Cybersecurity Market

Cybersecurity Market Outlook

The global cybersecurity market size was valued at USD 1,80,597.7 Million in 2021 and is expected to reach USD 9,53,974.8 Million in 2030, expanding at a CAGR of 20.9% during the forecast period, 2022-2030. The market growth is attributed to the rising awareness about system security and the implementation of a better and more secure environment in organizations.

Cybersecurity helps in protecting employee data and the intellectual property protection of organizations. Moreover, with the increasing AI tools integration, cybersecurity has the potential to reform the workflow of many organizations in the coming years.

Cybersecurity is the practice of protecting networks, electronic systems, and data from unauthorized cyberattacks. For any organization, handling classified information is a sensitive matter as the number of malicious activities is increasing. With the rising cyberattacks, organizations are focusing on implementing cybersecurity solutions for safety purposes.

• For instance, on April 24, 2023, Cisco the leader in enterprise networking and security, launched an AI-driven cross-domain security platform. The new XDR solution and the new Duo MFA features from Cisco will help organizations protect the integrity of the IT ecosystem.

Impact of Artificial Intelligence on the Cybersecurity Market

Artificial Intelligence (AI) is expected to boost the revenue of the market players present in the cybersecurity market. This technology plays an important role in the cybersecurity market as AI tools help to detect potential threats earlier by accelerating the detection and response time process.

AI has the capability of using deep learning techniques to analyze network behavior and identify security incidents. Integrating AI tools in cybersecurity software aids in saving the company’s sensitive information such as employee details, the company’s financial data, and other important information.

AI provides an additional security layer during login attempts with authentication tools such as facial recognition, full system scan, and CAPTCHA to reduce the risk of potential security breaches. With companies increasingly preferring AI tools to increase productivity, the market has immense potential to grow at a rapid pace in the coming years.

Cybersecurity Market Dynamics

Increasing Penetration of Connected Devices and Systems

Increasing penetration of connected devices and systems is leading to a rise in the need for cybersecurity measures to protect them and boosting vulnerabilities in networks & systems owing to the high frequency and severity of cyber-attacks. This, in turn, is driving the demand for cybersecurity solutions. The growing adoption of networks and connected devices has raised concerns related to cyber threats.

IoT refers to the addition of internet access to a network of interconnected devices and digital equipment. The complexity of system integration and interconnection has increased the number of cyberattacks on devices intended to steal sensitive data. Thus, increasing the need for IoT security solutions on a global scale to recognize, thwart, and recover different IoT devices from malicious attacks. 

Furthermore, governments in several countries are enforcing strict regulations on the use of IoT security solutions to decrease the number of cyberattacks. For instance, California implemented an IoT security law in 2020 that mandates IoT device manufacturers to offer ‘reasonable security features’ intended to safeguard user privacy.

The features are mainly determined by the password requirements set forth by manufacturers, who are required to either offer a special, default password for each device or demand that users set up a new form of authentication before the device can be used.

Rising Cyber Intrusion Activity

The increasing number of cyber intrusion activities are driving the demand for cybersecurity across the globe. According to the Accenture Cyber Investigations, Forensics & Response (CIFR) mid-year update, the number of cyber intrusion activities across the globe increased by XX% in the mid-year of 2021, as compared to the same period in 2020.

This rapid increase in cyber intrusion activities is attributed to the rise in web shell activities by way of cybercrime incidents, including supply chain intrusions and targeted ransomware and extortion operations. The adoption of cybersecurity is increasing in various industries, as these industries are majorly affected due to intrusion activities.

Based on the Accenture Cyber Investigations, Forensics & Response (CIFR) mid-year update, five industries held over XX% of overall intrusion value; these industries include consumer goods & services, industrial, banking, travel & hospitality, and insurance.

Lack of Skilled Workforce

Cybercriminals are increasingly adopting advanced novel technologies as compared to the general users such as machine and deep learning, IoT, embedded hardware authentication, behavioral analytics, AI, cloud encryption, 5G networks, and quantum computing. This results in an increasing number of cyber-attacks.

