Security as a service (SecaaS) is a hot sector to be in as the global market is expected to more than double by 2023, reaching $16.5 billion.

That’s according to a new report by MarketsandMarkets, which expects a compound annual growth rate (CAGR) of nearly 17 percent. The market was valued at $7.6 billion last year.

Major players include McAfee, Trend Micro, IBM, Microsoft, Barracuda Networks, Zscaler, Alert Logic, Cygilant and others.

Key factors driving the market, the report says, include the need to follow regulatory and data protection laws, an increase in demand for cloud-based security services, and the high cost and risks in managing on-premises security solutions.

With the increasing number of cyberattacks, as well as IoT and connected-device vulnerabilities, and growing pressure from cybersecurity regulations, the security information and event management (SIEM) segment is expected to bring in the largest chunk of revenue during the forecast period.

Business-sensitive applications are primary targets for attackers as they carry information about critical assets, as well as important business processes. Cloud-based application security tends to be cost-effective and scalable, driving market growth.

More customers are turning to SecaaS thanks to increased instances of spyware/keylogger, trojans, viruses, ransomware, and other malware in the banking, financial services and insurance (BFSI) vertical, in particular. This vertical also is a major target for cybercriminals as it holds sensitive information of employees, customers, assets, offices, branches and operations.

In addition, with stricter regulations, more fraud and an increasing number of cyberattacks, the need for real-time detection and protection from advanced threats, as well as the need for customers to protect their brands, is critical in this industry.

By region, North America is expected to have the largest market share through 2023. The presence of a large number of vendors, combined with more widespread awareness, will continue to account for the region’s biggest market share.