Security Operation Center as a Service (SoCaaS) Market Size - By Service Type (Prevention Services, Detection Services, Incident Response Services), Threat Type, Offering, Organization Size, Application, Industry Vertical & Global Forecast, 2023 - 2032

Security Operation Center as a Service (SoCaaS) Market Size - By Service Type (Prevention Services, Detection Services, Incident Response Services), Threat Type, Offering, Organization Size, Application, Industry Vertical & Global Forecast, 2023 - 2032

SOC as a Service Market Size

Security Operation Center as a Service Market size was valued at USD 5.8 billion in 2022 and is estimated to register a CAGR of over 11% between 2023 and 2032. The escalating frequency of cyberattacks is driving the demand for Security Operation Center (SOC) as a service. With the rise in cyber threats, businesses are seeking specialized security solutions.

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According to the Government of United Kingdom, in a cyber security breaches survey, 38% of micro & small businesses in the UK experienced a cyberattack in 2022. Among these businesses, 82% reported phishing attempts, while 25% faced more advanced attacks such as denial of service, malware, or ransomware attacks. This growing need for robust cybersecurity strategies in the face of increasing cyberattacks is fueling the demand for SOC as a service, making it a crucial solution for businesses worldwide.
 

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The increasing demand for applications, such as cybersecurity monitoring, incident response, threat intelligence, compliance management, vulnerability management, log analysis, phishing detection, cloud security, endpoint security, and network security, is driving the security operation center as a service market growth. As cyber threats become more sophisticated & prevalent, businesses across various sectors will recognize the importance of robust security measures. SOC as a service providers offer specialized expertise, real-time monitoring, and immediate response capabilities, thereby meeting the growing need for comprehensive cybersecurity solutions. This rising demand is propelling the market expansion, ensuring the digital safety of organizations.

The data privacy concerns in the SOC as a service market are increasing due to the apprehensions about sharing sensitive information with external service providers. Businesses, especially those dealing with confidential customer data or intellectual property, worry about potential breaches and unauthorized access. Compliance with the data protection regulations such as the GDPR in Europe adds to the complexity. SOC service providers must assure clients of robust security measures, transparent data-handling practices, and the strict adherence to applicable laws to alleviate these concerns and foster trust among them.

COVID-19 Impact

The COVID-19 pandemic positively impacted the security operation center as a service market. The widespread shift to remote work increased the vulnerability of organizations, elevating the need for robust cybersecurity measures. As a result, businesses increasingly turned to SOC services to secure their dispersed networks and protect sensitive data. The heightened awareness of cybersecurity risks during the pandemic accelerated the adoption of SOC solutions, thereby driving market size. The flexibility and scalability of the SOC as a service offering proved vital for those businesses adapting to the evolving digital landscape.

SOC as a Service Market Trends

AI-driven SOC services are fueling the SOC as a service industry growth by revolutionizing threat detection and response. These services leverage advanced Artificial Intelligence (AI) algorithms to analyze vast datasets in real-time, thereby swiftly identifying and mitigating cyber threats. For instance, in April 2022, Vectra AI, a company known for AI-driven threat detection & response, launched a cutting-edge SOC as a Service in collaboration with Neutron Engineering and Vectra AI, Inc. This collaboration melds Vectra’s top-tier cyber detection tools with Neutron’s inventive engineering & service delivery expertise. As businesses increasingly prioritize proactive cybersecurity measures, the demand for AI-driven SOC services will increase, thereby significantly propelling market expansion.

The widespread adoption of the remote work model is driving the SOC as a service market revenue. With employees working from diverse locations, the attack area for cyber threats has expanded significantly. Companies are turning to SOC as a service to ensure continuous monitoring, threat detection, and rapid response capabilities. These services provide remote businesses with scalable & specialized security solutions, which help in safeguarding their networks and data; this is also driving the demand for SOC as a service in the evolving digital landscape.

SOC as a Service Market Analysis

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Based on organization size, the large enterprises segment dominated around USD 1.7 million revenue in 2022. Collaborations with innovative technology providers and cybersecurity experts are allowing these enterprises to expand their capabilities. For instance, in July 2023, LogRhythm entered into a collaboration with Infoline Tec Group Berhad, a trusted IT infrastructure & cybersecurity services provider. Through this partnership, Infoline will introduce its Security Operations Centre (SOC) in Malaysia by integrating LogRhythm's SIEM technology. This venture aims to enhance cybersecurity services, providing organizations with advanced solutions for threat detection & response within the region.

