Cyber Security Market Statistics, 2030
The global cyber security market size was valued at $197.36 billion in 2020, and is projected to reach $478.68 billion by 2030, growing at a CAGR of 9.5% from 2021 to 2030.
Rise in malware and phishing threats among enterprises and increase in adoption of IoT and BYOD trend are boosting the growth of the cyber security market. In addition, surge in demand for cloud-based cyber security solutions positively impacts the growth of the market. However, budget constraints among organizations and complexities of device security hamper the market growth. On the contrary, increase in adoption of mobile device applications and platforms, need for strong authentication methods, and transformation in traditional antivirus software industry are expected to offer remunerative opportunities for expansion of the market during the forecast period.
Safeguarding devices connected to the internet that protect from various threats in the cyberspace are referred to as cyber security. It entails safeguarding software, data, and hardware while also assisting in the prevention of fraudsters getting access to devices or networks. To protect their data, cash, and intellectual property, businesses require cyber security. Individuals require it for similar reasons, while intellectual property is less of a concern and the risk of losing vital information, such as family pictures, is greater. When it comes to public services or governmental entities, cyber security ensures that the public may continue to rely on their services.
In terms of component, solution segment holds the largest share of the cyber security market. As a critical component of modern-day corporate IT infrastructure, software-based cyber security solutions assist organizations in controlling precise log-in network traffic roadmaps that specify what flows in and out of the network. However, the services segment is expected to grow at the highest rate during the forecast period, owing to rise in COVID-19 pandemic which increased the demand for aiding employees working remotely to be able to access their work network more securely and conveniently.
By Component
Solution segment is projected as one of the most lucrative segments.
Region wise, the cyber security market was dominated by North America in 2020 and is expected to retain its position during the forecast period, owing to abundance of cyber security solutions vendors such as Microsoft Corporation, Palo Alto Networks, Cisco Systems, Inc., and others, aiding the growth of the cyber security market. However, Asia-Pacific is expected to witness significant growth during the forecast period, owing to increase in technological investments in sectors such as cloud and digital technologies.
By Region
Asia-Pacific would exhibit the highest CAGR of 11.0% during 2021-2030.
The report focuses on growth prospects, restraints, and analysis of the global cyber security market trends. The study provides Porter’s five forces analysis to understand the impact of various factors, such as bargaining power of suppliers, competitive intensity of competitors, threat of new entrants, threat of substitutes, and bargaining power of buyers on the global cyber security market share.
By Industry Vertical
BFSI segment is projected as one of the most lucrative segments.
The cybersecurity market is undergoing a rapid transformation, fueled by the escalating frequency and complexity of cyber threats. Industries across the globe are experiencing an upsurge in ransomware, phishing, and supply chain attacks, pushing the demand for sophisticated cybersecurity solutions to unprecedented levels. According to the latest data from Cobalt Cybersecurity Statistics, an alarming 75% of security professionals reported an increase in cyberattacks over the year 2022, a trend that is expected to significantly propel the growth of the global cybersecurity market.
As cyber threats evolve, so does the technology designed to combat them. Artificial intelligence (AI) and machine learning (ML) are at the forefront of this evolution, increasingly being integrated into cybersecurity strategies. These technologies are not just enhancing threat detection but are also identifying potential vulnerabilities and automating incident responses. This integration transforms traditional defensive measures into proactive and adaptive systems, capable of anticipating threats before they manifest.
Moreover, the shift of organizational operations to cloud-based platforms has introduced a new dimension of vulnerability. Cloud security has swiftly become a pivotal aspect of cybersecurity, with solutions being developed to protect data, applications, and services against a myriad of cloud-specific threats. This shift has necessitated the emergence of robust cloud security frameworks that are essential for safeguarding critical information in the digital space.
In response to these challenges, companies are adopting a variety of strategic initiatives such as product launches, partnerships, and enhanced service offerings to maintain competitiveness in the dynamic cybersecurity market. For instance, in April 2024, Versasec expanded its cybersecurity services across India, ASEAN, and MEA regions through a strategic partnership with Ensurity. Both firms are notable members of the Microsoft Intelligent Security Association (MISA) and the FIDO Alliance, highlighting their commitment to advancing cybersecurity measures globally.
