Global SOC as a Service Market Size, Share, Statistics Analysis Report By Service Type (Prevention Services, Incident Response Services, Detection Services), By Offering (Fully Managed, Co-Managed), By Application (Endpoint Security, Network Security, Cloud Security, Application Security, Other Applications), By Enterprise Size (Small and Medium Sized Enterprises, Large Enterprises), By Industry Vertical (IT and Telecommunications, BFSI, Manufacturing, Healthcare, Energy and Utilities, Government, Other Industry Verticals), Region and Companies - Industry Segment Outlook, Market Assessment, Competition Scenario, Trends and Forecast 2024-2033

Report Overview

The Global SOC as a Service Market size is expected to be worth around USD 17.96 Billion By 2033, from USD 6.5 Billion in 2023, growing at a CAGR of 10.70% during the forecast period from 2024 to 2033. In 2023, North America held a dominant market position, capturing more than a 39.4% share, holding USD 2.56 Billion in revenue.

SOC as a Service (Security Operations Center as a Service) is a comprehensive, outsourced solution that provides businesses with security monitoring, incident response, and threat detection for their IT infrastructure. Rather than building and maintaining an in-house Security Operations Center (SOC), businesses can leverage a third-party service provider to handle the complex and resource-intensive task of cybersecurity.

These services typically include 24/7 monitoring, threat intelligence, log management, and incident analysis, which help organizations detect and respond to cyber threats in real-time. SOC as a Service offers businesses access to advanced security tools, skilled professionals, and expertise without the need to invest in expensive infrastructure and personnel.

This model is becoming increasingly popular due to the rising frequency and sophistication of cyberattacks, coupled with the growing complexity of modern IT environments. By outsourcing their security operations to specialized providers, companies can enhance their security posture, reduce the risk of data breaches, and improve operational efficiency.

The SOC as a Service market is experiencing significant growth due to the increasing need for robust cybersecurity solutions across various industries. As organizations face growing cyber threats and regulatory pressures, the demand for cost-effective and scalable security solutions like SOC as a Service is rising.

This growth is driven by the increasing adoption of cloud-based services, digital transformation efforts, and the growing recognition that outsourcing security operations offers both cost savings and enhanced protection.

SOC as a Service also addresses the skills shortage in cybersecurity. Many organizations, particularly small and medium-sized enterprises (SMEs), lack the resources to recruit and retain a team of cybersecurity experts. By opting for SOC as a Service, businesses gain access to a dedicated team of professionals who specialize in security monitoring and threat response.

Several factors are contributing to the rapid expansion of the SOC as a Service market. First and foremost is the rising frequency of cyberattacks, including ransomware, phishing, and advanced persistent threats (APTs).

As cybercriminals employ more sophisticated techniques, organizations are seeking advanced security solutions to safeguard their data and systems. SOC as a Service offers an efficient and effective way to monitor network traffic, identify vulnerabilities, and respond to security incidents promptly.

Additionally, the global shift toward digitalization and cloud adoption is fueling the need for SOC services. As businesses increasingly move their data and applications to the cloud, they face new security challenges. SOC as a Service is well-suited for cloud environments, providing scalable security monitoring and real-time threat detection that traditional in-house teams may struggle to manage.

The demand for SOC as a Service is expected to increase significantly due to the growing awareness of the importance of cybersecurity across various industries, including finance, healthcare, retail, and manufacturing.

High-profile data breaches and regulatory requirements, such as GDPR and HIPAA, have further amplified the need for continuous monitoring and threat management. Businesses are prioritizing cybersecurity as a critical component of their risk management strategies, and SOC as a Service offers a way to mitigate risks without the need for heavy upfront investments in hardware or personnel.

The scalability of SOC services makes them attractive to organizations of all sizes. SMEs, in particular, benefit from these services because they provide enterprise-level security at a fraction of the cost of building an in-house SOC. As remote work and digital operations become more mainstream, businesses are increasingly looking for ways to protect their distributed IT infrastructure, driving the demand for SOC as a Service.

The SOC as a Service market presents several growth opportunities, particularly in emerging markets where businesses are just beginning to adopt robust cybersecurity solutions. As cyber threats become more pervasive, organizations in developing regions are realizing the importance of proactive security measures. These businesses are more likely to adopt outsourced SOC solutions, providing a fertile ground for market expansion.

