Cyber Security Market Size, Share, COVID-19 Impact & Industry Analysis, By Security Type (Network Security, Cloud Application Security, End-point Security, Secure Web Gateway, Application Security, and Others), By Enterprise Size (Small & Medium Enterprise and Large Enterprises), By Industry (BFSI, IT and Telecommunications, Retail, Healthcare, Government, Manufacturing, Travel and Transportation, Energy and Utilities, and Others), and Region Forecast, 2023-2030

The global cyber security market size was valued at USD 172.32 billion in 2023 and is projected to reach USD 424.97 billion in 2030, exhibiting a 13.8% CAGR during the forecast 2023-2030.

North America accounted for a market value of USD 67.77 billion in 2022. Cyber security is a method of protecting systems, networks, and programs from digital attacks. Cyberattacks usually modify, access or destroy sensitive information and extort money from users or disrupt normal business processes. The increasing adoption of enterprise security solutions in manufacturing, Banking, Financial Services, and Insurance (BFSI), and healthcare is expected to drive the cyber security market growth in the forthcoming years. In the research 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 during Pandemic Led to Market Growth

The COVID-19 pandemic 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 & 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 significantly impacted the demand for internet security solutions and services.

However, the demand for healthcare, manufacturing, and government cyber security services grew exponentially during the pandemic. 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 Market Growth

The key cyber security players 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 IoT and machine learning signature-less security system. This adoption would help the players understand uncertain activities and trials and identify & detect uncertain threats.

With the rising growth in the IoT market, IoT solutions are gaining popularity across various information security applications. Consequently, adopting advanced technologies in internet security is considered a rapidly emerging market trend. Moreover, Big Data and cloud technology support enterprises in learning and exploring potential risks.

Another trend that aids the cyber security industry growth is the increased adoption of cloud computing. Players in the market, including Cisco Systems, IBM Corporation, and others, focus on developing advanced cyber security solutions based on cloud computing. These cloud computing services are designed on the 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 technological advancements, such as artificial intelligence, cloud, and block chain, have 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 drives the demand for network security solutions.

The governments of countries, such as India, Germany, France, Israel, Brazil, and 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 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 advanced network, cloud, and endpoint security threats. Factors such as 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 of Small & Medium Enterprises (SMEs).

SEGMENTATION

By Security Type Analysis

Increasing Virtual Enterprise Network Environments by Enterprises to Boost the Network Security Segment Growth

Based on security type, the market is divided into network security, end-point security, cloud application security, secure web gateway, application security, and others.

Among these, network security contributed the highest cyber security industry share in 2022 owing to increasing virtual enterprise network environments. Cloud application security is projected to grow at the highest CAGR in the forecast period (2023-2030) owing to rising adoption of cloud infrastructure in various countries such as the U.S., ASEAN, Germany, and Brazil, among others.

By Enterprise Size Analysis

Increasing Adoption of Network Security Solutions by SMEs to Lead to Market Dominance

Based on enterprise size, the cyber security industry is divided into Small & Medium Enterprises (SMEs) and large enterprises.

Small & Medium Enterprise (SMEs) segment is projected to grow at the highest CAGR over the forecast period. 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 enterprises segment is predicted to grow considerably 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 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 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 highly 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 healthcare records.

REGIONAL INSIGHTS

The market has been segmented into five major regions, North America, Europe, Asia Pacific, the Middle East & Africa, and South America.

The North America Cyber Security Market size was valued at USD 67.77 Billion in 2022 and is growing at a CAGR of 12.7% from 2023 to 2030. North America dominated the global market with a share of 44.10% in 2022. 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.

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 highly intimate information related to manufacturing operations and increase their productivity.

Asia Pacific is expected to grow exponentially during the forecast period. 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 10 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.

KEY INDUSTRY PLAYERS

Cisco Systems Focuses on Expanding its Product Offerings

Cisco Systems, Inc. is focused on advancing its network capabilities by adopting emerging technologies such as machine learning and advanced analytics. Cisco Systems offers comprehensive 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 cyber security company. This acquisition minimizes 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:

• February 2023 – Fortinet, Inc. launched the “Cybercrime Atlas” initiative. The initiative empowers businesses, law enforcement, and threat intelligence researchers to stop cybercrime on a global scale. This initiative brings together world leaders to combat cyber threats, map the cybercrime landscape, and cover criminal activity, networks, and structures.


• March 2022 – Mandiant, Inc. launched the Mandiant Worldwide Information Security Exchange, a dynamic, vendor-neutral cyber security event program series. mWISE brings together leaders, practitioners, and visionaries from around the world to identify emerging trends, discuss best practices, and transform knowledge to mitigate cyber threats from collective action.


• 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 across various scan types and apps to each vulnerability.


• June 2021 – Broadcom Inc. launched Adaptive Protection, an advanced feature included in Symantec Endpoint Security. Adaptive Protection utilizes advanced machine learning techniques based on the 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 cyber security 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.

REPORT COVERAGE

An Infographic Representation of Cyber Security Market

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The 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.

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