Another significant development occurred in February 2024 when the U.S. Consulate joined forces with the Mahratta Chamber of Commerce, Industries, and Agriculture (MCCIA) to launch the first-ever U.S.-India Cyber Security Initiative. This collaboration aims to strengthen IT connections between the two countries, enhancing their collective cybersecurity infrastructure and expertise.
Additionally, in April 2024, the consulting firm Protiviti enhanced its cybersecurity and risk management services by collaborating with CYFIRMA. This partnership is designed to provide Protiviti’s clients with persistent and comprehensive visibility on their external threats, thereby bolstering their defense mechanisms against potential cyberattacks.
These examples illustrate the proactive measures being taken by organizations worldwide to adapt to the rapidly changing landscape of cyber threats. As the complexity of cyberattacks continues to grow, the global cybersecurity market is poised to keep pace, driven by technological innovations and strategic collaborations that aim to fortify digital infrastructures and protect critical data against the ever-evolving threats posed by malicious actors.
Segment Review
The global cyber security market is segmented on the basis of component, solution, deployment model, enterprise size, industry vertical, and region. Depending on component, the market is bifurcated into solution and services. On the basis of solution, the market is fragmented into identity & access management, infrastructure security, governance, risk, & compliance, unified vulnerability management service offering, data security & privacy service offering, and others. By deployment model, it is segregated into cloud and on-premises. As per enterprise size, it is classified into large enterprises and SMEs. In terms of industry vertical, it is differentiated into telecom, automotive, BFSI, public sector, retail, healthcare, IT, energy and utilities, manufacturing, and others. Region wise, it is analyzed across North America, Europe, Asia-Pacific, and LAMEA.
Some of the key players operating in the global cyber security market analysis include Accenture, Broadcom Inc., Capgemini, Cognizant, F5 Networks Inc., FireEye Inc., HCL Technologies Limited, IBM Corporation, Infosys Limited, L&T Technology Services Limited, PwC International Limited Broadcom Inc., Tata Consultancy Services, Tech Mahindra Limited, and Wipro Limited. These players have adopted various strategies to increase their market penetration and strengthen their position in the cyber security industry.
Top Impacting Factors
Rise in Malware and Phishing Threats Among Enterprises
Malware, such as viruses and Trojans, has substantially expanded its ability to enter, control, and harm whole electronic information networks. Malware is frequently used by cyber criminals to obtain control of devices or equipment in order to make money. This is done so that the machine may be immediately used to undertake fraudulent transactions or criminal operations.
Furthermore, because to the criticality of data created in these businesses, industries such as BFSI, healthcare, and government are particularly exposed to such assaults. As a result, an increase in the risk of malware and phishing attacks is a major element driving the cybersecurity market forward. Furthermore, during the COVID-19 pandemic, the incidence of malware attacks on major businesses' databases has increased, necessitating the need to tighten data base security, driving the worldwide cybersecurity industry.
Furthermore, market vendors are coming up with innovative solutions to combat against such malware and phishing attacks, thereby driving growth of the global market. For instance, in March 2021, Tech Mahindra announced the launch of a new cloud security offering called ‘CLOUDEFENDER.’ It is a cloud-based attack mitigation service. The solution is powered by cybersecurity and application delivery solutions provider Radware and is an expansion of Tech Mahindra’s global partnership with the company to provide a full suite of cloud-based cyber security services.
Increase in Adoption of IoT and BYOD Trend
Devices and applications have become more vulnerable to advanced persistent threats (APTs) as a result of the growing IoT and BYOD trend among businesses. Furthermore, as the number of mobile devices within enterprises grows, IT staff will find it more challenging to control and trace data flow in diverse systems. As a result, businesses are using cybersecurity systems to secure sensitive data by monitoring, classifying, and resolving various types of threats, fueling market growth. For instance, according to a report in 2021, cyber criminals have manipulated the COVID-19 crisis to launch 667% more phishing attacks and are actively trying to take advantage of security vulnerabilities, which, in turn, augments the growth of the cybersecurity market.
