The Security Information and Event Management (SIEM) Market is projected to grow from US$ 9.91 billion in 2022 to US$ 4.67 billion by 2030, reflecting a compound annual growth rate (CAGR) of 9.8% during the period from 2022 to 2030.
In North America, which includes the US, Canada, and Mexico, the region is significantly affected by cyber threats. This vulnerability is largely attributed to the concentration of financial institutions, critical infrastructure, and collaborative initiatives like public-private partnerships, all of which enhance the cyber landscape. Governments in this region are actively working to improve laws and policies aimed at mitigating cyber risks. For instance, the United States-Mexico-Canada Agreement (USMCA) and the North American Free Trade Agreement (NAFTA) have been integrated to create a unified regional framework for the manufacturing industry. Additionally, the Department of Homeland Security has pinpointed 16 vital sectors for cybersecurity, including manufacturing, construction, energy, food and agriculture, chemicals, healthcare, and government. The increasing number of cyberattacks and the tightening of compliance regulations are driving the demand for security information and event management solutions in the region.
The rise in cyberattacks targeting traditional security operations has led to significant reputational harm, financial losses, and operational disruptions. Consequently, numerous companies in North America are enhancing their security information and event management capabilities. For example, in July 2023, Kyndryl expanded its service offerings to enable businesses to quickly identify, respond to, and recover from cyber incidents. Such developments among key players in the region are fueling the growth of the SIEM market.
The technology sector in the United States is one of the largest globally, hosting over 585,000 tech companies, including some of the most influential names in the industry. Silicon Valley, located in California, is renowned for its tech ecosystem, housing major corporations like Apple, Alphabet, Intel, and Meta. The evolution of sophisticated cyber threats in this area is a direct result of technological advancements and the expansion of the tech industry. Companies are increasingly concerned about breaches in their private networks, which can lead to substantial financial repercussions. This security concern is driving the adoption of solutions within the Security Information and Event Management Market to effectively manage ongoing security challenges.
Moreover, various organizations in the US are enhancing their security frameworks to safeguard operations against cyber threats. For instance, in July 2023, OTAVA broadened its managed security offerings to include SIEM and Security Operations Center (SOC) services, aimed at improving organizations' security postures against cyber threats. The SIEM and SOC solutions provided by OTAVA are specifically designed to automate alerts, customize visualizations with analytical insights, and leverage the expertise of the OTAVA team. These managed services deliver integrated intelligence tailored by OTAVA during both the design and implementation phases. Such initiatives contribute to the growth of the security information and event management market.
The Security Information and Event Management market is categorized into components, specifically solutions and services. In 2022, the solutions segment dominated the market. A SIEM solution integrates security information management (SIM) and security event management (SEM). Beyond the capabilities of traditional log management systems, these solutions provide long-term log storage, reporting, and integration of threat intelligence streams. Within an IT framework, the SEM component is responsible for identifying, collecting, monitoring, analyzing, and reporting security incidents. An effective SIEM solution aggregates and organizes log data generated by an enterprise's entire IT infrastructure, including computer systems, applications, network devices, and security tools. It normalizes log data for enhanced analysis and reliable outcomes. The primary objective of a SIEM solution is to detect security threats and provide comprehensive insights through event correlation and log analysis. Key components of prominent SIEM solutions include log collection and processing, search and reporting, real-time monitoring and threat detection, end-to-end incident management, threat intelligence, and user and entity behavior analytics (UEBA). The total cost of a complete SIEM solution typically comprises approximately 70-75% of hardware, software, and infrastructure expenses. Leading providers in the SIEM market include IBM, Splunk, Inc., LogRhythm, and Exabeam, among others.
Regarding deployment, the Security Information and Event Management market is divided into on-premise and cloud-based solutions. The on-premise segment held the largest market share. SIEM solutions are increasingly being offered as cloud-based services, often referred to as cloud SIEM or SIEM as a Service. Cloud-native SIEM solutions benefit from scalability and speed, making them attractive for security operations. According to a 2020 CyberEdge report, an average of 64.6% of IT security operations and services are hosted in the cloud. The shift towards cloud-hosted SOC services is being propelled by its growing acceptance among businesses in sectors such as technology, healthcare, and government. For instance, the 2020 State of SecOps and Automation report indicated that cloud-native SIEM solutions are gaining popularity, with 99% of respondents expressing a desire for increased SIEM automation, and 88% of organizations facing challenges with their current SIEM platforms. Cloud SIEM solutions offer enhanced flexibility, accessibility, and faster value realization when managing cybersecurity and compliance across both on-premises and cloud environments.
Key players in the Security Information and Event Management Market include IBM, Splunk Inc., LogRhythm, Logpoint, Fortinet, Exabeam, AT&T, Logsign, SolarWinds Worldwide, LLC., and Zoho Corporation Pvt. Ltd., all of which are featured in this market analysis.
The overall size of the Security Information and Event Management Market has been determined through a combination of primary and secondary research methods. Extensive secondary research has been conducted using both internal and external sources to gather qualitative and quantitative data related to the market size. This process also aids in providing an overview and forecast of the market across all segments. Additionally, multiple primary interviews have been carried out with industry stakeholders to validate the data and gain analytical insights. This includes discussions with industry experts such as VPs, business development managers, market intelligence managers, and national sales managers, as well as external consultants like valuation experts, research analysts, and key opinion leaders specializing in the SIEM market.