Cybersecurity Market

[244 Pages Report]  The global cybersecurity market size was valued at USD 137.63 billion in 2017 and is projected to reach USD 248.26 billion by 2023, growing at a Compound Annual Growth Rate (CAGR) of 10.2% during the forecast period. The base year considered for the study is 2017, and the forecast period considered is 2018–2023. Cybersecurity is a set of processes and practices designed to safeguard endpoints, networks, applications, and data from advanced threats and vulnerabilities. Enterprises are required to adopt set of security technologies, solutions, tools, policies, security concepts, guidelines, risk management approaches, and professional and managed services to protect the critical enterprise information and infrastructure from the growing volume and sophistication of cyber-attacks. Cybersecurity solutions and services help businesses secure their critical data, such as intellectual property, financial data, personal information, or other confidential data, which rise due to unauthorized access or attacks.

Selected Market Dynamics in Cybersecurity Market

Emergence of disruptive digital technologies, such as IoT, across industry verticals

IoT utilizes embedded technology to offer new ways for empowering business models. IoT is becoming a next-generation technology revolution, helping reduce business costs and improve employee productivity. IoT, a major technological innovation, creates new opportunities for prominent cyber-attackers. The proliferation of smart devices has opened avenues for cyber-attackers’ malicious behavior into an enterprise’s network infrastructure. With the increase in instance and intensity of cyber-attacks, launched through IoT devices, the demand for cybersecurity would increase at an unprecedented rate. Hence, revenues of cybersecurity vendors would also rise at a high rate. The IoT technology is majorly embedded in healthcare devices, smart home devices, vehicles, infrastructures, transports, and industrial systems.

According to Ericsson’s Mobility Report, for the IoT forecast, there would be 18 billion IoT devices by 2022. Hence, millions of connected devices are the potential victims of voluminous cyber-attacks. IoT would generate a staggering 500 Zettabytes (ZB) of data each year by 2019; hence, securing IoT devices is of the utmost importance. Mirai’s Botnets launched DDoS attacks, and numerous IoT devices were compromised. For instance, in 2016, the DDoS attack was launched on Minecraft servers hosted on OVH's network, which resulted in the hacking of up to 145,607 digital video recorders and internet protocol cameras. With the growth of unconventional cybersecurity threats, the IoT devices need advanced security solutions to handle security threats effectively. These threats have significantly increased the enterprise expenditure on the IoT cybersecurity solutions and associated services.

Use of pirated and open source cybersecurity solutions

Software piracy refers to the unauthorized copying and distribution of software or solutions. Counterfeiting of software has increased over the years, due to the availability of open source platforms. Software piracy helps illegitimate people in making a fake software copy, which is a replica of the original software. However, software piracy is cybercrime that encompasses illegal copying, sharing, selling, or installing of copyrighted software, and website downloading.

There are several types of software piracy in which most prevalent types are softlifting, software counterfeiting, Original Equipment Manufacturer (OEM) bundling, hard disk loading, and renting. Internet-based piracy of software and solutions is one of the emerging issues in piracy. According to the BSA Global Software Survey, conducted in June 2018, 37% of the software installed on PCs across the globe were not licensed. Moreover, the study revealed about 46% of enterprises are concerned about the data loss caused due to malware threat from unlicensed software. The other significant enterprises concerns included unauthorized access into their network infrastructure which accounts to 40%, potential ransomware about 30%, system outages and downtime around 28%, and the time and cost to disinfect the network accounted to 25%. The region with the highest overall rate of unlicensed software was APAC, and Central and Eastern Europe that display the rate of 57%; followed by MEA at 56%, and North America with the lowest rate at 16%.

