Cybersecurity is defending against malicious assaults on computers, servers, networks, software, mobile devices, and other electronic systems. It uses several technologies to assist businesses in lowering their susceptibility to cyberattacks and safeguarding vital information systems without compromising the customer experience.
The market for Cybersecurity in 2021 was USD 216.10 billion, and by 2030 it will be worth USD 478.68 billion, growing at a 9.5% CAGR during the forecast period.
The primary aspect stimulating the expansion of the cyber security market is the increase in the frequency and complexity of cyberattacks. Small and large businesses growing need for advanced cyber security is one of the biggest drivers of the market during the forecast period.
Market Dynamics
Drivers
Since many businesses have adopted cloud-based technology recently, consumers can now access software, storage systems, and other resources online rather than through physical locations. The likelihood of cyberattacks and other crimes has consequently risen. Throughout the forecast period, there will be an increase in the market demand for cyber safety solutions due to the growing usage of cloud storage services among small and large businesses.
Data theft is likely because wireless technologies, flexible scheduling, and other changes depend on strong connectedness to large, widely dispersed data sets. The market for cyber security is growing due to the rise in ransomware and hacking attacks against businesses, the increased use of IoT, and the BYOD movement.
Restraints
Small and emerging companies in developing countries must be careful with spending. Otherwise, a huge sum will be generated, which could drastically slow the growth of the cybersecurity industry. The amount of money set aside to support cybersecurity requirements needs to be maintained pace with the expansion of market-based attacks. Emerging companies frequently need help finding the money and the appropriate resources to implement cybersecurity solutions in developing nations in MEA, Latin America, and APAC. Lack of capital funding and security professionals may be a major obstacle for some small and medium-sized companies adopting the cybersecurity strategy.
Opportunity
The idea of cloud computing is popular due to its dependable and adaptable design. Cloud solutions are becoming increasingly common among businesses because they simplify data storage and give customers access to limitless computing power via remote servers that can be accessed over the internet. For instance, according to market share, Amazon Web Services is the world’s largest cloud computing provider. The market is currently dominated by AWS, an Amazon affiliate, with a 31% share, followed by Azure from Microsoft (20%) and Google Cloud from 7%. Organizations can manage all of the apps because cloud-based models offer extremely difficult analytics that runs in the background.
Market Segmentation
By Component
In 2022, the services segment was the biggest market contributor, with 50% of the revenue share. This is due to the growing demand from small and medium businesses for consultation, maintenance, and upgrade services. Due to their small teams and tight budgets, SMEs frequently consult with other organizations before adopting any solutions.
Due to the numerous businesses adopting and upgrading their current cyber security platforms, the hardware sector will grow at a rapid rate.
By Security Type
In 2022, the infrastructure security segment had the largest revenue share of 22%. The large market share is due to the growth of connected and IoT devices and the building of more data centers. Additionally, various initiatives launched by governments in some areas, such as the European Programme for Critical Infrastructure Protection (EPCIP) and the Critical Infrastructure Protection Program in the United States, are anticipated to support market expansion.
The cloud security segment will grow rapidly during the forecast period, owing to businesses’ increasing utilization of cloud-based solutions due to their cost-effectiveness and ease of use.
By Solution
In 2022, the IAM segment ruled the market with a revenue share of nearly 27%. The high market share is due to the rise in mobile endpoint devices, which put the company at risk of cyberattacks and data breaches. Additionally, the increasing need to regulate user access to vital information during the pandemic will support market expansion.
By Deployment
The cloud-based segment will expand at over 12% during the forecast period. The rapid development is due to the expansion of cloud computing infrastructure deployment and the enterprise migration of on-premises solutions to the cloud. Additionally, cloud-based security solutions are simple, affordable, and easy to manage and update, one of the key factors anticipated to support market development.
By Application
In 2022, the defense/government sector had the largest market share, with a more than 20% revenue share. Due to the sensitive information they hold, government and defense groups constantly face a security threat from state-sponsored hacktivists. Several global governments are investing heavily in strengthening their nations’ cyber security, ultimately contributing to the segment growth.
Regional analysis
In 2022, North America had a 34.92% market share, followed by Asia Pacific. The early availability and adoption of new technologies have facilitated the expansion of the North American industry over the past few years. Additionally, the large global capital and IT market and their diverse range of businesses necessitate effective endpoint device management and security across unidentified networks. These factors are causing major corporations and small and medium-sized businesses (SMEs) in the region to spend more money on cybersecurity solutions, which will support the expansion of the cybersecurity market.
Key Players
- Accenture
- IBM Corporation
- HCL Technologies Limited
- Capgemini
- Infosys Limited
- FireEye Inc.
- Broadcom Inc.
- PwC International Limited Broadcom Inc.
- Cognizant
- F5 Networks Inc.
- L&T Technology Services Limited
- Wipro Limited
- Tata Consultancy Services
- Tech Mahindra Limited
