Cyber Security Market Overview
The cyber security market stood at $81.4 billion in 2016, and is expected to grow at a CAGR 10.7% during 2017-2023. The growing need to protect company data and information from external threats such as malware, phishing, and malvertising is fueling the growth of the cyber security market. Organizations expanding their horizon to different geographies are generating voluminous data and are also using analysis techniques to enhance their product offerings.
GLOBAL CYBER SECURITY MARKET, BY COMPONENT, $M (2013 – 2023)
Between solution and service offered in the cyber security market, service is expected to grow at higher pace, with a projected CAGR of 14.3% during the forecast period. Various cyber security solutions include risk and compliance management, identity and access management (IAM), firewall, security and vulnerability management (SVM), encryption, intrusion detection systems/intrusion prevention system (IDS/ IPS), unified threat management (UTM), disaster recovery, web filtering, distributed denial of services (DDoS) mitigation, antivirus/ antimalware, and data loss prevention. These solutions construct a strong protection line to challenge a range of sophisticated threats, including cyberattacks, data loss, and other online threats.
The cyber security market in services is broadly categorized into managed, and professional services. These services assist in network threat modelling, vulnerability management, configuration management, and network forensic services. The cyber security market for managed services is projected to grow at higher pace as compared to professional services.
Cyber security offers security in areas of application, network, endpoint, cloud, wireless, and others. The cyber security market for application security is expected to grow at the highest pace, which can be attributed to the increasing demand to protect enterprise applications and data from complex cyber-attacks. The deployment of cyber security solutions and services was nearly the same in on-premises and cloud, in 2016; however, owing to higher growth in the latter, its market is expected to become almost double to that of on-premises.
North America accounted for the largest share in the cyber security market in 2016, with nearly 9% growth rate during 2013 – 2016. A large number of IT companies are located in North America, making it a hotspot for cyber-attacks. To propagate their business smoothly, these companies need security of various levels, which has been driving the cyber security market in the region. Government Accountability Office (GAO) in the U.S., has reported a continuous rise in cyber-attacks, which has created the demand for a plethora of cyber security solutions and services in the region.
Cyber Security Market Dynamics
The increasing number of cyber-attacks is one of the prime growth factors of the cyber security market. The increased usage of mobile devices is also projected to drive the growth of the market.
With the evolution of technology, there has been a surge in cyber-crimes, including financial fraud, virus-attacks, and DDoS, which has been driving the cyber security market. Cyber-frauds such as identity and payment card thefts, account for over 55% of all cybercrimes, and may become costly for organizations if not resolved on time. Cyber security offers solutions to combat cyber fraud by identifying threat detection, reducing response time, and refining the techniques to distinguish attacks that require immediate attention.
Though large companies continue to implement effective security measures, threat actors are increasingly penetrating the middle-tier companies, which do not follow security practices. As a result of that, mid-sized organizations are also facing the brunt of cyber-attacks, which may lead to loss of billions of dollars, globally. Mobile devices with advanced capabilities similar to personal computers (PCs), are reaching the population at a mass level, as they offer access to email, internet, GPS navigation, and several other applications. However, security measures such as firewalls and software are not updated frequently on mobile devices, making them vulnerable to cyber-attacks. Many personal and sensitive information such as password details, contact details, and calendars, are available on these devices and appear more enticing to cyber adversaries. The growing need to combat these malicious attacks in large and mid-sized organizations through advanced security solutions, is anticipated to drive the growth of the cyber security market in future.
In the last half decade, multiple sectors have witnessed cyber-attacks; to fulfill the growing requirement of large, medium and small enterprises vendors are choosing inorganic growth as a strategy to meet organizations’s needs. Large players are acquiring small players to expand their business across the globe, and small and medium players are getting merged to provide their offerings globally. There have been multiple cases of mergers and acquisitions in 2016 to overcome cyber threats. For instance, recently, Microsoft bought Hexadite (Israel based company) for $100 million, CyberArk acquired DevOps for $42 million, Gemalto acquired 3M’s for $850 million, and Israel Aerospace Industries (IAI) acquired Inpedio. Such trends have been shaping the cyber security market and redefining the market structure.
Cyber Security Market Competitive Landscape
The cyber security industry is fragmented owing to the presence of large number of global and regional players, which intensifies the degree of rivalry. The market is growing at a notable pace, which leads to high intensity of rivalry. Some of the major players in the cyber security industry are BAE Systems, RSA Security LLC, IBM Corporation, Symantec Corporation, Palo Alto Networks, Inc., Fortinet, Inc., FireEye, Inc., Check Point Software Technologies Ltd, Cisco Systems Inc., and Juniper Networks, Inc. Key competitors are specifically focusing on Asia-Pacific and Europe, owing to the visible signs of market growth in these regions.