Companies are depending on experienced cybersecurity professionals for handling increasing cyberattacks. But the lack of cybersecurity experts has left many businesses in a difficult situation. Thus, restraining the market. For Instance, the World Economic Forum (WEF) reported a shortage of 3 million cybersecurity professionals around the globe, highlighting the need for security professionals in 2022, an increase of over 26% from 2021 numbers.

Less Budget Among Startups

Many startups and small firms have budget constraints for adopting advanced cybersecurity solutions to safeguard their IT infrastructures and networks from various cyber-attacks, which is expected to hamper the market. Moreover, the lack of expenditure and limited funding is impeding the adoption of cybersecurity among startups and small firms in emerging economies.

For instance, based on the study conducted by the CISCO, around 5000 security alerts are faced by small businesses in a single day; however, only 55.6% of these alerts are investigated. Startups and small businesses have limited financial resources and often lack the required IT security infrastructure, which slows down the adoption of technologies and corporate cybersecurity solutions.

Growth of Endpoint Security due to the Growing Trend of BYOD

Increasing trend of IoT and BYOD among businesses has made devices and applications susceptible to advanced persistent threats (APTs). Furthermore, IT staff find it difficult to manage and track data flow in various systems, as the number of mobile devices within businesses increases. Thus, companies are utilizing cybersecurity systems to protect sensitive data by tracking, categorizing, and resolving various threats, which is creating opportunities in the market.

Endpoint security solutions are becoming increasingly important among different end-users worldwide, due to the growing number of data breaches that have occurred across numerous industries and exposed millions of customer data records to hackers, and caused the loss of millions of dollars for several impacted firms.

Increasing adoption of BYOD trends in organizations has fuelled the influx of different desktops, laptops, and smartphones, which has created different endpoints vulnerable to attacks. Security measures by themselves are insufficient to prevent them.  The massive growth in the adoption of mobile devices across the world is expected to create significant opportunities during the forecast period.

For Instance, according to the Cisco Annual Internet Report, there would be 29.3 billion networked devices, or 3.6 gadgets for every person by the end of 2023. Smart manufacturing and the smart industry are expected to grow owing to the high adoption of 5G and other devices.

Many businesses are aware that BYOD’s benefits in the workplace far outweigh any potential risks. Potential security threats can be neutralized in most situations. Various benefits of having a BYOD policy, increased productivity, emphasis on employee satisfaction, reduced company costs, increasing adoption of cybersecurity.

The Transition from a Wired Communication Network to a Wireless Communication Network

Wireless communication networks provide numerous advantages over wired communication networks, as it does not require cables and they are faster than a wired network. Additionally, the wireless network offers extensive reach to individuals where cable installation is impossible. The increasing number of organizations that are adopting mobile devices and digital networks is expected to drive the demand for cybersecurity during the forecast period.

Based on the Wireless Broadband Alliance (WBA) report, around 33% of technology vendors, service providers, and enterprises have plans to install Wi-Fi 7 by the end of 2023. Moreover, based on a survey conducted by the WBA in 2022, the Wi-Fi 6E has become an industry standard, with 53% of respondents already installed the technology, and around 44% planning to adopt Wi-Fi 6E in the next two years. This type of advancement influence businesses to improve their security measures. 

The rising deployment of novel technologies has increased the risk of cyberattacks that results in huge monetary losses, which is expected to boost the market growth in the coming years. Furthermore, the increasing number of cyber incidents such as spoofing, session hijacking, and eavesdropping among organizations are projected to rise in demand for wireless communication network security during the forecast period.

For instance, as per the Indian Computer Emergency Response Team (CERT-IN) data, in India, around 0.6 million cyber incident cases were reported till June 2021, which is generating the opportunities for implementation of wireless network security.

IoT to Security Plays a Vital Role

Internet of Things (IoT) security is becoming crucial when considering cybersecurity as a whole. IoT security focuses on securing connected devices, whereas cybersecurity aims to defend internet-connected systems from cyber threats. The emerging applications and business models and declining device costs are driving the adoption of IoT, which is, consequently, inducing the number of connected devices, such as machines, connected cars, meters, and wearable, and consumer electronics. 