Moreover, the rise of artificial intelligence (AI) and machine learning (ML) in cybersecurity presents an opportunity to enhance the capabilities of SOC as a Service. AI and ML can help automate threat detection and incident response, enabling faster reaction times and reducing human error. Service providers that incorporate AI-powered security analytics into their offerings are poised to capture a larger market share.

Technological advancements are playing a key role in the evolution of SOC as a Service. Service providers are increasingly integrating AI, ML, and automation into their offerings, enabling faster detection of anomalies and more efficient responses to threats. These technologies allow SOC as a Service provider to handle large volumes of data and detect emerging threats in real-time, enhancing their ability to respond to sophisticated cyberattacks.

Another technological trend is the integration of threat intelligence feeds and advanced analytics, which improve the accuracy and timeliness of security insights. SOC providers are also incorporating cloud-native architectures, enabling them to offer scalable, flexible security solutions that can adapt to the growing complexity of IT environments.

Additionally, it is noted that 236.1 million ransomware attacks occurred globally in just the first half of 2022, underscoring the pressing need for effective SOCaaS solutions. Moreover, organizations leveraging SOCaaS benefit from significant improvements in their security operations.

Surveys indicate that 60% of users report enhanced incident response times, with an average reduction in incidents by 30% within the first year of implementation. This growth trajectory highlights how SOCaaS not only addresses immediate security needs but also aligns with long-term strategic objectives in cybersecurity management.

This sector accounts for a significant share of the overall market due to the increasing frequency of cyberattacks targeting financial institutions. For instance, it is estimated that financial services organizations experience over 300% more cyberattacks than other sectors.

Key Takeaways

• Market Growth: The global SOC as a Service market is expected to grow from USD 6.5 billion in 2023 to USD 17.96 billion by 2033, reflecting a strong CAGR of 10.70%.
• Dominant Service Type: Incident response services are the largest segment, accounting for 38.1% of the market share in 2023, driven by the increasing need for quick and effective responses to security incidents.
• Leading Offering: The co-managed offering leads the market with a 59.5% share, as organizations seek to leverage external expertise while maintaining some level of control over their security operations.
• Top Application: Endpoint security is the most widely adopted application, capturing 32.3% of the market, as organizations prioritize protecting devices from cyber threats.
• Enterprise Size: Large enterprises dominate the market, holding 64.8% of the share, due to their complex IT environments and higher cybersecurity needs.
• Prominent Industry Vertical: The BFSI sector is the largest adopter of SOC as a Service, with 23.6% of the market share, driven by the industry’s stringent security requirements and high-value data.
• Regional Leadership: North America holds the largest regional market share at 39.4%, owing to the region’s advanced cybersecurity infrastructure, high adoption rates of security solutions, and increasing cyber threats.

By Service Type

In 2023, the Incident Response Services segment held a dominant market position, capturing more than 38.1% of the SOC as a Service market share. This segment’s leadership can be attributed to the growing need for organizations to quickly detect, respond to, and recover from cybersecurity threats. As cyberattacks continue to grow in sophistication and frequency, businesses are increasingly focused on ensuring that they can mitigate the damage caused by these incidents.

Incident response services provide critical capabilities, such as rapid identification of breaches, containment of threats, and efficient recovery of systems and data, which is essential for minimizing downtime and reducing financial and reputational losses.

The demand for incident response services has surged due to the evolving threat landscape. Cybercriminals are constantly developing new tactics, and the ability to respond promptly is crucial. Many organizations lack the in-house resources or expertise to handle complex security incidents, which is why they turn to specialized service providers.

These services not only provide technical support but also offer strategic guidance to enhance an organization’s resilience against future attacks. As a result, businesses are allocating more of their cybersecurity budgets to this area, further fueling the growth of the incident response services segment.

Additionally, incident response services are becoming more integrated with other cybersecurity solutions, such as threat intelligence and continuous monitoring, to offer a more comprehensive defense mechanism. The rise of advanced persistent threats (APTs) and ransomware attacks has also pushed incident response services to the forefront.

