South America Managed Security Services Market Research Report By Service Type (Managed Firewall, Intrusion Detection System, Unified Threat Management, Security Information and Event Management, Endpoint Security), By Deployment Model (On-Premises, Cloud-Based, Hybrid), By Organization Size (Small Enterprises, Medium Enterprises, Large Enterprises), By End Use Industry (BFSI, Healthcare, ITTelecom, Retail, Government) and By Regional (Brazil, Mexico, Argentina, Rest of South America)-Forecast to 2035

South America Managed Security Services Market Overview

As per MRFR analysis, the South America Managed Security Services Market Size was estimated at 1.82 (USD Billion) in 2023.The South America Managed Security Services Market Industry is expected to grow from 2(USD Billion) in 2024 to 5 (USD Billion) by 2035. The South America Managed Security Services Market CAGR (growth rate) is expected to be around 8.687% during the forecast period (2025 - 2035).

Key South America Managed Security Services Market Trends Highlighted

The South American Managed Security Services Market is currently undergoing substantial growth, which is being driven by the growing awareness of cyber threats and the demand for robust security solutions in a variety of sectors. Organisations are prioritising cybersecurity in response to the rapid digital transformation occurring in countries such as Brazil and Argentina, which has resulted in a significant increase in demand for managed security services.

The region's governments are also advocating for more stringent regulations and compliance standards, which is creating a favourable environment for managed security service providers, as businesses encounter a variety of cyber hazards. In addition, there are significant opportunities to be investigated within specific industries, including finance, healthcare, and retail, which have become primary targets for cyberattacks. In order to safeguard sensitive data and preserve consumer confidence, these industries are making substantial investments in managed security services.

The growth of these services is further bolstered by the emergence of cloud computing in South America, as organisations seek effective solutions to secure their cloud environments while leveraging the flexibility that cloud platforms provide. The region has witnessed a rise in the prevalence of trends such as the increasing use of artificial intelligence and machine learning in threat detection and response systems in recent years.

These technologies are being employed by companies to improve their cybersecurity measures, reduce response times to incidents, and improve efficiency. Furthermore, the integration of managed security services with broader IT service management is gathering momentum, providing clients with a comprehensive approach to IT operations and security. It is evident that South America is establishing itself as a dynamic market for managed security services as these trends continue to develop, suggesting a significant potential for future growth.

South America Managed Security Services Market Drivers

Increasing Cyber Threats

The South America Managed Security Services Market Industry is experiencing growth due to the rising number of cyber threats across the region. Reports indicate that cyber-attacks have increased by over 30% in the last three years, affecting both private and public sectors. The Latin American Cybersecurity Alliance has highlighted that organizations in South America are now more vulnerable than ever, with a significant rise in ransomware attacks and data breaches.

Notably, companies like Cisco have invested in local cybersecurity initiatives, boosting the region's defenses and emphasizing the critical need for managed security services. This underlines a trend where organizations are realizing that their existing IT infrastructure cannot adequately combat these threats, creating a demand for specialized security management services to fortify defenses.

Regulatory Compliance Requirements

In South America, the tightening of regulatory frameworks concerning data protection and privacy has propelled the demand for managed security services. The introduction of stringent regulations, such as Brazil's General Data Protection Law (LGPD), mandates that companies must enhance their data security practices.

A report from the Brazilian government estimates that over 60% of businesses need to upgrade their security measures to comply with these new requirements.Multinational firms like IBM have been active in providing tailored solutions that help local companies achieve compliance with these laws. This landscape drives the South America Managed Security Services Market as businesses seek partners for effective regulatory compliance, thus stimulating market growth.

Shift Towards Digital Transformation

The rapid advancement of digital transformation initiatives in South America is significantly contributing to the expansion of the Managed Security Services Market Industry. Many companies in sectors such as banking, retail, and manufacturing are increasingly adopting cloud solutions and IoT devices, which inherently increase their exposure to security risks.

According to a study by the Inter-American Development Bank, approximately 70% of firms in South America plan to invest in digital technologies within the next five years.This transition highlights the urgent need for robust security solutions to protect sensitive data. Companies like Microsoft have recognized this shift and are providing tailored cloud security services to meet the evolving needs of regional businesses, therefore enhancing the growth potential of managed security services.

South America Managed Security Services Market Segment Insights

Managed Security Services Market Service Type Insights

The South America Managed Security Services Market focuses heavily on various service types that cater to the growing security needs of organizations in the region. A significant aspect of this market lies in Managed Firewall services, as these play a crucial role in protecting networks by monitoring and controlling incoming and outgoing traffic.

This segment enjoys a strong adoption rate as businesses increasingly prioritize their network security. Intrusion Detection Systems are also gaining momentum, providing essential real-time monitoring to detect unauthorized access attempts. Their significance is underscored by the rising incidents of cyber threats, pushing organizations to adopt advanced security measures.