Cybersecurity is gaining importance as IoT technology is being integrated into everyday systems, lifestyles, and businesses. Cyber security is an umbrella term for all techniques and technologies used to protect networks, platforms, and devices from online threats. According to the National Institute of Information and Communication Technology (NIICT), the number of cyberattacks on IoT Devices has significantly increased.

According to NICT, the number of cyberattacks reached approximately 30 billion devices in 2020. Such instances are propelling governments and related organizations to deploy IoT security solutions to mitigate damages. Thus, IoT security in cybersecurity is likely to create opportunities in the market shortly.

Adoption of Cloud-based Cyber Security Solutions among SMEs

The concept of cloud computing is broadly used, as it provides flexible and reliable infrastructure. Cloud-based solutions are becoming increasingly common among businesses, as these solutions simplify data storage. These solutions provide users access to limitless computing power by using remote servers that are accessed over the internet, which is projected to fuel the market in the coming years.

Organizations are able to manage all applications, due to the adoption of cloud-based models. These models offer extremely difficult analytics that operates in the background. When using the cloud-based security solution, businesses combine additional infrastructure technologies, such as software-defined perimeters. These technologies are used to build dependable and highly secure platforms, which are expected to drive the market in the coming years.

Governments from different nations are establishing laws and precise guidelines for cloud-based cybersecurity, which is projected to propel the growth of the market during the forecast period.  SMEs are continuously looking to upgrade their infrastructure and applications by switching to cloud-based platforms, such as Software as a Service (SaaS) and Infrastructure as a Service (IaaS).

Cybercriminals prey on SMEs in various industries to take advantage of weaknesses in their security architecture. Traditional appliance-based security gateways and firewalls are unable to protect cloud-based apps against Internet threats including malware, ransomware, phishing, and DNS data exfiltration.

Security administrators fuel the demand for cloud-based cybersecurity solutions for SMEs to enhance performance, secure mobile & web apps, and protect crucial network infrastructures.

SMEs are focusing on using cloud computing platforms, as cybersecurity solutions help in protecting individuals, devices, apps, and data by using cloud services that eliminate the need to install a ton of security hardware on-premises.

Scope of Cybersecurity Market Report

Attributes	Details
Report Title	Cybersecurity Market – Global Industry Analysis, Size, Share, Growth, Trends, and Forecast
Base Year	2021
Historic Data	2015-2020
Forecast Period	2022–2030
Segmentation	Component (Hardware, Software, and Service), Software (IAM, Antivirus/Antimalware, Log Management and SIEM, Encryption, and Tokenization, Compliance and Policy Management, Patch Management, and Others), Software Deployment Mode (Cloud and On-Premises), Security Type (Wireless Network Security, Cloud Security, Application Security, Endpoint and loT Security, Infrastructure Security, and Data Security), Organization Size (Large Enterprises and SMEs), and Vertical (Aerospace and Defense, BFSI, IT and ITeS, Telecommunication, Energy and Utilities, Retail and eCommerce, Healthcare, Transportation and Logistics, Manufacturing, and Media and Entertainment)
Regional Scope	North America, Europe, Asia Pacific, Latin America, and Middle East & Africa
Report Coverage	Company Share, Market Analysis and Size, Competitive Landscape, Growth Factors, and Trends, and Revenue Forecast
Key Players Covered	Microsoft, Accenture, Palo Alto Networks, Cisco Systems, Inc, IBM, Check Point Software Technologies Ltd., Broadcom, Amazon Web Services, Inc., Fortinet, Inc., Trend Micro Incorporated., Zscaler Inc., Rapid7, CyberArk Software Ltd., Oracle, McAfee, LLC, and NORMA Inc.

Cybersecurity Market Segment Insights

The global cybersecurity market is segmented based on components, software, software deployment mode, security type, organization size, vertical, and regions.

Component Segment Analysis

In terms of components, the cybersecurity market is segmented into hardware, software, and service. The service segment is projected to hold a substantial share of the market in 2021, due to robust growth in connected devices, that are already creating system vulnerabilities. 

Organizations use various cybersecurity services to safeguard their systems from getting attacked by malware. This includes data breaches or cyberattacks and different other types of threats thus, by deploying security services, organizations can safeguard their systems.

