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The Global Cybersecurity Market is expected to grow at a CAGR of 13.40% in the forecast period of 2021-2027.
The global cybersecurity market is continuously growing due to increasing number of cyberattacks and data breaches faced by various applications such as BFSI, government, retail, healthcare, IT and telecommunication, manufacturing, and others. Worldwide high rate of cyber threats leads to increase in demand of security solution. According to the Internet Crime Complaint Center (IC3), in 2020, IC3 received 791,790 of complaints from the American public, with reported losses of exceeding US$ 4.1 bn. This represents a 69% increase in total complaints from 2019.
The global cybersecurity market growth is attributed to various factors such as growing demand of cybersecurity mesh, increasing penetration of IoT (Internet of Things) devices, rapid technology advancements requiring more advanced and secure business module. Additionally, rising number of cyber security threats and rise in number of data breaches are major drivers that are expected to propel the market demand for cyber security by individual firms and businesses.
Global Cybersecurity Market Analysis by Application
Cybersecurity is essential in various sectors like financial services, communication technologies, transportation, energy, healthcare, manufacturing, and other professional services. As per the researchers, in 2020, financial services held the highest share of around 24% in the cybersecurity market across the globe. As fintech focused on cybersecurity investment, driven by the increasing importance of cybersecurity to both traditional financial institutions and fintech.
As per the analysis, the healthcare sector is anticipated to expand at a faster annual growth rate of 15.4%. As increase in the use of electronic information and a resulting increase in the level of exposure to cyber-attacks, which target an organization’s use of cyberspace for the purpose of stealing information or disrupting, disabling, or destroying related information resources.
Global Cybersecurity Market Analysis by Region
The global cybersecurity market has been divided into Asia Pacific, North America, Europe, South America, and Middle East and Africa. Asia Pacific cybersecurity market is gaining highest growth due to increase in maturity and awareness of cybersecurity. As per the survey of senior IT and security decision makers, organizations in Asia Pacific region are becoming more mature with cybersecurity but the region continue to be hit by several attacks – with 56% suffering from attacks in 2021 as compared to 32% in 2019.
North America holds 36% of the global cybersecurity market share, supported by presence several major players in the region, delivering advanced solutions to major industries across the globe.
Impact of COVID – 19 on Cybersecurity Market
As per the study, the outbreak of COVID-19 pandemic hit most of the industries due to significant restrictions, many companies are adopting cybersecurity solutions due to increasing cyberattacks and rising vulnerability of their devices. The major market players of cyber security market are Cisco Systems Inc. and IBM have also been adversely impacted the business operations and financial condition of the business.
The restrictions implemented 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. However, it is estimated that market is anticipated to grow in the forecast period.
Market Competitors in Cybersecurity Market
The four major players in the global cybersecurity market are Cisco, IBM, Pablo Alto, and Trend Micro. These major players in global marketplace hold a cumulative market share close to 37% and rest of the market share is distributed among 10-12 mid-scale companies, hence the market is analyzed to be monopolistic competition in the nature.
Companies are adopting various strategies like acquisition and business mergers to grow in the global marketplace. For instance, in June 2021, Telefonica Tech and IBM launched hybrid cloud enterprise solutions based on Artificial Intelligence and Blockchain, these AI-powered virtual assistant and a blockchain platform solutions for enterprise assets are part of Telefonica and IBM’s ongoing work together to embrace an open hybrid cloud strategy that can speed how enterprises innovate to meet the evolving needs of today’s customers. In June 2021, Cisco unveils new 5G industrial router portfolio to unite the IoT Edge. The portfolio enables organizations to run connected operations at scale with choice of management tools suited for both IT and operations.
Drivers: Increasing number of cyberattacks and data breaches incidents worldwide, increasing penetration of IoT devices and advancement of technologies.
Restraint: Expensive to recover the data, lack of cybersecurity skill and expertise, low cybersecurity budget and high installation cost.
Opportunity: Growing need to track and automate user related security incidents, adoption of M2M (Machine to Machine)/ IoT connections, and rising demand of secure defence strategy from the defence and government sector.
Challenges: Design and implementation issues for cybersecurity infrastructure and complex and fragmented regulations globally.
Segmentation Overview of the Global Cybersecurity Market
The Global Cybersecurity Market is divided on the basis of Component, Security, Deployment, Application, Enterprise Size and Region.
Based on component, solutions segment holds the highest share in the year 2021, due to the huge demand for cybersecurity solutions. Security departments of various organizations are expanding in size and their budgets are focusing more on cybersecurity part to protect their organizations. In addition, increasing number of startups in cybersecurity market with innovative product offerings also contribute to significant shareholding of the solution segment.
As per researchers, service segment has the highest compound annual growth rate of 13.9%, owing to increasing number of acquisitions and alliances with major cybersecurity service providers.
By Enterprise Size
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