Managed security services emerge as fastest-growing cybersecurity segment in India, says Gartner

Expected to grow 15.1 percent in 2026 as organisations turn to outsourced threat detection and response.

Spending on managed security services in India is expected to see the fastest growth within the cybersecurity market as organisations increasingly turn to external providers to manage rising threat complexity, according to Gartner.

The research firm estimates that the managed security services segment will grow 15.1 percent in 2026, making it the fastest growing subsegment within the broader security services category.

Overall spending on security services in India is projected to grow 11.1 percent in 2026, reaching $1.44 billion.

The growth reflects a shift among enterprises toward outsourced security capabilities as cyber threats become sophisticated and security environments complex.

According to Gartner, organisations are adopting managed detection and response (MDR) and other managed services to strengthen cybersecurity posture while maintaining cost efficiency.

Gartner’s senior principal, Shailendra Upadhyay, said Indian enterprises are adopting managed detection and response (MDR) and other managed services as they look for scalable, cost-efficient solutions to navigate the increasing complexity of cyber threats.

Managed security services help organisations reduce the need for inhouse investments in specialised talent and infrastructure, allowing them to optimise costs while maintaining a strong security posture, said Upadhyay.

“There is also rising demand for advisory services in areas such as architecture frameworks, forensics, incident response, and investigations, which in turn is contributing to the overall growth of the segment,” he added.

Why enterprises are outsourcing security

The shift toward managed security services reflects the growing complexity of the cyber threat landscape as organisations expand digital operations.

Emerging threats including AI-enabled attacks, credential compromise and deepfake-driven fraud are increasing the potential attack surface for enterprises, making it challenging for internal teams to manage security environments independently.

At the same time, evolving regulatory frameworks, including India’s Digital Personal Data Protection Act, are placing emphasis on data protection, governance and incident response preparedness.

For organisations, particularly mid-sized enterprises, building and maintaining specialised cybersecurity capabilities internally can require significant investment in talent, infrastructure and processes.

As a result, enterprises are evaluating partnerships with managed security providers to strengthen threat monitoring, detection and response capabilities.

Among these services, MDR is gaining traction as organisations seek scalable security operations that complement internal teams while helping maintain a consistent security posture.

Security software spending continues to dominate market

Beyond managed services, overall cybersecurity spending in India is also expected to grow.

According to Gartner, total end-user spending on information security in India is projected to reach $3.4 billion in 2026, representing an 11.7 percent increase from 2025.

Security software is expected to remain the largest segment of the cybersecurity market, reflecting enterprise demand for tools that secure applications, networks, and cloud environments.

Spending on security software is projected to reach $1.56 billion in 2026, growing 12.4 percent year on year, as organisations expand investments in areas such as application security, cloud security, and data protection.

The continued rise in cybersecurity investments comes as enterprises accelerate digital transformation initiatives while facing a rapidly evolving threat landscape.