Managed DDoS Protection Market

Managed DDoS Protection Market Outlook (2023 to 2033)

According to Future Market Insights, the global managed DDoS protection market size has reached US$ 107.0 Million in 2018. Demand for managed DDoS protection recorded Y-o-Y growth of 15.4% in 2022, and thus, the global market is expected to reach US$ 217.4 Million in 2023. Over the projection period 2023 to 2033, managed DDoS protection solutions sales across the globe projected to exhibit 17.2% CAGR and total a market size of US$ 1,066.2 Million by the end of 2033.

The managed distributed denial of service (DDoS) protection service offered by specialized cybersecurity providers to assist organizations in defending against the impact of DDoS attacks. DDoS attacks involve saturating a target network or system with a large volume of incoming traffic, making it unavailable or significantly reducing its performance.

Managed DDoS protection aims to safeguard organizations' infrastructure by employing a combination of proactive monitoring, detection, and mitigation techniques. The service is usually outsourced to a third-party provider with expertise in DDoS defense, allowing organizations to focus on their core operations while entrusting the protection of their networks to professionals.

Other Drivers Propelling the Demand for Managed DDoS Protection include:

• With the rapid digitization of businesses and the increasing reliance on online services, organizations are more vulnerable to DDoS attacks that can disrupt their operations and cause substantial financial losses.
• Managed DDoS protection services offer proactive monitoring, detection, and response capabilities, keeping pace with the evolving threat landscape and ensuring organizations remain protected against emerging DDoS attack techniques.
• Organizations are implementing safety measures to protect their networks and customer data from massive network traffic to maintain business continuity.
• With managed DDoS protection, organizations can minimize the impact of attacks, ensure business continuity, and protect their brand image by maintaining a reliable and secure online presence.

Challenges for Companies /Manufacturers in the Managed DDoS Protection Market:

• Cybercriminals continually develop new and sophisticated attack techniques, which poses a challenge for managed DDoS protection companies, as they need to stay ahead of evolving threats.

• As the volume and intensity of DDoS attacks increase, managed DDoS protection providers must ensure their solutions can scale and handle massive traffic surges without compromising performance.
• Providing managed DDoS protection services can be costly, requiring investments in advanced security technologies, skilled personnel, and robust infrastructure.
• Due to false positives and impact on legitimate traffic, effective DDoS protection should accurately differentiate between legitimate traffic and malicious traffic to avoid blocking or disrupting legitimate users.

Opportunities in the Managed DDoS Protection Industry:

• With the growing adoption of cloud computing and the migration of critical infrastructure to the cloud, there is a rising demand for cloud-based managed DDoS protection services.
• A significant opportunity for managed DDoS protection providers to cater to traffic management segment by offering affordable and comprehensive protection services specifically designed for small medium size enterprises.
• The integration of artificial intelligence (AI) and machine learning (ML) technologies presents opportunities for managed DDoS protection providers to enhance detection and mitigation capabilities.
• Managed DDoS protection could be integrated with other managed security services, such as firewall management, intrusion detection and prevention, and security incident response.

Latest Trends in the Managed DDoS Protection Market:

• Managed DDoS Protection providers are combining various techniques such as rate limiting, traffic shaping, behavioral analysis, and traffic scrubbing to provide comprehensive protection against different types of DDoS attacks.
• Managed DDoS protection solutions leverage the benefits of machine learning and automation for quick response to known attack patterns, while also employing human analysts to handle complex and evolving DDoS attacks.
• Real-time dashboards, detailed reports, and analytics are being offered to organizations, enabling them to monitor attack trends, assess the effectiveness of mitigation measures, and make informed decisions to improve their security posture.
• SOAR integration allows organizations to streamline incident response processes, automate mitigation actions, and orchestrate the coordination between various security tools and systems.

2018 to 2022 Managed DDoS Protection Demand Outlook Compared to 2023 to 2033 Forecast

From 2018 to 2022, the global managed DDoS protection market experienced a CAGR of 15.1%, reaching a market size of US$ 217.4 Million in 2023.

In 2018 to 2022 period, there was a notable increase in awareness about DDoS attacks and their potential impact on businesses. High-profile DDoS attacks and their consequences received significant media attention, driving organizations to prioritize DDoS protection as a critical cybersecurity measure.

The frequency and intensity of DDoS attacks also experienced an upward trend during this period. Cybercriminals continued to leverage DDoS attacks as a means to disrupt online services, extort organizations, or distract from other malicious activities. The escalating threat landscape contributed to the growing demand for effective DDoS protection solutions.

Therefore, the demand for managed DDoS protection services experienced significant growth from 2018 to 2022 due to the increasing awareness of DDoS threats and the rise in attack incidents. Organizations sought reliable and scalable solutions to mitigate the risks associated with DDoS attacks and ensure the availability and integrity of their digital infrastructure.

Future Forecast for Managed DDoS Protection Solution

Looking ahead, the global managed DDoS protection industry is expected to rise at a CAGR of 17.2% from 2023 to 2033. During the forecast period, the market size is expected to reach US$ 1,066.2 Million.