Moreover, over 15% of employees accessed sensitive data from non-work devices in 2020. In addition, many businesses are aware that BYOD’s benefits in the workplace far outweigh any potential risks. Potential security threats can be neutralized in most situations. There are many benefits of having a BYOD policy, increased productivity, employee satisfaction and reduced company costs; thus, increasing the adoption of cybersecurity.
Regional Insights
North America
The North American cyber security market dominates globally due to its advanced technological infrastructure and high investment levels in cybersecurity solutions. The region is home to major tech giants like IBM, Microsoft, and Cisco, which are heavily investing in AI-driven cybersecurity tools to combat the growing number of cyber threats. Government initiatives also play a crucial role in market expansion, with new policies introduced in August 2023 focused on protecting critical infrastructure from cyberattacks. The rise in ransomware, phishing attacks, and data breaches, coupled with strict regulations like the California Consumer Privacy Act (CCPA), is further driving the demand for robust cybersecurity solutions across various industries.
Europe
The European cyber security market is growing rapidly, fueled by stringent data protection laws, such as the General Data Protection Regulation (GDPR), and a surge in cyberattacks targeting sectors like finance, healthcare, and government. The shift towards remote working post-pandemic has increased the need for advanced cybersecurity solutions to safeguard sensitive information. In July 2023, the European Union launched initiatives aimed at strengthening cybersecurity across its member states, focusing on enhancing network security and response mechanisms. Key industries are investing heavily in encryption, multi-factor authentication, and endpoint protection, making Europe a critical region for cybersecurity growth.
Asia-Pacific
The Asia-Pacific cyber security market is experiencing significant growth driven by rapid digitization and the increasing prevalence of cybercrime. Countries like China, India, and Japan are at the forefront, investing in robust cybersecurity infrastructures to safeguard their growing digital ecosystems. The rise in e-commerce, digital payments, and cloud services has heightened the need for enhanced security solutions across the region. Governments in Asia-Pacific are increasingly introducing data protection regulations, and companies are focusing on adopting solutions to combat ransomware, phishing, and other evolving cyber threats. Cybersecurity spending is expected to rise as businesses and governments prioritize safeguarding sensitive data.
Middle East and Africa
The Middle East and Africa cyber security market is witnessing steady growth as nations in the region ramp up efforts to protect their critical digital infrastructures, particularly in industries like banking, oil, and gas. Governments are investing in cybersecurity solutions to combat the increasing frequency of cyberattacks. Countries like UAE and Saudi Arabia are leading this growth, with initiatives aimed at improving national cybersecurity frameworks. Furthermore, the expanding use of cloud technologies and IoT devices in the region has heightened the need for robust cybersecurity measures. As these sectors continue to grow, so does the need for data protection and network security solutions in the Middle East and Africa.
Key Industry Developments
July 2023: IBM launched a new AI-powered cybersecurity solution aimed at improving threat intelligence and reducing response times for large enterprises, enhancing their ability to defend against increasingly sophisticated cyberattacks.
March 2023: The UK’s National Cyber Security Centre (NCSC) launched a new program to combat the rise in ransomware attacks across the country, focusing on increasing awareness and offering businesses tools to strengthen their digital defenses.
April 2023: China implemented new data security laws requiring companies to strengthen their cybersecurity measures, particularly for cloud-based systems and digital transactions. The government also began investing in AI-powered cybersecurity tools to address the growing number of cyberattacks targeting the nation’s infrastructure.
February 2023: Saudi Arabia hosted the Global Cybersecurity Forum, where it announced new cybersecurity initiatives, focusing on improving cybersecurity awareness and expanding its cyber defense capabilities, particularly in the oil and gas sector.
