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The global cyber security market was valued at USD 139.77 billion in 2021 and is projected to grow from USD 155.83 billion in 2022 to USD 376.32 billion by 2029, at a CAGR of 13.4% during the forecast period. The global COVID-19 pandemic has been unprecedented and staggering, with security solution experiencing higher-than-anticipated demand across all regions compared to pre-pandemic levels. Based on our analysis, the global market had exhibited a rise of 7.7% in 2020 as compared to 2019.
The cyber security market is mainly driven by the emerging online e-commerce platforms and the advent of core technologies such as the internet of things (IoT), artificial intelligence (AI), cloud security, and others. Key market players focus on developing internet security solutions based on artificial intelligence (AI) platforms. For instance, in January 2021, Fortinet, Inc. launched FortiXDR, an AI-enabled, fully automated online cyber threat detection XDR solution. The growing demand for solutions is anticipated to gain traction with cumulative investments from Germany, France, India, Spain, South Korea, Italy, Canada, Qatar, and others. The increasing adoption of enterprise security solutions from manufacturing, banking, financial services, and insurance (BFSI) and healthcare is expected to drive market growth in the forthcoming years.
In this market report scope, we have included component solutions and services offered by companies including IBM Corporation, Microsoft Corporation, Palo Alto Network, Inc., Broadcom, Inc., and others.
Rapid Growth of Security Solutions across Healthcare and Government Sectors to Boost Demand
The COVID-19 epidemic severely affected the overall behavior of consumers and providers. The short-term closure of manufacturing units, job crunches, lack of resources, data breaches, and weakened supply chain has negatively affected business growth worldwide. Numerous small and medium businesses across the globe encountered permanent and temporary shutdowns. As per a survey conducted by the NBER in 2020, 43% of respondents in the U.S. reported the temporary shutdown of small and medium businesses. The pandemic impacted small companies and start-ups worldwide. This has significantly impacted the demand for internet security solutions and services.
However, the demand for cybersecurity solutions in healthcare, manufacturing, and government has grown exponentially during the pandemic crisis. Key players in the market focus on launching various security solutions to secure industrial operations against severe cyber-attacks. For instance, in December 2020, IBM Corporation launched IBM Security X-Force, a threat intelligence task force to detect cyber-attacks. The company also launched the Global Phishing Campaign across six countries.
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Integration of Technologies such as the Internet of things (IoT), Machine Learning, and Cloud to Drive the Growth
Key players in this market are implementing core technologies such as machine learning, the internet of things (IoT), cloud, and big data in their business security units. They are further adopting an IoT and machine learning signature-less security system. This adoption would help the players understand uncertain activities and trials and identify and detect uncertain threats.
With the rising growth in the IoT market, IoT solutions are gaining popularity across various information security applications. Consequently, the adoption of advanced technologies in internet security is considered one of the rapidly emerging market trends. Moreover, big data and cloud technology support enterprises in learning and exploring the potential risks.
Another trend that aids the market's growth is the increased adoption of cloud computing. Players in the market, including Cisco Systems, IBM Corporation, and others, focus on developing advanced cybersecurity solutions based on cloud computing. These cloud computing services are designed onthe Analytics as a Service (AaaS) platform, assisting users in identifying and mitigating threats rapidly.
Rising Number of E-commerce Platforms to Drive the Market Growth
The rising number of e-commerce platforms and advancements in technologies such as artificial intelligence, cloud, and blockchain has augmented internet security solutions in a connected network infrastructure. Additionally, e-commerce companies are focused on adopting network security solutions in their IT and electronic security systems. For instance, in September 2020, Askul Corp. adopted the advanced network security solution Shadankun, developed by Cyber Security Cloud, Inc., in their business unit to secure their assets from cyber threats. The growing adoption of these technologies to eliminate cyber threats is driving the demand for network security solutions.
The governments of countries such as India, Germany, France, Israel, Brazil, among others, are investing in internet security solutions to secure their huge volume of confidential data and information. For instance, according to the European Cyber Security Organization report, in 2020, the government in the U.K. financed around USD 2.30 billion to execute various network and internet security projects in defense and research. This investment would assist in driving the overall adoption rate for IT security solutions across multiple industries that will favor the global cyber security market growth during the forecast period.
Lack of Experts and Budget Constraints for SMEs to Hinder the Market Growth
With the rising number of online security threats, the requirement for advanced solutions is growing exponentially. The outmoded network security solutions are not proficient enough in securing enterprises from the advanced network, cloud, and endpoint security threats. Factors such as the lack of professionals and experts in developing and advancing security solutions are considered key restraining factors. The high cost of implementing and updating internet security solutions and services impedes the adoption among small and medium enterprises (SMEs).
Increasing Demand for Services by Enterprises to Boost the Growth
Based on the component, the market is divided into solutions and services.
The solutions segment is divided into network security, endpoint security, cloud application security, end-point security, secure web gateway, application security, and others. The increasing adoption of end-point security hardware, software, and access management tools among various industries such as IT & telecom, financial institutions, and others is expected to favor the segment's growth.
The service segment is expected to grow at a considerable CAGR during the forecast period owing to the rising demand for consultancy, updating, and maintenance services by large and medium enterprises.
Rising Popularity of Cybersecurity Solutions with Enhanced Storage Capability to Drive the Market Growth
Based on the deployment type, the market is allocated into a cloud and on-premise.
The cloud segment is expected to hold the highest CAGR during the forecast period. The growth is owing to the increasing demand for applications to store and secure data with enhanced security techniques. Also, players in the market are developing advanced cloud-based security solutions by partnering and collaborating with other key players. For instance, in December 2019, Fortinet, Inc. completed a partnership with Google LLC to integrate its cloud security portfolio with Google’s Cloud Platform. This allows the customer to shift to the cloud platform for advanced security for their workloads.