Objectives of the study

• To define, describe, and forecast the cybersecurity market by component (solutions and services), security type, deployment mode, organization size, industry vertical, and region.
•  To provide detailed information regarding the major factors (drivers, restraints, opportunities, and challenges) influencing the growth of market.
• To analyze the micromarkets1 with respect to individual growth trends, prospects, and contributions to the total Cybersecurity Market.
• To analyze opportunities in the market for stakeholders by identifying high-growth segments of the market.
• To forecast the market size of the market segments with respect to the 5 main regions, namely, North America, Europe, Asia Pacific (APAC), Middle East and Africa (MEA), and Latin America
• To profile the key players of the market and comprehensively analyze their market size and core competencies in the market.
• To track and analyze competitive developments, such as new product launches; mergers and acquisitions; and partnerships, agreements, and collaborations in the global cybersecurity market.

The research methodology used to estimate and forecast the cybersecurity market began with the collection and analysis of data on key vendors’ revenue through secondary sources, such as company websites, press releases, annual reports, TechTarget reports, Information Security Research Association (ISRA), Information Systems Security Association (ISSA), RSA Security, Cloud Security Alliance reports, SC Magazine, and SANS Institute studies. Vendor offerings were also taken into consideration to determine the market segmentation. The bottom-up procedure was employed to arrive at the total market size from the revenue of the key players. After arriving at the overall market size, the total market was split into several segments and subsegments, which were then verified through primary research by conducting extensive interviews with key people, such as Chief Executive Officers (CEOs), Vice Presidents (VPs), directors, and executives. The data triangulation and market breakdown procedures were employed to complete the overall market engineering process and arrive at the exact statistics for all the segments and subsegments. The breakdown of the profiles of the primary participants is depicted in the figure below:

To know about the assumptions considered for the study, download the pdf brochure

The cybersecurity market comprises several key vendors, such as IBM (US), Check Point (US), Cisco (US), CyberArk (Israel), F5 Networks (US), FireEye (US), Forcepoint (US), Fortinet (US), Amazon Web Services (US), Oracle (US), Palo Alto Networks (US), Imperva (US), Qualys (US), RSA Security (US), F-Secure (Finland), McAfee (US), Micro Focus (UK), Microsoft (US), Proofpoint (US), Rapid7 (US), Sophos (UK), Splunk (US), Symantec (US), Trend Micro (Japan), and Juniper Networks (US). These vendors offer cybersecurity solutions and services to end-users and cater to their unique business requirements, and productivity, compliance, and security needs. These Cybersecurity Software Vendors are rated and listed by us on the basis of product quality, reliability, and their business strategy. Please visit 360Quadrants to see the vendor listing of Cybersecurity Software.

Major Cybersecurity Market Developments:

• In April 2018, Symantec announced the development of a powerful threat detection technology, which was used by its world-class research teams. Symantec’s Targeted Attack Analytics (TAA) enables ATP, thereby helping customers leverage advanced machine learning and discover targeted attacks.
• In April 2018, IBM Security and McAfee extended their partnership to integrate IBM IRP with Data Exchange Layer (DXL) and provide better protection through automation and intelligence sharing.
• In April 2018, Palo Alto Networks acquired Secdo, an Israel-based incidence response solution provider. With this acquisition, the company integrates its security operating platform with Secdo’s endpoint detection and response capabilities to offer rapid detection and response services to enterprises to detect malicious attacks.

Key Target Audience

• Cybersecurity vendors
• Information security consultants
• Security system integrators
• Government agencies
• Consulting firms
• Managed Security Service Providers (MSSPs)
• Value-Added Resellers (VARs)
• Independent software vendors

“The study answers several questions for stakeholders, primarily which market segments to focus on over the next 2–5 years for prioritizing their efforts and investments.”

Scope of the Cybersecurity Market Report

The research report segments the cybersecurity market into the following submarkets:

Cybersecurity Market By Component:

• Solutions
• Services

Cybersecurity Market By Solution:

• Identity and Access Management (IAM)
• Risk and Compliance Management
• Encryption
• Data Loss Prevention (DLP)
• Unified Threat Management (UTM)
• Firewall
• Antivirus/Antimalware
• Intrusion Detection System (IDS)/Intrusion Prevention System (IPS)
• Security and Vulnerability Management
• Disaster Recovery
• Distributed Denial of Service (DDoS) Mitigation
• Web Filtering
• Others (Application Whitelisting and Patch Management)

Cybersecurity Market By Service:

