Cybersecurity Market - Industry Dynamics, Market Size, And Opportunity Forecast To 2031

Market Scenario 

The global cybersecurity market was valued at US$ 182.3 Billion in 2022, and is projected to reach US$ 572.1 Billion by 2031. The market is witnessing a compound annual growth rate (CAGR) of 13.40% during the forecast period.

The global cybersecurity market is expected to experience robust growth in the coming years due to the increasing frequency and sophistication of cyber-attacks.  One of the key drivers of growth in the cybersecurity market is the rising number of data breaches, particularly in the United States, China, and India. As the incidence of cybercrime continues to increase, cyber criminals are finding new and more innovative ways to steal sensitive data and valuable information. For example, recent studies have shown that hackers can earn millions of dollars through form jacking attacks by stealing credit card information from websites.

Despite the growing demand for cybersecurity solutions, the market still faces several challenges, including low cybersecurity budgets, high installation costs, and a shortage of skilled cybersecurity professionals. In fact, the number of vacant cybersecurity jobs is expected to increase by 350% between 2013 and 2021, which is a significant obstacle to the growth and protection of confidential information.

To overcome these challenges, key players in the market are investing in a range of security products and solutions, such as firewalls, email protection, and two-factor authentication. Of these, firewalls are the most expensive, with prices ranging from US$ 400 to US$ 6,000.

Looking ahead, the cybersecurity market is likely to experience continued growth and innovation, as companies and organizations seek to protect themselves against ever-evolving cyber threats. With the increasing importance of data security and privacy, the demand for cybersecurity solutions is expected to remain strong in the years to come.

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Market Dynamics 

Driver 

Increasing Incidence of Cyber Attacks

The increasing frequency and sophistication of cyber-attacks is one of the primary drivers of growth in the global cybersecurity market. As more and more organizations shift their operations online, the risk of data breaches and other cyber threats becomes greater. Cyber criminals are finding new and more innovative ways to steal sensitive data and valuable information, making it essential for companies to invest in robust cybersecurity solutions to protect their assets.

According to the 2021 Cybersecurity Report by Cybersecurity Ventures, cybercrime is expected to cost the world $10.5 trillion annually by 2025, up from $3 trillion in 2015. In addition, the report estimates that there will be a ransomware attack on businesses every 11 seconds in 2021, up from every 14 seconds in 2019. These statistics demonstrate the growing need for cybersecurity solutions in today's digital landscape.

Governments around the world are also recognizing the importance of cybersecurity in protecting national interests and critical infrastructure. For example, the U.S. government recently launched the Cybersecurity and Infrastructure Security Agency (CISA) to coordinate the country's cybersecurity efforts and respond to cyber threats. In addition, the European Union's General Data Protection Regulation (GDPR) has introduced new regulations that require companies to protect the personal data of EU citizens.

These government initiatives have helped to raise awareness of the importance of cybersecurity and encourage businesses to invest in robust solutions. As a result, the global cybersecurity market is expected to continue to grow at a rapid pace in the coming years.

Trend: Growing Demand for Cloud-Based Solutions

The growing adoption of cloud-based solutions across industries is also driving growth in the cybersecurity market. Cloud computing offers a range of benefits, including increased scalability, flexibility, and cost-effectiveness. However, it also introduces new security risks that must be addressed. As a result, companies are increasingly looking for cloud-based security solutions that can provide comprehensive protection for their data and applications.

To address the security risks associated with cloud computing, companies are increasingly adopting cloud-native security solutions that are specifically designed for the cloud environment. This includes solutions such as cloud access security brokers (CASBs), cloud workload protection platforms (CWPPs), and cloud security posture management (CSPM) tools.

Challenge: Regulatory Challenges and Compliance Burdens

As the cybersecurity landscape continues to evolve, governments around the world are introducing new regulations and compliance requirements to protect the privacy and security of individuals' data. While these regulations are essential for protecting personal information, they also create compliance burdens for businesses that must adhere to them.

For example, the General Data Protection Regulation (GDPR) introduced by the European Union cybersecurity market requires businesses to adhere to strict data protection requirements, failure to which can lead to severe financial penalties. Similarly, the California Consumer Privacy Act (CCPA) mandates businesses to provide consumers with a range of data privacy rights. Adhering to these regulations and compliance requirements can be challenging for companies, particularly those operating across multiple jurisdictions. It requires significant resources and expertise to ensure that all necessary controls are in place to protect personal data and ensure compliance with the relevant regulations.

As a result, companies are facing significant regulatory challenges and compliance burdens, which can limit their ability to adopt new cybersecurity solutions and hinder the growth of the global cybersecurity market.

Segmental Analysis 

By Component 

The solutions segment in the global cybersecurity market is expected to generate more than 70% of the total revenue. This includes a range of cybersecurity solutions such as identity and access management (IAM), antivirus and antimalware, firewalls, intrusion detection and prevention systems (IDPS), and others.

The IAM solution segment is expected to experience significant growth in the coming years, driven by the increasing need for secure access to data and applications. The rising adoption of cloud-based solutions and the trend towards remote work are also contributing to the growth of the IAM market, as companies require secure and efficient access to their networks and systems.

