Security as a Service Market Forecast to 2028 - COVID-19 Impact and Global Analysis By Component (Solution and Service), Organization Size (SMEs and Large Enterprises), Application (Network Security, Endpoint Security, Application Security, Cloud Security, and Others), and Vertical (BFSI, Government & Defense, Retail, Healthcare, IT & Telecom, Energy & Utilities, Manufacturing, and Others)

The security as a service market is projected to reach US$ 34,854.10 million by 2028 from US$ 13,712.87 million in 2022. It is expected to grow at a CAGR of 16.8% from 2022 to 2028.

Over the past few years, companies have experienced significant changes due to the rise of digitalization, Industry 4.0, and smart device growth, leading to a rise in smart and connected devices worldwide. To enhance customer service, enterprises in all industries have adopted varying levels of digitalization, resulting in a significant increase in data generation and personal information storage. However, the rapid expansion of digitalization and data creation has also attracted new forms of cyber-attacks and crimes.

Countries worldwide have implemented stringent cybersecurity regulations. For example, India's Ministry of Electronics and Information Technology (MeitY) launched the Cyber Surakshit Bharat program to establish a robust cybersecurity ecosystem in India, in line with the government's "Digital India" vision. The National E-Government Division (NeGD) supported this initiative. As a result of the Indian government's cybersecurity efforts, there has been a rapid shift in the governance structure, emphasizing the need for sound governance. The program encourages CISOs and IT personnel from all government agencies to educate themselves on cybercrime and develop self-defense skills. Similarly, the Singapore Cybersecurity Act mandates that businesses establish a strong infrastructure to enhance cybersecurity while fostering global partnerships. It is expected that such government policies aimed at mitigating potential cyber threats and attacks will create new business opportunities in the security-as-a-service market during the projected period, thereby boosting market growth.

Impact of COVID-19 Pandemic on Security as a Service Market Growth
Enterprises across various verticals were compelled to halt their operations due to the pandemic, resulting in mounting losses. Consequently, most of these enterprises resumed functioning remotely, necessitating employees to access makeshift and less secure networks. This trend, however, posed a significant security threat, compelling organizations to seek the assistance of market players in remedying the cyber threats to their operations. Owing to the increasing trend of COVID-19-related cyber-attacks involving malware and ransomware, the APAC security as a service market is expected to register substantial growth. Amid the lockdown in various countries, several employees have switched to remote work environments, and enterprises are rapidly adopting cybersecurity solutions. According to MasterCard Incorporated statistics, South America is adopting contactless payment options based on cybersecurity solutions at an unprecedented rate. The pandemic's significant impact across various industries has led to a surge in the demand for internet platforms, incorporating digitalization due to remote working, the rise of digital payments, and evolving business strategies. These trends collectively drive the growth of the security as a service market.

China accounts for the largest share in the security as a service market in Asia Pacific due to the country's strong manufacturing base. The country is the leading producer of consumer electronics, electric vehicles, and industrial electronic components. Additionally, China is strongly adopting Industry 4.0. Due to the digitalization of the manufacturing sector, there is a growing demand for network security. Moreover, the initiatives by the Chinese government, including Made in China 2025, are expected to boost the country's manufacturing sector further. These factors are expected to boost the revenue generation for security as a service market player in the country during the forecast period.

In the current era, information security has emerged as a crucial aspect of national security. Many critical systems such as vehicle control, signal processing, communication, surveillance, and weapons rely heavily on computerization. This makes military organizations highly vulnerable to cyber attacks, which can have severe consequences. In response, the military industry, like many other industries worldwide, is working with experts and all stakeholders to increase awareness and provide secure cyberspace by utilizing resilient and robust cybersecurity technology. Such initiatives are anticipated to boost the growth of the security as a service market.

To security as a service market player, various factors are contributing to generating maximum revenue. One such factor is the emergence of telecom fraud, which is causing significant revenue loss for operators worldwide. According to Infosys Limited, uncollected revenue and fraud have cost operators up to US$ 30 billion. The adoption of OTT data services and technological innovations such as IoT and 5G in the telecom sector has led to a rise in internet users and customer uptake. Additionally, the increasing use of artificial intelligence (AI), deep learning, and big data analytics across different applications in the aerospace, automotive, manufacturing, and military & defense sectors has boosted the demand for smart electronics. All these developments are expected to aid security as a service market player in generating higher revenues.

Alert Logic, Inc.; Barracuda Networks, Inc.; Clearswift; Silversky; IBM Corporation; McAfee, LLC; Microsoft Corporation; Radware; Trend Micro Incorporated and Zscaler, Inc. are a few key players operating in the security as a service market.

The overall security as a service market has been derived using both primary and secondary sources. To begin the research process, exhaustive secondary research has been conducted using internal and external sources to obtain qualitative and quantitative information related to the security as a service market. The process also serves the purpose of obtaining an overview and forecast of the security as a service market with respect to all market segments. Also, industry participants and commentators have conducted multiple primary interviews to validate the data and gain more analytical insights. Participants in this process include VPs, business development managers, market intelligence managers, national sales managers, and external consultants, such as valuation experts, research analysts, and key opinion leaders, specializing in the security as a service market.