The demand for managed DDoS protection solutions is expected to continue growing in the coming years. With the increasing reliance on digital services, the evolving threat landscape, and the potential financial and reputational impact of DDoS attacks, organizations will continue to prioritize DDoS protection as a critical cybersecurity measure. Managed DDoS protection solutions will likely offer enhanced scalability and flexibility to accommodate the evolving needs of organizations.

The ability to scale protection levels based on traffic patterns and attack trends will be crucial to effectively mitigate DDoS attacks, particularly in the face of increasingly complex and volumetric attacks.

Sudip Saha

Principal Consultant

Talk to Analyst

Find your sweet spots for generating winning opportunities in this market.

Talk to Analyst

Country-Wise Insights

Managed DDoS Protection Market to flourish in the United States Due to Increasing Frequency and Severity of DDoS Attacks

The managed DDoS protection in the United States is expected to reach a market share of US$ 132.2 Million by 2033, expanding at a CAGR of 26.7%. In the United States, the driving factor for the managed DDoS protection market due to increasing frequency and severity of DDoS attacks.

In February 2020, AWS servers were flooded with massive amount of data in the attempt of DDoS attack, in 2020, this was one of the largest DDoS attack carried out. In addition, the rise of the Internet of Things (IoT) has also contributed to the increase in DDoS attacks, as many IoT devices have weak security and are getting compromised. As a result, organizations implemented proactive measures to protect their networks and systems from DDoS attacks. Moreover, there are detailed factors expected to drive the growth for managed DDoS protection in the country are:

• Organizations in the United States have become more aware of the potential consequences of DDoS attacks, including financial losses, reputational damage, and customer trust erosion.
• Various industry-specific regulations, such as those in the financial and healthcare sectors, require organizations to implement adequate measures to protect their infrastructure from DDoS attacks.

Emphasis on Defending Potential DDoS Attacks driving the Growth in the United Kingdom's Managed DDoS Protection Market

The managed DDoS protection industry in the United Kingdom is expected to reach a market share of US$ 87.4 Million, expanding at a CAGR of 21.9% during the forecast period. The United Kingdom market is projected to experience growth due to the government’s emphasis on the possibilities of data breaching and phishing attacks.

Due to the prior alertness, various aspects are being taken under considerations such as, implementing DDoS security services. Numerous companies outsource such service providers to manage the security of their network and the traffic. Organizations in the United Kingdom have become more aware of the potential impact of DDoS attacks on their operations, finances, and reputation. As a result, they are increasingly investing in robust cybersecurity measures, including managed DDoS protection services, to mitigate the risks posed by DDoS attacks.

Notable Growth Expected in China's Managed DDoS Protection Market Due to Rising Frequency of DDoS Attacks

The managed DDoS protection industry in China is anticipated to reach a market share of US$ 114.1 Million, moving at a CAGR of 29.2% during the forecast period. The managed DDoS protection market in China is likely to grow due to the prior cyberattacks in the nation and the increasing need for DDoS protection services.

China has witnessed a significant increase in the frequency and intensity of DDoS attacks targeting various industries, including e-commerce, finance, gaming, and government sectors. This surge in attacks has created a sense of urgency among organizations to invest in robust DDoS protection services to prevent potential disruption to their operations and customer experiences.

Germany’s Pursuit of Business Agility and Competitiveness in Managed DDoS Protection is driving the Market Growth

The managed DDoS protection market in Germany is estimated to reach a market share of US$ 106.6 Million by 2033, thriving at a CAGR of 25.8%. Germany's managed DDoS protection market is expected to grow due to its strong industrial base, emphasis on data protection and cybersecurity, prominence of the financial sector.

Germany's financial sector is a significant driver of demand for managed DDoS protection market. The country is home to numerous banks, financial institutions, and fintech companies that handle sensitive financial transactions and customer data.

DDoS attacks targeting the financial sector can have severe consequences, leading to financial losses and reputational damage. To mitigate these risks, financial organizations in Germany are increasingly adopting managed DDoS protection services to detect and respond to attacks in real-time.

Demand for Managed DDoS Protection Due to the Layer 7 DDoS attacks is driving the Market Growth in India

The managed DDoS protection industry in India is expected to reach a market share of US$ 84.2 Million, expanding at a CAGR of 27.6% during the forecast period. India is experiencing an increasing demand for managed DDoS protection services, driven in part by the rising threat of Layer 7 DDoS attacks. Layer 7 DDoS attacks target the application layer of a network, exploiting vulnerabilities in web applications to overwhelm servers or disrupt services.

There is a growing awareness among Indian organizations about the impact and prevalence of DDoS attacks, including layer 7 attacks. High profile DDoS incidents and media coverage have raised awareness about the potential consequences of these attacks, leading businesses to prioritize robust DDoS protection measures. Managed DDoS protection services offer specialized expertise and round-the-clock monitoring to detect and mitigate layer 7 DDoS attacks effectively.

