Endpoint Security Market Size, Share & COVID-19 Impact Analysis, By Component (Software, and Services), By Deployment (Cloud, and On-Premises), By End-user (Commercial, Consumer), By Enterprise Size (Large Enterprises and Small & Medium Enterprises), By Industry (BFSI, IT and Telecommunications, Retail, Healthcare, Government & Public Sector, Transportation, and Others), and Regional Forecast, 2021-2028

The global endpoint security market size was USD 12.93 billion in 2020 and is projected to grow from USD 13.99 billion in 2021 to USD 24.58 billion in 2028, exhibiting a CAGR of 8.3% in the 2021-2028 period. Based on our analysis, the global market exhibited a growth rate of 8.1% in 2020 compared to the year-on-year growth during 2017-2019. The global impact of COVID-19 has been unprecedented and staggering, with endpoint security witnessing a positive demand shock across all regions amid the pandemic. The rise in CAGR is attributable to this market’s demand and growth, returning to pre-pandemic levels once the pandemic is over.  

Endpoint security solutions protect the network and the entry-points that bridge internal data with externally connected devices such as laptops, smartphones, and connected devices such as laptops, smartphones, and connected devices. It is seen as cybersecurity's frontline solution to secure various enterprise networks. Increasing implementation of bring-your-own-device (BYOD) policy is expected to propel the growth of the market.

Advanced technologies such as the cloud, artificial intelligence (AI), the internet of things (IoT), connected devices, and others play a crucial role in developing endpoint solutions. Accounting for the increasing product need across diverse industries, the key players in the market are coming up with advanced security solutions. For instance, in October 2019, Symantec Corporation introduced an upgraded version of its endpoint solution to deliver advanced detection, protection, and response features in a single solution.

COVID-19 Impact

COVID-19 Pandemic to Fuel Demand for Endpoint Security Solutions

The ongoing pandemic has compelled companies to implement work from home policies for their employees. This has increased the risk of endpoint devices getting infected with known or unknown viruses. According to IDC, 70% of breaches targeted endpoint devices in the year 2020. Thus, the massive shift towards temporary work-from-home policy has forced businesses to remodel their business strategies and increase their spending on security products. This, in turn, will lead to a higher product demand for security solutions post the pandemic.

There has been a surge in email attacks during the pandemic COVID-19 pandemic period. According to a PWC report, cyber-attacks in India doubled in the starting three months of the year 2020. Similarly, the healthcare industry has been significantly affected due to endpoint attacks during this period. According to the Fortified report, 47% of data breaches have been reported by the healthcare industry during the first half of 2020. Thus, the demand for endpoint solutions is likely to improve during the forecast period.

LATEST TRENDS

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AI-enabled Automated Responses Are Likely to Drive Adoption

Artificial intelligence is being considered as a potential solution in protection against external threats and data breaches. Along with the increasing end-user devices, interfaces, and advanced technologies such as cloud services, 5G, and the internet of things, it has become essential to provide improved and efficient endpoint protection. Companies like Cisco Systems, Inc., Symantec, FireEye, and Palo Alto Networks offer AI-enabled security solutions to detect the endpoint attack. Similarly, the companies are using machine learning solutions for tracing unknown attacks using behavior-based approaches. Its deep instinct technology detects unfamiliar activities at the endpoints and alerts the system before it occurs. Also, AI is expected to play an essential role in detecting zero-day attacks.

Although AI technology cannot entirely stop the attack, it can instantly detect and respond. For instance, the BlackBerry Cylance uses AI to compare the new file with other past malware attack samples to check the virus's presence. Thus, with its ability to immediately detect the threat, AI-enabled automated responses are likely to fuel the demand for endpoint security solutions.

DRIVING FACTORS

Rising Implementation of Bring Your Own Devices to Propel Growth

The enterprises are vastly adopting bring your own device (BYOD) policy to provide flexibility to the employees. However, using the attackers' approach targets employee’s devices, as not many organizations offer proper security for personal devices. According to the 2018 SANS Survey on Endpoint Protection, only 45% of organizations included employee’s devices under their security management.

Similarly, according to the McAfee Mobile Threat Report of 2019, advanced smartphones allow hackers to easily access internal data. Thus, the need to protect and trace every internal action is required to secure the enterprise's private data. The growing use of remote location servers, smartphones, and connected devices has increased the number of endpoints in organizations. These increasing endpoints can increase the chances of attacks and data breaches. Endpoint solutions secure every endpoint and keep track of malicious activity and device behavior. Thus, the rising implementation of BYOD policy is likely to drive the endpoint security market growth.

Increasing Number of Connected Devices Will Boost Endpoint Security Solution Demand

The network attacks across the sectors are increasing owing to increasing digitalization and connected devices. The attackers are choosing endpoints to enter an organization’s secure network. These attackers can use laptops, smartphones, wearable devices, and other similar devices to bypass the secured enterprise network. Similarly, the rising adoption of solutions such as the internet of things, industrial control system, and smart sensors is likely to attract endpoint attacks.

