The market for SOC as a service is projected to expand from US$ 5.73 billion in 2022 to US$ 12.98 billion by 2030, reflecting a compound annual growth rate (CAGR) of 10.7% during the period from 2022 to 2030.
In the Asia-Pacific (APAC) region, the SOC as a service market is expected to experience substantial growth, driven by the increasing demand for integrated solutions that combine threat detection and prevention. This shift has led organizations to prioritize the safeguarding of their systems against vulnerabilities and potential threats, thereby boosting the demand for SOC as a service. The rapid adoption of advanced technologies such as artificial intelligence (AI) and the Internet of Things (IoT) across countries like China, Japan, India, Australia, South Korea, Singapore, and New Zealand is a significant factor propelling the SOC as a service market.
AI and IoT systems are particularly susceptible to cyber threats, which has heightened the demand for SOC as a service to ensure the protection of sensitive data. For example, IDC Asia Pacific forecasts that spending on IoT will reach US$ 277.5 billion by the end of 2023, with projections of US$ 435 billion by 2027. This surge in IoT investment correlates with an increased risk of cyberattacks targeting various connected devices, including smartphones, tablets, laptops, routers, smartwatches, webcams, vehicles, home appliances, manufacturing tools, medical devices, and security systems. These devices often store sensitive information and are integral to consumers' daily lives. The convenience offered by connected devices encourages their widespread use, as businesses leverage them to gather valuable data that enhances operational efficiency. However, the proliferation of these devices also escalates the risk of cyber threats, making IoT networks more vulnerable to attacks. For instance, if IoT devices are compromised, malicious actors can exploit them to disrupt services, overload networks, or immobilize critical equipment for financial gain, thereby increasing the demand for cybersecurity solutions like SOCaaS.
Additionally, government initiatives aimed at enhancing security solutions across various industries are contributing to market growth. For instance, in 2022, Singapore's Cyber Security Agency (CSA) introduced a licensing framework for cybersecurity service providers (CSPs) to improve customer safety by addressing the information disparity between clients and CSPs. This framework specifically targets two services: penetration testing and managed security operations, both of which handle sensitive client information and are prioritized by the government to prevent misuse. Furthermore, the rise in sophisticated cyberattacks and data breaches in countries such as China, Japan, and India has amplified the demand for SOC as a service to safeguard data against these threats. According to a report by AAG, in the second and third quarters of 2022, China and Japan reported breaches affecting 14,157,775 and 1,246,373 accounts, respectively, while India experienced a 15.3% increase in cybercrimes between the first and second quarters of 2022, further driving the demand for SOC services in the region.
Key players in the SOC as a service market include Fortinet Inc, Atos SE, NTT Data Corp, Verizon Communications Inc, Thales SA, AT&T Inc, Arctic Wolf Networks Inc, Cloudflare Inc, ESDS Software Solution Ltd, and ConnectWise LLC. A comprehensive analysis of additional significant players in the SOC as a service market has been conducted to provide a well-rounded perspective on the market and its ecosystem.
The overall size of the SOC as a service market has been determined through a combination of primary and secondary research methods. The research process commenced with extensive secondary research utilizing both internal and external sources to gather qualitative and quantitative data relevant to the SOC as a service market. This approach also aimed to provide an overview and forecast of market growth across all segments. Additionally, numerous primary interviews were conducted with industry stakeholders and experts to validate the findings and gain deeper analytical insights. Participants in this research included industry professionals such as vice presidents, 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 SOC as a service sector.