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Based on industry vertical, the BFSI segment accounted for 25% of the security operation center as a service market share in 2022. The monitoring of financial transactions is a vital aspect of the SOC as a service implementation within the BFSI sector. The SOC as a service platform continuously analyzes financial transactions in real-time, identifying unusual patterns or discrepancies that could indicate fraud or unauthorized activities. By swiftly detecting anomalies, such as multiple transactions from different locations, irregular amounts, or unusual timings, SOC as a service ensures the integrity of financial operations. This proactive monitoring not only prevents financial losses but also preserves customer trust, thereby safeguarding the reputation of BFSI institutions in an increasingly digital & interconnected financial landscape.

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North America SOC as a service market held over 35% of the revenue share in 2022. North America's rapid adoption of cutting-edge technologies including Artificial Intelligence (AI), Machine Learning (ML), and big data analytics is fueling the market growth. Businesses in the region leverage these technologies to enhance threat detection capabilities, providing real-time monitoring and response. This advanced technological landscape fosters a conducive environment for SOC service providers to innovate and offer sophisticated solutions, thereby attracting those enterprises seeking state-of-the-art cybersecurity measures to safeguard their digital assets in an evolving threat landscape.

SOC as a Service Market Share

The major companies operating in the SOC as a service industry are

• AT&T Inc.
• Atos SE
• Capgemini SE
• Cloudflare
• ESDS Software Solution Pvt. Ltd.
• Fortinet Inc.
• Fujitsu Ltd.
• Lumen Technologies Inc.
• NTT Security Ltd.
• Verizon Communications Inc.

NTT Security Ltd. dominates the market with a prominent revenue share of over 5%. The leading SOC as a service providers leverage AI for advanced threat detection and response, enhancing the overall security posture. Through strategic partnerships with technology firms and cybersecurity experts, these providers ensure seamless integration of AI-driven tools, thereby fostering trust among clients and assisting in the building of a clientele.

SOC as a Service Industry News

• In February 2023, Virtual Infosec Africa, in collaboration with LogRhythm, launched the Nextgen SIEM-SOC cybersecurity service, designed to safeguard the data of organizations against potential cyber threats & disruptions. This advanced service incorporates Artificial Intelligence (AI), enabling the detection & prevention of cyber threats while ensuring the protection of data for various organizations and institutions.

The security operation center as a service (SoCaaS) market research report includes in-depth coverage of the industry, with estimates & forecast in terms of revenue (USD billion) from 2018 to 2032, for the following segments

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Market, By Threat Type

• Advanced Persistent Threats (APTS)
• Insider threats
• Distributed Denial of Service (DDOS) attacks
• Malware & ransomware
• Phishing & social engineering attacks
• Others

Market, By Service Type

• Prevention service
• Detection service
• Incident response service

Market, By Offering

• Fully managed
• Co-managed

Market, By Organization Size

• Large enterprises
• SMEs

Market, By Application

• Network security
• Cloud security
• Endpoint security
• Application security
• Others

Market, By Industry Vertical

• BFSI
• Healthcare
• Government
• Manufacturing
• Energy & utilities
• IT & telecom
• Transportation & logistics
• Others

The above information has been provided for the following regions and countries

• North America
  • U.S.
  • Canada
• Europe
  • UK
  • Germany
  • France
  • Italy
  • Russia
  • Nordics
• Asia Pacific
  • China
  • India
  • Japan
  • South Korea
  • ANZ
  • Southeast Asia 
• Latin America
  • Brazil
  • Mexico
  • Argentina
• MEA
  • UAE
  • Saudi Arabia
  • South Africa

Frequently Asked Questions (FAQ)

What is the size of the SoCaaS market?

The market size of SOC as a Service (SoCaaS) reached USD 5.8 billion in 2022 and is estimated to witness over 11% CAGR from 2023 to 2032, due to the escalating frequency of cyberattacks worldwide.

How are large enterprises contributing to SOC as a Service industry growth?

The large enterprises organization size segment crossed USD 1.7 million in 2022, owing to rising collaborations with innovative technology providers and cybersecurity experts to expand capabilities.

What is the value of the North America Security Operation Center as a service market?

North America held over 35% of the market share in 2022, on account of the rapid adoption of cutting-edge technologies including artificial intelligence (AI), machine learning (ML), and big data analytics in the region. ?

Who are the leading SoCaaS providers?

Some of the major players operating in the market include AT&T Inc., Atos SE, Capgemini SE, Cloudflare, ESDS Software Solution Pvt. Ltd., Fortinet Inc., and Fujitsu Ltd.