Middle East Managed & Professional Security Services Market Research Report: Forecast (2021-2026)
Market Definition
Managed & Professional Security Services, outsourced to a third-party vendor, provide organizations with 24x7 access to security experts that help them protect their critical data from ever-evolving threats & information security breaches. These services include intrusion detection, managed firewall, vulnerability scanning, virtual private network, and anti-virus solutions. They also help reduce the burden of enterprises to hire, train, & retain in-house security personnel to maintain an acceptable security posture.
Market Insights
The Middle East Managed & Professional Security Services Market is projected to grow at a CAGR of around 15% during the forecast period, i.e., 2021-26. The growth of the market attributes primarily to the increasing demand for security services in various end-user verticals like finance, IT & Telecom, oil & gas, etc. The lack of skilled security specialists and high capital requirements have been the most prominent challenges for businesses to expand their in-house security teams. It has shifted their inclination toward adopting managed & professional security services that offer experienced cybersecurity specialists, access to cutting-edge technologies, and security insights attained from organizations with unique cyber risk profiles.
Managed & professional security services include several benefits, such as broad security protection, cost-effectiveness, continuous security monitors. The mounting trend of BYOD (Bring-Your-Own-Device) and the surging number of cyber activities are other crucial factors driving the market. Moreover, the burgeoning need for advanced threat protection owing to surging instances of cyber-attacks shall also fuel the demand for managed & professional security services and, in turn, contribute to the overall market growth in the coming years.
| Report Coverage | Details |
|---|---|
| Study Period | Historical Data: 2016-19 |
| Base Year: 2020 | |
| Forecast Period: 2021-26 | |
| CAGR (2021-2026) | 15% |
| Countries Covered | UAE, Saudi Arabia, Qatar, Turkey, Israel, Kuwait, Bahrain, Oman, Egypt |
| Key Companies Profiled | IBM, Cisco, BIOS Middle East Group, Huawei, Gulf Business Machines (GBM), Ras Infotech, AGC Networks, Data TAAG Technologies Middle East LLC, VRS Technologies LLC, Mindfire Technologies LLC, Chipco Solutions LLC, Others |
| Unit Denominations | USD Million/Billion |
Impact of Covid-19 on the Middle East Managed & Professional Security Services Market
In 2020, the Covid-19 pandemic resulted in the imposition of lockdown & stringent movement restrictions across the Middle East, which forced organizations to change the way they used to work and adopt the work-from-home policy. It, in turn, propelled the need for remote monitoring & management of IT security services by third-party providers. Also, service providers became well prepared to provide resources as per the varying market conditions.
Moreover, the lockdown imposition also affected traveling and forced organizations to reconsider their operational choices. The increasing trend of work-from-home culture and the burgeoning usage of unprotected internet connectivity & advanced technologies like the Cloud resulted in significant vulnerabilities of businesses in the finance, IT, telecom, and oil & gas sectors. In addition, the healthcare industry, followed by finance, became the most attractive target for hackers, which fueled the adoption of managed & professional security services among banks & hospitals/clinics to secure their infrastructure from cyberattacks.
Hence, the managed & professional security services market in the Middle East witnessed a hike during the pandemic. The leading market players like IBM & Cisco are still providing these services to their respective clients. However, the acquisition of new clients, especially in Small & Mid-Sized Enterprises (SMEs), has been a challenging factor for the market growth since SMEs do not have the necessary budget & resources to adopt these services. However, the demand for managed & professional security services is significantly increasing in large enterprises that deal with critical data across multiple locations.
Market Segmentation
By End-Users:
Of all End-Users, the BFSI (Banking, Financial Services, & Insurance) sector holds the largest share in the Middle East Managed & Professional Security Services Market. Organizations operating in the BFSI sector deal with a large volume of confidential data, which surges the need for high-security solutions for 24x7 security monitoring, which is further beneficial in offering quick response & remedies in case of a security breach.
Banks & financial institutions comprise monetary data & other sensitive information like customers’ banking credentials, assets, contact details, etc., which, if leaked, can cause massive loss to both customers & these organizations. Hence, the need for adopting managed security services is significantly high in the BFSI sector.
Besides, the BFSI sector must comply with multiple stringent regulations, the violation of which can charge them a high amount of penalties. Hence, to avoid this, companies working in the BFSI sector need to adopt managed & professional security services to offer services for ultra-low latency trading, risk management solutions, and infrastructure connectivity.
Moreover, due to the sensitive nature of the BFSI industry, there is a high demand for data encryption & secure backup solutions to protect critical data, reduce downtime, & promote business continuity. Hence, the managed & professional security services market is increasing significantly in the Middle East's BFSI industry.
