The stringent government regulations for data privacy, rising number of data breaches, growing usage of mobile devices, high internet penetration, and surging implementation of next-generation technologies, such as machine learning (ML) and computer vision, in varied business functions are the major factors contributing toward the positive growth of the global cyber security market. As a result, the market is expected to generate $433.6 billion by 2030, registering a CAGR of 12.6% during the forecast period.
COVID-19 Impact Analysis
The COVID-19 outbreak has resulted in an increased demand for cyber security solutions, owing to the risk of cyberattacks on personal devices. This is mainly due to the lockdown situation in several countries, which has led to the proliferation of the work-from-home model. For instance, according to Check Point Software Technologies Ltd., in May 2020, there is a 30% increase in COVID-19-related cyberattacks, as compared to previous weeks, which include a total of 192,000 incidents, over the past three weeks. Such instances, are expected to boost the cyber security market growth.
Solutions Are Higher-Revenue-Generating Component Category
The solutions category held larger share in the cyber security market in 2019, owing to factors such as the growing preference for the bring-your-own-device (BYOD) policy at workplaces, surging need for digitization, shifting toward a multi-cloud environment, and rising demand for data protection. Due to these factors, BFSI, retail, IT & telecom, healthcare, and other organizations are strongly focusing on the adoption of advanced cyber security solutions, in order to safeguard themselves from targeted cyberattacks. Further, the identity and access management (IAM) category held the largest share in the global cyber security solutions market in 2019. This was mainly due to the increase in the demand for full control of user access within organizations, protection of sensitive data, secured collaboration with external stakeholders, and automation of repetitive tasks, in order to reduce the IT expenditure.
Further on the basis of deployment, the cloud category is dominating the cyber security market, and it is also projected to witness faster growth during the forecast period. This can be ascribed to the increasing adoption of cloud services, due to their capability to match the dynamic and highly automated operations in a cost-effective manner; and increasing number of cloud security challenges, such as control and visibility of cloud data, misconfiguration, and user access to cloud data and applications. Thus, market players are concentrating on introducing cloud-enabled security solutions that would provide enhanced support to cloud operations.
Geographically, the fastest growth in the demand for cyber security solutions is expected in the Asia-Pacific (APAC) region during the forecast period. This would mainly be due to the rising awareness about combating cyberattacks, increasing need for a centralized view of the network infrastructure, immediate requirement for data protection solutions, surging focus on encryption solutions, rising mobile internet penetration, and increasing government support, in the form of the implementation of cyber security laws. According to GSMA Intelligence, mobile internet users are expected to number 2.7 billion by 2025, as compared to 1.9 billion in 2018, in the region. In addition, the smartphone connection subscriber rate is projected to reach about 83% of APAC’s population by 2025, as compared to around 61% in 2018. Such factors are expected to fuel the growth of cyber security market in the region.
Merger & Acquisitions Are Strongest Business Strategy of Players in Industry
The cyber security market is highly competitive, as players are focusing on mergers & acquisitions. For instance, in December 2019, U.S.-based cyber security company Palo Alto Networks Inc. acquired an IoT-based cyber security company, ZingBox Inc., for $75 million (cash). With this acquisition, the former company aimed to better its IoT security solutions, by integrating them with next-generation firewall and the Cortex platform. The strengthened solutions provide customers with high control, improved visibility, and enhanced security for connected devices.
Similarly, in March 2020, Accenture pl, announced the acquisition of U.K.-based cyber security consultancy company Context Information Security Ltd., which was previously owned by Babcock International Group PLC, for an undisclosed amount. With this acquisition, the former company aims to strengthen its security services, for clients in the financial services, government, aerospace and defense, infrastructure, and many more industries. Moreover, the company also intends to provide differentiated cyber security services for the U.K. market.
Browse report overview with detailed TOC on "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" at:https://www.psmarketresearch.com/market-analysis/cyber-security-market
Some of the major players operating in the global cyber security market are Cisco Systems Inc., Trend Micro Incorporated, McAfee LLC, FireEye Inc., Palo Alto Networks Inc., Check Point Software Technologies Ltd., Broadcom Inc., Fortinet Inc., Juniper Networks Inc., IBM Corporation, Micro Focus International plc, Sophos Group plc, Thales SA, and CrowdStrike Holdings Inc.