Cyber Security Market Size, Share & Trends Report

Cyber Security Market Size, Share & Trends Analysis Report By Component, By Security Type, By Solution, By Services, By Deployment, By Organization, By Application, By Region, And Segment Forecasts, 2021 - 2028

  • Published Date: Apr, 2021
  • Base Year for Estimate: 2020
  • Report ID: GVR-1-68038-115-3
  • Format: Electronic (PDF)
  • Historical Data: 2016 - 2019
  • Number of Pages: 448

Report Overview

The global cyber security market size was valued at USD 167.13 billion in 2020 and is expected to register a CAGR of 10.9% from 2021 to 2028. The growth of the market can be attributed to the growing sophistication of cyberattacks. The frequency and intensity of cyber scams and crimes have increased over the last decade, resulting in huge losses for businesses. As incidents of cybercrimes increased significantly, businesses worldwide channeled their spending on advanced information security technologies to strengthen their in-house security infrastructure. Furthermore, the need to defend critical infrastructure from Advanced Persistent Threats (APTs) has encouraged governments across the globe to reform their cyber security strategies, creating a pool of opportunities for industry participants.

U.S. cyber security market size, by service, 2016 - 2028 (USD Billion)

In recent years, cyber defense against online threats has gained greater significance with the changing digital landscape of the world. With the emergence of the Internet of Things (IoT), organizations are increasingly relying on vast amounts of data. Sharing information across the digital interface internally and externally has created avenues for hacktivists and cybercriminals to access networks. Thus, the need for cyber defense is crucial among organizations. Furthermore, the rapid increase in vulnerabilities, threats, frauds, and risks has compelled businesses to modify strategic measures to counter cyberattacks, subsequently driving the market growth.

The increasing use of a variety of technologies in the retail, banking, telecom, and manufacturing sectors is driving the need for assimilating, processing, and storing large amounts of confidential information. Breaching of such confidential information can cause steep financial damage to an organization. For instance, in May 2019, Canva, an Australia-based graphic design platform, detected a data breach in its server. The suspected attacker, named Gnosticplayers, exposed confidential information such as usernames, email addresses, residence addresses, and hashed with crypt passwords of around 137 million users. In the wake of such breaches and high-profile data theft, it becomes vital for an organization to determine future threats, necessitating the redesigning of their cyber safety strategies.

The proliferation of technology in these sectors, advancements in these technologies, and system upgrades have increased the complexities for in-house IT professionals to monitor and manage threats. Technology changes, coupled with dynamic regulatory compliances in real-time, are posing a challenge to several enterprises. Interconnected platforms and endpoints that rely on upgraded technologies expose gaps in security systems, resulting in cybercrimes. For instance, the rising implementation of the Bring-Your-Own-Device (BYOD) concept and the growing use of social media applications to share information internally among organizations have opened avenues for online cyber risks and attacks, which previously were untrodden. Moreover, digital applications often have loopholes with several vulnerabilities that can allow penetration of attacks, resulting in the loss of user data. The applications require adequate testing across phases ranging from integration and deployment to going live. Application security solutions and services operate as a backbone to a business security infrastructure and their popularity is increasing with the rising adoption of digital applications across industries. In light of the situation, cyber security solutions are gaining prominence and the trend is expected to remain strong over the forecast period.

In the wake of the Covid-19 pandemic, several incidences and cases of cybercrimes were observed across various sectors. Cyber threat actors that follow cybercrime as a service have increasingly targeted every part of the demographics that searched for information related to Covid-19 using malicious domain names registered as Covid-19 or coronavirus. According to Palo Alto Networks, at the end of March 2020, around 40,261 suspicious registered domain names were identified. Besides, the use of identical business email addresses has also become a popular choice of cybercriminals to conduct attacks. Furthermore, the shift toward a remote working model has also increased the risk of cyber threats across organizations. The rising concern of cyber threats has encouraged organizations to adopt solutions and configure malware protection, detection, and mitigation strategies, thereby fueling the market growth.

