Deception Technology Market Size, Share & COVID-19 Impact Analysis, By Component (Solution, Services), By Deception Stack (Application Security, Data Security, Endpoint Security, Network Security), By Deployment Mode (On-premise, Cloud-based), By Organization Size (Small and Medium Enterprises (SMEs), Large Enterprises), By Vertical (Banking, Financial Services, and Insurance (BFSI), Energy & Utilities, Government, Healthcare, Telecom and IT, Manufacturing, Retail, Others (Education, Defense, and Others)), and Regional Forecast, 2021-2028

The global deception technology market size was USD 1.34 billion in 2020 and is projected to reach USD 1.51 billion in 2021 to USD 3.88 billion in 2028, at a CAGR of 14.4% during the 2021-2028 period. The global market exhibited a substantial growth of 12.0% in 2020 compared to the average year-on-year growth during 2017-2019. The sudden rise in CAGR is attributable to this market’s growth and demand returning to pre-pandemic levels once the pandemic is over. The global market size is inclusive of several deception solutions such as Identity Deception and Response, Endpoint Deception Net Suit, InsightIDR by Rapid7, Inc., and others. This market is expected to be positively impacted during the COVID-19 pandemic. 

Deception technology plays a vital role in protecting the organization's important data by creating decoys of realistic-but-fake assets, including databases, domains, servers, credentials, files, cookies, applications, and more deployed in the network with real assets. Identifying the difference between real assets and decoys is very difficult. When an attacker interacts with a decoy, a silent alarm is raised and alerts the system about an attacker's intentions. Adopting deception solutions enables businesses to be highly secured, safe, and reliable. Additionally, the system requires a low initial cost, owing to which it is widely adopted in small and medium-size enterprises.

COVID-19 Impact

Rising Adoption of Online Shopping to Foster Market Development

Amid the COVID-19 pandemic, governments are facing major challenges to keep their citizens safe. Many governments are adopting innovative digital technologies to counter the pandemic. During the COVID-19 pandemic, various business sectors that include manufacturing, energy and utilities, retail, and BFSI face several challenges, such as ensuring optimal business operations and managing the workforce's health. In these crucial times, there has been a huge surge in cybercrimes. According to PurpleSec’s study, there is a 600% rise in cybercrime during the COVID-19 pandemic. Many businesses have come up with adoption of deception solutions in their network infrastructure to prevent cybercrime.

Furthermore, increased usage of online shopping and remote working activity among end-users since 2020, there is a significant rise in cybercrime activity. According to IBM, remote work has increased the average cost of a data breach by USD 137.0 million. Thus, a significant rise in the adoption of remote work across the globe is expected to propel the demand for a deception platform to protect important data from attackers. Deception technology vendors grab this opportunity by upgrading their deception platform by incorporating IoT and cloud technologies. In this way, demand for deception platforms is growing among verticals which are anticipated to boost the market during the forecast period.

LATEST TRENDS

Adoption of Zero-trust Architecture Security Services to Fuel Market Growth

IT infrastructure has always been in a constant state of change. Along with the development of new emerging technologies, IT organizations tend to adopt new solutions in their network infrastructure, owing to the growing demand for new technologies such as zero trust, secure access service, and extended detection and response across the globe. Furthermore, according to the Enterprise Strategy Group (ESG) research report, 72% of organizations now have digital transformation initiatives either completed or in process. This number has increased by 14% since 2020. Many IT organizations adopted remote work culture, however the loss of ability to secure their corporate infrastructure using traditional methods may boost the technology’s demand. Zero-trust architecture is significantly adopted to secure their network infrastructure, as it provides a quick, reliable, and higher level of security for applications, services, and data.

Thus, the growing adoption of emerging security services is anticipated to boost the growth rate of the global market during the forecast period.

