The global cyber security market size was valued at USD 116.5 billion in 2018 and is likely to expand at a CAGR of 11.0% over the forecast period. Cyber security and defense against online threats undertake greater significance in today’s digital changing landscape. It has become vital amid organization due to rapidly increasing frauds, cybercrimes, risk, threats, and vulnerabilities.
Disruptive and emerging technologies in the banking, retail, information technology, defense, and automotive sectors have offered new capabilities, automation, and ease of working in the recent past. However, these technologies have also emerged as a potent factor in the development of global threat landscape of exploits, vulnerabilities, and malware. The emerging threat landscape is observed with an increased number of cybercrime activities in the global digital era.
Growing popularity of digitalization has compelled organizations to extensively rely on the digitized information. Sharing of a vast amount of data in an external and internal environment as well as across the globe has made organizations to fall prey to cybercrime through different forms of attacks.
A successful online attack can harm the enterprise as well as its reputation and brand. It can further result in a loss of competitive advantage and cause steep financial damage. In the wake of breaches and high-profile data theft, it becomes vital for an organization to determine future threats, signaling them to redesign their cybersafety stance. Thus, cybersafety is becoming a strategic imperative for an organization owing to an increased focus on preventing cybercrime activities, which can hamper the momentum of the business.
Technologies such as internet of things (IoT) and new business models extensively rely on global digitization for their growth. As system becomes more complex, interconnected, and handles more information, the exposure to attack surface becomes much broader while exposing the gaps in the security system of business. The primary platform for an increase in cybercrime activities is connectivity through the use of Big Data, cloud, social media, and mobile services.
For instance, third-party data storage and cloud-based services have opened avenues for an online attack, which previously did not exist. Moreover, IoT products enabled with IP sensors are anticipated to introduce vulnerabilities to the user data, if they have not been adequately tested. Such services operate on the backbone of the internet and will become increasingly connected over a period of next three years, allowing the need for a robust cyber security system in the business environment.
Convergence of such events has driven the proliferation of endpoint and wireless safety services in an enterprise improving access to corporate information, both on-premise and outside the corporate network. A robust cybersafety layer in a business environment is aimed to detect, prevent, and react to the network attack or cyber-attack at the time of intrusion. A scalable and flexible strategy while taking advantage of the requisite solution prepares an organization to combat unforeseen challenges to their safety infrastructure.
The services component segment dominated the market in 2018 and is anticipated to register the highest CAGR of 11.8% over the forecast period. Organizations are employing third-party vendors for their safety models, thereby boosting the growth of security as a service (SaaS). Moreover, the third-party vendors in the market are offering a robust solution to the enterprise at a lower cost, which is anticipated to drive the segment over the forecast period. The solution component segment is anticipated to expand at a healthy CAGR of 10.1% over the forecast period.
The enterprise segment dominated the market in 2018 and accounted for 50.1% share of the overall revenue. Due to increase in the number of online attacks globally, mitigation of the losses arising out of these incidents has become a significant concern across all the sectors. Increasing online attacks on small and medium organization is anticipated to boost demand for enterprise safety solutions. Furthermore, increasing number of government regulations worldwide regarding data safety and privacy and compliance is anticipated to be a key factor boosting the segment growth.
The application segment is anticipated to expand at the highest CAGR of 17.9% over the forecast period. The segment growth is attributed to the rise in breaches, which target business applications as well as regulation and compliance for application security. Moreover, safeguarding business applications and critical data is of prime importance and is anticipated to propel the segment demand over the forecast period.
The identity and access management (IAM) solution segment dominated the market in 2018 and accounted for 24.5% share of the overall revenue. Growing popularity of connected devices, bring your own device (BYOD), and IoT is projected to positively impact the segment growth. Moreover, increased demand for IAM in BFSI aimed to manage, measure security, and identify risks associated with user access is anticipated to propel the segment growth over the forecast period.
The managed services segment was valued at USD 31.8 billion in 2018 and is anticipated to expand at the highest CAGR over the forecast period owing to increased threats from conventional insurgent activities. Due to increasing cybercrime and danger posed by advanced persistent threats (APTs), managed security service providers (MSSPs) are helping SME and large enterprises to build cyber-capabilities with services such as prevention, detection, and remediation.
Organizations prefer to keep confidential data in-house rather than turning it over to cloud provider. Moreover, on-premise solutions allow hands-on ownership and control of security monitoring, which offers flexible and adaptive security program. This, in turn, is expected to increase the demand for on-premise cybersecurity deployment over the forecast period.