These threats require real-time, expert intervention, something that dedicated response teams are well-positioned to provide. As a result, the incident response services segment is expected to continue dominating the market, particularly as cyber threats become more complex and organizations’ cybersecurity needs evolve.

By Offering

In 2023, the Co-Managed segment held a dominant market position, capturing more than 59.5% of the SOC as a Service market share. This leadership can be attributed to the growing preference for organizations to retain some control over their security operations while leveraging the expertise of managed security service providers (MSSPs).

Co-managed SOC services allow businesses to collaborate with external experts while still maintaining oversight, providing a balanced approach to managing security needs. This model has gained significant traction, particularly among medium to large enterprises, which may have established internal security teams but lack the resources or expertise to handle the full scope of modern cybersecurity threats.

The Co-Managed approach enables businesses to extend their security capabilities without completely outsourcing critical operations. Organizations typically handle routine monitoring, asset management, and internal compliance, while MSSPs take on more specialized functions, such as advanced threat detection, incident response, and 24/7 monitoring.

This hybrid model offers several advantages, including enhanced scalability, flexibility, and cost-efficiency, making it particularly attractive to companies looking to enhance their security posture without overburdening their internal teams.

Moreover, the Co-Managed model is highly suited for organizations with limited security personnel or budget constraints. By collaborating with MSSPs, businesses can access advanced tools and expertise that would otherwise be too costly or difficult to manage independently. As cyber threats become more complex, many companies are opting for a co-managed approach to strike a balance between internal control and external expertise, further driving the segment’s growth.

By Application

In 2023, the Endpoint Security segment held a dominant market position, capturing more than 32.3% of the SOC as a Service market share. This dominance is primarily driven by the increasing number of endpoints being used in organizations, which include desktops, laptops, mobile devices, and other connected IoT devices.

As organizations continue to adopt remote work policies and bring-your-own-device (BYOD) initiatives, the number of endpoints accessing corporate networks has skyrocketed. This trend has significantly expanded the attack surface, making endpoint security a top priority for businesses seeking to protect their networks from cyber threats.

Endpoint Security solutions play a crucial role in preventing malicious attacks, such as ransomware, phishing, and data breaches, by providing real-time protection and threat detection at the point where the device connects to the network.

With endpoints being one of the most vulnerable parts of an organization’s IT infrastructure, securing them is vital in reducing the risk of a cyberattack. SOC as Service platforms specializing in endpoint security provide businesses with advanced monitoring and threat intelligence capabilities, ensuring comprehensive protection for these devices.

The rise in sophisticated cyber threats, especially targeted at endpoint devices, further emphasizes the importance of this application. As hackers continue to exploit vulnerabilities in endpoints, businesses are increasingly relying on SOC as a Service provider to bolster their security strategies.

Endpoint Security solutions within the SOC as a Service model offer the flexibility to scale and adapt to changing threat landscapes, which is why this segment is leading the market. Additionally, many small and medium-sized enterprises (SMEs) with limited resources can benefit from the expertise of managed service providers, making endpoint security services even more accessible and essential.

By Enterprise Size

In 2023, the Large Enterprises segment held a dominant market position, capturing more than 64.8% of the SOC as a Service market share. This leadership can be attributed to the extensive cybersecurity needs of large organizations, which often operate on a global scale and handle huge amounts of more sensitive data.

These enterprises are primary targets for cyberattacks due to their size, the complexity of their IT infrastructure, and the high value of their data. As a result, they require robust and scalable cybersecurity solutions to monitor and protect their networks around the clock.

Large enterprises typically have more resources to allocate toward sophisticated security measures, including advanced SOC capabilities. They are also more likely to face complex compliance requirements, which makes SOC as a Service an attractive option for them.

These services help enterprises meet regulatory standards, such as GDPR or HIPAA, by providing continuous monitoring and threat detection, ensuring that sensitive data is kept secure and compliant with the law. Moreover, large enterprises often have multiple business units, departments, and offices spread across different regions, which increases the complexity of their security management.

SOC as a Service providers offer centralized monitoring and support, allowing these organizations to manage security across all their locations from a single platform. With security teams stretched thin, many large organizations are turning to SOC as a Service to enhance their cybersecurity capabilities while reducing the operational burden on internal teams.

