frost & sullivan analysis on the global managed security services market
TRANSCRIPT
Analysis of the Global Managed Security Services Market
The Shift to Security Outsourcing is Driving the MarketThe Shift to Security Outsourcing is Driving the Market
M8AA-16January 2013
Contents
Section Slide Numbers
Executive Summary 6
Market Overview 10
Total MSS Market
• External Challenges: Drivers and Restraints 20
• Forecast and Trends 29
• Market Share and Competitive Analysis 37
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IT Security Segment Breakdown 49
Physical Security Segment Breakdown 56
Asia-Pacific Breakdown 63
Europe Breakdown 71
Latin America Breakdown 79
The Middle East and Africa Breakdown 87
North America Breakdown 95
Country Analysis -
• Australia Analysis 103
Contents (continued)
Section Slide Numbers
• Austria Analysis 106
• Belgium Analysis 109
• Brazil Analysis 112
• Canada Analysis 115
• France Analysis 118
• Germany Analysis 121
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• India Analysis 124
• Indonesia Analysis 127
• Italy Analysis 130
• Malaysia analysis 133
• Russia Analysis 136
• Saudi Arabia Analysis 139
• Singapore Analysis 142
• South Africa Analysis 145
• South Korea Analysis 148
Contents (continued)
Section Slide Numbers
• Spain Analysis 151
• Switzerland Analysis 154
• Thailand Analysis 157
• Turkey Analysis 160
• The United Arab Emirates Analysis 163
• The United Kingdom Analysis 166
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• The United States Analysis 169
The Last Word 172
Appendix 175
Executive Summary
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Executive Summary
Executive Summary
• Over the last decade, security has risen in importance and has become a core consideration for both commercial and government organisations.
• North America and Europe have driven the adoption of security technologies, especially the concept of outsourcing security provision to managed security service providers (MSSPs).
• The physical security market will demonstrate steady growth throughout the forecast period as organisations invest in technologies to protect their assets and people. Additionally, governments will continue to make significant investments in security systems and solutions
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to protect citizen welfare.
• The integration of existing systems and infrastructure with new technologies will be required over the next ten years.
• IT security will exhibit strong growth over the forecast period. Increasingly complex threats are driving many organisations to ensure security; however, most of them do not have the internal capability to protect their networks.
• The physical security services market generated a revenue of $54.97 billion in 2011, and will reach $103.53 billion in 2021; the IT managed security services market’s revenue will increase to $35.57 billion in 2021, from $6.67 billion in 2011. Source: Frost & Sullivan.
Executive Summary—Market Engineering Measurements
Market Stage
Growth
Market Expenditure
$61.64 B
Market Size for Last Year of Study Period
$139.10 B
Total Managed Security Services Market: Global, 2011
Market Overview
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(2011) (2021)
Compound Annual Growth Rate
8.5%
(CAGR, 2011–2021)
Customer Price Sensitivity
6
(scale:1 [Low] to 10 [High])
Degree of Technical Change
8
(scale:1 [Low] to 10 [High])
For a tabular version click here.Stable IncreasingDecreasing
Note: All figures are rounded. The base year is 2011. Source: Frost & Sullivan analysis.
Executive Summary—CEO’s Perspective
2The IT MSS market will grow at a faster rate than its physical security services counterpart.
1Physical security will remain the greatest expenditure in the Managed Security Services (MSS) market.
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3The banking and finance and the commercial markets will remain the key adopters of security services.
4Managed/monitoring services will be the main requirement in the IT MSS market.
5North America and Europe will remain the largest markets, with continued growth in Asia-Pacific.
Source: Frost & Sullivan analysis.
Market Overview
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Market Overview
Market Overview—Definitions
The global MSS market is split into two distinct segments - physical and IT.
• Physical security continues to be a priority for both private and government organisations. From a
private perspective, most organisations will invest in solutions that help to deter any attack,
incident or criminal activity against them. Government organisations will further utilise security
solutions to ensure safety and security for citizens. Growth in the global security market continues
to rise as an increasing number of countries are investing in better technologies to ensure the
physical security of assets and people. This will drive the MSS market – either through the supply
of products or systems, or through installation, maintenance and operation.
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of products or systems, or through installation, maintenance and operation.
• The number of cyber and virtual attacks has continued to increase over the last decade. Both
private and government organisations have come under attack, driving information security to
become a priority. As a result, many organisations are looking at MSSPs to ensure that their IT
systems are secured and resilient against attacks and potential breaches. Awareness regarding
the damage that can be caused through a breach in IT security, both through loss of sensitive data
and manipulation of systems, is on the rise.
Source: Frost & Sullivan analysis.
Market Overview—Segmentation
The global MSS market is broken down into two service segments - physical security and ITsecurity. The sub-segments are listed below.
• Physical Security• Products• Installation• Maintenance• Operation
• IT Security
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Source: Frost & Sullivan analysis.
• IT Security• Managed/Monitoring Services• Cloud-based Services• Consulting Services
These will be further broken down into six market segments, as follows:• Residential• Commercial• Industrial• Government/Critical infrastructure protection (CIP)• Mass Transport• Banking and Finance
Market Overview—Segmentation (continued)
Total MSS Market: Service Segmentation, Global, 2011
MSS
Information SecurityPhysical Security
Managed/Monitoring Services
Consulting Services
Cloud-based Services
Firewall Firewall
Security Consulting
Products and Services Installation Maintenance Operation
Surveillance
Access
Control
Physical
Implement-
ation of
systems
throughout
Annual
Servicing
Technical
Remote Monitoring
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Source: Frost & Sullivan analysis.