Category-Wise Insights

Traffic Monitoring Segment to Dominate Managed DDoS Protection Market with 18.5% CAGR through 2033

The data governance segment is expected to dominate the managed DDoS protection market with a CAGR of 18.5% from 2023 to 2033. Traffic monitoring plays a crucial role in managed DDoS protection by continuously analyzing network traffic patterns and identifying any unusual or suspicious activities that may indicate a DDoS attack. By monitoring incoming and outgoing traffic, organizations can quickly detect the signs of an attack and respond appropriately to mitigate its impact.

By monitoring traffic in real-time, organizations can identify the early signs of a DDoS attack before it escalates and causes severe damage. Prompt detection enables swift response and mitigation, minimizing the impact on business operations. Overall, traffic monitoring is a critical component of managed DDoS protection services as it enables organizations to proactively detect, analyze, and mitigate DDoS attacks, safeguarding their network infrastructure and ensuring uninterrupted service availability.

Why is Managed DDoS Protection a Crucial Solution for the Retail Industry?

Managed DDoS is an essential solution for the retail industry, especially those that operate online (e-commerce). To understand the importance let us take an example of any e-commerce company that has announced a big sale on a certain day, however to hamper the businesses, cyber criminals can launch DDoS attacks on the website of the retailer, causing a major lag on the visitor’s end.

This causes the visitors to leave the website, or visit any different e-commerce website and negatively influence the business of the retailer. To avoid such attacks, managed DDoS protection is an important cyber-security solution that can allow retailers to continue their businesses safely.

Due to the importance managed DDoS protection holds for the retail segment, this industry held a major share of 26.5% for the year 2022.

How Key Players Stay Competitive in the Managed DDoS Protection Market?

The managed DDoS protection industry is moderately competitive, with numerous players vying for market share. In such a scenario, key players must adopt effective strategies to stay ahead of the competition.

Key Strategies Adopted by the Players

• Product Innovation

Companies invest in research and development to enhance their DDoS protection solutions. This involves incorporating machine learning, artificial intelligence, and behavioral analytics to improve attack detection and mitigation capabilities. With the advanced technologies, vendors are offering ingenious products having advanced behavior detection, which is applied on both the layer’s network and application layer. The behavior-based algorithm analyses new and possible DDoS attacks and takes required steps to mitigate before occurrence.

• Strategic Partnerships and Collaborations

Companies collaborate with technology vendors and security solution providers to integrate their offerings and provide comprehensive cybersecurity solutions. Internet Service Providers and managed security service providers join forces to offer DDoS protection services to their customers. This partnership allows for seamless traffic diversion and filtering capabilities.

• Expansion into Emerging Markets

Companies establish regional offices, data centers, and partnerships in emerging markets to cater to the local demand for managed DDoS protection services. Collaborating with local technology providers, system integrators, or managed security service providers (MSSPs) helps companies navigate the unique challenges and regulatory landscapes of emerging markets.

• Mergers and Acquisitions

Companies acquire smaller firms with expertise in DDoS mitigation technologies or innovative approaches to strengthen their capabilities and accelerate product development. Merging with or acquiring companies that offer complementary services, such as network security or cloud infrastructure management, helps create a more comprehensive and competitive service portfolio.

Key Players in the Managed DDoS Protection Industry

• Amazon Web Services
• Cloudflare
• Radware
• Akamai
• Imperva

Key Developments in the Managed DDoS Protection Market:

• To accelerate the expansion of its cloud security services business, Radware has acquired SecurityDAM, a cloud DDoS network operator, for $30 million. Radware, an Israel-based cybersecurity & application delivery provider, has been exclusively relying on SecurityDAM, based in Tel Aviv, for scrubbing center services in its cloud DDoS protection service. The acquisition of SecurityDAM includes an initial payment of $30 million, along with potential additional payments is up to $12.5 million contingent upon the performance of the Radware's cloud DDoS protection service following the transaction.
• Nexusguard, a prominent provider of cybersecurity solutions for DDoS attacks, has introduced the Nexusguard VoIP protection solution. This innovative cloud-based managed anti-DDoS solution is specifically designed to safeguard three essential VoIP components, namely IP Links, Session Border Controllers (SBC), and DNS domains. The solution caters to the unique requirements of Wireless Internet Service Providers (WISP) and establishes itself as the first of its kind in the market.
• Link11, a European IT security provider focused on cyber resilience, has successfully finalized the acquisition of DOSarrest Internet Security LTD. This strategic move aims to expedite Link11's market expansion efforts. DOSarrest, headquartered in Vancouver, is a renowned provider of DDoS protection solutions, serving a broad customer base spanning North America, Europe, and the Asia-Pacific region.

Segmentation Analysis of the Managed DDoS Protection Market

By Service:

• Traffic Monitoring
• Traffic Scrubbing
• Traffic Management

By Industry:

• IT & Telecommunication
• BFSI
• Healthcare
• Manufacturing
• Retail
• Government
• Others

By Region:

• North America
• Latin America
• Western Europe
• Eastern Europe
• East Asia
• South Asia Pacific
• Middle East & Africa