Software Segment Analysis

Based on software, the market is segmented into IAM, antivirus/antimalware, log management and SIEM, encryption and tokenization, compliance and policy management, and patch management. The antivirus/antimalware segment is accounted for a larger share of the market.

Antivirus or antimalware removes viruses or malware from the computer or any device. This works by finding out the malware and thereafter removing the malware from the device. Antivirus or antimalware helps in protecting data and different important information from trojan, spyware, and other viruses.

• For instance, on June 8, 2023, the government of India launched an antivirus application, which is available on smartphones for free. The application helps in removing malware and viruses from the device. It provides an alternative to paid antivirus software and helps in detecting botnets. The eScan CERT-In Bot Removal app detects bot malware which is used by hackers to steal important data from the device.

Deployment Mode Segment Analysis

Based on deployment mode, the cybersecurity market is segmented into cloud and on-premises. The cloud segment is expected to dominate the market during the forecast period.

With the help of cloud solutions, users can customize and make changes in the existing system remotely. It allows companies to scale without any major issues as it is easy for the data centers to control and adjust their resources.

The on-premise segment is projected to hold a substantial share of the market in 2021. On-premises deployment reduces dependency on third-party organizations providing explicit monitoring and data protection. It lets companies handle the system servers quickly and efficiently with the help of an in-house IT team. On-premise security helps industries to have full control of their data and storage.

Third-party share of the data leads to unnecessary data loss thus it is safe to keep sensitive information within the company. Moreover, strict regulatory policies of some companies further help regarding data sharing and storage is also contributing to the segment growth.

Security Type Segment Analysis

On the basis of security type, the market is classified as wireless network security, cloud security, application security, endpoint and loT security, infrastructure security, and data security. The cloud security segment is projected to hold a larger share of the market.

Cloud security helps in protecting data and classified information stored in the cloud. Cloud security is used to protect devices from unauthorized access, data breaches, and others. Cloud security providers bring a range of services for the users.  

• For instance, on June 6, 2023, cisco launched Panoptica, the cloud-native application security solution. The Cisco Panoptica provides end-to-end protection for cloud-native application environments, including code and build protection.

Organization Size Segment Analysis

Based on organization size the market is bifurcated into large enterprises, SMEs. The large enterprises segment is anticipated to boost the market in the coming years. In cybersecurity, large enterprises have a major role as they have complex IT infrastructure, and more resources to dedicate to cyber solutions.

Large enterprise needs more staff to handle cybersecurity solutions due to their complex infrastructure. The systems that are used in large enterprises include SIEM, IDPS, data loss prevention (DLP) solutions, and vulnerability management systems.

Vertical Segment Analysis

On the basis of vertical segment, the market is segmented into aerospace and defense, BFSI, IT and ITeS, telecommunication, energy and utilities, retail and eCommerce, healthcare, transportation, and logistics, manufacturing, and media and entertainment. The IT segment holds the major share of the market during the forecast period.

Cybersecurity functions by protecting internet-connected systems which include data, software, and hardware from malicious viruses and theft. Cybersecurity has a crucial part in IT as it helps to prevent cyberattacks that result in important data compromise, financial loss, and disruption in operations.

Thus, with the implementation of cybersecurity, IT professionals save sensitive information, important data, and systems from getting infected with viruses, threats, ransomware, and others.

• For instance, on June 08, 2023, Google introduces Secure AI Framework (SAIF) for more secure use of AI. The reason for deploying the system is the safe and better implementation of AI. Users of AI now can be able to safeguard themselves from potential risks. It is a solution across private and public sectors that protects the technology that supports AI.  

Regional Analysis

Based on regions, the cybersecurity market is segmented into North America, Europe, Asia Pacific, Latin America, and Middle East & Africa. The market in the Asia Pacific is projected to expand at a significant CAGR during the forecast period. The market in Asia Pacific is projected to expand at a significant CAGR during the forecast period.

The region is expected to continue its dominance in the coming years, owing to the increasing adoption of cloud technologies, the rising number of data centers, and the proliferation of IoT devices. Moreover, growing economic development is projected to drive the market during the forecast period. 

