The cybersecurity market is poised for growth, but the channel cybersecurity services market is forecast to grow at an even faster pace. That’s according to market analyst firm Canalys.
As ChannelE2E reported earlier this year, Canalys Principal Analyst, MSP & MSSP, Robin Ody, predicted that cybersecurity managed services would grow at a pace of 15% during 2024 to a total of $80.9 billion.
That’s significantly faster growth than Canalys has forecast for the cybersecurity technology market – a 10% growth rate for 2024 to $86.6 billion. While all cybersecurity markets are growing fast, services are growing the fastest.
What’s more, the future ahead looks bright indeed. So says Canalys Chief Analyst for Channel Partners & Ecosystems at Canalys, Jay McBain.
“Ninety-nine percent of MSPs already report they are in security -- it is to what level and, because the average MSP has 8 people, what level of help they will need from vendors and MSSPs,” McBain told ChannelE2E.
“This market has never contracted - there are 6,500 vendors and 10,000-plus MSSPs and even with private equity driving increased M&A, the numbers will continue to increase.”
How the Cybersecurity Services Forecast Breaks Out
Here’s the breakdown of services growth inside of managed services:
- Remediation expected to grow by 145.7% to $2.4 billion
- Managed technology expected to grow by 10.1% to $47 billion
- SOC and SIEM expected to grow by 4.4% to $14 billion
- MDR expected to grow by $49.7% to $8.9 billion.
How do other cybersecurity services categories stack up in terms of forecasts for 2024? Here’s the break down:
- Consulting expected to grow by 12.4% to $26.8 billion
- Integration expected to grow by 17.1% to $5.4 billion
- Maintenance and support expected to grow by 8.3% to $34.1 billion
In a LinkedIn post this week from the Fortinet conference, McBain wrote that the theme of the event was around ‘platforms’ for security, “supporting one of Canalys’ predictions as well – making 2024 the year of the cybersecurity platform for channel partners... For every dollar sold by the close to 6,500 security vendors, partners today achieve $2 in services, and that piece is growing the fastest.”
A full 90% of ChannelE2E’s 2023 Top 100 Vertical Market MSPs, an operationally mature group of MSPs, already offer MDR services to customers. For a complete look at the cybersecurity services offered by this elite group of MSPs, download the full research report here (PDF, free registration required).
What makes this managed security services opportunity even more impressive for MSPs and other service providers is that it is coming during challenging economic conditions overall, according to McBain.
“Both security and managed services are growing by double digits this year, in tough macro headwinds, so it is a really nice intersection of growth,” he said.