Component Insights

The services segment dominated the cyber security market in 2020 and accounted for a revenue share of over 54%. The segment is expected to retain its dominant position throughout the forecast period. The need to safeguard critical infrastructure across government, utilities, and other sectors from cyberattacks is compelling businesses to approach cyber security service providers. Security service vendors help troubleshoot software issues and timely provide support services through their global delivery or Security Operation Centers (SOCs). Furthermore, the need to monitor threat actors’ activities in real-time and manage changes in the regulatory landscape are expected to contribute to the segment growth over the forecast period.

The hardware segment is expected to register the highest CAGR over the forecast period. The segment comprises next-generation equipment and devices, such as encrypted USB flash drives, firewalls, and Intrusion Prevention System (IPS) that secure an organization's IT networks by monitoring for malicious incidents. These hardware systems and equipment are deployed by large enterprises and Internet Service Providers (ISPs) that have multiple computers to control the network activity. The hardware equipment protects the network from attacks and attempts made to enter computing systems by forming an additional layer of defense.

Security Type Insights

The infrastructure protection segment dominated the market in 2020 with a revenue share of more than 27%. The adoption of IoT and connected devices, to record and share real-time data over the internet, has significantly increased across industries/sectors, such as oil, energy, manufacturing, transportation, and telecom. Protecting such infrastructures from online attacks and disasters is of paramount importance. Governments across countries are increasingly investing in technologies, such as SCADA, Operation Technology (OT), and industrial control systems, to respond to and remain prepared for severe incidents and the growing number of threats.

The cloud security segment is anticipated to register the highest CAGR over the forecast period. The growth of the segment can be attributed to the increasing adoption of cloud-based solutions among enterprises and data breach risks associated with the cloud solutions. The increasing risk of malware infiltrations, the risk of unauthorized access, and the increasing number of threat actors across cloud layers are compelling enterprises to adopt cloud security solutions and services. Also, the growing need to filter increasing web traffic accessing media content is expected to propel segment growth.

Solution Insights

The Identity and Access Management (IAM) solution segment dominated the market in 2020 with a revenue share of more than 29%. The growing importance of tracking employee activity and providing privileges to certain employees to view applications and programs is contributing to the adoption of IAM solutions. Furthermore, the need to track and automate several user-related security incidents is contributing to the adoption of IAM solutions across organizations. The rise in the number of insider threat attacks as well as the need to automatically meet compliance requirements and IAM policies, such as privilege management or password management, are expected to drive the growth of the segment over the forecast period.

The IDS/IPS segment is expected to register the fastest CAGR over the forecast period. Intrusion detection and prevention systems are critical to security infrastructure systems as they provide real-time alerts of cyberattacks. The solutions traverse through the networks and analyze data packet signatures and act as a passive tool to defend or block unwanted traffic. Furthermore, IDS/IPS solutions help security professionals meet security regulations and increase visibility across the network identifying patterns of malicious contents. These benefits are expected to drive the segment growth over the forecast period.

Services Insights

The professional service segment dominated the market in 2020 with a revenue share of over 72%. The segment growth can be attributed to the increased demand for services, such as employee training, penetration testing, enterprise risk assessment, cyber security defense, and physical security testing. Vendors assess the overall enterprise risks and business requirements before implementing cyber safety solutions. With the use of extensive knowledge, organizations could minimize the additional costs required to monitor and manage security projects. The operational assistance provided as a professional service also reduces gaps in staffing skilled professionals and improves support efficiency in managing IT infrastructure.

The managed services segment is expected to register the highest CAGR over the forecast period. Increased threats from conventional insurgent activities can be attributed to the promising growth prospects of the segment. Furthermore, with an increase in the number of cybercrimes and threats posed by Advanced Persistent Threats (APTs), Managed Security Service Providers (MSSPs) are encouraging SMEs and large enterprises to build cyber capabilities with services, such as prevention, detection, and remediation. IT support teams are extending their support to manage, monitor, and analyze the cyber capabilities of the implemented solution. The growing number of cybercrimes and the need for cyber defense preparedness in real-time are expected to drive the demand for managed services across the globe.