According to Fortinet's 2017 Global Enterprise Security Survey, more than half of enterprises respondents reported an endpoint data breach attack. However, these are the known attacks that were registered. According to the company, the increasing number of unknown attacks is riskier for organizations. For instance, in 2018, Cisco Systems, Inc. claimed to block 20 billion threats per day for its customers. These instant detection and response solutions are boosting the adoption of these endpoint type of security solutions.

RESTRAINING FACTORS

Shortage of Skilled Labors to Hamper Market Growth

Even though endpoint solutions are safeguarding organizations from various attacks, a few factors still restrict the market growth. Many organizations are experiencing a shortage of skilled technical professionals to handle the security systems. As the technology keeps evolving, providing continuous training to technical staff is quite expensive, especially for SMEs. According to the 2018 McAfee Cyber security Talent Report, employers found it challenging to hire dedicated cybersecurity professionals. Also, as per Gartner's study, the increasing skills gaps are due to rapidly evolving digital solutions. Thus, this is likely to hamper the adoption of endpoint protection solutions. However, to overcome such barriers, organizations need to conduct frequent digital skills training.

SEGMENTATION

By Component Analysis

Services Segment to Gain Traction Stoked by Surging Adoption of Endpoint Solutions

Based on components, the market is categorized as software and services. The software market is expected to gain maximum share owing to rapidly increasing unknown attacks on the enterprises. The services segment is likely to gain traction owing to the increasing adoption of endpoint solutions. Also, the companies with limited IT expertise are highly adopting managed services for real-time consultation. This helps the organization to understand the new and unknown attacks. With the up-gradation and advancements in the endpoint system, the demand for professional services is increasing. Thus, to keep pace with the security technologies and compliances, the need for endpoint services is rising.

By Deployment Analysis

On-premises Segment to Dominate Backed by High Preference for IT Solutions

The endpoint security market is segmented into cloud and on-premises. The on-premises segment is likely to hold the dominant market share. Organizations preferring in-house IT solutions are expected to drive the on-premises security solution. Also, some enterprises are still hesitant to overcloud deployment security, which is likely to limit cloud solutions.

The cloud-based endpoint solution segment is likely to gain traction owing to ease of deployment and scalability. Several cloud providers are offering customized services that help in reducing additional expenses. The increasing adoption of advanced technologies such as the internet of things, Industry 4.0, and connected devices are expected to grow with a boost in demand for cloud-based security solutions. Similarly, the integration of AI and machine learning technologies is likely to demand a cloud-based security system.

By End-user Analysis

Growing Endpoint Attacks to Surge Demand from Commercial Segment

The end-users criterion is bifurcated into commercial and consumer. The commercial segment covers BFSI, IT and telecommunications, retail, healthcare, government & public sector, transportation, and others. This commercial is likely to invest significantly in endpoint security solutions owing to growing unknown attacks. Similarly, the industries are allowing personal devices connected to the company network is increasing the risk of endpoint attacks. This is boosting the security market growth. Also, the consumers are also facing increasing attacks owing to the growing availability of open internet connections. Thus, the rapidly improving internet connectivity and smartphones are expected to drive the demand for these solutions.

By Enterprise Size Analysis

Large Enterprises Segment to Lead Fueled by Adoption of Advanced Connected Technology

The market is categorized into large enterprises and small & medium enterprises. With the increasing adoption of BYOD policy and advanced connected technology, the large enterprises segment is expected to lead the market. Small and medium enterprises are likely to gain traction owing to the increasing cyber-attacks. In addition to this, small and medium enterprises have a limited budget for IT, and thus, they have limited endpoint protection for the devices. Considering this, the attackers are targeting such enterprises. However, endpoint security providers are now offering customized security solutions that are affordable to SMEs. These security solutions cater to all the safety requirements of the industry at a much lesser cost. This is likely to fuel the demand for the product in small and medium enterprises. The increasing awareness of endpoint protection is also boosting the market growth.

By Industry Analysis

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Growing Private and Crucial Data to Boost Demand for Endpoint Protection in Healthcare

The industry criterion is categorized into BFSI, IT and telecommunications, retail, healthcare, government & public sector, transportation, and others. The ever-increasing data in healthcare has created a massive demand for endpoint protection solutions. Healthcare information is considered the most crucial data and is presently witnessing an increasing number of attacks across the globe. Also, the increasing adoption of connected medical devices, wearable devices, and electronic data increases the number of endpoint devices across the healthcare organization. This is driving the demand for endpoint solutions.

Similarly, government and public sectors are witnessing significant growth owing to the increasing digitalization and automation in this industry. The IT and telecom sector is expected to lead the market during the forecast period due to the increasing adoption of advanced technologies to safeguard its assets. Also, the growing demand for BYOD and work from home policies is creating several challenges for IT organizations to provide a secure network and, thus, likely to drive the market growth. In the BFSI sector, endpoint software helps secure various important data and information, which, if exploited by cybercriminals, may incur huge losses. For instance, MasterCard, Inc. in 2019 witnessed a 70% increase in attack, with a 460,000 intrusion attack a day. The aforementioned factors will have a positive impact on the growth of the market in the coming years.

