive markets during the forecast period, according to Future Market Insights. The U.S. is expected to account for over 89.6% of the North America market share through 2031.  

The U.S. shows significant growth in SOC-as-a-service owing to increasing use of cloud security infrastructure. Factors such as awareness about virtual private network, adoption of, increasing of cybersecurity in the digital age, and growing demand for cyber security among SMEs and large enterprises will continue propelling sales of SOC-as-a-Service over the forecast period.

In addition to this, rapid adoption of connective technologies such as IoT, artificial intelligence (AI), machine learning (ML), in the U.S. is anticipated to spur demand for SOC-as-a-service solutions in the country.  

The U.S. is home to unified threat management providers such as AT&T Cybersecurity, BlackStratus, Check Point Software Technologies Ltd, and Cygilant, Inc. This is expected to create lucrative opportunities for new entrants and existing market players in the U.S. over the forecast period.

Why is Demand for SOC-as-a-service Increasing in the U.K.?   

The U.K. is expected to dominate the Europe SOC-as-a-Service market over the forecast period, generating revenue of ~US$ 665.8 Mn by 2031.

The U.K. has robust infrastructure for advancement of new technologies such as cloud-based solutions, blockchain, artificial intelligence (AI), machine learning (ML), bring your own device (BYOD), choose your own device (CYOD), managed SOC, IoT, and many more. Exponential rise in security breaches and sophisticated cyber-attacks across industries in the U.K. is boosting demand for the SOC-as-a-Service.

Owing to these factors, FMI has projected the SOC-as-a-Service market to expand at an impressive 28.4% CAGR over the forecast period.

How is India Contributing Towards SOC-as-a-service Sales?

As per FMI, India is expected generate revenue of ~US$ 854.7 Mn by 2031, expanding at a prolific  CAGR of 33.6% during the forecast period.

In 2031, India will account for over 48.2% sales in the South Asia and Pacific region. India is one of the fastest-growing economies and is expected to emerge as an attractive market for SOC-as-a-service vendors. The country is witnessing accelerating growth in digital transformation and rapidly increasing connectivity, which is bolstering demand for SOC-as-a-Service in the country.

Increasing demand for cyber security solutions against cyber-threat, growing number of employees working remotely, and high adoption of personal and mobile devices by companies are some factors propelling sales of SOC-as-a-Service in India.

Increasing adoption of SOC-as-a-service solutions to secure IT, communications & security by small and medium enterprises is projected to boost demand for the SOC-as-a-service in India over the assessment period.    

Category-wise Insights

Demand for Detection Service Solutions to Continue Rising

Based on service type, the detection service segment is expected to grow at 28.5% CAGR accounting for nearly 52.3% of the total market share in 2031. Adoption of detection services has significantly increased in recent years owing to growing implementation of digital technologies.

With increasing reliance on digital information and sharing of huge amount of data worldwide, the chances of targeted attacks are increasing. Advanced technologies offers new capabilities and features, but also increases the risk.

Since the cyber security landscape is continuously evolving, it is not possible for organizations to protect their assets from all types of cyber-attacks and data breaches. This is resulting in high demand for detection services in various organizations.

Applications of Cloud Security Solutions to Remain High

In terms of application, the cloud security segment is estimated to grow at a CAGR of 30.7% during the forecast period.

Cloud services and digital transformation help to increase agility, improve efficiencies, and cut costs. However, implementation of these services has rapidly expanded the attack surface of most small and mid-sized enterprises.

Besides this, workforces are remotely accessing applications, services, systems, and data both in the cloud from and on-premises, resulting in higher chances of cyber-attacks.  As a result, demand for cloud security solutions in the SOC-as-a-Service market is projected to remain high through 2031.

Why Does Large Enterprises Segment Hold Dominant Share in the SOC-as-a-Service Market?

Based on enterprise size, the large enterprises segment is expected to contribute more than 60.5% sales in the global SOC-as-a-service market in 2021. Many organizations rely on SOCs as a valuable resource for security incident detection. According to a study, at least 55% of small and medium-sized businesses claim to have experienced some kind of cyber-attack within a year.

SOC-as-a-Service helps to manage and monitor the intrusion detection systems, firewalls, virtual private networks (VPNs), endpoint detection and response (EDR), and endpoint protection (EPP). It analyses & identify indicators of compromise (IoCs) and responds to attacks which helps to minimize security incidents.

