Growth Opportunities in the Americas Managed Security Services Space, 2024 2026

Aerospace, Defence and SecurityGrowth Opportunities in the Americas Managed Security Services Space, 2024 2026

Security Service Diversification and Target Customer Expansion to Address an Increasingly Complex Geopolitical Context

RELEASE DATE
29-Apr-2024
REGION
North America
Deliverable Type
Market Research
Research Code: K994-01-00-00-00
SKU: AE_2024_690
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AE_2024_690

Growth Opportunities in the Americas Managed Security Services Space, 2024 2026
Published on: 29-Apr-2024 | SKU: AE_2024_690

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The Americas managed security services industry continues to grow steadily, despite its maturity. Current strategic imperatives, global trends, and organizational needs continue to provide excellent conditions for MSSPs to succeed. These factors include the shortage of cybersecurity personnel, the rapid evolution of the threat landscape, the increased costs of cyber incidents, the ubiquity of hybrid and multicloud environments that are harder to effectively secure, and the escalation of the geopolitical conflicts. MSSPs provide their own teams of cybersecurity experts and a wide portfolio of advanced security tools to address even the most varied use cases, and help organizations increase their cyber resilience, improve their security maturity, and implement the most complex cybersecurity strategies or deployments.

Leading MSSPs have developed their own security operations platforms to rival MDR providers and fight for their share of the fiercely competitive managed security services market. They have improved and extended their portfolios with advanced security services, assessments, consulting engagements, and more to support organizations at every stage of their security maturity journey. North America and Latin America are regions with different needs, and while their security awareness and service adoption levels vary significantly, security providers will have to find ways of delivering what organizations need.

With more than 200 competitors and revenue exceeding $14 billion across the Americas, managed security services is a behemoth of the cybersecurity industry.

Author: Lucas Ferreyra

Revenue Forecast

The revenue estimate for the base year 2023 is $14,486.2 million, with a CAGR of 9.0% for the study period from 2023 to 2026.

Revenue Forecast

 

The Impact of the Top 3 Strategic Imperatives on the Americas Managed Security Services Industry

Transformative Megatrends

Why:

  • Social and economic turmoil stemming from the COVID-19 pandemic resulted in budgetary constraints and rethinking of priorities for enterprises of all sizes during the 2020–2022 period. Hybrid cloud and multicloud environments are increasingly the norm, even as enterprises are forcing their employees back into the office.
  • Groups involved in the cyberwarfare aspect of the Russo-Ukrainian War and the Israel-Palestine conflict are shifting focus to targets beyond those nations' borders. Organizations in the Americas will experience more state-sponsored cyberattacks targeting critical infrastructure.

Frost Perspective:

  • The threat landscape is rapidly evolving and increasingly sophisticated. Even minimal security breaches can lead to a security incident that compromises a company's overall value chain.
  • Protecting which includes delivering solutions that skilled cybersecurity professionals see as the best option that allows partners to focus on the bigger picture of mitigating security in an MSSP thus provide and manage comprehensive ecosystems of cybersecurity solutions.

Disruptive Technologies

Why:

  • Over the last few years, vendors have improved the automation, machine learning, and AI capabilities of their security solutions and services. Comprehensive ecosystems spanning on-premises and cloud workloads generated hundreds of thousands of alerts daily. It is difficult to handle cybersecurity needs without automation: Even the reasoning and discerning capabilities of a skilled security professional cannot match AI.
  • Accelerated digital transformation, strengthened by the push for automation, and the lack of security personnel have created the perfect conditions for MSSP success.

Frost Perspective:

  • Leading MSSPs have been developing their own XDR, managed XDR, or MDR platforms in the last three years. These solutions are increasingly harnessing the power of machine learning AI, going as far as helping personal security assistants that can offload monotonous tasks to save valuable workloads of human cybersecurity professionals.
  • In recent years, MSSPs can take advantage of automation features to improve their managed services while also pairing their offering with managed XDR/MDR platforms and widening coverage.

Competitive Intensity

Why:

  • The MSS industry is competitive and constantly changes to accommodate customer demands. The success of pure-play MDR, incident response, and other service companies puts more pressure on MSSPs.
  • Competitors in North America must serve companies with the highest security maturity and the most complex use cases, and those that demand the most sophistication from security solutions.
  • Conversely, staying competitive in Latin America involves flexible pricing, making the most of the increasing security stack, and guiding companies on their maturity journey.