The antivirus and antimalware segment is also expected to experience growth, as the threat of malware continues to be a major concern for businesses. According to a report by AV-TEST, a leading independent research institute for IT security, there were over 1 billion malware samples in circulation in 2021, demonstrating the need for robust antivirus and antimalware solutions. Firewalls and IDPS are also important cybersecurity solutions, as they provide critical network security and intrusion detection capabilities

By Security Type

By security, cloud security is expected to remain the largest revenue contributor to the global cybersecurity market. Cloud security refers to a range of solutions that are specifically designed to protect data and applications in the cloud environment. The growing adoption of cloud-based solutions across industries is driving the demand for cloud security solutions. Cloud computing offers a range of benefits, including increased scalability, flexibility, and cost-effectiveness, but it also introduces new security risks that must be addressed. As a result, companies are increasingly looking for cloud-based security solutions that can provide comprehensive protection for their data and applications.

The COVID-19 pandemic has further accelerated the shift towards cloud-based solutions, as remote work and digitalization became the new normal.

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By Application 

By Application, the financial services sector is expected to generate over 24% of the total revenue in the global cybersecurity market. This is due to the sensitive nature of financial data and the high risk of cyber-attacks in the industry.

The financial services sector is particularly vulnerable to cyber-attacks, as it handles large volumes of sensitive data and transactions. Cybercriminals are constantly targeting financial institutions in order to steal valuable data and money, making it essential for companies in this sector to invest in robust cybersecurity solutions to protect their assets. In addition to traditional banking and financial services, the growth of fintech and mobile payments in the cybersecurity market has further increased the need for cybersecurity solutions in the financial sector. These new technologies offer greater convenience and flexibility, but they also introduce new security risks that must be addressed.

As a result, the financial services sector is a major market for cybersecurity solutions, including solutions such as identity and access management (IAM), encryption, firewalls, and other security methods. The IAM solution segment is particularly important in the financial sector, as it provides critical access controls and authentication capabilities to protect sensitive data and applications.

Regional Analysis 

North America is the largest market for cybersecurity, accounting for a significant share of the global market. One of the key factors driving the growth of the cybersecurity market in North America is the increasing incidence of cyber-attacks in the region. According to a report by the Identity Theft Resource Center, the number of data breaches in the United States increased by 42% in 2022, with a total of 1,108 breaches reported. This demonstrates the growing need for robust cybersecurity solutions in the region.

In addition, governments in the US and Canada are also taking steps to address the cybersecurity threat. For instance, the U.S. government has introduced several cybersecurity initiatives, including the Cybersecurity and Infrastructure Security Agency (CISA) and the National Institute of Standards and Technology (NIST) Cybersecurity Framework. These initiatives provide guidance and best practices for businesses to follow in order to enhance their cybersecurity posture.

Furthermore, the North America cybersecurity market is also driven by the growing demand for cloud-based solutions. This trend is expected to continue in the coming years, with more companies adopting cloud-based solutions and requiring robust cybersecurity solutions to protect their data and applications. Another factor contributing to the growth of the cybersecurity market in North America is the presence of several major players in the region, such as IBM, Cisco Systems, and Microsoft. These companies are investing heavily in research and development to develop innovative cybersecurity solutions and gain a competitive edge in the market.

List of Key Companies Profiled:

• MacAfee
• Trend Micro Incorporated
• IBM Corporation
• Microsoft
• BAE Systems, Inc.
• Check Point Software Technology Ltd.
• F5 Networks
• EMC Corporation
• FireEye, Inc.
• Proofpoint Inc.
• Sophos PLC
• Fortinet, Inc.
• Cisco Systems Inc.
• Symantec Corporation
• Juniper Networks
• Palo Alto Networks, Inc.
• Qualys Inc.
• Other Prominent Players

Segmental Overview of Global Cybersecurity Market 

The Global Cybersecurity Market is divided into six segments based on Component, Security, Deployment, Application, Enterprise Size and Region. 

 By Component 

• Solutions
  • Threat Intelligence
    • Identity and Access Management
    • Security and Vulnerability Management
    • Risk and Compliance Management
    • Others
  • Encryption
  • Data Loss Prevention
    • Network DLP
    • Storage/ Data Center DLP
    • Endpoint DLP
  • Unified Threat Management
  • Firewall
  • Intrusion Detection Systems/Intrusion Prevention Systems
  • Disaster Recovery
  • Distributed Denial of Service
  • Others
• Services
  • Professional Services
    • Design and Integration
    • Risk and Threat Assessment
    • Consulting
    • Training and Education
    • Support and Maintenance
• Managed Security Services

 By Security  

• Network Security
• Endpoint Security
• Application Security
• Cloud Security
• Others

 By Deployment 

• Cloud-based
• On-premises

 By Application 

• Financial Services
• Government
• Retail
• Healthcare
• Communication Technologies
• Manufacturing
• Transportation
• Professional Services
• Energy
• Others

By Enterprise Size 

• Small and Medium-sized Enterprises
• Large Enterprises

 By Region  

• North America
  • The U.S.
  • Canada
  • Mexico
• Europe
  • The UK
  • Germany
  • France
  • Spain
  • Russia
  • Rest of Europe
• Asia Pacific
  • China
  • India
  • Japan
  • Australia & New Zealand
  • Singapore
  • ASEAN
  • Rest of Asia Pacific
• Middle East & Africa (MEA)
  • UAE
  • Saudi Arabia
  • South Africa
  • Rest of MEA
• South America
  • Argentina
  • Brazil
  • Rest of South America