• Professional Services
  • Design and Implementation
  • Risk and Threat Assessment
  • Consulting
  • Training and Education
  • Support and Maintenance
• Managed Services

Cybersecurity Market By Security Type:

• Network Security
• Endpoint Security
• Application Security
• Cloud Security
• Others (Content Security, Industrial Control System (ICS) Security, Database Security, and Web Security)

Cybersecurity Market By Deployment Mode:

• On-premises
• Cloud

Cybersecurity Market By Organization Size:

• Small and Medium-sized Enterprises (SMEs)
• Large Enterprises

Cybersecurity Market By Industry Vertical:

• Aerospace and Defense
• Government
• Banking, Financial Services, and Insurance (BFSI)
• IT and Telecom
• Healthcare
• Retail
• Manufacturing
• Energy and Utilities
• Others (Education, Media And Entertainment, and Transportation and Logistics)

Cybersecurity Market By Region:

• North America
  • United States (US)
  • Canada
• Europe
  • United Kingdom (UK)
  • Germany
  • France
  • Rest of Europe
• Asia Pacific (APAC)
  • China
  • Japan
  • India
  • Australia and New Zealand (ANZ)
  • Rest of APAC
• Middle East and Africa (MEA)
  • Middle East
  • Africa
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America

Available Customizations

With the given market data, MarketsandMarkets offers customizations as per the company’s specific needs. The following customization options are available for the report:

Product Analysis

• Product matrix that gives the detailed comparison of the product portfolio of each company

Geographic Analysis

• Further breakdown of the North American cybersecurity market
• Further breakdown of the European market
• Further breakdown of the APAC market
• Further breakdown of the MEA market
• Further breakdown of the Latin American market

Company Information

• Detailed analysis and profiling of the additional cybersecurity market players

MarketsandMarkets forecasts the global cybersecurity market size to grow from USD 152.71 billion in 2018 to USD 248.26 billion by 2023, at a Compound Annual Growth Rate (CAGR) of 10.2% during the forecast period.

The cybersecurity market is segmented on the basis of component (solutions and services), security type, deployment mode, organization size, industry vertical, and region. Increase in the frequency and sophistication of cyber threats, stringent data protection regulations for information security, and rise in the number of supply chain-based attacks exploiting the software supply chain are expected to drive enterprises to adopt cybersecurity solutions and services for detecting and responding to advanced cyber threats and data breaches. Moreover, Small and Medium-sized enterprises (SMEs) are adopting cybersecurity solutions at a large scale, as they are more vulnerable to cyber-attacks and data breaches. With the adoption of cybersecurity solutions, organizations can effectively maintain and secure their critical information from data breaches and respond to cyber incidents more efficiently. Cybersecurity solutions help organizations optimize employees’ productivity, protect sensitive data and applications, and comply with stringent regulations.

The cybersecurity market by solution is segmented into Identity and Access Management (IAM), risk and compliance management, encryption, Data Loss Prevention (DLP), Unified Threat Management (UTM), firewall, antivirus/antimalware, Intrusion Detection System (IDS)/Intrusion Prevention System (IPS), security and vulnerability management, disaster recovery, Distributed Denial of Service (DDoS) mitigation, web filtering, and others (application whitelisting and patch management). The IAM solutions segment is expected to dominate the market during the forecast period and estimated to have the largest market size in 2018. Encryption solutions play a key role in changing the markets pace and enable enterprises to hide their critical data from unauthorized bad actors. As a result, the encryption solutions segment is expected to grow at the highest CAGR during the forecast period.

Among the security types, the network security segment is estimated to have the largest Cybersecurity Market size during the forecast period. The growth in the network segment is associated with the rise in the number of security breaches targeting networks where hackers try to gain access to sensitive data. As the vulnerabilities have become more complex and sophisticated, the demand for network security products is expected to increase for countering the threats. The market size of application security segment is expected to grow at the highest CAGR of during the forecast period due to the increasing number of malware, APTs, and phishing attacks.

