MarketsandMarkets forecasts the Cybersecurity Market to grow from USD 152.71 billion in 2018 to USD 248.6 billion by 2023 at a CAGR of 10.2% from 2018 to 2023.
By component, the services segment is expected to grow at the highest growth rate during the forecast period
Among the components segment, the services segment is expected to grow at the highest CAGR during the forecast period. Cybersecurity managed services are expected to witness high growth due to the increase in the adoption of cloud-based services for managing the critical infrastructure of enterprises.
By solution, the encryption segment is expected to record the highest CAGR during the forecast period
The encryption segment is expected to witness a faster growth rate in this market, as it is being rapidly accepted by various enterprises, because of its easy, flexible, affordable, and scalable features. It also provides the highest level of data security and dependability.
By deployment type, the on-premises mode to record the highest CAGR during the forecast period
The cloud deployment mode is expected to witness a faster growth rate in this market, as it is being rapidly accepted by various enterprises, as critical data is stored on the cloud across various verticals. Also, they are cost-efficient, do not require purchase, installation, and maintenance of hardware or software.
North America to account for the largest market size during the forecast period.
North America is expected to hold the largest market size in the cybersecurity market during the forecast period, followed by the European region. The highest market share of North America is due to the presence of key market players in the region. Europe is anticipated to be the second-largest region in terms of the market size the market owing to GDPR compliance. With the technological advancement in APAC, several factors are expected to drive the impressive growth of the region. The factors include rapid economic development, increased sophistication of cyber attacks, cloud-based solutions, globalization, and massive penetration of smartphones and the internet across consumers and business segments.
The Government vertical to account for the largest market size during the forecast period.
The government vertical is expected to hold the largest market size in the cybersecurity market during the forecast period, followed by the BFSI and Healthcare vertical. Increasing adoption of BYOD and IoT trends and the growing number of security breaches targeting endpoints are among the major driving factors of the global market.
Driver: Increase in the frequency and sophistication of cyberattacks.
The instances of massive cyber attacks globally are gradually increasing. Cyber terrorists attack endpoints, networks, data, and other IT infrastructure that lead to a huge financial loss to individuals, enterprises, and governments. The primary motive behind cyber-criminals includes political rivalry, financial gain, harm reputation, international rivalry, and radical religious group interest. The majority of cyber-attacks are for financial gain. Ransomware, such as WannaCry, Petya, NotPetya, and BadRabbit, are some of the significant ransomware, which has affected enterprises and government organizations on a large scale.
In March 2018, SamSam ransomware cyber-attack was triggered in the city of Atlanta, US. This type of ransomware is deployed on the computer system using brute-force attacks to guesstimate weak passwords and encrypt files. The consequences of the ransomware included inaccessibility to multiple municipal services, data leakage, and financial loss. The victim has demanded a ransom of around USD 50,000 worth of Bitcoin. SamSam ransomware attacks are prominent among healthcare, government, and education industry verticals.
Restraint: Use of Pirated and open-source cybersecurity solutions
Software piracy refers to the unauthorized copying and distribution of software or solutions. Counterfeiting of software has increased over the years, due to the availability of open-source platforms. Software piracy helps illegitimate people in making a fake software copy, which is a replica of the original software. However, software piracy is a cybercrime that encompasses illegal copying, sharing, selling, or installing of copyrighted software, and website downloading. There are several types of software piracy in which the most prevalent types are softlifting, software counterfeiting, Original Equipment Manufacturer (OEM) bundling, hard disk loading, and renting. Internet-based piracy of software and solutions is one of the emerging issues in piracy.
According to the BSA Global Software Survey, conducted in June 2018, 37% of the software installed on PCs across the globe was not licensed. Moreover, the study revealed about 46% of enterprises are concerned about the data loss caused due to malware threats from unlicensed software. The other significant enterprises concerns included unauthorized access into their network infrastructure which accounts for 40%, potential ransomware about 30%, system outages and downtime around 28%, and the time and cost to disinfect the network accounted to 25%. The region with the highest overall rate of unlicensed software was APAC, and Central and Eastern Europe display the rate of 57%; followed by MEA at 56%, and North America with the lowest rate at 16%. Despite threats associated with piracy, enterprises, specifically, SMEs, prefer pirated software, as they can be easily downloaded via illegal sources over the internet at minimal cost or free of cost. Various companies use pirated software because the original versions are expensive. A strong correlation exists between cybersecurity and usage of unlicensed software; thus, the continuing use of pirated security software is one of the biggest restraints that hamper the growth of the cybersecurity market.
