As per the study of Astute Analytica, the global cybersecurity market is anticipated to grow at a CAGR of 13.40% during the forecast period of 2021 to 2027. The market marked a revenue of $162.9 Bn in the year 2021 and is estimated to reach $346 Bn by the end of the year 2027, with around 2.4 times of growth over the study period.
Global cybersecurity market size is expected to expand based on various factors such as rise in demand for data and information protection across the globe, rise in number of malicious cyber activities. According to one of INTERPOL’s private sector partners, 907,000 spam messages, 737 incidents related to malware and 48,000 malicious URLs – all related to COVID-19 were detected during January-April in the year 2020. Further, rise in number of internet users drives the growth of cybersecurity industry across the globe.
At the end of 2019, just over half of the world population was using the Internet, but this proportion increased to over 69% among youth (aged 15-24 years). Also, augmented usage of mobile phones, enhanced internet connectivity and M2M (Machine to Machine) connections calls for high security of data which in turn expected to boost the market demand of cybersecurity.
Cybersecurity plays an important role as it protects all types of cybercrimes and data theft and damages, which includes sensitive data such as personal information, protected health information (PHI), personal identifiable information (PII), and industrial and governmental information system. The need of enhanced and strengthened cyber security solutions are expected to increase on the verge of rise in various threats such as trojans, multistage attacks and malicious or fraudulent websites.
Global cybersecurity market analysis – by security type
Cyber-attacks hit private systems and businesses every day, and the variety of attacks has increased rapidly. Cybercriminals mainly aims to steal personal information/ data such as personal credentials, credit card details, social security numbers, and other sensitive data. Cybersecurity is the process to prevent data theft and to implement data security measures to protect computers system, networks, cloud information, and other personal data from cyber-attacks.
The cloud security segment holds the highest market share of more than 30% in the year 2021, as cloud solution provides with the exact recoveries of information and applications. With minimum downtime, it is major productive recuperation arrange. Increasing demand of cloud security and hybrid cloud platforms such as Amazon Web Services (AWS) and Azure among other key platforms opens a great opportunity in the growth of the global cybersecurity market. As more organizations use cloud security to support both at-office and home-based working environments, it is gaining a significant positive response from the market.
Global cybersecurity market analysis- by region
As per the Astute Analytica Report, in the year 2021, North America cybersecurity market was holding the highest market share of around 35%, supported by market key players of the region are delivering advanced solutions worldwide. The North America cybersecurity market growth is followed by Europe and Asia Pacific, holding around 51% of the cumulative market share in 2021. As per the researchers, compounded annual growth rate of Asia Pacific cybersecurity industry is estimated around 16.9% during the forecast period.
As per the analysis, the restrictions imposed by the government across the globe to prevent spread of COVID-19 had changed working pattern from office or on-site to work from home. This change in working pattern increased the scope of cyber-attacks at individual and organizational levels. During February-May 2020, more than half a million people globally were affected by breaches in which the personal data of video conferencing users was stolen. As per the sources, the average cost of a data breach resulting from remote working can be as much as $137,000.
Companies are actively focusing on adopting cybersecurity solutions and methods due to increasing data threats incidents and rising vulnerability of their devices. For instance, in 2018, HP partnered with Aon, the acquired company offers advanced threat mitigation services, cybersecurity and data breach insurance. Therefore, it is estimated that market will grow in the forecast period.
As per the study, it is found that major players have adopted various strategies to have a strong foothold in the global market such as mergers and acquisitions, partnerships, collaborations, joint ventures, and product launches among others. In 2019, IBM announced the completion of its acquisition of Red Hat, positioning IBM as the leading hybrid cloud provider, and accelerating IBM’s high value business model.
Microsoft largely focuses on partnering with organizations on their digital transformation journey and positioned itself to be the strategic digital transformation platform and partner of choice. Product innovation is the critical part of strategical development along with investments in data center for the company.
The major key players in the market are Cisco, IBM, Trend Micro, and Palo Alto holding around 41.60% of the market share and rest is captured by other local players worldwide.
Segmental overview of global cybersecurity market
Based on enterprise size, large organizations hold the highest market share of nearly 60% in 2021. As large enterprises majorly adopt cybersecurity to safeguard network, endpoints, data centers, devices, users and applications from unauthorized usage and malicious ransomware attacks. However, small & medium sized enterprises (SMEs) are anticipated to augment at a CAGR of 14.8% due to increasing number of cyberattacks on SMEs. As per the research, almost 77% of small and medium sized firms lack the capability and expertise to resist a cybersecurity attack.