Cyber Security Market Research Report: By Component (Solutions, Services), Security Type (Application, Network, Endpoint, Cloud, Enterprise), Deployment (On-Premises, Cloud), Enterprise (Large Enterprises, SME), Use Case (Security Monitoring, Network Traffic Analysis, Threat Hunting, Incident Response, Data Exfiltration), Industry (Aerospace & Defense, Government, BFSI, Healthcare, Retail, IT & Telecom, Manufacturing) - Global Industry Analysis and Growth Forecast to 2030

Market Outlook

The cyber security market revenue stood at $119.9 billion in 2019, and it is expected to witness a CAGR of 12.6% during 2020–2030. The growth is primarily driven by the surging smartphone penetration, soaring risk of cyberattacks, accelerating digitization rate, increasing deployment of the cloud computing technology, and burgeoning need to safeguard the confidential data of customers.

COVID-19 Impact Analysis

The lockdown situation during the COVID-19 pandemic has supported the cyber security industry expansion. The growth of the work-from-home (WFH) culture has given way to numerous cyberattacks and data breaches. For instance, the World Health Organization (WHO) revealed that 450 of its active email addresses and passwords were leaked online in April 2020. The surging incidence of COVID-19-induced cyberattacks will, therefore, boost market revenue in the near future.

Services Category To Display Faster Growth

The services category, under the component segment, will register the faster growth in the coming years. This will be due to the amplifying demand of business organizations for planning, consulting, and maintenance and support services. Moreover, the risk and threat management category, within the services category, is expected to register the higher demand in the cyber security market in the foreseeable future. This can be ascribed to the rising usage of threat management services for identifying vulnerabilities, analyzing the causes of cyber incidents, 24x7 security monitoring, improving the threat response time, and reducing the operational complexities.

Large Enterprises Are Leading Consumers

In 2019, the large enterprises category, within the enterprise segment, held the larger share in the market for cyber security solutions. This was due to the strong focus on digital transformation, rapid shift toward cloud computing, complex network infrastructure, vast requirement for the encryption of files and folders, and specific compliance needs in such companies.

The small and medium enterprises (SMEs) category will exhibit the faster growth in the coming years. This can be owed to the surging inclination toward the cloud computing technology, escalating need to protect confidential information, and soaring awareness of such companies about cybersecurity.

Enterprise Category Is Highest Contributor

The enterprise category accounted for the largest market share in 2019, under the security type segment. This was primarily on account of the rising emphasis of enterprises on their overall security, which encompasses networking, storage, and application security. The dominant position of this category in the cyber security market can also be owed to the increasing awareness about cybersecurity among SMEs and large enterprises, burgeoning number of data breaches, and magnifying focus on creating a highly-security infrastructure. Moreover, enterprises are increasingly adopting cybersecurity solutions to protect themselves from malware attacks.

Threat Hunting Use Case To Exhibit Fastest Growth

The threat hunting category, under the use case segment, will observe the fastest growth during 2020–2030. This will be on account of the amplifying focus of business organizations on leveraging advanced technologies to identify and investigate persistent threats and swiftly respond to any potential attack. Some of the advantages offered by threat hunting solutions include early threat detection, reduced inspection time, and improved speed of threat and response management systems (TRMS).

Banking, Financial Services, and Insurance (BFSI) Industry Generated Highest Demand

In 2019, the BFSI category, within the industry segment, generated the highest revenue in the market for cyber security solutions. This was due to the augmenting digitization rate, magnifying consciousness to meet compliance regulations, such as the Payment Card Industry Data Security Standard (PCI DSS) and Federal Information Processing Standards (FIPS), and mounting need to secure communication channels.

Besides, the rising cases of data breaches among banks and financial institutions have fueled the growth of this category in the cyber security market. For instance, in March 2019, Capital One Financial Corporation, a U.S.-based bank, encountered a data breach that affected 100 million people in the U.S. and 6 million in Canada. During it, cybercriminals were able to get hold of customer status data, transaction data, and credit card application data.

North America As Largest Consumer

North America was the largest market during 2014–2019. This can be owed to the shift toward multi-cloud environments, rapid implementation of data center services, high emphasis on leveraging advanced data analytics tools, and presence of a vast number of cloud service providers. Moreover, the increasing deployment of electronic health records (EHR) and utilization of mobile application services are propelling the demand for cloud-based cybersecurity solutions in the region. Resultingly, key market players are focusing on the introduction of new security services and solutions and incorporation of new features in existing security solutions, to offer better security support to business organizations.

Asia-Pacific (APAC) Region Advancing at Fastest Pace

The APAC region will witness the fastest growth between 2020 and 2030. This will be due to the increasing traffic on online portals, rapid shift toward cloud computing, and surging deployment of big data analytics in business operations. Moreover, the cyber security market growth in APAC can be attributed to the flourishing e-commerce industry and soaring requirement for safeguarding customer data. Additionally, the mounting number of data breaches, swift digital transformation, amplifying usage of connected devices, and burgeoning awareness regarding cybersecurity in India, Malaysia, and Singapore are facilitating the market growth.

