Published: May 2017
Report Code: IM10316
Category : IT Security
The global cyber security market is projected to witness a CAGR of 10.7% during 2017-2023. Cyber security refers to a comprehensive system of technologies, processes and practices that provides security to IT networks, computers, software programs and data from any kind of attack, damage and unauthorized access. The cyber security market has a high growth potential, owing to the increasing demand for advanced cyber security solutions from organizations and individual system administrators.
The highly sophisticated cyber-attack launches such as Stuxnet, zero-day attacks and advanced persistent threats on information systems of businesses, government, educational institutions, and consumers cause loss of millions of dollars to the institutions and individuals every year, which fuels the cyber security market growth. The growing penetration of internet-of-things (IoT) has been influencing the overall global information technology infrastructure. This is expected to create an unprecedented demand for advanced cyber security solutions.
National Institute of Standards and Technology (NIST), a unit of U.S. Department of Commerce, recently issued directives in its risk-assessment framework that recommends a shift towards adoption of continuous monitoring and real-time assessments solutions. This in turn, shifts the focus of organizations to deploy cyber-security solutions, which further emphasizes the cyber security market growth potential.
Major factors driving the growth of cyber security market include increased use of application based solutions, surge in demand for vulnerability assessment technologies such as end-point threat detection, wireless security solutions, and growing adoption of bring-your-own-device (BYOD) in organizations. However, aerospace & defense sector is expected to hold substantial market size during the forecast period owing to the increased instances of cyber-assaults and the criticality of cyberattacks on the information systems of the industry.
The cyber security services market is expected to witness a high growth during the forecast period owing to the inadequate presence of in-house security professionals in organizations. The organizations are therefore, more inclined to outsource their security models to third-party security services providers. Consequently, there has been a rise in demand for cloud-based security type. Moreover, it has also been observed that the government spending on cybersecurity solutions has increased annually due to high risk of data thefts and other forms of cyberattacks, such as ransomware, distributed denial of service, and advanced persistent threats.
The various technical applications of cyber security, such as machine learning, threat analytics and network behavior analysis, have led to the development of more strengthened cybersecurity solutions, which has further escalated the demand for cybersecurity solutions from a number of organizations. Additionally, cybersecurity market is expected to witness high growth rate in the banking, financial services and insurance (BFSI) sector, during the forecast period, owing to the increased potential security risks to their information systems. The increased use of mobile devices for financial transactions and related communication, has made the financial information system highly prone to cyberattacks. Therefore, banks have implemented two-factor authentication security gateways for the users of mobile and online banking services.
The rapid expansion of information technology infrastructures in emerging economies, such as India and China, is leading to increase in demand for cybersecurity solutions in the countries, which is expected to drive the global cybersecurity market growth, during the forecast period. Also, the increased penetration of smartphone market globally has led to a tremendous increase in the use of a number of application-based services, such as e-commerce and digital wallets, which has been further driving the demand for cybersecurity solutions. Consequently, there has also been a rise in consumer cybersecurity spending such as installation of anti-virus or malware protection software and post-breach services, which is also driving the cyber security market growth. Moreover, the increase in the demand for automotive security, aviation security, IoT security, and industrial internet of things (IIoT) security solutions is also driving the global cyber security market growth. The growing adoption of automated application-based services for operational processes in industries, such as remote asset management, is also expected to further drive the cyber security market growth during the forecast period.
The transformational path of digitization is expected to offer enormous opportunities to the global cyber security market. The real-world warfare platforms are likely to witness significant transformations leading to the scenarios of electronic-warfare, where government sites and financial institutions will become increasingly prone to a potentially high risk of system failures and data thefts. Therefore, the investments in cyber security solutions from defense and financial industry verticals will be huge. Highly complex security infrastructures will be deployed to ensure security against cyberattacks. Therefore, investments in research & development of highly advanced cyber security solutions becomes imperative.
The global cyber security market has a consolidated structure as the major market share is held by few of the key players in the industry. Some of the major players operating in the cyber security market include Symantec Corporation, Trend Micro Incorporated, Cisco Systems Inc., Check Point Software Technologies Ltd, and Fortinet Inc.
The companies have been announcing a number of product enhancements to provide quality cyber security solutions to customers, in a bid to augment their market share. For instance, in April 2017, Trend Micro Inc. has announced an enhancement of its Worry-Free services that infuses high-fidelity machine learning into its threat protection techniques. Trend Micro Worry-Free service is an end-point security solution for small businesses.
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