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The global cyber security market size was USD 153.16 billion in 2020. The global impact of COVID-19 has been unique and staggering, with cyber security observing a slight negative impact on demand across all regions amid the pandemic. Based on our analysis, the global market exhibited a significant growth of 7.6% in 2020 as compared to year-on-year growth during 2017-2019. The market is projected to grow from USD 165.78 billion in 2021 to USD 366.10 billion in 2028 at a CAGR of 12.0% during the 2021-2028 period.
The 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 are focusing 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 countries such as 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.
Rapid Adoption of Security Solutions Across Healthcare and Government Sector 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 businesses and start-ups worldwide. This has significantly impacted the demand for internet security solutions and services.
However, the demand for cyber security 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 Growth
Key players in the cyber security 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 cyber security market trends. Moreover, big data and cloud technology are supporting enterprises in learning and exploring the potential risks.
Another trend that aids the growth of the market is the increased adoption of cloud computing. Players in the market, including Cisco Systems, IBM Corporation, and others, focus on developing advanced security solutions based on cloud computing. These cloud computing products and services are developed on the Analytics as a Service (AaaS) platform, assisting users in identifying and mitigating threats rapidly.
Rising Number of E-commerce Platforms to Drive the Cyber security 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 cyber defense and research. This investment would assist in driving the overall adoption rate for IT security solutions across multiple industries that will favor the growth of the global market during the forecast period.
Lack of Experts and Budget Constraints for SMEs to Hinder Market Growth
With the rising number of online security threats, the requirement for advanced cyber security solutions is growing exponentially. The outmoded network security solutions are not proficient enough in securing the enterprises from advanced threats of network, cloud, and endpoint security. 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 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, internet security, and secure web gateway. 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 the highest CAGR during the forecast period owing to the rising demand for consultancy, updating, and maintenance services by large and medium enterprises.
Rising Popularity of Cyber Security Solutions with Enhanced Storage Capability to Drive 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 at a considerable growth rate owing 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 oud application security services.
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Rising Demand for Robust Security and Digital Privacy Systems across BFSI Industry to Boost 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.
Among all the industries, BFSI is expected to rise with a significant compound annual growth rate during the estimated period. 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 such as North America, Europe, Asia Pacific, the Middle East & Africa, and South America.
North America is likely to dominate the market 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 US and Canada. The government is implementing 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, in 2018, Microsoft Corporation invested around USD 1 billion to develop advanced secured cloud operations. Also, in September 2018, Palo Alto Networks, Inc. financed about USD 400.7 million.
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 countries such as the U.K., Germany, Spain, France, Italy, and others. Key providers are concentrating on installing 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 and Symantec Corporation, in 2019, India has been graded amongst the top ten countries to counter secure web gateway crimes.
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 partnership with TitanHQ. TitanHQ offers services such as web filtering, email filtering, and email archiving Security-as-a-Service. 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. Some of the offerings are superior threat protection, web, unified threat management, network and data center security, access and policy, email security, and advisory, integration, and managed services.
December 2019 – Cisco Meraki expanded its product portfolio offerings, along with the incorporation of Cisco networking innovation, into its solutions. This strategy is likely to help the company provide a simple, secure, and intelligent platform for building and managing the network for digital business.
An Infographic Representation of Cyber Security Market
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The cyber security 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 industry growth trends 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 market size is projected to reach USD 366.10 billion by 2028.
In 2020, the market value stood at USD 153.16 billion.
The market is projected to grow at a CAGR of 12.0% 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 small & medium businesses 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.
Asia Pacific is expected to grow at the highest CAGR during the forecast period
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