Published: May 2017
Report Code: IM10316
Category : IT Security
Cyber Security Market Overview
The global cyber security market size was valued $80 million in 2016, and is expected to witness a CAGR of 10.7% during 2017-2023. Cyber security refers to a comprehensive system of technologies, processes and practices that provide security to IT networks, computers, software programs and data from any kind of attack, damage and unauthorized access. The market has a high growth potential, owing to the increasing demand for advanced cyber security solutions from organizations and individual system administrators. Moreover, another factor escalating the growth of cyber security market is the dependence of all sized enterprises on information technology and sensitive nature of digitally stored data for their business. This has further raised the platform for cyber-attackers to gain financial credits, and is a prime concern for business owners for data loss.
Cyber security solution providers are primarily shifting their strategic business approach toward research and development to develop next-generation solutions. For example, Science Applications International Corporation (SAIC) developed an interactive and innovative cyber security solution that helps governments defend their critical data, help in establishing a comprehensive defensive wall against any cyber-attack, and mitigate the incoming risks.
Geographically, North America accounts for a large share of the cyber security industry because of the number of increasing cyber-attacks in this region. The U.S. is leading with larger market value due of continuous cyber-attacks on various application verticals such as healthcare, banking and financial services and manufacturing. However, the cyber security market is expected to generate fastest demand from Asia-Pacific in coming years. The expansion of digitization throughout Asia-Pacific has made cybersecurity a necessity for all types of organizations.
Cyber Security Market Dynamics
Major factors driving the growth of cyber security market include increased use of application based solutions, and 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. Aerospace & defense sector is expected to hold a 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 cyber security industry.
The increasing expansion of information technology infrastructure, such as smart offices and smart cities in emerging economies, such as India and China, is leading to increase in the demand for cybersecurity solutions in the countries. Also, the increased penetration of smartphone market globally, has led to a tremendous increase in the use of number of application-based services, such as e-commerce and digital wallets, which have been further driving the demand for cyber security solutions worldwide.
Various cyber security regulations and working standards are now being commonly made applicable to all organizations, regardless of any size and industry. Since, cyber-attacks have been becoming more dominant from the past few years, with an increase in the number of major incidents reported globally, a regulatory environment for robust and comprehensive security management is now essential for all types of organizations.
The increasing consumer spending on cyber security solutions, such as installation of anti-virus protection software and services within computer systems, is also assisting the adoption of cyber security in corporate and home sector. Moreover, industries which are highly data enriched and prone to cyber-attacks, such as automotive, aviation, internet of things (IoT), and industrial internet of things (IIoT), have witnessed increased demand for cyber security solutions in recent years.
The emerging trend of bringing own digital devices in organizations from past few years has made such digital devices and data sensitive applications more vulnerable to malware and cyber threats. Even though, this policy encourages employees to use their smart devices such as smartphones or tablets in the organisation, this has also made corporate date more vulnerable to illegitimate access. While this trend has resulted in enterprise mobility, improvement in the organization’s productivity, but the vast risk associated with this model is encouraging organizations to implement effective cyber security solutions within the walls of corporate data access. Due to the positive impact of BYOD on the overall productivity of the organisation, the trend is expected to continue over a longer time and would further stimulate the growth of cyber security solutions in the coming years.
The transformational path of digitization is expected to offer enormous opportunities for this industry. 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.
Cyber Security Market Competitive Landscape
The 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 this industry include Symantec Corporation, Trend Micro Incorporated, Cisco Systems Inc., Check Point Software Technologies Ltd, and Fortinet Inc. The companies present in the global cyber space are majorly focusing on reducing the costs incurred in implementing security strategies by moving from solution-based products to service offerings. Further, companies have been announcing a number of product developments in order to provide quality cyber security solutions to their customers. For instance, in April 2017, Trend Micro Inc. announced an upgradation of its Worry-Free services that infuse high-fidelity machine learning into its threat protection techniques.
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