Frost Perspective:

  • MSSPs need to minimize confusion by showing the value that a broad portfolio supported by scalable managed security professional services can bring to companies of all sizes and security needs.
  • As differentiation evolves, MSSPs will enhance their customers' experiences. These will be platforms that offer integration and leverage managed XDR and MDR with much-needed synergy and scalability to their offering.

 

Scope of Analysis

This analysis focuses on the Americas MSS industry and includes revenue forecasts for 2024–2026.

  • Regions: North America and Latin America
  • Industry Verticals: Finance (banking and finance); education; government; health (healthcare and medical); manufacturing; retail; technology and telecommunications; utilities; media (media and entertainment); professional services (scientific, consulting, and technical services); and other (e.g., construction, mining, and transportation, but there is no data breakdown for this category)
  • Business Size: Small businesses (100 employees or fewer); midsized businesses (101–1,000 and 1,001–2,500 employees); and large businesses (2,501–10,000 and more than 10,000 employees)

 

Competitive Environment

Number of CompetitorsMore than 200 with revenue greater than $1 million
Competitive FactorsAbility to fulfil SLAs, threat research capabilities, security operations platform, managed XDR/MDR service, incident response, threat hunting, breach and attack simulation, machine learning, global SOCs, OT/IoT security, flexible pricing models, balanced mix of managed and professional security services, support in languages other than English
Key End-User Industry VerticalsFinance, government, retail, health, manufacturing, utilities, education, construction
Competitors with the Highest Revenue in the Americas (in Alphabetical Order)Accenture, AT&T Cybersecurity, Deloitte, EY, eSentire, IBM, KPMG, Leidos, Lumen, NTT, PwC, Telefónica Tech, Trustwave, Verizon
Other Notable Competitors (in Alphabetical Order)Atlas Cybersecurity, Booz Allen Hamilton, Cipher, Clone Systems, Cydere, Digaware, Deutsche Telekom, DXC, High Wire Networks, ISH Tecnologia, Kaspersky, Nusprie, Optiv, Orange Cybersecurity, Scitum, SecurityHQ, SilverSky, SISAP, Valeo Networks, Wipro
Distribution StructureIndirect resellers, service providers, direct sales
Notable Acquisitions and MergersMC² Security Fund acquired Trustwave; Herjavec Group and Fistech Group merged into Cydere; Accenture acquired Openmind and Innoteq; Lumen sold its LATAM business to Stonepeak; Telefónica Tech acquired BE-terna and Incremental

Key Competitors

  • Accenture
  • AT&T
  • Atlas Cybersecurity
  • Booz Allen Hamilton
  • Cipher
  • Clone Systems
  • Cyderes
  • Deloitte
  • DXC
  • eSentire
  • EY
  • High Wire Networks
  • IBM
  • KPMG
  • Leidos
  • Lumen
  • NTT
  • Nuspire
  • Optiv
  • PwC
  • Secureworks
  • SecurityHQ
  • SilverSky
  • Trustwave
  • Valeo Networks
  • Verizon
  • Wipro
  • Accenture
  • AT&T
  • Cipher
  • Deloitte
  • Deutsche Telekom
  • Digiare
  • DXC
  • EY
  • IBM
  • ISH Tecnología
  • Kaspersky
  • KPMG
  • Lumen
  • PwC
  • Scitum
  • SISAP
  • Telefónica Tech

Why is it Increasingly Difficult to Grow?

The Strategic Imperative 8™

The Impact of the Top 3 Strategic Imperatives on the Americas Managed Security Services Industry

Definitions and Overview

Scope of Analysis

Competitive Environment

Key Competitors

Commonly Used Cybersecurity Terms

Commonly Used Cybersecurity Terms (continued)

Growth Metrics

Growth Drivers

Growth Restraints

Forecast Considerations

Revenue Forecast

Revenue Forecast by Region

Revenue Forecast by Industry Vertical

Revenue Forecast by Company Size

Revenue Forecast Analysis

Revenue Forecast Analysis (continued)

Pricing Trends and Forecast Analysis

Types of MSSPs and Projected Revenue Share

Revenue Share Analysis

Growth Metrics

Revenue Forecast

Revenue Forecast Analysis

Growth Metrics

Revenue Forecast

Revenue Forecast Analysis

Growth Opportunity 1: Improving the Functionality of Security Operations Platforms

Growth Opportunity 1: Improving the Functionality of Security Operations Platforms (continued)