Bring-Your-own-Device (BYOD) Culture Adding to Market Size

The BYOD policy is gaining relevance as it enhances productivity and increases employee satisfaction. However, the implementation of this policy increases the vulnerability of the corporate data by making it more susceptible to cyberattacks. Employees’ devices usually lack the advanced security solutions that are required to mitigate the risks involved. Besides, the information technology (IT) departments might lack the ability and resources to fully evaluate and approve each device, which may pose a high security threat to confidential data. Thus, the growing adoption of personal devices, such as laptops and personal digital assistants (PDAs), in corporate settings will act as a catalyst for the market advance in the coming years.

Rising Number of Data Breach Incidents Augmenting Market Size

The increasing number of data breaches is acting as the strongest driver for the cyber security market. The leading causes of data breaches include weak passwords, complex access permissions, improper configurations, and malware attacks. Additionally, the chances of data breaches have surged due to the growing focus of organizations on shifting their database to the cloud network. Data breach cases can be avoided by deploying cybersecurity solutions, as they help prevent unauthorized access to information, analyze and identify cyber threats in real time, and detect vulnerabilities at an early stage.

Growing Adoption of Mobile Devices Adding to Market Revenue

Mobile devices with advanced capabilities, just like personal computers (PCs), are being adopted at a large scale because they offer access to the internet, emails, global positioning system (GPS) navigation, and several other applications. However, security solutions, such as software and firewall, are not updated regularly on these devices, thereby making them susceptible to cyberattacks. In 2019, the global smartphone penetration stood at nearly 65%, and it is expected to reach around 80% by 2025. The growing use of mobile devices is giving birth to mobile botnets (compromised software), which result in the loss of information or denial of service (DoS).

Soaring Need to Adhere to Data Privacy Regulations Propelling Market Growth

The cyber security market size will magnify due to the rising need to comply with data privacy laws. Governments across the world have implemented new cyber laws and amended the existing ones to offer a better security ecosystem. According to these regulations, companies are obligated to invest in cybersecurity solutions to prevent potential financial and reputation loss and ensure the protection of the personal data of individuals. For instance, the California Consumer Privacy Act (CCPA) aims to provide customers with strong data protection and control over their personal information.

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Product Launches Is The Key Growth Strategy Adopted by Players

The cyber security market is fragmented in nature, with the presence of a large number of market players, who are engaged in intense competition. Major players in the industry are focused on the launch of new cyber security solutions, in order to cater to the growing demand for advanced security services and improve their brand positioning. For instance:

• In January 2020, Cisco Systems Inc. launched a comprehensive security architecture for industrial internet of things (IIoT), including Cisco Cyber Vision and Cisco Edge Intelligence. Cisco Cyber Vision, which supports real-time detection of security threats, is powered by Cisco Talos. Cisco Edge Intelligence supports in simplifying the process of data extraction and streamlining the transfer of data to the multi-cloud network.
• In November 2019, Trend Micro Incorporated launched a security service platform, Trend Micro Cloud One, which is a comprehensive package for cloud security. It includes application security, file storage security, workload security, network security, container image security, and conformity solutions. It can be integrated with the Google Cloud platform, Microsoft Azure, and AWS Cloud, to provide security for DevOps teams.

Some of the Key Players in the Cyber Security Market Report include:

Cyber Security Market Size Breakdown by Segment

The cyber security market report offers comprehensive market segmentation analysis along with market estimation for the period 2014–2030.

Based on Component

• Solutions
  • Risk and compliance management
  • Identity and access management (IAM)
  • Firewall
  • Security and vulnerability management (SVM)
  • Encryption
  • Intrusion detection system/intrusion prevention system (IDS/IPS)
  • Unified threat management (UTM)
  • Distributed Denial of Service (DDoS) attack
  • Antivirus
  • Data loss prevention (DLP)
• Services
  • Managed
  • Design and integration
  • Risk and threat management
  • Support and maintenance
  • Consulting
  • Training and education
  • Professional

Based on Security Type

• Application
• Network
• Endpoint
• Cloud
• Enterprise

Based on Deployment

• On-Premises
• Cloud

Based on Enterprise

• Large Enterprises
• Small and Medium Enterprises (SMEs)

Based on Use Case

• Security Monitoring
• Network Traffic Analysis
• Threat Hunting
• Incident Response
• Data Exfiltration

Based on Industry

• Aerospace & Defense
• Government
• Banking, Financial Services, and Insurance (BFSI)
• Healthcare 
• Retail 
• Information Technology (IT) & Telecom 
• Manufacturing 

Geographical Analysis

• North America
  • U.S.
  • Canada
• Europe
  • U.K.
  • Germany
  • France
  • Italy
  • Spain
• Asia-Pacific (APAC)
  • China
  • Japan
  • Australia
  • India
  • South Korea
• Middle East & Africa (MEA)
  • U.A.E.
  • Saudi Arabia
  • Turkey
  • South Africa
• Latin America (LATAM)
  • Brazil
  • Mexico