On the other hand, the healthcare industry is projected to witness the fastest market growth in the coming years due to the increasing usage of electronic devices & online platforms in hospitals, clinics, etc., to save costs, improve patient safety, & enhance efficiency. The healthcare sector deals with a large volume of patient data, which nowadays is a soft target for cyber attackers. It, in turn, is fueling the need for managed & professional security services across the sector to protect the critical information of patients.
By Enterprise Size:
The high spending capacity of large enterprises for security solutions is the prime aspect that shall lead them to acquire the largest market share during 2021-26. Large enterprises deal with storing & sharing large data volumes through online platforms, which makes them highly vulnerable to cyberattacks.
On the other hand, the demand for managed & professional security services in Small & Mid-Sized Enterprises (SMEs) is also expected to surge substantially during the forecast period. It attributes principally to their increasing expansion with rapid digitalization, i.e., driving the need for managed security solutions to protect their critical data. In addition to this, rising awareness regarding different security threats among these organizations is another crucial aspect encouraging the adoption of Managed & Professional Security Services and fueling the overall market growth.
Key Trends in the Middle East Managed & Professional Security Services Market
SMEs & Large Enterprises are extensively adopting Cloud technologies on account of their various benefits, including cost-effectiveness & reduced turnaround time. Most companies are inclined increasingly toward adopting cloud technologies since they also offer dynamic access to data. Besides, the increasing Cloud usage is soaring the chances of data breaches & cyberattacks, owing to which companies have to compromise for hefty amounts of money.
Hence, the rapidly increasing demand for managed & professional security solutions among most organizations owes to various features like encryption, malware detection & prevention, security policy enforcement, etc., provided by these services. Thus, the increasing adoption of cloud technology among organizations is expected to provide lucrative growth opportunities for the market in the years to come.
Country Landscape
Of all countries in the Middle East, UAE acquires the largest share in the Managed & Professional Security Services Market. It owes to the mounting adoption of digital technologies by the government as well as businesses in the country, i.e., surging the incidences of cyberattacks and, in turn, fueling the need for managed & professional security services.
Moreover, like other Gulf countries, UAE is also one of the soft targets for cyberattacks with political motivations. There is a burgeoning trend of attackers using malicious software to obtain confidential state-owned information and targeting critical infrastructure. The oil & gas sector, educational institutes, and government entities across the UAE are the most attractive targets for attackers.
Market Dynamics
Key Driver: Continued Trend of Remote Working and Bring Your Own Devices (BYOD)
With the rapid digitalization & integration of advanced technologies into different business operations, companies have adopted BYOD & Work-from-Home (WFH) policies. Employees working from home use private computers and networks like mobile hotspots or broadband that are more susceptible to cyberattacks & other threats since they are unknown to organizations. Hence, the increasing usage of personal devices connected to unprotected networks is fueling risks of malware attacks & data breaches. As a result, the demand for managed & professional security services is significantly rising among organizations that follow BYOD & WFH policies.
Possible Growth Challenge: Lack of Trust among Organizations in Giving Full System Control to Third-Party Security Service Providers
Most organizations choose to opt for Managed & professional Security services when they have budget constraints for in-house security experts. Outsourcing security operations to a third-party service provider involves many challenges, including reliability, round-the-clock support, and up-to-date cybersecurity technology. Since service providers hold sensitive data of many businesses, i.e., highly prone to complex attacks, it can be a restraining factor for companies to hand over their data to these service providers and hinder the Middle East Managed & Professional Security Services Market growth during 2021-26.
Competitive Landscape
According to MarkNtel Advisors, the leading players in the Middle East Managed & Professional Security Services Market are IBM, Cisco, BIOS Middle East Group, Huawei, Gulf Business Machines (GBM), Ras Infotech, AGC Networks, Data TAAG Technologies Middle East LLC, VRS Technologies LLC, Mindfire Technologies LLC, Chipco Solutions LLC, Others.
Key Questions Answered in the Market Research Report:
Market Outlook, Segmentation, and Statistics
Frequently Asked Questions
A. The Middle East Managed & Professional Security Services Market is forecast to grow at a CAGR of around 15% during 2021-26.
A. BFSI Industry holds the largest share of Middle East Managed & Professional Security Services Market and is projected to maintain its significant market share.
A. Rising usage of advance technologies like cloud and mounting trend of BYOD & WFH are the key factors projected to drive the Middle East Managed & Professional Security Services Market during 2021-26.
A. In the coming years, the Middle East Managed & Professional Security Services Market is expecting significant growth opportunities owing to the continued work-from-home & BYOD trends.
