Government sector: largest revenue contributor for the global cyber security market

The cyber security market is predicted to reach close to USD 161 billion in revenue by 2020, according to Technavio.

“During the forecast period, the market share of North America is anticipated to witness a decline. Market shares of Europe, APAC, Latin America, and MEA are likely to increase during the same period. Stringent government regulations in Europe is likely to drive the adoption of cyber security solutions by enterprises until 2020. Increased penetration of internet in APAC countries such as India and China is also likely to increase the number of cyber-attacks over the next four years. The market is thus expected to witness a significant demand for security solutions until 2020,” said Amrita Choudhury, lead research analysts for IT security at Technavio.

“Rise in the use of mobile devices for personal and professional purposes is also expected to boost market revenues. Sectors such as retail, manufacturing, telecom, and BFSI will particularly witness higher adoption of cyber security solutions over the next four years,” added Amrita.

Government sector

The global cyber security market in the government sector was valued at over USD 33 billion in 2015. Growing government spending for the implementation of cyber security in government installations in countries such as India and China is a primary driver of the market in this sector.

The need for cyber security solutions to maintain homeland security will further positively impact market growth during the forecast period. Growing awareness among SMEs in Latin America and MEA, regarding the use of cyber security solutions is also expected to emerge as key factor that encourages its adoption during the forecast period.

BFSI sector

With an increased demand for online transactions through apps, instances of cyber-attacks have grown significantly. This has resulted in data theft, phishing scams, and other online threats. Since the BFSI sector deals with financial data of customers, it is important for these organizations to maintain data confidentiality, thus, BFSI organizations are predicted to invest heavily on cyber security solutions over the next four years. Technavio analysis shows, with the growing adoption of mobile banking, the need to implement cyber security solutions will witness a significant increase through 2020.

Manufacturing sector

One of the major reasons for the revenue growth of cyber security in the manufacturing sector is the need to safeguard critical data. Currently, the use of cyber security solutions is limited to many organizations in the developed world. However, the manufacturing sector in developing countries will likely witness an increased adoption of cyber security solutions during the forecast period.

According to Technavio analysis, the global cyber security market in the manufacturing sector was valued at USD 14.02 billion in 2015, and it is projected to reach USD 25.17 billion by 2020.