BFSI Segment to Capture Dominant Share of the Global SOC-as-a-Service Market

The BFSI segment is expected to contribute maximum revenue share of more than 28.1% in the global SOC-as-a-Service market in 2021. One of the most attractive industry for hacktivist or cybercriminals is BFSI owing to factors such as increasing third-party transactions frauds, operational and deployment challenges, and state-sponsored attacks. SOC tools help to minimize the fraud/threat in BFSI sectors.

For instance, as per Singapore-based cyber-security company- Group-IB, massive data breach of 1.3 million credit and debit cards were detected. Moreover, according to Capital One, data breach hackers were able to access personal information related to credit card applications from 2005 to early 2019 for consumers, applicants, and small businesses. Increasing importance of managed SOC-as-a-Service in banking and financial sectors is expected to boost sales of SOC-as-a-service in the forthcoming years.  

Competitive Landscape

Companies operating in the SOC-as-a-Service market are aiming at product innovation and strategic partnerships with other manufacturers to expand their product portfolios to  address the demand from an expanding customer pool. Fos instance:

• In December 2020, Alert Logic, Inc. launched automated response solution for Amazon Web Services (AWS) environments. Alert Logic MDR SOAR delivers pre-built and customized playbooks ensure security teams to protect organizations from threats.  

• In December 2019, Fortinet, Inc. acquired CyberSponse. This acquisition helps the company to improve security orchestration, automation, and response addition to Fortier. Also it empowers security operations teams to achieve higher efficiencies and accelerate incident response.      

Scope of Report

Key Questions Answered in the Report

• Which region is expected to showcase significant growth in SOC-as-a-Service market?

  South Asia & Pacific is projected to register highest growth in the market with a CAGR of 32.8% during the forecast period. However, North America currently leads the global market, with market share of over 41.8% in 2021.       

• Which is the most attractive application in the SOC-as-a-Service market?

  Network security segment is currently the most attractive in the market, accounting for 35.4% of the total market share in 2021. However, the cloud security segment is estimated to grow at a CAGR of 30.7% during the forecast period.

• Which are some of the leading companies offering SOC-as-a-Service?

  Some of the leading companies in this landscape are Check Point Software Technologies Ltd., AT&T Cybersecurity, Alert Logic, Inc., and Thales e-Security, Inc. among others.  

• Who are the leading end-use industries of SOC-as-a-Service Solutions? 

  BFSI sector is expected to dominate the market over the forecast period, generating revenue of ~US$ 2.4 Bn by 2031.  

• How much is the global SOC-as-a-Service Market worth?

  The SOC-as-a-service was valued at ~US$ 1.08 Bn in 2021, and is estimated to grow at a steady pace.

• What will be the demand outlook/ sales forecast for SOC-as-a-Service?

  The SOC-as-a-service is expected to be valued at US$ 1.08 Bn by the end of 2021 and is anticipated to reach US$ 9.5 Bn by 2031.

• What was the last 5-year market CAGR?

  The market in last 5 years (2016 – 2020) grew at a CAGR of 22.7%.

• What are the key trends of SOC-as-a-service?

  Key trends in the market includes:

  • Adoption of Remote Working Trend across the world
  • Increasing Demand for Remote SOC services

• What is driving demand of SOC-as-a-service?

  Exponential rise in security breaches and sophisticated cyber-attacks across industries are spurring demand for SOC-as-a-service.  

• What are the top 5 countries driving demand?

  Top 5 countries driving demand for SOC-as-a-service include the U.S., India, UK, China, and Germany.  

• What is the North America market Outlook?

  North America is predicted to remain one of the most attractive markets during the forecast period. The U.S. is expected to account for close to 89.6% of the North America market through 2031.

• What are the key market statistics in South Korea and Japan?

  The SOC-as-a-service solution in Japan and South Korea was valued at US$ 49.4 Mn and US$ 17.9 Mn in 2020, respectively, and is projected to register CAGR of 20.0% and 24.3% respectively between 2021 and 2031.

SOC-as-a-service Market by Category

By Service Type:

• Prevention Service
• Detection Service
• Incident Response Service

By Offering Type:

• Fully Managed Service
• Co-Managed Service

By Enterprise Size:

• Small and Mid-Sized Enterprises (SMEs)
• Large Enterprises

By Applications Area:

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

By Industry:

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

By Region:

• North America
• Latin America
• Europe
• East Asia
• South Asia & Pacific
• Middle East and Africa (MEA)