The managed security services market presents lucrative opportunities for the channel as the global market should reach $46.4 billion by 2025.

That’s according to a new MarketsandMarkets report, which expects a compound annual growth rate of 8%. The market value totals $31.6 billion.

Major vendors in the managed security services market include IBM, AT&T, Secureworks, Verizon, Optiv, Trustwave, CenturyLink, Kudelski Security and more.

Increasing security breaches and cyberattacks are driving demand for these services.

The managed identity and access management (IAM) segment will expand through 2025. Managed IAM helps drive automation, manage consumer identities and establish a risk-based approach.

Some companies are integrating technologies such as robotics with IAM. Single sign-on (SSO) and multifactor authentication (MFA) are the two most common systems used in IAM.

The banking, financial services and insurance (BFSI) vertical will be the market’s biggest, while health care will be the fastest growing vertical.

Managed security services will help the BFSI vertical keep sensitive data confidential, which in turn will help in maintaining overall security.

In the health care vertical, the services will be integral in securing entities dealing with patients, as well as hospital data. Moreover, the services help with regulatory compliance.

Among regions, Asia Pacific will hold the highest market share through 2025. Cloud, 5G, and IoT have led SMEs and large enterprises in the region to rely on managed security services. Also, stringent government regulations are driving adoption of the services.