Growth Opportunity 2: Cyber Awareness

Growth Opportunity 2: Cyber Awareness (continued)

Growth Opportunity 3: Vertical-Specific Security Products and Services

Growth Opportunity 3: Vertical-Specific Security Products and Services (continued)

Growth Opportunity 4: Offering the Right Mix of Managed and Professional Security Services

Growth Opportunity 4: Offering the Right Mix of Managed and Professional Security Services (continued)

Growth Opportunity 5: Latin American Expansion

Growth Opportunity 5: Latin American Expansion (continued)

Things to Consider Before Choosing to Partner with an MSSP

Trends for MSS in the Americas throughout 2024

MSSPs and Security Maturity

Budget and Return on Investment

The Role of Providers in Cybersecurity

Security Service Solutions in Use

Security Maturity is More Than Technology, Tools, and Controls

Best Practices Recognition

Frost Radar

Benefits and Impacts of Growth Opportunities

Next Steps

Take the Next Step

List of Exhibits

Legal Disclaimer

List of Figures
  • Managed Security Services: Growth Metrics, Americas, 2023
  • Managed Security Services: Growth Drivers, Americas, 2024–2026
  • Managed Security Services: Growth Restraints, Americas, 2024–2026
  • Managed Security Services: Revenue Forecast, Americas, 2020–2026
  • Managed Security Services: Revenue Forecast by Region, Americas, 2020–2026
  • Managed Security Services: Revenue Forecast by Industry Vertical, Americas, 2020–2026
  • Managed Security Services: Revenue Forecast by Company Size, Americas, 2020–2026
  • Managed Security Services: Revenue Share, Americas, 2024–2026
  • Managed Security Services: Growth Metrics, North America, 2023
  • Managed Security Services: Revenue Forecast, North America, 2020–2026
  • Managed Security Services: Growth Metrics, Latin America, 2023
  • Managed Security Services: Revenue Forecast, Latin America, 2020–2026
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The Americas managed security services industry continues to grow steadily, despite its maturity. Current strategic imperatives, global trends, and organizational needs continue to provide excellent conditions for MSSPs to succeed. These factors include the shortage of cybersecurity personnel, the rapid evolution of the threat landscape, the increased costs of cyber incidents, the ubiquity of hybrid and multicloud environments that are harder to effectively secure, and the escalation of the geopolitical conflicts. MSSPs provide their own teams of cybersecurity experts and a wide portfolio of advanced security tools to address even the most varied use cases, and help organizations increase their cyber resilience, improve their security maturity, and implement the most complex cybersecurity strategies or deployments. Leading MSSPs have developed their own security operations platforms to rival MDR providers and fight for their share of the fiercely competitive managed security services market. They have improved and extended their portfolios with advanced security services, assessments, consulting engagements, and more to support organizations at every stage of their security maturity journey. North America and Latin America are regions with different needs, and while their security awareness and service adoption levels vary significantly, security providers will have to find ways of delivering what organizations need. With more than 200 competitors and revenue exceeding $14 billion across the Americas, managed security services is a behemoth of the cybersecurity industry. Author: Lucas Ferreyra
More Information
Deliverable Type Market Research
Author Lucas Ferreyra
Industries Aerospace, Defence and Security
No Index No
Is Prebook No
Keyword 1 Cloud Security & Hybrid It Protection
Keyword 2 Cybersecurity Skills Shortage Solutions
Keyword 3 Managed Detection & Response
List of Charts and Figures Managed Security Services: Growth Metrics, Americas, 2023~ Managed Security Services: Growth Drivers, Americas, 2024–2026~ Managed Security Services: Growth Restraints, Americas, 2024–2026~ Managed Security Services: Revenue Forecast, Americas, 2020–2026~ Managed Security Services: Revenue Forecast by Region, Americas, 2020–2026~ Managed Security Services: Revenue Forecast by Industry Vertical, Americas, 2020–2026~ Managed Security Services: Revenue Forecast by Company Size, Americas, 2020–2026~ Managed Security Services: Revenue Share, Americas, 2024–2026~ Managed Security Services: Growth Metrics, North America, 2023~ Managed Security Services: Revenue Forecast, North America, 2020–2026~ Managed Security Services: Growth Metrics, Latin America, 2023~ Managed Security Services: Revenue Forecast, Latin America, 2020–2026~
Podcast No
Predecessor K7ED-01-00-00-00
WIP Number K994-01-00-00-00