Unified Threat Management is prevalent in South America, consolidating multiple security functions into a single management platform, making it more efficient for businesses to tackle various security risks. The Security Information and Event Management segment facilitates improved visibility and faster response times to security incidents, highlighting its importance in an environment where regulatory compliance is becoming more stringent. Lastly, Endpoint Security is essential for safeguarding devices connected to the corporate network, especially with the rise of remote work and the increasing prevalence of mobile devices.

With rising concerns over cyber attacks and regulatory compliance requirements, the demand for these service types is expected to increase, driving growth in the South America Managed Security Services Market. The market is positioned for substantial growth, fueled by increasing digitalization, an uptick in cyber threats, and the heightened emphasis on compliance with security regulations. As organizations continue to prioritize their cyber resilience, these key service types will remain pivotal in protecting sensitive data and ensuring business continuity throughout South America.

Managed Security Services Market Deployment Model Insights

The Deployment Model segment of the South America Managed Security Services Market plays a crucial role in shaping the overall industry landscape. As organizations across South America prioritize cybersecurity, they are increasingly navigating the decision between On-Premises, Cloud-Based, and Hybrid solutions. On-Premises models offer businesses greater control and customization, catering to those with specific compliance needs and sensitive data requirements.

Conversely, Cloud-Based solutions provide scalability and cost-efficiency, making them appealing to small to medium-sized enterprises aiming for quick deployment.The Hybrid model allows enterprises to balance the advantages of both On-Premises and Cloud systems, facilitating greater flexibility and operational resilience.

As South America continues to witness a surge in cyber threats, the demand for varied deployment models is likely to escalate. The region's unique challenges, including regulatory complexities and varying levels of technological adoption, influence the deployment choices organizations make. This evolving landscape highlights both opportunities and challenges for Managed Security Services providers as they seek to meet the diverse needs of clients across different sectors.

Managed Security Services Market Organization Size Insights

The Organization Size segment of the South America Managed Security Services Market reveals a diverse landscape where Small Enterprises, Medium Enterprises, and Large Enterprises each play a pivotal role in shaping the market dynamics. Small Enterprises often seek cost-effective and scalable security solutions, allowing them to protect sensitive information while remaining budget-conscious. Their increasing reliance on digital platforms necessitates robust security measures, making their participation vital to the market.

Medium Enterprises, on the other hand, typically command a larger share of the market due to their more substantial resources and complex security needs.These organizations are often targeted by cyber threats due to their growing data volume, thus driving the demand for comprehensive managed security services.

Large Enterprises, with their extensive networks and high-value assets, represent a significant portion of the market as they adopt advanced security protocols. They are often trendsetters in the industry, investing in innovative technologies and services that set the standards for best practices. Collectively, these organization sizes contribute to the overall growth and evolution of the South America Managed Security Services Market, reflecting a shift towards proactive security measures essential in today’s digital landscape.

Managed Security Services Market End Use Industry Insights

The South America Managed Security Services Market, particularly within the End Use Industry segment, has demonstrated significant potential for growth, driven by the increasing demand for cybersecurity solutions across various sectors. The BFSI sector remains a major driver, as financial institutions prioritize robust security measures to protect sensitive customer data from increasing cyber threats. Meanwhile, the Healthcare industry has recognized the critical need for securing patient information, thereby ensuring compliance with regulations and maintaining trust in digital health records.

In the IT and Telecom sector, the focus on safeguarding network infrastructure and service continuity remains paramount as businesses increasingly rely on cloud technologies. Retailers, facing the rise of online transactions, are turning to managed security services to guard against data breaches and fraud, which are pivotal for maintaining customer trust and loyalty.

Additionally, government entities are investing heavily in security solutions to protect sensitive national data and ensure the integrity of public services. Overall, the growth in this segment is propelled by the urgent need to address evolving cyber threats and the ongoing digital transformation across South America, creating a dynamic landscape for Managed Security Services Market development.

Managed Security Services Market Regional Insights

The South America Managed Security Services Market is characterized by its diverse regional segmentation, comprising Brazil, Mexico, Argentina, and the Rest of South America. Brazil holds a significant share of the market, bolstered by its vast digital economy and increasing cybersecurity threats, making it a key player in the region.

Mexico, with its expanding technology infrastructure and the rising awareness of cybersecurity, plays a crucial role as well, supporting a steady market growth trajectory. Argentina's emphasis on enhancing its cybersecurity framework also marks it as an important contributor to the regional landscape, while the Rest of South America encompasses emerging markets adapting to new security challenges.

Overall, governmental initiatives across South America to strengthen data protection standards and investments in cybersecurity infrastructure are driving the growth of the managed security services sector, facilitating improved market dynamics. The increasing adoption of cloud services and remote working trends further fuels this growth, highlighting the importance of regional players adapting to evolving cybersecurity needs and ensuring robust protection measures across different industries in South America.