DRIVING FACTORS

Rising Demand for the Product from the Government Sector to Foster Growth

Cybersecurity attacks are increasing in volume against state and local government and military organizations. Traditional network defense technologies focus on preventing such activities, but attackers are finding new ways to evade them. A deception platform is extensively used worldwide to prevent the government entity from cyber-attacks. Deployment of deception technology cyber security in government entities plays an important role in safeguarding critical information by providing early and accurate detection of in-network threats and quickly responding to them. Owing to these capabilities, the National Institute of Standards and Technology has included this technology in SP 800-160, SP 800-53 and the draft for 800-172. In addition, the increasing investment by government agencies to prevent cybercrime is anticipated to boost the adoption of deception tools in coming years.

For instance,

• In April 2019, the National Cybercrime Program (NPCC) announced a multi-million-dollar investment from the U.K. Government to deploy a dedicated cybercrime unit in every police force in England and Wales.

Thus, the prominent focus of government entities towards the adoption of deception security tools is expected to drive the market's growth at a rapid pace during the forecast period.

RESTRAINING FACTORS

Availability of Weak Network Security may Hinder Market Growth

The concept of honeypots and deception in the IT sector has existed for more than two decades. The technology offers multiple advantages to government and business sectors. However, various verticals must also be prepared for potential risks such as authenticity, attractiveness, and scalability. Organizations are required to create attractive decoys of assets to attract the cyber attackers and detect and analyze attackers' intention.

Apart from this, even if the network is well protected, devices must also be secured. Once an attacker compromises endpoint security, they can extract the password and critical data from the infrastructure. Thus, the possibility of a data breach due to weak network security may lead to significant concerns in deception solution activities.

SEGMENTATION

By Component Analysis

Surge in Deployment of Deception Technology to Secure Businesses

On the basis of component, the market is segmented into solutions and services. Among these, deception solution captures the maximum market share owing to the growing deployment of deception technology products in BFSI, government, manufacturing, and other verticals. The services segment consists of professional services and managed services. These services are expected to grow at the highest CAGR during the forecast period. Businesses hire professional deception decoy experts to design decoys of assets and protect original assets from attackers.

By Deception Stack Analysis

Rising Adoption of Network Security in Manufacturing Sector to Bolster Market Growth

On the basis of type, the market is segmented into application security, data security, endpoint security, and network security. Among these, network security holds a prominent market share, as networks are becoming more and more complex due to the increased adoption of BYOD and IoT trends.

In addition, endpoint security holds the largest market share in 2020, as in various organizations, many data files are stored in the memory of devices. The data can be found by using some keywords associated with the data. Endpoint security generates an alert when an attacker uses decoy credentials stored in the memory of a device and protects the data from attackers with high reliability.

By Deployment Mode Analysis

Increasing Popularity of Cloud-based Deception Technology in Enterprises to Witness High Growth

Based on deployment mode, the market is bifurcated into on-premise and cloud-based. Among these, cloud-based deployment holds the largest market share. The growing popularity of cloud-based deception platforms in small and medium enterprises (SMEs) and large enterprises is propelling the segment's growth. It is cost-efficient and requires a low cost to purchase, install, and maintain hardware or software. Also, it allows organizations to work remotely, owing to which cloud-based deception security tool is expected to grow in popularity in the coming years.

By Organization Size Analysis

Growing Demand for Deception Platform in Large Enterprises to Fuel Market Growth

Based on deployment, the market has been bifurcated into small and medium enterprises (SMEs) and large enterprises. Among these, large enterprises will hold a larger market share in 2020. Large enterprises have a large security department, and the adoption of deception tools provides them with early detection and accelerated incident response. Also, this technology helps organizations minimize the damage caused by hacker attacks, thereby facilitating the large enterprises segment’s growth at the highest CAGR during the forecast period.

By Vertical Analysis

Higher Adoption of Deception Technology to Boost Demand for Banking, Financial Services, and Insurance (BFSI) Sectors

Based on vertical, the market is segmented into banking, financial services, and insurance (BFSI), energy & utilities, government, healthcare, telecom and IT, manufacturing, retail, others (education, defense, and others).