Deployment Insights

The on-premise segment dominated the global market in 2020 with a revenue share of over 62%. Organizations prefer to keep confidential data in-house rather than handing it over to cloud providers. Storing data in-house reduces dependencies on third-party organizations and helps protect and monitor data explicitly. Moreover, on-premise solutions also allow hands-on ownership and control of security monitoring, which offers flexible and adaptive security. This is expected to increase the demand for on-premise deployment over the forecast period.

The cloud-based deployment segment is expected to register the highest CAGR over the forecast period. The migration of on-premise solutions to the cloud can be attributed to low upfront and infrastructure maintenance costs. Furthermore, the need to access applications across devices and remote places is contributing to the segment growth. Benefits, such as the quick deployment of applications and greater flexibility in payment, are also responsible for the growth of this segment.

Organization Insights

The large enterprises segment dominated the global market in 2020 with a revenue share of around 69%. Increased spending on security solutions and services to remain prepared against any cyberattack is the key factor contributing to the segment growth. Furthermore, most large enterprises maintain cyber security policies and strategy frameworks to safeguard their IT systems. The increase in sophistication of attacks, such as phishing, cryptojacking, malware threats, and IoT threats, leading to huge organizational losses, is expected to continue to drive the segment growth over the forecast period.

The SME segment is anticipated to register the highest CAGR over the forecast period. Cyberattacks in SMEs are increasing at a significant rate. Increased reliance on digital applications and cloud-based solutions and the lack of adequate security policies and practices for employees are the critical factors leading to cyberattacks in SMEs. Furthermore, the growing adoption of endpoint devices, availability of alternate open-source security solutions, and lack of awareness and training among employees are other factors that are leading to increased cyberattacks. Thus, ensuring or establishing rules and guidelines for employees to protect information has become a paramount concern among SMEs and thus, is expected to drive the adoption of cyber security solutions in SMEs.

Application Insights

The government/defense application segment dominated the market in 2020, accounting for more than 24% of the overall revenue share. Government and intelligence organizations across nations operate in a hostile environment and are under constant attack from state-sponsored hacktivists. Therefore, the defense & government sector demand highly secured solutions as a part of their defense strategy. Furthermore, rapid advancements in technology and the presence of complex supply chain communities and diverse communication systems demand advanced secured and encrypted solutions. Thus, with the rising prevalence of cyberattacks, the spending on cyber safety solutions in the government sector is expected to rise.

Global cyber security market share, by application, 2020 (%)

The healthcare segment is anticipated to register the fastest CAGR over the forecast period. This can be attributed to the rampant growth of cybercrime activities in healthcare in recent years. Cybercrime activities in healthcare facilities involve insider threats, data breaches, ransomware, advanced malware attacks, and distributed denial of service attacks, which may compromise the integrity of systems and disrupt patient care services. Moreover, the creation of misleading websites and phishing activities to obtain sensitive information could also increase investments in cyber preparedness measures. Besides, the growing adoption of cloud applications, connected devices, digital solutions, and open-source information for creating awareness among healthcare providers, payers, and patients also emphasizes the need for security solutions to reduce the risk of vulnerabilities.

Regional Insights

North America dominated the market in 2020 with a revenue share of more than 35% and will expand further at a steady CAGR from 2021 to 2028 due to the presence of prominent security vendors that have global and regional headquarters in the U.S. Furthermore, increased spending on security solutions and services by large enterprises and SMEs in the region is expected to drive the regional market. Besides, the increasing stringency of data privacy and security standards and policies is contributing to the regional market growth.

Asia Pacific is anticipated to be the fastest-growing regional market over the forecast period. Enterprises from industries, such as telecom, energy, finance, and technology, in the region are targets of advanced persistent threat actors. Most attacks are prevalent amongst Southeast Asian nations. Governments and enterprises are involved in framing cyber defense strategies for future cyber defense preparedness. Some of the initiatives include strengthening critical infrastructures and developing a strong cyber defense ecosystem comprising skilled professionals. These efforts toward securing IT networks, critical infrastructures, and endpoints are anticipated to contribute to the growth of the regional market over the forecast period.

