The global cyber security market size was valued at USD 78.26 billion in 2015. The evolution of cloud storage has increased the threat of cybercrimes and data breaches. The deployment of Internet of Things (IoT) is opening up attack surfaces, leveraging vulnerabilities for network systems. This is resulting in the adoption of endpoint and wireless security. Cyber security vendors are focusing on vulnerability assessment in addition to the conventional security features. The integration of application and cloud security technologies with mechanisms such as machine learning, threat analytics, and network behavior analysis is marching toward proactive cyber security solutions.
Asia Pacific Cyber security Market By Application, 2014 - 2024 (USD Billion)
The emerging economies, such as South Korea, China, India, and Hong Kong, have high incentives in strengthening their IT infrastructure. The growing IT and service sector in India has enabled government institutions to emphasize on launching initiatives such as Digital India Program and e-Tourist Visa scheme for supporting the growth. Such an exploitation of IT infrastructure is expected to remain a foreseeable challenge by hacktivists and cybercrime groups.
The application security is expected to be the fastest-growing segment with a CAGR of over 18% from 2016 to 2024. According to the Data Breach Investigation report, over 30% of data breaches results from web application vulnerabilities. Moreover, the IT spending for application security is less than 5%, providing a wide opportunity for the growth.
Endpoint security is expected to account for over 13% industry share by 2024. Organizations are moving toward the adaptive and proactive detection and mitigation for securing their endpoints. Several new players are providing next-generation endpoint security products including Hexis Cyber Solutions, Cybereason, and Ziften Technologies Inc.
Organizations are outsourcing their security models to third party providers owing to inadequate security professionals in-house, thereby boosting the growth of security services over the forecast period. Rise in the demand for cloud-based security services to reduce expenses and improve productivity is expected to drive the growth of security services over the forecast period.
Among security services, managed services are expected to have a high growth owing to the increasing threats from conventional insurgent activities. The rising government spending for the implementation of cyber security solutions in China and India is propelling the growth of security services.
The BFSI sector is expected to witness a strong growth in the cyber security market, growing at a CAGR of over 13%. The sector is increasing its cyber security spending in response to the growing threats and breaches. The increased use of mobility channels for financial communication and transactions is increasing the vulnerabilities for cyberattacks. Banks have implemented a two-factor authentication for mobile and online banking, which has a high vulnerability to threats due to the risk of device loss and weak passwords.
The defense/government sector is changing dynamically as threats from conventional activities are no longer the only concerns. The allocation of resources for research and development and growing investment of defense programs are anticipated to remain the key trends in the cyber security industry. For instance, the U.S. President proposed a budget of USD 14 billion for 2016 for the cyber security efforts across the government to protect the private and federal networks from cyber-attacks.
Asia Pacific accounted for over 21% market share in 2015. The increasing reliance on the Internet has increased vulnerabilities, providing opportunities for hackers and attackers. Singapore, Japan, and South Korea have increased the scope of their cyber policy framework and the effectiveness of their implementation. However, countries such as China, India, and Australia are focusing on centralizing the administration of the cyber policy under the government departments.
Latin America is anticipated to be an emerging region over the forecast period. The region has one of the highest penetration of smartphones leading to vulnerabilities for cyber-attacks as these devices are an easy target for malware attack, emphasizing the need for the development of effective cybercrime defense and policies.
The key industry competitors include Symantec Corporation, Cisco Systems Inc., Checkpoint Software Technologies Ltd, Fortinet Inc. and Trend Micro among others. Security service providers are boosting the sophistication of their services by acquiring other security providers to broaden their offerings. For instance, in August, IBM acquired Lighthouse Security Group LLC to integrated Lighthouse’s identity and access management offerings into IBMs managed security services.
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