The on-premise segment is expected to grow considerably due to the rising demand for managed security services.
Increasing Adoption of Network Security Solutions by SMEs to Lead to Market Dominance
Based on enterprise size, the marketplace is divided into small and medium enterprises (SMEs) and large enterprises.
The small and medium enterprise (SMEs) is projected to grow at the highest CAGR. This growth is owing to the increasing demand for end-point security solutions across various e-commerce startups, including retail and financial sectors.
The large enterprise is predicted to showcase considerable growth due to increasing demand for application security services.
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Rising Demand for Robust Security and Digital Privacy Systems across BFSI Industry to Boost the Market Growth
Based on industry, the market is segmented into BFSI, IT and telecommunications, retail, government, manufacturing, travel and transportation, healthcare, energy and utilities, and others.
BFSI is expected to rise with a significant CAGR during the estimated period among all the industries. This growth is due to the increasing demand for robust security and digital privacy systems across financial, insurance, and banking institutes. Cloud application security solutions help banks, insurance, and financial organizations secure extremely confidential data incorporated with real-time intelligence against insistent cyber-attacks.
The healthcare segment is expected to experience considerable growth during the forecast period. Across the healthcare industry, internet security solutions aid in providing data protection for customer health care records. For instance, in October 2018, IBM Corporation acquired Red Hat, Inc. With this acquisition, IBM Corporation developed and catered to security solutions across a wide range of industries worldwide.
North America Cyber Security Market Size, 2020 (USD Billion)
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The market has been segmented into five major regions: North America, Europe, Asia Pacific, the Middle East & Africa, and South America.
North America is likely to dominate with highest cybersecurity market share during the forecast period. The rising number of high section security breaches drives the demand for cloud application security solutions across the region. The increasing number of online e-commerce platforms boosts market growth in countries such as the U.S. and Canada. The government implements advanced network security protocols to offer enhanced security measures to enterprises.
The growing investment by end-users and the high demand for enterprise security solutions boost the adoption of security solutions. Global providers in the market, such as Palo Alto Networks, Inc., Microsoft Corporation, IBM Corporation, and others, are investing in developing advanced network security solutions. For instance,
Europe is expected to grow with a notable CAGR during the forecast period. The growth is significantly driven by the increasing number of internet security projects and related investments by major companies in the U.K., Germany, Spain, France, Italy, and others. Key providers install advanced IT security solutions to secure the high intimate information related to manufacturing operations and increase their productivity.
Asia Pacific is expected to grow exponentially during the forecast period. Countries like India, China, and Korea are expected to grow with an excellent CAGR during the forecast period. The growth is owing to the increasing number of service providers and rising investments by government and foreign investors in various security projects. According to a report released by the online security firm Symantec Corporation, in 2019, India has been graded amongst the top ten countries to counter secure web gateway crimes.
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Additionally, the Middle East & Africa (MEA) and South America regions are expected to grow considerably during the forecast period. This growth is due to the rising investment by the government and private enterprises in countries such as GCC, South Africa, and others. Furthermore, the increasing adoption of strategies such as mergers & partnerships among key players will boost security solutions. For instance, in November 2018, Z Services extended its collaboration with TitanHQ. TitanHQ offers web filtering, email filtering, and email archiving Security-as-a-Service services. This partnership is aimed to provide security features such as compliance in the protection-as-a-service model, internet threat protection, and enriched business productivity.
Market leaders such as Cisco Systems to Focus on Expanding their Product Offerings
Key players in the global market, such as Cisco Systems, Inc., are focused on advancing its network capabilities by adopting emerging technologies such as machine learning and advanced analytics. Cisco Systems offers an extensive range of internet security solutions based on network-related areas. The offerings are superior threat protection, web, unified threat management, network and data center security, access and policy, email security, advisory, integration, and managed services.
May 2021 – Cisco Systems, Inc. acquired Kenna Security, Inc., a cybersecurity company. This acquisition enables to minimize the attack surface and the time it takes to identify and respond. Organizations use Kenna's risk-based vulnerability management system to quickly detect, prioritize, and address cyber issues by working cross-functionally.
An Infographic Representation of Cyber Security Market
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The market research report highlights leading regions across the world to offer a better understanding to the user. Furthermore, the report provides insights into the latest cyber security market trends, overview and analyzes technologies that are being deployed at a rapid pace at the global level. It further offers some drivers and restraints, helping the reader gain in-depth knowledge about the market.
Value (USD billion)
Component; Deployment Type; Enterprise Size; Industry and Region
By Deployment Type
By Enterprise Size
(Component; Deployment Type; Enterprise Size; Industry and Region)
According to Fortune Business Insights, the global size market is projected to reach USD 376.32 billion by 2029.
In 2021, the market value stood at USD 139.77 billion.
The market is projected to grow at a CAGR of 13.4% during the forecast period.
Based on deployment, the public cloud segment is expected to be the leading segment in the market.
The increasing number of E-commerce platforms is the key factor driving the market growth.
Cisco Systems, Inc., IBM Corporation, Fortinet, Inc., Proofpoint, Inc., Microsoft Corporation, Palo Alto Networks, Inc., among others, are the top players in the market.
North America is expected to hold the highest market share.
South America is expected to grow at the highest CAGR during the forecast period
Below is the list of companies that are studied in order to estimate the market size and/or understanding the market ecosystem
This list does not necessarily mean that all the below companies are profiled in the report. The report includes profiles of only the top 10 players based on revenue/market share.
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