Cyber Security Market Size, Share & COVID-19 Impact Analysis, By Component (Solution and Services), By Deployment Type (Cloud and On-Premise), By Enterprise Size (Small & Medium Enterprise and Large Enterprise), By Industry (BFSI, IT and Telecommunications, Retail, Healthcare, Government, Manufacturing, Travel and Transportation, Energy and Utilities and Others) and Region Forecast, 2022-2029

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.

COVID-19 IMPACT

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.

LATEST TRENDS

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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.

DRIVING FACTORS

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. 

RESTRAINING FACTORS

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).

SEGMENTATION

By Component Analysis

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.

By Deployment Type Analysis

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.

By Enterprise Size Analysis

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.

By Industry Analysis

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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.

REGIONAL INSIGHTS

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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,

• In 2021, IBM Security announced the latest and improved services to enable companies to manage their cloud security strategy, standards, and controls in hybrid cloud settings. The services include third-party and cloud-native technology and IBM experience to assist enterprises in developing consistent security systems across their cloud ecosystems.


• 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 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.

COMPETITIVE LANDSCAPE:

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.

List of the Key Companies Profiled:

• Cisco Systems, Inc. (U.S.)


• IBM Corporation (U.S.)


• Fortinet, Inc. (U.S.)


• Proofpoint, Inc. (U.S.)


• Microsoft Corporation (U.S.)


• Palo Alto Networks, Inc. (U.S.)


• Zscaler, Inc. (U.S.)


• Broadcom, Inc. (U.S.)


• F5 Networks, Inc. (U.S.)


• Check Point Software Technologies (Israel)


• Sophos Ltd. (U.K.)

KEY INDUSTRY DEVELOPMENTS:

• July 2021 – Fortinet, Inc. acquired application security innovator Sken.ai to accelerate DevSecOps. Sken.ai provides extensive testing for all main languages and frameworks, covering all scan kinds (SAST, DAST, SCA, Secrets, and more). Sken.ai implements machine learning (ML) to correlate and assign a security risk rating to each vulnerability found across various scan types and apps.


• June 2021 – Broadcom Inc. launched Adaptive Protection, an advanced feature included in Symantec Endpoint Security. Adaptive Protection utilizes advanced machine learning techniques based on ages of Symantec endpoint security experience to deliver additional security that is automated and personalized for each customer's environment, with no impact on productivity. Adaptive Protection enables businesses to keep aware of cyber assaults and prevent breaches before they occur.


• January 2021 – FireEye launched open-source cybersecurity to detect various cyber-attacks across the Solar Winds supply chain.


• September 2020 - Bharti Airtel Ltd. launched a suite of internet security solutions for small and medium enterprises. The solutions assist SMEs in adopting cloud platforms and other emerging technologies. The company has invested around USD 14.2 million in developing advanced solutions.


• July 2020 – Quick Heal Technologies launched network security solutions for digital consumers. The solution is developed to secure consumer devices, personal data, and digital identities.


• January 2020 - GTT Communications Inc. announced its partnership with Fortinet, Inc., to offer advanced security solutions to small and large enterprise customers.


• December 2019 - Palo Alto Networks, Inc. acquired Aporeto, Inc., an IoT and machine identity-based company. The acquisition assisted the company in advancing the cloud-native security platform and its cloud security capability.


• May 2019 – Palo Alto Networks acquired two companies, Twistlock and PureSe. This acquisition is expected to help the company expand its product portfolio and provide a complete and broad cloud security suite in a wide range of cloud security applications.


• September 2018 –Microsoft Corporation partnership with Ernst & Young Global Limited to expand its solutions. This partnership assists both companies in better managing and responding to cyber threats.

REPORT COVERAGE

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.

REPORT SCOPE & SEGMENTATION