Impact of Russia-Ukraine War on Cybersecurity
The Russia-Ukraine war has had a significant impact on cybersecurity, both regionally and globally. The conflict has witnessed a surge in cyber-attacks targeting critical infrastructure, government institutions, and private organizations. These attacks involve various techniques such as phishing, malware distribution, DDoS attacks, and intrusion attempts. In addition, the war has also seen an alarming rise in attacks targeting critical infrastructure, including energy grids, water supplies, and transportation systems. Such attacks disrupt essential services and have severe economic and humanitarian consequences. This has highlighted the vulnerability of critical infrastructure to cyber threats during times of geopolitical tension.
Furthermore, the impact of the Russia-Ukraine war on cybersecurity extends beyond the region. The techniques and tools used in this conflict can be adopted by other nations and non-state actors, potentially leading to an increase in cyber-attacks worldwide. This in turn is driving the demand for cyber security solutions for addressing cyber threats in cyberspace. Overall, the Russia-Ukraine war has had a profound impact on cybersecurity, with increased cyber-attacks targeting of critical infrastructure, the spread of disinformation, and international implications. It emphasizes the need for robust cybersecurity measures, cooperation, and collective efforts to combat evolving cyber threats.
Moreover, the war has underscored the importance of robust cybersecurity measures and defense mechanisms. Governments, organizations, and individuals have become more aware of the need for comprehensive security strategies, including threat intelligence, incident response plans, and employee awareness training.
Key Benefits for Stakeholders
- The study provides an in-depth analysis of the global cyber security market forecast along with current & future trends to explain the imminent investment pockets.
- Information about key drivers, restraints, & opportunities and their impact analysis on global cyber security market trends is provided in the report.
- Porter’s five forces analysis illustrates the potency of the buyers and suppliers operating in the industry.
- The quantitative analysis of the cyber security market from 2021 to 2030 is provided to determine the market potential.
Cyber Security Market Report Highlights
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Analyst Review
According to insights of the CXOs of leading companies, the software industry is the major consumer of cybersecurity solutions. In the present corporate environment, both developed and emerging areas have seen an increase in the usage of this technology. In order to provide unique and contemporary security products to clients, businesses use effective strategies. Increased awareness among enterprises of all kinds when it comes to securing their information as well as an increase in ransom-ware assaults among small businesses, charities, and government agencies, are developing trends in the cybersecurity sector. As a result, every firm is increasing their expenditure in order to preserve their sensitive and critical data.
Key providers of cyber security market such as HCL Technologies Limited, IBM Corporation, and Infosys Limited account for a significant share in the market. With the larger requirement from cyber security, various companies are establishing partnerships to increase the cyber security capabilities. For instance, in November 2021, Cybellum, a leading automotive cybersecurity threat and risk assessment solution provider, announced strategic partnership with HCL Technologies (HCL), a leading global technology company. As part of this partnership, HCL will deploy a scaled delivery model of the Cybellum Cyber Digital Twins platform with associated services to manufacturers and suppliers. This model will deliver a comprehensive solution for risk assessment, automated vulnerability management, compliance to regulatory requirements and continual monitoring of emerging cyber threats.
In addition, with the increase in demand for cyber security services, various companies are expanding their current services to continue with the rise in demand. For instance, in August 2021, IBM Security announced the launch of a new Secure Access Service Edge (SASE) service designed to help accelerate organizations' adoption of cloud-delivered security at the edge, closer to the users and devices that access corporate resources. The new services combine expertise and methods from IBM Security with technology from Zscaler, to help deliver a fully managed transformation to a cloud-based SASE architecture, a key element of a zero trust security posture.
Moreover, market players are expanding their business operations and customers by increasing their acquisition. For instance, in December 2021, Capgemini announced the completion of acquisition of VariQ. This provider of Software Development, Cybersecurity, and Cloud services for federal government departments and agencies across the U.S. will be integrated into Capgemini Government Solutions LLC, Capgemini’s independent operating division working with the U.S. government agencies. This acquisition will strengthen the company’s position in the federal market and build momentum for continued growth.
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