South America Managed Security Services Market Key Players and Competitive Insights

The South America Managed Security Services Market is rapidly evolving, characterized by an increasing emphasis on cybersecurity as businesses face heightened threats from cybercriminal activities. The competitive landscape is dominated by several key players that are intensifying their efforts to provide robust security solutions tailored to the unique challenges of this region. The market is driven by the rising adoption of digital technologies across various sectors, including finance, healthcare, and government, thereby creating a strong demand for managed security services.

As organizations in South America seek to protect their sensitive data and comply with regulatory requirements, service providers are focusing on innovative solutions, partnerships, and regional expansions to enhance their market positions. The entrance of new players, as well as the strategic moves by established companies in improving their service offerings, make the competitive dynamics increasingly complex and compelling.Verizon has established a significant presence in the South America Managed Security Services Market by leveraging its extensive global infrastructure and expertise in cybersecurity.

The company is known for its comprehensive portfolio of security solutions, including threat detection, incident response, and managed firewall services. Verizon’s strengths lie in its ability to provide integrated security solutions that address the specific needs of South American businesses amidst a rising tide of cyber threats. The company also invests in local data centers and partnerships, which enhance its responsiveness to local customer needs and regulatory requirements. Through continuous innovation and a client-centric approach, Verizon effectively positions itself as a reliable partner for organizations looking to bolster their cybersecurity posture in the region.

AT&T Cybersecurity, a prominent player in the South America Managed Security Services Market, also demonstrates a strong commitment to delivering advanced security solutions tailored to the needs of local businesses. The company offers a range of services, including threat intelligence, managed detection and response, and compliance monitoring, positioning itself as a comprehensive security provider. AT&T Cybersecurity has been strategic in forging partnerships and alliances, enhancing its capabilities to deliver localized solutions that resonate with the South American market. The company is known for its investments in cutting-edge technologies and continuous improvement of its services through mergers and acquisitions, which further strengthen its market presence. Its ability to rapidly scale its offerings in response to evolving threats while maintaining a local focus on customer needs underscores its competitive edge in the region.

Key Companies in the South America Managed Security Services Market Include

• Verizon
• AT&T Cybersecurity
• Cisco
• Secureworks
• Accenture
• CrowdStrike
• Fortinet
• Palo Alto Networks
• Orange CyberDefense
• Trend Micro
• IBM
• Check Point Software Technologies
• BT Group

South America Managed Security Services Market Industry Developments

MNEMO Mexico, a managed cybersecurity services firm based in Mexico City, was acquired by Accenture in October 2023. The firm possesses a 24/7 SOC, a generative-AI cyber intelligence platform, and approximately 230 security professionals. This action enhances Accenture's MSS presence in Latin America, which is advantageous for businesses in South America, such as Argentina and Brazil.

In South America, Cisco, IBM, Fortinet, and AT&T Cybersecurity have continued to provide managed security services through 2023–2024. They have collaborated with local integrators to provide AI-enhanced threat detection, SOC-as-a-service, cloud security, and compliance support to sectors such as finance, healthcare, and utilities.

South America Managed Security Services Market Segmentation Insights

Managed Security Services Market Service Type Outlook

• Managed Firewall
• Intrusion Detection System
• Unified Threat Management
• Security Information and Event Management
• Endpoint Security

Managed Security Services Market Deployment Model Outlook

• On-Premises
• Cloud-Based
• Hybrid

Managed Security Services Market Organization Size Outlook

• Small Enterprises
• Medium Enterprises
• Large Enterprises

Managed Security Services Market End Use Industry Outlook

• BFSI
• Healthcare
• ITTelecom
• Retail
• Government

Managed Security Services Market Regional Outlook

• Brazil
• Mexico
• Argentina
• Rest of South America

 

Report Attribute/Metric Source:	Details
MARKET SIZE 2023	1.82(USD Billion)
MARKET SIZE 2024	2.0(USD Billion)
MARKET SIZE 2035	5.0(USD Billion)
COMPOUND ANNUAL GROWTH RATE (CAGR)	8.687% (2025 - 2035)
REPORT COVERAGE	Revenue Forecast, Competitive Landscape, Growth Factors, and Trends
BASE YEAR	2024
MARKET FORECAST PERIOD	2025 - 2035
HISTORICAL DATA	2019 - 2024
MARKET FORECAST UNITS	USD Billion
KEY COMPANIES PROFILED	Verizon, AT&T Cybersecurity, Cisco, Secureworks, Accenture, ProtectWise, CrowdStrike, Fortinet, Palo Alto Networks, Orange CyberDefense, Tanium, Trend Micro, IBM, Check Point Software Technologies, BT Group
SEGMENTS COVERED	Service Type, Deployment Model, Organization Size, End Use Industry, Regional
KEY MARKET OPPORTUNITIES	Increasing cybersecurity threats, Growing adoption of cloud services, Regulatory compliance requirements, Rising demand for remote work security, Investment in digital transformation initiatives
KEY MARKET DYNAMICS	growing cyber threats, increasing regulatory compliance, cloud adoption surge, demand for cost-effective solutions, rise in remote workforce
COUNTRIES COVERED	Brazil, Mexico, Argentina, Rest of South America