The global market for Security-as-a-Service (SaaS) is posting impressive numbers, with revenues of over $3.3 billion and a projected CAGR of 17.1% through 2026. This information was recently released in a report conducted by market research firm Research Report Insights.
Amid a climate where high profile data breaches are becoming more prevalent, security concerns are driving investment in SaaS leaders such as Intel Security, Cisco Systems, Inc., and Oracle Corporation. These SaaS providers offer end-to-end security solutions, particularly in the telecom & IT sector, where security is a top priority. Research indicates that the sectors most heavily invested in SaaS solutions include healthcare, telecomm and IT, and Banking and Financial Services.
Widespread adoption of Internet of Things technology and cloud computing have also contributed to the rise of revenues for SaaS products which protect valuable personal data for customers.
The threat of catastrophic losses is ever-present, particularly in the Banking and Financial Services industries, which have yet to face a full-on global assault from hackers. Despite such fortunate happenstance the industry has remained cautiously vigilant, in part because the stakes are so high.
In one recent series of simulations conducted by the IMF, the threat of large-scale global cyber-attacks was projected to cost banks anywhere from $100 billion to $350 billion. A loss this large could potentially put the whole sector at risk. Though the findings are compelling, the organization stressed that quantitative analysis of cyber risk is difficult to assess due to the lack of data and difficulties in modeling this particular type of risk.
North America and Western Europe remain the two largest markets for SaaS. The North America SaaS market was valued at US$ 1.04 billion in 2015, and is anticipated to grow at a staggering 20% CAGR through 2026. Western Europe, the second largest market globally, will also be the fastest growing market after North America.