According to the study by Astute Analytica, the global cybersecurity market is expected to grow at a CAGR of 13.40% during the forecast period from 2021 to 2027. The market recorded a revenue of 162.9 billion in 2021 and is expected to reach $346 billion. by the end of the year 2027, with a growth of approximately 2.4 times over the study period.
The size of the global cyber security market is expected to increase depending on various factors such as increase in demand for data and information protection across the globe, rise in malicious cyber activities. According to one of INTERPOL’s private sector partners, 907,000 spam messages, 737 malware incidents and 48,000 malicious URLs – all related to COVID-19 were detected between January and April 2020. In addition, The increase in the number of internet users is driving the growth of the cyber security industry across the globe.
At the end of 2019, just over half of the world’s population used the internet, but this proportion rose to over 69% among young people (aged 15-24). Furthermore, increased use of mobile phones, improved internet connectivity and M2M (Machine to Machine) connections require high data security which, in turn, is expected to drive the market demand for cyber security.
Cybersecurity plays an important role as it protects all types of cybercrimes as well as data theft and damage, including sensitive data such as personal information, protected health information (PHI), personally identifiable information (PII ) and industrial and government information systems. The need for improved and hardened cybersecurity solutions is expected to increase with the rise of various threats such as Trojans, multi-step attacks, and malicious or fraudulent websites.
Global Cybersecurity Market Analysis – By Security Type
Cyberattacks hit private systems and businesses every day, and the variety of attacks has increased rapidly. Cyber criminals mainly aim to steal personal information/data such as personal identification information, credit card details, social security numbers and other sensitive data. Cybersecurity is the process of preventing data theft and implementing data security measures to protect computer system, networks, cloud information and other personal data from cyber attacks.
The cloud security segment holds the highest market share of over 30% in 2021 as the cloud solution provides the exact information and application recoveries. With minimal downtime, this is a major productive recovery plan. The growing demand for cloud security and hybrid cloud platforms such as Amazon Web Services (AWS) and Azure, among other key platforms, is opening a great opportunity in the growth of the global cybersecurity market. As more organizations use cloud security to support office and home work environments, it is garnering significant positive market response.
Global Cybersecurity Market Analysis – By Region
According to the Astute Analytica report, in 2021, the North America cybersecurity market held the highest market share of around 35%, supported by major market players in the region who provide advanced solutions globally whole. Cybersecurity market growth in North America is followed by Europe and Asia-Pacific, holding around 51% of the combined market share in 2021. According to the researchers, the compound annual growth rate of the cybersecurity industry in Asia-Pacific is estimated to grow around 16.9% during the forecast period.
Impact of COVID-19
According to the analysis, government restrictions around the world to prevent the spread of COVID-19 have changed the pattern of working from the office or on-site to working from home. This change in the way of working has increased the scope of cyberattacks at the individual and organizational levels. From February to May 2020, more than half a million people worldwide were affected by breaches in which the personal data of video conferencing users was stolen. According to sources, the average cost of a data breach resulting from remote work can be as high as $137,000.
Companies are actively focusing on adopting cybersecurity solutions and methods due to the increase in data threat incidents and the increasing vulnerability of their devices. For example, in 2018 HP partnered with Aon, the acquired company offers advanced threat mitigation, cybersecurity and data breach insurance services. Hence, the market is estimated to grow over the forecast period.
According to the study, it is found that the major players have adopted various strategies to gain 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 is largely focused on partnering with organizations on their digital transformation journey and positioning itself as the strategic digital transformation platform and partner of choice. Product innovation is the essential part of strategic development with data center investments for the enterprise.
The major key players in the market are Cisco, IBM, Trend Micro, and Palo Alto, which hold around 41.60% market share and the rest is captured by other local players around the world.
Segmented overview of the global cybersecurity market
According to enterprise size, large enterprises hold the highest market share of almost 60% in 2021. While large enterprises overwhelmingly adopt cybersecurity to protect the network, endpoints, data centers, devices, users and applications from unauthorized use and malicious ransomware attacks. However, small and medium-sized enterprises (SMBs) are expected to grow at a CAGR of 14.8% due to the growing number of cyberattacks against SMBs. According to the research, nearly 77% of small and medium-sized businesses lack the capability and expertise to withstand a cybersecurity attack.