Opportunity: Leveraging AI, Machine learning, and blockchain technologies for cyber defense.
Cybersecurity vendors are incorporating Artificial Intelligence (AI) and machine learning concepts into their solutions for addressing critical threats related to the hyper-connected workplace, with faster threat detection, mitigation, and response capabilities. The advancements in technologies, such as AI and machine learning, are turning the tides against cybercriminals. AI and machine learning-based cybersecurity solutions analyze a huge amount of data from the past threat records and identify new threats to save enterprise networks from infiltration attempts. AI and machine learning techniques play an integral role when it comes to identifying and safeguarding against advanced security threats. According to Gemalto’s Breach Level Index 2017, the data breach recorded more than 2.5 billion compromised data records. For instance, in September 2017, Equifax witnessed cyber-attacks, which resulted in the loss of more than 140 million American customers’ sensitive information. The information that was stolen included names, addresses, social security numbers, date of birth, and driver’s license numbers.
The cyber threats are increasing in number day by day, and conventional security solutions are incapable of detecting malware, ransomware, and other sophisticated cyber threats. Hence, cybersecurity professionals are leveraging AI and machine learning technologies for responding to the evolving cyber threats faced by individuals, businesses, and governments. Additionally, vendors are also looking into leveraging modern-day concepts such as blockchain into fortifying the capabilities of their cybersecurity solutions and services, thus offering better protection and remediation for the enterprises. For instance, Guardtime, one of the key global blockchain technology players, is using blockchains to create a Keyless Signature Infrastructure (KSI), a substitute for the conventional Public Key Infrastructure (PKI) that uses asymmetric encryption and a cache of public keys that eventually help inefficient management of keys and certificates. Moreover, blockchain technology can also be competently used to prevent DDoS attacks. Vendors such as Blockstack and MaidSafe are trying to achieve this by decentralizing DNS, distributing the contents to a large number of nodes, and create a secure environment, making it nearly impossible for hackers to build a DDoS attack. Such advanced integration with technologies such as AI, machine learning, and blockchain provides enterprise-grade security by automating the entire detection and mitigation of the cyber defense system, eventually driving the demand for advanced cybersecurity solutions and services over the next 5 years.
Challenge: Dearth of cybersecurity expertise for proactive strategic planning
Shortage of security skills among security professionals is a principal issue that is eminent across all the major security companies. Several organizations hire security professionals who lack the right skill to analyze and identify advanced threats while under a cyber-attack. Security professionals are required to have advanced skills in analytics, forensic investigations, and cloud computing security to combat cyber-attacks that make them vulnerable. The increasing cybersecurity threats have given rise to the dearth of IT security skills and professionals. According to Cybrary’s 2016 Cybersecurity Job Trends Report, more than two-thirds of organizations say there is a global dearth of skilled cybersecurity professionals. Only 13% of companies stated that cybersecurity talent was abundant in their local areas. Enterprises need to take additional steps to help close the cybersecurity skills gaps and make companies more secure. According to the Robert Walters Salary Survey 2018, salaries for cybersecurity professionals globally would increase by 7% in 2018. In the US, employers are finding that there is a major lack of qualified security professionals to fill their positions, which is expected to increase in the coming years. According to the Information Systems Audit and Control Association (ISACA), a non-profit information security advocacy group, there will be a dearth of 2 million cybersecurity professionals globally by 2019. Lack of pre-planning would hamper enterprises’ security operations and functionalities on a large scale. Preplanning helps enterprises in selecting solutions that have the functionalities of big data, machine learning, and AI. The lack of competent cybersecurity professionals for strategic, proactive security planning is becoming a significant challenge in the cybersecurity market.
Key Players: IBM Corporation (US), Symantec (US), Check Point Software Technologies (Israel), Cisco Systems (US), Trend Micr (Japan), Sophos (UK), Rapid7 (US), McAfee (US), Micro Focus (UK), Microsoft (US), Imperva (US), Splunk (US), F5 Networks (US), Proofpoint (US), RSA Security (US), AWS (US), Juniper Networks (US), Oracle (US), Fortinet (US), Palo Alto Networks (US), Cyberark (US), Forcepoint (US), Fireeye (US), F-Secure (Finland), Qualys (US).