The threat of cybersecurity is increasing with time. According to research from IBM, Asia Pacific accounts for 31% of all cyberattacks monitored in the year 2022. The number of cyberattacks in the region is increasing with the advancements in information technology. Major regional companies are launching new technologies to eliminate the risk of cyberattacks.

For instance, On November 16, 2022, Palo Alto Networks launched the PAN-OS 11.0 Nova, the newest version of the PAN-OS software, to help organizations remove the potential threats regarding cyberattacks. Thus, with the increasing awareness regarding the deployment of antimalware in organizations and with the improvements of more secure IT infrastructure the market in the region is expected to boost during the forecast period.  

Key Benefits for Industry Participants & Stakeholders

• In-depth Analysis of the Global Cybersecurity market
• Historical, Current, and Projected Market Size in terms of Value
• Potential & Niche Segments and Regions Exhibiting Promising Growth Covered
• Industry Drivers, Restraints, and Opportunities Covered in the Study
• Recent Industry Trends and Developments
• Competitive Landscape & Strategies of Key Players
• Neutral Perspective on Global Cybersecurity Market Performance

Segments

Component

• Hardware
• Software
• Service

Software

• IAM
• Antivirus/Antimalware
• Log Management and SIEM
• Encryption and Tokenization
• Compliance and Policy Management
• Patch Management
• Others

Software Deployment Mode

• Cloud
• On-Premises

Security Type

• Wireless Network Security
• Cloud Security
• Application Security
• Endpoint and loT Security
• Infrastructure Security
• Data Security

Organization Size

• Large Enterprises
• SMEs

Vertical

• Aerospace and Defence
• BFSI
• IT and ITeS
• Telecommunication
• Energy and Utilities
• Retail and eCommerce
• Healthcare
• Transportation and Logistics
• Manufacturing
• Media and Entertainment

Regions

• North America
• Europe
• Asia Pacific
• Latin America
• Middle East & Africa

Key Market Players Profiled in the Report

• Microsoft
• Accenture.
• Palo Alto Networks
• Cisco Systems, Inc.
• IBM
• Check Point Software Technologies Ltd.
• Broadcom
• Amazon Web Services, Inc.
• Fortinet, Inc.
• Trend Micro Incorporated.
• Zscaler Inc.
• Rapid7
• CyberArk Software Ltd.
• Oracle
• McAfee, LLC
• NORMA Inc

Competitive Landscape

Top players in the market include Microsoft, Accenture, Palo Alto Networks, Cisco Systems, Inc, IBM, Check Point Software Technologies Ltd., Broadcom, Amazon Web Services, Inc., Fortinet, Inc., Trend Micro Incorporated., Zscaler Inc., Rapid7, CyberArk Software Ltd., Oracle, McAfee, LLC, NORMA Inc. 

These companies are considered key players in the Cybersecurity market based on their revenue, product offerings, regional presence, and supply chain management system. The players are adopting key strategies such as acquisition, collaborations, and geographical expansion which the potential opportunity for the Cybersecurity market.

• On June 07, 2023, Immersive Labs, a leader in people-centric cyber resilience, and Accenture together launch the Cyber Million program. It focuses on solving the cybersecurity talent deficit by increasing access to one million entry-level cybersecurity operations jobs over the next decade. Cyber Million will help reduce barriers to entry for job seekers and fill these open roles, by increasing access to opportunities.
   
• On May 16, 2023, IBM acquired Polar Security, an innovator in technology that helps companies in discovering and continuously monitor cloud and software-as-a-service (SaaS) application data and address the growing shadow data problem. Based on a risk-based prioritization methodology, Polar Security offers remediation reports that identify the most pressing security risks and compliance violations. It provides an analysis of the underlying causes and practical recommendations to address them.
   
• On March 28, 2023, Microsoft Corp. launched the Microsoft Security Copilot to bring the next-generation AI to cybersecurity. It helps defenders by giving them a needed tool to detect and respond to threats and better understand the overall threat landscape quickly. Security Copilot will use an AI assistant to combine Microsoft’s vast threat intelligence footprint with industry-leading expertise to augment the work of security professionals. Security Copilot works seamlessly with security teams to correlate threat activity and make efficient decisions at machine speed.