Among regions, North America is estimated to hold the largest market size in 2018. North America is a region of innovative technology adopters and has a large presence of cybersecurity vendors who are contributing to the growth of the market. The increasing need among organizations to reduce the misuse of the internet, enhance employees’ productivity, and address attacks on their IT infrastructures is expected to drive the growth of the cybersecurity market in North America. Furthermore, APAC is expected to grow at the highest CAGR during the forecast period. Rapid economic growth, and regulatory reforms and economic stability are expected to drive the growth of the market in APAC. In the APAC region, enterprises in industry verticals such as government; aerospace and defense; and Banking, Financial Services, and Insurance (BFSI) are expected to increase their investments in cybersecurity solutions and services.

Increased adoption of cybersecurity solutions and services in government, aerospace and defense, and Banking, Financial services and Insurance (BFSI) industry verticals drive the growth of the cybersecurity market.

Government

The government industry vertical is expected to have the largest Cybersecurity Market size during the forecast period. The governments in the emerging economies are deploying web and mobile applications to serve their citizens efficiently. These applications are becoming prime targets for the cybercriminals to access sensitive data. The concept of eGovernance has led the government to focus more on information security threats. Moreover, as organizations are shifting toward real-time communication, threats from web browsing, email correspondence, peer-to-peer traffic, and file exchange have considerably increased. Thus, cybersecurity has become one of the most important aspects in the government sector.

Aerospace and Defense

Security threats in the aerospace and defense industry vertical are increasing at an alarming rate. This sector is targeted to extract highly confidential and sensitive data of critical sectors, including the government, prime contractors, and suppliers. The existence of big data and increased digitalization in almost all the aspects of the armed forces leads to high chances of being attacked by cybercriminals. Next-generation firewalls, IPS, antimalware gateways, and endpoint security applications are capable of protecting data from known threats, but attackers have innovated many techniques to bypass these products and access confidential data. Hence, the protection of the data and applications is a top priority for the aerospace and defense industry vertical and the sector is scouting for comprehensive security strategies.

Banking, Financial Services, and Insurance (BFSI)

The BFSI industry vertical is an early adopter of cutting-edge cybersecurity solutions due to the highly sensitive financial data. It faces different challenges related to stringent regulatory and security requirements, providing superior service to customers, and others. In addition, the industry is always on the lookout for security products and services that could protect the industry’s employees, customers, assets, offices, branches, and operations, and therefore holds a significant share of the total cybersecurity market. The industry frequently introduces new and improved financial products and services to enhance their business operations, which makes it attractive for frauds to target sensitive customer information. With facilities such as smart banking, internet banking, and mobile banking, the BFSI sector is required to prioritize the adoption of cybersecurity solutions.

Key questions

• Which are the substitute products and how big is the threat from them?
• Which are the top use cases where cybersecurity solutions and services can be implemented for revenue generation through new advancements such as artificial intelligence, IoT, and cloud computing?
• What should be your go-to-market strategy to expand the reach into developing countries across APAC, MEA, and Latin America?

The increasing adoption of cloud-based solutions and services among enterprises is expected to provide significant growth opportunities to cybersecurity solution and service vendors such as IBM (US), Check Point (US), Cisco (US), CyberArk (Israel), F5 Networks (US), FireEye (US), Forcepoint (US), Fortinet (US), Amazon Web Services (US), Oracle (US), Palo Alto Networks (US), Imperva (US), Qualys (US), RSA Security (US), F-Secure (Finland), McAfee (US), Micro Focus (UK), Microsoft (US), Proofpoint (US), Rapid7 (US), Sophos (UK), Splunk (US), Symantec (US), Trend Micro (Japan), and Juniper Networks (US). These security vendors provide various cybersecurity solutions and services to secure their customers from advanced cyber-attacks. As the frequency of security breaches has increased over the past 5 years, organizations have increased their IT security investment to ensure protection against advanced threats. However, for many enterprises, including SMEs, these investment costs are a matter of concern. To maintain strong and advanced security, the cost of innovation is still high. Hence, many organizations view budgetary constraints as a barrier to the adoption of advanced cybersecurity solutions and services.

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