Global Security-as-a-Service Revenues to Surpass $16B by 2026, Report Says
In North America, the SaaS market is expected to garner $8 billion in revenues by the end of the forecast period.
NEW YORK CITY -The global Security-as-a-Service (SaaS) market is forecast to be increasing at a 17.1% compound annual growth rate (CAGR) to reach $16.5 billion by 2026, according to Persistence Market Research.
SaaS revenues totaled $3.3 billion in 2016, according to the research firm, based here.
SaaS has become a realistic option for enterprises that are looking to integrate their business infrastructure with the latest security systems. Moreover, emerging technological trends such as cloud computing and Internet of Things (IoT) will continue to encourage businesses to adopt SaaS business models for gaining lucrative cost benefits.
Deployments of SaaS will remain high in the telecom and IT sectors; however, its implementation in industries such as retail and consumer goods, healthcare, and banking and financial services and insurance (BFSI) is expected to grow over the next couple of years.
Increasing concerns over data loss in the healthcare industry are pushing several associated businesses such as drug development and insurance reimbursement to deploy cutting-edge solutions. Increased involvement of cloud computing in the finance sector is necessitating extreme security of electronic transactions, which is further favoring amalgamation of SaaS business models, according to the report.
By end of the forecast period in 2026, BFSI and healthcare industries are expected to account for 17.7% and 20.3% value share of the market, respectively. Whereas, the IT and telecom sector is set to account for 30% share in terms of revenue.
The requirement of intricate security systems in large enterprises will continue to drive the demand for SaaS market in the forthcoming years. By the end of 2026, large enterprises including multinational corporations and conglomerates will account for 50% values share of the market, which will be significantly higher as compared to revenues generated for small and medium enterprises.
Meanwhile, companies operating global SaaS market are focusing on providing managed security services rather security platforms and software development to integrate SaaS for clients.
Cost benefits of deploying SaaS is expected to prompt companies to improve security measures. In addition, demand for cloud-based security services are robust in the United States’ corporate sector, which includes established conglomerates as well as budding startups.
North America’s strong IT and telecom infrastructure helps the expansion SaaS of applications. The market for SaaS in the region is expected to garner $8 billion in revenues by the end of 2026. By comparison, in 2016 the North American market accounted for 36% revenue share, which is expected to grow nearly to 50% the end of the forecast period.
Meanwhile, the SaaS market in Western Europe is projected to witness a steady growth, creating an incremental opportunity of around $3.1 billion during the forecast period. Other regional SaaS markets examined in the PMR report include Latin America, the Middle East & Africa (MEA), Asia Pacific, Japan and Eastern Europe.
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