The global Security-as-a-Service market is projected to expand at a CAGR of 17.1 percent during 2016-2026, Persistence Market Research predicts. The market size would be $ 3.3 billion in value by the end of 2016.
Telecom and IT remains the largest industry for SaaS.
Healthcare, retail and consumer goods, and BFSI are the other prominent industries driving the global SaaS market.
Cloud computing is being merged in the global finance industry, but protection of electronic transactions has necessitated the need for amalgamating a Security-as-a-Service business model.
By the end of the forecast period, Healthcare and BFSI industries will account for a market value share of 20.3 percent and 17.7 percent respectively, with the global IT & Telecom sector accounting for a revenue share of nearly 30 percent, the research firm said.
Competitive backdrop & enterprise-based market segmentation
Providing security services to large enterprises remains a lucrative revenue-generation business model for leading players.
By 2026, large enterprises such as conglomerates or multinational corporations will procure about 50 percent share of global market value, higher than the collective revenue share of small and medium enterprises.
Meanwhile, companies in the global Security-as-a-Service market have transformed from being service providers, software developers, and security platform providers to managed security service providers and integrators of Security-as-a-Service for client enterprises.
Some of the leading market players profiled in this report include Intel Security, Oracle Corporation, Cisco Systems, Gemalto NV, Qualys, Alert Logic, Trend Micro, Proofpoint, Zscaler, and Okta.
The need for subscription-based security keeps surging
As a countermeasure to cyber threats, business operations need to be integrated with security services that safeguard the companies, not just at the “firewall” level, but at an out-and-out networking parameter.
Fusing a security-based business model in an existing and complicated corporate structure can be really formidable for companies, considering the added expenditure of developing an individual security service.
Additionally, companies are not looking to further implicate their operational accountabilities by gaining a total ownership of such developed security services. Ergo, the growth of the global market for Security-as-a-Service will be primarily driven by increasing partnerships of companies with service providers offering subscription-based security.
North America to account for over 35 percent of global revenues by 2026
North America’s robust Telecom and IT infrastructure aids the extension of its Security-as-a-Service market, which is anticipated to garner revenues worth $ 8 billion by 2026-end.
With an estimated global market revenue share of 36.4 percent in 2016, North America’s Security-as-a-Service market will account for nearly half of the global market by the end of 2026, growing at the fastest CAGR among all the regions.