IDS/IPS
Content FilteringContent Filtering
Identity Management
SIEM/Log Management
Firewall
IDS/IPS
Content Filtering
Identity Management
Consulting
Vulnerability Testing
Penetration Testing
Video Surveillance as a Service
(VSaaS)
Control
Intrusion
Detection
throughout
the
Required
Area/Buildi
ng
Technical
Updates
Fault Repair
Integration
with
Existing
Systems
Market Segments Covered:
Residential Commercial Industrial
Government/CIP Mass Transport
Banking and Finance
Remote
Maintenance
Fire
Detection
Banking and FinanceGovernment/CIP
IndustrialCommercial
Market Segments Covered:
Physical IT
Storage
Others
Note: Others includes Transportation, Education, Hospitality, and Utilities
Market Overview - Definitions (Physical Security)
Products and Services
• Surveillance: This includes analogue and IP cameras and management software.
• Access Control: This includes electronic keypads, electronic token systems, biometric systems and time and attendance systems. The study takes into account only electronic access control equipment and does not consider purely mechanical systems.
• Physical IT Storage: This includes network video recorders and digital video recorders.
• Intrusion Detection: This includes the various types of sensors used to warn against intrusion of unauthorised persons, as well as the associated control panels, keypads and accessories.
• Fire Detection: This includes sensors and alarms that detect and warn against fire.
• Risk assessment, auditing, consulting, design and project management are also included.
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• Risk assessment, auditing, consulting, design and project management are also included.
Installation
• Installation includes the deployment of security systems in a premises or area and the integration of new and existing systems.
Maintenance
• Ordinary maintenance and on-site repair of systems: This includes fault repair, servicing and upgrades.
• Remote maintenance: This includes system maintenance through an off-site location and the health check of remote systems.
Operation
• Remote monitoring: This involves outsourcing the monitoring of security systems to MSSPs.
• SaaS/VSaaS: This includes audio/video/alarm monitoring and remote system management.
Source: Frost & Sullivan analysis.
Market Overview—Definitions (IT Security)
Managed/Monitoring Services
• These services detect and prevent threats at a client’s location by managing, monitoring and maintaining network security on customer premises equipment (CPE). This is done through a security operations centre (SOC), a network operations centre (NOC) or dedicated on-site personnel. Monitoring may occur in real-time or at periodic intervals.
• The device management and network monitoring services covered in this study include the following:
• Firewalls, Internet protocol security (IPSec), secure sockets layer (SSL) and virtual private networks (VPNs), which are not tracked separately because they are usually incorporated into firewalls, IDS/IPS, antivirus/antispyware, content filtering, unified threat management (UTM), data
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firewalls, IDS/IPS, antivirus/antispyware, content filtering, unified threat management (UTM), data loss prevention (DLP) and identity access and management methods such as tokens, smart cards, biometrics, personal identification numbers (PINs) and pass codes
Cloud-based services
• These services involve a cloud-based model in which the security technology is managed and delivered by the service provider with no acquisition costs for the customer. The customer can save on capital expenditure and also leverage the functions of the security equipment. In addition, the customer benefits from a monthly subscription of the total solution that is delivered remotely.
• The cloud-based security services covered in this study are as follows:
• Firewall IPSec, IDS/IPS, content filtering, identity and access management methods such as tokens, smart cards, biometrics, PINs and pass codes, security information, event management and log management
Source: Frost & Sullivan analysis.
Market Overview—Definitions (IT Security continued)
Consulting Services
• Consulting, or professional, services provide diagnostic and forensic assessments that are used to determine the security of a customer’s IT infrastructure. Assessment results are also used for consultations concerning architecture and policy design or implementation for risk mitigation in a corporate network.
• Assessment services include the following:
o Vulnerability assessment—Vulnerability assessment involves checking for vulnerabilities in the critical software and hardware installed in a network - this can be done in real-time, or periodically, and can be automated or non-automated.
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be automated or non-automated.
o Penetration testing—Penetration testing involves assessing the resilience of a network using various procedures and tools, which can be automated or non-automated.
o Security consulting—Security consulting involves the thorough testing of a customer’s needs against the existing architecture, post which security policies and strategies to improve the same are drafted.
Source: Frost & Sullivan analysis.
Countries Covered:
1. Australia2. Austria3. Belgium4. Brazil5. Canada6. France7. Germany8. India9. Indonesia10. Italy
Geographic Scope
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10. Italy11. Malaysia12. Russia13. Saudi Arabia14. Singapore15. South Africa16. South Korea17. Spain18. Switzerland19. Thailand20. Turkey21. The United Arab Emirates22. The United Kingdom23. The United States Source: Frost & Sullivan analysis.
N.B. The sum of the revenue of the geographies does not add up to to the total Global MSS revenues.
Market Overview—Key Questions This Study Will Answer
Is the market growing? How long will it continue to grow, and at what rate?
Which are the largest service segments to be targeted?
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Which are the segments experiencing the most growth?
Which countries present strong opportunities and favourable conditions for market entry?
Which are the most competitive market participants?
Source: Frost & Sullivan analysis.
Research Team
Anthony Leather Research AnalystAerospace, Defence, and Security
Lead Analyst
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Research Director
Balaji SrimoolanathanProgramme ManagerAerospace, Defence, and Security
Strategic Review Committee Leader
Steven WebbVice PresidentAerospace, Defence, and Security