By Industry Vertical

In 2023, the BFSI (Banking, Financial Services, and Insurance) segment held a dominant market position, capturing more than 23.6% of the SOC as a Service market share. This dominance can be largely attributed to the highly sensitive nature of financial data and the increasing sophistication of cyber threats targeting the sector.

Financial institutions handle vast amounts of personal and financial data, making them prime targets for hackers, cybercriminals, and fraudsters. To safeguard against data breaches, fraud, and ransomware attacks, BFSI companies are investing heavily in cybersecurity solutions, including SOC as a Service.

The BFSI sector is also heavily regulated, with stringent requirements regarding data protection, customer privacy, and financial transaction security. SOC as a Service providers help these organizations meet these compliance obligations by offering continuous monitoring, threat detection, and incident response services.

With the rise of digital banking, online transactions, and fintech innovations, the volume of cyber threats has significantly increased, making SOC services an essential part of a robust cybersecurity strategy. Moreover, the BFSI sector faces a growing need to protect against emerging threats such as insider threats, phishing attacks, and data theft.

SOC as a service solution offers the necessary tools and expertise to detect and respond to these threats in real time. Many financial institutions, especially smaller banks, and insurance companies, are opting for managed security services to gain access to the latest security technologies and expert support, without the need to build extensive in-house security teams.

Key Market Segments

By Service Type

• Prevention Services
• Incident Response Services
• Detection Services

By Offering

• Fully Managed
• Co-Managed

By Application

• Endpoint Security
• Network Security
• Cloud Security
• Application Security
• Other Applications

By Enterprise Size

• Small and Medium-Sized Enterprises
• Large Enterprises

By Industry Vertical

• IT and Telecommunications
• BFSI
• Manufacturing
• Healthcare
• Energy and Utilities
• Government
• Other Industry Verticals

Driving Factors

Growing Cybersecurity Threats and Increased Regulatory Requirements

The increasing frequency and sophistication of cyber threats are one of the key drivers propelling the growth of the SOC as a Service market. Organizations across industries are facing a surge in cyberattacks, such as ransomware, data breaches, and advanced persistent threats (APTs).

In response to these evolving threats, businesses are increasingly turning to Security Operations Centers (SOCs) as a Service to monitor, detect, and mitigate potential risks. SOC as a Service providers offer businesses access to 24/7 monitoring and security expertise without the need for large in-house teams.

Another significant factor driving market growth is the rising number of regulatory requirements surrounding data security and privacy. The implementation of stricter regulations, such as the GDPR in Europe and the CCPA in California, has forced organizations to prioritize cybersecurity efforts.

These regulations mandate businesses to implement robust data protection measures, including continuous security monitoring and incident response mechanisms. SOC as a Service offers an efficient and cost-effective way for organizations to meet these stringent compliance requirements by outsourcing security operations to specialized providers.

As the attack surface expands with digital transformation initiatives, cloud adoption, and remote work, the demand for SOC as a Service is expected to rise. Businesses need sophisticated solutions to protect their data, networks, and critical infrastructure, which is fueling the market for managed security services. The growing need for real-time threat intelligence, faster response times, and a proactive security posture further contributes to the demand for SOC services.

Restraining Factors

Limited Awareness and Adoption in Small and Medium Enterprises (SMEs)

One of the major restraints on the SOC as a Service market is the limited awareness and adoption of these services, particularly among small and medium-sized enterprises (SMEs). Many SMEs are still unaware of the critical need for SOC services and perceive cybersecurity as an expensive luxury rather than a necessity.

The cost of implementing a dedicated security team or setting up an in-house SOC can be prohibitively high for SMEs, leading them to rely on basic security measures instead of comprehensive, proactive threat monitoring solutions.

Moreover, SMEs often lack the resources and expertise to assess and evaluate complex cybersecurity solutions, which can hinder their decision-making process when it comes to adopting SOC as a Service. This knowledge gap results in a slow adoption of advanced security solutions and leaves these organizations vulnerable to cyberattacks, which may have a disproportionate impact due to the lack of security preparedness.