However, enterprises are migrating from on-premise to cloud-based solutions due to the cost-effectiveness of the latter. Thus, the cloud-based segment is anticipated to register the highest CAGR of 11.6% over the forecast period. Furthermore, organizations are transforming business over cloud aimed at providing access to information for in-house and cross-border operation to its employees. Increasing adoption of public cloud is driving the demand for cloud-based safety solutions.
The defense/government application segment led the market in 2018 and accounted for almost 27.0% share of the overall revenue. The growth is attributed to high spending on the security solutions and growing concerns over data breach of intelligence, research and development activities, and financial activities, which can potentially lead to cyber terrorism. Moreover, the government sector is increasingly targeted with attacks including negligent insiders, malicious malware, and zero-day attack. Thus, mitigation of online attacks through robust security architect is a key trend, which will drive the segment over the forecast period.
In the recent past, BFSI has emerged as a potent sector due to increased cybercrime activities. The BFSI sector is among the backbone of economies and its safety is a matter of high concern. In response to the growing threats and breaches, governments across the world are increasing their spending aimed to provide high cybersafety infrastructure.
North America dominated the market in 2018 and accounted for 38.3% share of the overall revenue. The growth is attributed to the presence of prominent players offering advanced solutions and services to all the sectors in the region. Furthermore, growing awareness regarding cybersecurity among small and medium organizations is anticipated to propel the demand for cyber security solutions over the forecast period.
Asia Pacific is expected to expand at the highest CAGR of 18.2% over the forecast period. Increasing economic importance of Asia Pacific in the matter of security has stimulated national cybersecurity efforts in the region. Countries such as India and China are rapidly moving towards digitization in all the sectors, which is anticipated to increase the cybercrime activities in the region. Thus, governments of China and India are working on deploying a robust and credible cyber security policy and action plan, which is anticipated to reduce the impact of cybercrime in the region.
The global market is highly competitive owing to the presence of various prominent players. Players are poised to capitalize on the evolving cyber threat landscape. The security providers are offering increased sophistication of their services aimed to mitigate unforeseen online attack. Companies that embrace trust as a competitive advantage are providing safety on three core tenets namely detection, prevention, and reaction. For instance, solutions like Symantec Advanced Threat Protection (ATP) leverage existing threat-protection infrastructure. It helps companies to achieve an effective data-protection regime.
Key players operating in the industry include Symantec Corporation; Cisco Systems Inc.; Checkpoint Software Technologies Ltd.; Fortinet Inc.; and Trend Micro. For instance, Symantec Corporation offers a unified security analytics platform that provides big data analytics, powers Symantec and third-party security applications, and provides visibility into real-time global threats.
Base year for estimation
Actual estimates/Historical data
2015 - 2017
2019 - 2025
Revenue in USD Billion & CAGR from 2019 to 2025
North America, Europe, Asia Pacific, Latin America, and MEA
U.S., Canada, U.K., Germany, China, India, Japan, and Brazil
Revenue forecast, company ranking, competitive landscape, growth factors, and trends
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This report forecasts revenue growth at the global, regional, and country levels and provides an analysis on the latest industry trends in each of the sub-segments from 2015 to 2025. For the purpose of this study, Grand View Research has segmented the global cyber security market report on the basis of component, security type, solution, service, deployment, organization, application, and region:
Component Outlook (Revenue, USD Billion, 2015 - 2025)
Security Type Outlook (Revenue, USD Billion, 2015 - 2025)
Solution Outlook (Revenue, USD Billion, 2015 - 2025)
Risk & Compliance
Service Outlook (Revenue, USD Billion, 2015 - 2025)
Deployment Outlook (Revenue, USD Billion, 2015 - 2025)
Organization Outlook (Revenue, USD Billion, 2015 - 2025)
Small & Medium Enterprise
Application Outlook (Revenue, USD Billion, 2015 - 2025)
IT & Telecom
Regional Outlook (Revenue, USD Billion, 2015 - 2025)
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The COVID-19 pandemic poses the risk of increased cyberattacks due to high dependency on digital tools. Phishing spams and hacking campaign cases may rise in countries such as the United States, Japan, Russia, and China. Increasing scrutiny over the identity verification requirements during the crisis will be key to improving cybersecurity for remote workers to reduce related cyber threats. We are continuously monitoring the market dynamics and regulations and trying to assess the impact of Covid19 on the cyber security market.