Among these, the BFSI segment holds the largest market share due to the growing adoption of deception platforms in the financial sector. It quickly and efficiently detects advanced threats targeting financial institutes. In addition, the technology designs highly advanced decoys and lures to misdirect attackers and protects real assets from being attacked.

The manufacturing segment is anticipated to have prominent growth in the coming years. Adoption of intellectual property (IP) and industry 4.0 enables manufacturers to connect their smart devices to an organization's internet network and simplify complex manufacturing processes. The adoption of a deception platform in manufacturing site protect endpoints, IoT devices, and infrastructure from external attackers’ which is likely to drive the growth of this market over the forecast period.

REGIONAL INSIGHTS

Geographically, the market is studied across North America, Europe, Asia Pacific, the Middle East & Africa, and Latin America. They are further categorized into countries.

North America is expected to dominate the market in terms of revenue during the forecast period. The rapid development and adoption of emerging technologies and major players such as Attivo Networks, Inc., Rapid7, Inc., Illusive Networks, Inc., Fidelis Cybersecurity, and others are expected to drive the growth across the region.

Asia Pacific is likely to be the fastest-growing region in the near future. Growing adoption of internet of things (IoT) devices and bring your own device (BYOD) technologies within organizations, rapid urbanization, and the large continent population are expected to be the key factors fueling the Asia Pacific deception technology market growth. Moreover, key vendors in the market are focusing on the expanding their businesses in developing countries such as India, China, and Singapore, among others in this region, which is anticipated to boost the market growth.

Europe accounts for a significant market share owing to rising investment by the government and manufacturing sector to improve threat detection, create business risk awareness and offer broad coverage for the environment such as SCADA/ICS, IoT, and cloud technology.

Furthermore, the Middle East & Africa and South America are investing in a deception platform to quickly detect advanced threats and providing an automated response, which plays an important role in attracting business and other sectors.

KEY INDUSTRY PLAYERS

Continuous Developments is Key Strategy to Strengthen Company’s Position

The key players in the market strive to offer advanced deception tools to the manufacturing and government sector to detect external threats in advance. Also, vendors are engaged in collaboration and partnership with other market players to effectively cope with customers' growing demands. Companies are also investing in research and development activities to develop cutting-edge technology systems.

April 2020 – Trapx Security released DeceptionGrid 7.0, a threat detection platform. The solution creates and monitors the entire deceptive environment to misguide attackers. This platform plays an important role in effectively protecting an entire network of an organization.

February 2019 – PacketViper launched version 5.0 of its threat-facing deception platform. The latest platform includes an updated user interface to improve user experience and provide fully customizable dashboard capabilities.

List of the Key Companies Profiled:

• Attivo Networks, Inc. (California, U.S.)


• Rapid7, Inc. (Massachusetts, U.S.)


• Illusive Networks, Inc. (New York, U.S.)


• Guardicore (Tel Aviv, Israel)


• LogRhythm, Inc. (Boulder, U.S.)


• Allure Security Technology, Inc. (New York, U.S.)


• PacketViper (Pennsylvania, U.S.)


• CyberTrap Software GmbH (Vienna, Austria)


• Fidelis Cybersecurity (Maryland, U.S.)


• Trapx Security (Massachusetts, U.S.)

KEY INDUSTRY DEVELOPMENTS:

• November 2019 –  Allure Security Technology unveiled its novel website phishing detection and response capability. The solution is built with the help of Allure’s Software-as-a-Service (SaaS) alerts security team to detect phishing attacks in real-time.


• December 2018 –  Attivo Networks, Inc. expanded its global operation facility in India due to growing demand for deception solutions. This expansion is fueled by government agency agencies and enterprises' increasing interest in protecting their network from attackers.

REPORT COVERAGE

The global deception technology industry report highlights leading regions worldwide to offer a better understanding of the user. Furthermore, it provides insights into the latest industry and market trends and analyzes technologies deployed at a rapid pace at the global level. It further highlights some of the growth-stimulating factors and restraints, helping the reader gain in-depth knowledge about the market.

REPORT SCOPE & SEGMENTATION