Additionally, there is often a perception that SOC as a Service is primarily designed for larger enterprises with more extensive IT infrastructures and resources. This perception prevents SMEs from exploring the potential benefits of managed SOC services, such as cost efficiency, scalability, and access to advanced security tools that might otherwise be out of reach. The market for SOC as a Service among SMEs could expand with greater awareness of the service’s cost-effective nature and its ability to provide enhanced security without the need for in-house expertise.

Growth Opportunities

Rising Cloud Adoption and Remote Work Driving Market Demand

The growing adoption of cloud computing and remote work is creating significant opportunities for the SOC as a Service market. As businesses increasingly shift to cloud-based infrastructure, there is a growing need to protect data and applications hosted in the cloud.

With cloud platforms being accessed from multiple devices and locations, cybersecurity challenges have become more complex, leading businesses to seek advanced monitoring and threat detection services. SOC as a Service providers are well-positioned to offer organizations the necessary tools and expertise to secure their cloud environments, including cloud infrastructure, applications, and data.

The COVID-19 pandemic accelerated the shift to remote work, which has only intensified the need for enhanced security solutions. Remote work introduces various vulnerabilities, including insecure networks, unmanaged devices, and unmonitored endpoints.

SOC as a Service provider can help businesses secure their remote workforce by providing real-time monitoring, endpoint protection, and incident response capabilities, ensuring that employees working from home or on the go are adequately protected.

This shift toward cloud adoption and remote work is expected to continue driving demand for SOC as a Service, particularly in industries like BFSI, healthcare, and IT. These sectors deal with sensitive data and require continuous monitoring to protect against data breaches, phishing attacks, and other cyber threats. As businesses increasingly realize the importance of securing their cloud environments and remote operations, the market for SOC as a Service is set to expand rapidly.

Challenging Factors

Difficulty in Managing and Integrating Advanced Security Technologies

A key challenge faced by the SOC as a Service market is the complexity involved in managing and integrating advanced security technologies. While SOC as a Service provides organizations with access to cutting-edge security tools and technologies, integrating these solutions into existing IT environments can be challenging. Many businesses have legacy systems that are not always compatible with modern security solutions, which can complicate the implementation of SOC services.

Moreover, as cyber threats become more sophisticated, SOC providers need to continuously update their technologies to stay ahead of evolving risks. This requires ongoing investments in research, development, and upgrades, which can be resource-intensive.

For businesses, integrating these constantly evolving technologies into their security infrastructure may be challenging, especially when balancing the need for security with maintaining operational efficiency.

The integration of artificial intelligence (AI) and machine learning (ML) into SOC services, while beneficial for advanced threat detection and response, requires significant expertise and understanding. Many organizations lack the necessary skill sets to properly leverage these technologies, which can lead to suboptimal use of SOC services.

Additionally, ensuring seamless communication and data flow between different security technologies—such as firewalls, intrusion detection systems, and endpoint protection tools—adds another layer of complexity.

Growth Factors

The growth of the SOC as a Service market is significantly driven by the increasing volume and complexity of cyber threats. As businesses adopt more advanced technologies like cloud computing, IoT, and AI, they become more vulnerable to attacks.

With security becoming a critical concern, companies are turning to SOC as a Service for continuous threat monitoring, rapid detection, and effective incident response. Moreover, the rising demand for cost-effective and scalable security solutions that require minimal in-house resources is pushing businesses to outsource their security operations to SOC providers.

Emerging Trends

One of the key emerging trends in the SOC as a Service market is the integration of artificial intelligence (AI) and machine learning (ML) technologies. These advanced technologies enable SOCs to enhance their threat detection and response capabilities.

AI and ML can analyze vast amounts of security data in real-time, identifying anomalies and potential threats faster and more accurately than traditional methods. Additionally, the growing adoption of cloud-native security services, including SOC-as-a-Service offerings, is helping businesses manage their security needs more effectively and at a lower cost.

Business Benefits

SOC as a Service offers several business benefits, including 24/7 security monitoring and immediate incident response, which are crucial in today’s fast-paced, threat-prone digital environment. Businesses also benefit from enhanced compliance with industry regulations and reduced operational costs.