Key Companies & Market Share Insights

The market is continuously evolving with the changing dynamics of the cyber threat landscape. The fragmentation in the industry is increasing with the advancements in technology, which, in turn, enables other technology providers to enter the market by offering efficient real-time solutions to organizations. Despite fragmentation, the increasing spending on security solutions is creating an opportunity for market participants. In addition, major security vendors are actively focusing on mergers & acquisitions to capitalize on their market positions. For instance, in April 2020, Investcorp, an alternative investment product manager for institutional & private enterprises, acquired Avira Operations GmbH & Co. KG. Through this acquisition, Investcorp aims to support Avira’s business growth and continue to accelerate its business profits across OEMs and consumer market segments.

On the other hand, emerging and innovative vendors are involved in upgrading existing product offerings, as well as establishing partnerships to increase their market shares. For instance, in July 2020, LogRhythm, Inc. launched version 7.5 of its NextGen SIEM platform as well as the Open Collector technology. The SIEM platform and Open Collector technology together help security professionals detect threats faster, eliminate errors by creating filters using Lucene helper assistance, and reduce administration time. Some of the prominent companies in the global cyber security market are:

  • Broadcom (Symantec Corporation)

  • Cisco Systems, Inc.

  • Check Point Software Technology Ltd.

  • IBM

  • McAfee, LLC

  • Palo Alto Networks, Inc.

  • Trend Micro Incorporated

Cyber Security Market Report Scope

Report Attribute

Details

Market size value in 2021

USD 179.96 billion

Revenue forecast in 2028

USD 372.04 billion

Growth rate

CAGR of 10.9% from 2021 to 2028

Base year for estimation

2020

Historical data

2016 - 2019

Forecast period

2021 - 2028

Quantitative units

Revenue in USD Billion and CAGR from 2021 to 2028

Report coverage

Revenue forecast, company ranking, competitive landscape, growth factors, and trends

Segments covered

Component, solution, services, security type, deployment, organization, application, region

Regional scope

North America; Europe; Asia Pacific; Latin America; MEA

Country scope

U.S.; Canada; U.K.; Germany; China; India; Japan; Brazil; Mexico

Key companies profiled

Broadcom (Symantec CorporationCorp.); Check Point Software Technology Ltd.; Cisco Systems, Inc.; IBM; McAfee, LLC; Palo Alto Networks, Inc.; Trend Micro, Incorporated Inc.

Customization scope

Free report customization (equivalent up to 8 analysts working days) with purchase. Addition or alteration to country, regional, and segment scope

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Segments Covered in the Report

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2016 to 2028. For the purpose of this study, Grand View Research has segmented the global cyber security market report on the basis of component, solution, services, security type, deployment, organization, application, and region:

  • Component Outlook (Revenue, USD Billion, 2016 - 2028)

    • Hardware

    • Software

    • Services

  • Solution Outlook (Revenue, USD Billion, 2016 - 2028)

    • UTM

    • IDS/IPS

    • DLP

    • IAM

    • SIEM

    • DDoS

    • Risk & Compliance

    • Others

  • Services Outlook (Revenue, USD Billion, 2016 - 2028)

    • Professional Services

    • Managed Services

  • Security Type Outlook (Revenue, USD Billion, 2016 - 2028)

    • Endpoint

    • Cloud

    • Network

    • Application

    • Infrastructure Protection

    • Data Security

    • Others

  • Deployment Outlook (Revenue, USD Billion, 2016 - 2028)

    • Cloud-based

    • On-premise

  • Organization Outlook (Revenue, USD Billion, 2016 - 2028)

    • SMEs

    • Large Enterprises

  • Application Outlook (Revenue, USD Billion, 2016 - 2028)

    • IT & Telecom

    • Retail

    • BFSI

    • Healthcare

    • Defense/Government

    • Manufacturing

    • Energy

    • Others

  • Regional Outlook (Revenue, USD Billion, 2016 - 2028)

    • North America

      • U.S.

      • Canada

    • Europe

      • U.K.

      • Germany

    • Asia Pacific

      • China

      • India

      • Japan

    • Latin America

      • Brazil

      • Mexico

    • Middle East & Africa (MEA)

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