Demand for security information and event management (SIEM) tools will remain high through 2027 with the global market expected to exceed $6.4 billion.

That’s according to a new report by Valuates Reports, which anticipates a compound annual growth rate (CAGR) of 6.8%. The market was nearly $4 billion last year.

Among the major SIEM players are IBM, HP, McAfee, LogRhythm, Splunk, AlienVault, Dell Technologies, Fortinet, SolarWinds, Symantec, Tenable and Trustwave.

The need for continuous monitoring and incident response, and adherence to regulatory requirements, are driving demand for SIEM. Also, getting and maintaining certifications, and managing and keeping logs, are in high demand.

Organizations require the level of visibility needed to manage network hazards from outside the traditional network perimeter, according to the report. These hazards arise from remote workforces, SaaS apps and bring your own device (BYOD). SIEM systems monitor all network activity across all users, devices and apps. That allows greater visibility throughout the infrastructure, and detection of threats regardless of where digital assets and services are accessed.

Furthermore, when a security issue happens, SIEM systems can perform digital forensic investigations. Businesses can collect and analyze log data from all of their digital assets in one central location. They can then examine suspicious activity and improve security systems.

Fastest Development, Most Lucrative

SIEM solutions are a popular choice for businesses that must comply with a variety of regulations. SIEM gathers and verifies compliance data across the corporate infrastructure since it allows automated data collection and analysis.

Based on application, the retail SIEM market should develop the fastest, according to Valuates Reports. That’s due to increased concerns about the security of e-commerce data, and in-store financial and personal information about customers. Banking, financial services and insurance (BFSI) is also one of the top SIEM users, followed by the IT and telecom vertical.

Based on region, North America should be the most lucrative through 2027. Several companies across verticals in North America are looking to enhance their breach detection and monitoring capabilities by deploying SIEM solutions. Companies that are focusing on security and compliance reporting requirements are rapidly adopting SIEM technology. Furthermore, larger companies following a conservative approach in adopting technology are deploying SIEM solutions.