By outsourcing security operations, companies can focus on their core activities without worrying about the complexity and resources required to manage cybersecurity in-house. This allows them to improve both operational efficiency and security posture.

Regional Analysis

In 2023, North America held a dominant market position, capturing more than a 39.4% share, holding USD 2.56 Billion in revenue. North America continues to lead the SOC as a Service market due to its advanced technological infrastructure and high adoption of cybersecurity solutions across various sectors. The region benefits from an increasing number of cyber threats, driving businesses to invest in comprehensive security measures.

This demand for robust security solutions, combined with a strong focus on innovation and the presence of major SOC as a Service provider, positions North America at the forefront of the market. The region’s large enterprises are particularly focused on leveraging SOC as a Service for continuous monitoring and rapid incident response to mitigate the impact of potential data breaches.

The United States, being home to numerous global tech giants and financial institutions, plays a pivotal role in this market’s growth. These industries prioritize maintaining security protocols due to the sensitive nature of their data and operations, leading to a high demand for outsourced security services.

The prevalence of regulatory frameworks such as GDPR and HIPAA also encourages businesses to invest in SOC services to comply with strict data protection regulations. Furthermore, the region’s robust cybersecurity initiatives, government support for technology innovation, and a large number of service providers make it an attractive market for SOC as a Service solution.

In addition, the rise of cloud computing, the growing threat landscape, and the shift towards hybrid IT environments are all contributing to North America’s leadership. Companies are increasingly looking to cloud-based security solutions to streamline their operations and enhance efficiency, which boosts the adoption of SOC as a Service.

With North American companies increasingly embracing digital transformation and remote work environments, the need for strong, managed security solutions becomes more pronounced, further solidifying the region’s dominance in the market.

Key Regions and Countries

• North America
  • US
  • Canada
• Europe
  • Germany
  • France
  • The UK
  • Spain
  • Italy
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • South Korea
  • India
  • Australia
  • Singapore
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• Middle East & Africa
  • South Africa
  • Saudi Arabia
  • UAE
  • Rest of MEA

Key Player Analysis

IBM Corporation continues to be a major player in the SOC as a Service market, with its comprehensive cybersecurity solutions that combine advanced technologies like artificial intelligence (AI) and machine learning (ML) to detect and mitigate cyber threats.

IBM’s acquisition strategy has played a significant role in strengthening its security portfolio. Notably, in 2020, IBM acquired Nordcloud, a leading cloud services company, to bolster its cloud-native security offerings.

Fortinet has rapidly emerged as a leader in the cybersecurity space, providing a comprehensive suite of solutions, including SOC as a Service. The company’s key growth strategy revolves around its FortiSOAR security orchestration, automation, and response platform, which enhances its SOC offerings by streamlining threat detection, response, and automation.

Fortinet’s acquisition of ZoneFox 2019, a provider of user behavior analytics (UBA) technology, strengthened its ability to detect insider threats, making it a key differentiator in the SOC market.

AT&T is another major player in the SOC as a Service market, particularly known for its comprehensive managed security services. AT&T’s strategy focuses on delivering end-to-end cybersecurity solutions through its AT&T Cybersecurity division, which offers a broad range of SOC services, including threat intelligence, incident response, and cloud-based security monitoring.

In 2020, AT&T expanded its cybersecurity capabilities by acquiring AlienVault, a leading provider of threat detection and response solutions. This acquisition has allowed AT&T to enhance its managed SOC offerings with Unified Security Management (USM), which helps organizations monitor, detect, and respond to threats.

Top Key Players in the Market

• IBM Corporation
• Fortinet, Inc.
• AT&T Inc.
• Thales
• Secureworks, Inc.
• Check Point Software Technologies Ltd.
• Palo Alto Networks, Inc.
• Verizon Communications Inc.
• NTT DATA Group Corporation
• Cloudflare, Inc.
• Other Key Players

Recent Developments

• In 2023: IBM Corporation announced the expansion of its SOC as a Service capability by launching a new suite of cloud-native security services designed to provide enhanced protection against advanced cyber threats.
• In 2024: Fortinet, Inc. launched an enhanced version of its FortiSOAR platform, a security orchestration, automation, and response (SOAR) solution designed to improve incident response times and streamline SOC operations.

Report Scope