[Research Report] The cybersecurity market size is expected to grow from US$ 203.45 billion in 2022 to US$ 660.67 billion by 2031; it is projected to grow at a CAGR of 15.9% from 2022 to 2031.

Analyst Perspective:

The cybersecurity market growth is attributed to the increasing frequency of cyber-attacks. The growing awareness among enterprises about the importance of saving resources and money by moving their information & data to the cloud instead of maintaining and building data storage propels the demand for cloud-based solutions. Further, Cloud-based solutions also offer numerous benefits, from low capital expenditure requirements to better data management, making them more attractive. Deploying cloud-based services can substantially reduce the capital expenditure requirements as companies need not invest in hardware components. Thus, cloud-based solution demand is expected to rise during the forecast period.

Market Overview:

In recent years, the cybersecurity market has seen tremendous growth owing to the increasing severity of cyberattacks. As technology is advancing and becoming more complicated, the approaches of cybercriminals are also changing. This has led to a rise in demand for cybersecurity services and solutions, ranging from firewalls and antivirus software to penetration testing and incident mapping. Compliance and regulations requirements drive the market's growth as corporations seek to evade costly fines and reputational damage from data breach cases. Thus, nowadays, cybersecurity has become an important part of any organization's risk management strategy. This, in turn, is expected to propel the market growth during the forecast period.

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Cybersecurity Market: Strategic Insights

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Market Drivers:

Growth in malware and phishing threats among organizations to boost the cybersecurity market

Malware, such as Trojans and viruses, has significantly expanded its capability to enter, manage, and harm entire electronic information networks. Cybercriminals commonly use Malware to acquire control of equipment or devices. This is done so that the machine may be immediately used to undertake criminal operations or fraudulent transactions. Additionally, due to the criticality of data created in various industries, such as healthcare, BFSI, and government are particularly exposed to such attacks. As a result, the surge in the risk of phishing and malware attacks is a key element driving the cybersecurity market.

Additionally, cybersecurity market vendors are coming up with advanced solutions to fight such Malware and phishing attacks, thereby driving the growth of the global cybersecurity market. For instance, in March 2021, Tech Mahindra launched a novel cloud security offering called CLOUDEFENDER, a cloud-based attack mitigation service. Application delivery and cybersecurity solutions provider Radware Tech powers the new solution offered by Tech Mahindra.

Segmental Analysis:

The cybersecurity market is divided based on components into solutions and services. Based on security type, the cybersecurity market is segmented into cloud security, endpoint security, network security, application security, infrastructure protection, data security, and others. Based on the solution, the market is segmented into unified threat management (UTM), IDS/IPS, DLP, IAM, SIEM, DDoS, risk & compliance management, and others. By services, the cybersecurity market is segmented into professional services and managed services. Based on deployment, the cybersecurity market is segmented into cloud-based and on-premises. Based on organization size, the market is segmented into SMEs and large enterprises. The cybersecurity market is segmented by application into IT & telecom, retail, BFSI, healthcare, defense/government, manufacturing, energy, and others. And by geography, the market is segmented into North America, Europe, Asia Pacific, And South And Central America.

The services segment accounted for the major revenue share in 2022. The strong preference of organizations for deploying appropriate cyber security solutions based on the organizational structure is driving the adoption of cyber security services across numerous industries. As SMEs have limited budgets, they prefer consulting before implementing any solutions, supporting the services segment growth in the market. Further, various organizations are subscribing to cyber security services as part of their efforts to build a robust security structure for mitigating cyberattacks. This, in turn, is anticipated to fuel the service segment growth during the forecast period.

The Identity and Access Management (IAM) segment accounted for the principal revenue share in 2022. IAM solutions reduce identity theft through risk-based programs with features that focus on implementing logical access control and entitlement management. Growing spending on security solutions by government bodies and large enterprises to follow regulatory compliance and reduce the risk of identity theft is expected to fuel segment growth. Increasing unauthorized access impels numerous end-use companies to adopt IAM to lessen digital security risks and deliver a secure platform for sharing information within the organization. This, in turn, is anticipated to fuel the IAM segment growth during the forecast period.

The professional services segment held the maximum market share in 2022. The significant market share can be accredited to the increasing demand for professional services, such as enterprise risk assessment, physical security testing, and penetration testing. The lack of skilled cybersecurity professionals is another important factor driving the segment's growth. Furthermore, end-user organizations prefer professional service providers' consultation and expertise to minimize enterprise security risks by implementing cost-effective cybersecurity solutions. This, in turn, is anticipated to fuel the professional services segment growth during the forecast period.

Regional Overview:

North America region held the chief market share in 2022. In North America, cyberspace is increasing progressively with the continual advances in modern technologies, such as the Internet of Things (IoT) and big data. Furthermore, increasing IT companies and their diversified businesses in the region are creating a need to protect endpoint devices. The governments of Canada and the US are also pursuing numerous initiatives to increase awareness about cybersecurity among organizations and to support and encourage them in adopting necessary cybersecurity measures. Cybersecurity has become an increasingly vital area of focus in the US in recent years, owing to the increasing number of cyberattacks and threats that individuals and organizations face. For instance, as per the Identity Theft Resource Center, the number of data compromises and individuals impacted by identity theft in the US in 2022 was 1,802 and 422.14 million, respectively. Thus, with the increasing need for cybersecurity solutions, the North American cybersecurity market is expected to grow during the forecast period.

Key Player Analysis: 

BAE Systems Plc, Lockheed Martin Corp., FireEye, Inc.,  Centrify Corp.,  Cisco Systems, Inc., Broadcom, Inc., Fortinet, Inc., International Business Machines Corp., Palo Alto Networks, Inc., LogRhythm, Inc., McAfee, LLC., Check Point Software Technology Ltd., Proofpoint, Inc., Sophos Ltd., and Trend Micro Inc. are some of the key companies operating in the Cybersecurity market.

Recent Developments:

Inorganic and organic strategies such as mergers and acquisitions are highly adopted by companies in the network attached storage market. A few recent key market developments are listed below: 

• In March 2023, Dell Technologies and CrowdStrike entered into a partnership to provide enterprises with affordable and seamless products to help them avoid, detect, and respond to cyber-attacks. The partnership includes focused services for companies of all sizes. Owing to the new strategic alliance, organizations can manage cyber threats and safeguard their cloud workloads, endpoints, identities, and data.
• In December 2022, CrowdStrike announced the development of the CrowdStrike Falcon platform to deliver adversary-driven external attack surface management (EASM) solutions for better adversary intelligence and real-time internet access detection. CrowdStrike Falcon Surface, a standalone module featuring abilities from the recent acquisition of Reposify, was announced as part of the platform update.
• In October 2022, BAE Systems launched a new cybersecurity system called Viper Memory Loader Verifier II (MLV II) for F-16 Fighter Aircraft. The new system is used to load and verify software onto the fighter jet, safeguarding that malicious files or software cannot get on the aircraft.
• February 2023, IBM announced a multi-million dollar investment in its resources to aid businesses in preparing for and managing the increasing threat of cyberattacks to organizations across the Asia Pacific (APAC) region. Situated at IBM offices at Embassy Golf Links in Bengaluru, India, the novel facilities represent a strategic center for IBM cybersecurity activities in the region, which also comprise IBM Managed Security Services, access to IBM's team of incident response experts, as well as IBM Research, IBM India Software Labs, IBM Consulting, and IBM Garage, a collaborative approach intended to fast-track innovation and drive meaningful, lasting transformation for clients.