REGIONAL INSIGHTS

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North America is expected to hold the highest market share during the forecast period. The rising adoption of connected devices and the internet of things across several industries in the region are boosting the demand for security solutions. The US is likely to gain traction during the forecast period due to several security solution providers' presence.

Similarly, Europe is likely to gain significant market growth during the forecast period due to countries' increasing focus on improving the cybersecurity infrastructure. Germany and the UK are expected to dominate the market in the coming years. The German organizations have raised their IT budget to deal with the increasing cyber-attacks. Similarly, the UK government has rolled out end-user device guidance for the organizations offering external devices' deployment.

Asia Pacific is likely to witness rapid growth during the forecast period owing to increasing IT spending across the industries. The industries are highly adopting technologies such as AI, the internet of things, connected devices, cloud services, and more that demand high endpoint device protection. China is expected to lead the market in Asia Pacific. The rapidly growing 5G infrastructure is boosting the adoption of endpoint solutions in this country. The government of India is also focusing on data protection owing to the rising concerns of national security. The country is expected to roll out a new cybersecurity policy by the end of 2020. Similarly, Latin America and the Middle East, and Africa are steadily implementing endpoint protection to reduce the rising data breaches.   

KEY INDUSTRY PLAYERS

Companies Are Focusing on Providing Advanced Security Solutions for Enterprises

Some of the key providers, such as AO Kaspersky Lab, VMware Inc., McAfee LLC, Sophos Inc., Intel Corporation, Palo Alto Network Inc., among others, are acquiring the companies to gain expertise. The market players focus on offering advanced and robust endpoint protection solutions by integrating new technologies such as AI, machine learning, and more into their existing products.

March 2020 – BlackBerry Limited Cylance launched two unified endpoint security (UES) solutions CylancePROTECT and CylanceOPTICS, for endpoint protection, detection and response. It is a single agent that offers centralized management for Endpoint Protection Platform (EPP) and Endpoint Detection and Response (EDR).

LIST OF KEY COMPANIES PROFILED:

• AhnLab, Inc. (Gyeonggi-do, South Korea)


• Alert Logic, Inc. (Texas, United States)


• AO Kaspersky Lab (Moscow, Russia)


• Bitdefender S.R.L. (Bucharest, Romania)


• BlackBerry Limited (Cylance) (Waterloo, Canada)


• Check Point (Tel Aviv-Yafo, Israel)


• Cisco System, Inc. (California, United States)


• Comodo Security Solutions, Inc. (New Jersey, United States)


• CrowdStrike, Inc. (California, United States)


• CurrentWare (New York, United States)


• Cybereason, Inc. (Massachusetts, United States)


• Druva Inc. (California, United States)


• Fidelis Cybersecurity (Maryland, US)


• FireEye, Inc. (California, United States)


• Forcepoint LLC (Texas, United States)


• Fortinet (California, United States)


• F-Secure Corporation (Helsinki Finland)


• GoSecure, Inc. (California, United States)


• Intel Corporation (California, United States)


• Ivanti (Utah, United States)


• LogMeIn, Inc. (Massachusetts, United States)


• Malwarebytes Ltd. (California, United States)


• McAfee, LLC (California, United States)


• New Net Technologies LLC (Florida, United States)


• Palo Alto Network Inc. (California, United States)


• Panda Security (Bilbao, Spain)


• RSA Security LLC (Massachusetts, United States)


• SentinelOne (California, United States)


• Sophos Ltd (Abingdon, United Kingdom)


• Symantec Corporation (California, United States)


• Trend Micro Inc. (Tokyo, Japan)


• VMware, Inc (Carbon Black Inc.) (California, United States)


• Webroot, Inc. (Colorado, United States)

KEY INDUSTRY DEVELOPMENTS:

• June 2020 – AO Kaspersky Lab launched integrated endpoint security solutions for midsize and enterprise-size businesses. The company has integrated its endpoint solution with a cloud management console, Kaspersky Sandbox, and Kaspersky Endpoint Detection and Response Optimum. Owing to the increasing endpoint attacks, the company is offering advanced solutions for organizations.


• January 2020 – BlackBerry Limited Cylance collaborated with SafeBreach company to provide automated endpoint security. The company aims to provide proper guidance to its customers and minimize business risks.


• October 2019 – VMware, Inc acquired endpoint security provider Carbon Black Inc. to start a new security business unit under Patrick Morley's leadership. The acquisition is expected to accelerate VMware's key security solutions such as endpoint, analytics, identity, and network.

REPORT COVERAGE

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The market report highlights leading regions across the world to offer a better understanding of the user. Furthermore, the report provides insights into the latest endpoint security 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.

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