Cyber Security Market Size, Share & Trends Report

Cyber Security Market Size, Share & Trends Analysis Report By Component (Solution, Services), By Security Type, By Solution, By Services, By Deployment, By Application, And Segment Forecasts, 2018 - 2024

  • Published Date: Feb, 2018
  • Base Year for Estimate: 2016
  • Report ID: GVR-1-68038-115-3
  • Format: Electronic (PDF)
  • Historical Data: 2014 - 2015
  • Number of Pages: 207

Industry Insights

The global cyber security market size was valued at USD 78.26 billion in 2015 and is presumed to witness significant growth over the forecast period. Cybersecurity is becoming a strategic imperative for organization owing to increased focus on preventing information in the wake of high profile data thefts and breaches.

Global cyber security market

The worldwide spending on cybersecurity is increasing as it is becoming difficult to keep pace with the rise in cybercrimes and malware attacks on governments, BFSI and healthcare organizations. Disruptive and emerging technology in the banking, retail, information technology, defense, and automotive sector, among others, have offered new capabilities, automation, and ease of working in the recent past. However, these technologies have also created a strong factor in the development of global threat landscape of exploits, vulnerabilities, and malware. The emerging threat landscape is observed with an increased cybercrime activates growing in the global digital era.  

The growing popularity of digitalization has impacted organizations to rely on the digitized information increasingly. Sharing a vast amount of data in an external and internal environment as well across the globe have made organizations prey to cybercrime through the different forms of attack. A successful cyber-attack can harm the enterprise as well the reputation and brand of a company.

It can moreover result in 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 security posture. Thus, cyber security to an organization is becoming imperative owing to an increased focus on preventing any cybercrime activities which can hamper the momentum of the business.

The emergence of the Internet of Things (IoT) and new business models extensively rely on global digitization for its growth. As system become more complex, interconnected and handle 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 a cyber-attack which previously did not exist.

Moreover, IoT products enabled with IP sensors are anticipated to introduce vulnerabilities to the user data. Such services operate on the backbone of the internet and will become increasingly connected over the next three years, allowing the need for a robust cyber security system in the business environment.

The convergence of such events has driven proliferation in the number of endpoint and wireless security in an enterprise improving access to corporate information, both on-premise and outside the corporate network. A robust cyber security 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 security infrastructure.

Component Insights

The solutions segment dominated the cyber security market over the forecast period. Among solutions, Identity and Access Management (IAM) was valued at USD 7.07 billion in 2015. The growing popularity of connected devices, Bring Your Own Devices (BYOD), and IoT is projected to impact the segment growth in cyber security market positively. Moreover, increased demand of IAM in BFSI aimed to manage, measure security and identify risks associated with user access is anticipated to drive the segment growth over the forecast period.

The services segment is anticipated to register highest CAGR of 12.3% over the forecast period. The growth of Security as a Service (SaaS) is owed to the factor that organizations are employing third-party vendor for their security models. Moreover, the third-party vendors in the cyber security market are offering a robust solution to the enterprise at a lower cost which is anticipated to drive segment growth over the forecast period. Among services segment, managed services dominated the cyber security market in 2016 owing to increased threats from conventional insurgent activities.

Security Type Insights

As cyber-attacks increase globally, mitigating the losses arising out of these incidents have become a significant concern across all the sectors. Enterprise Security segment dominated the cyber security market in 2015 by having a larger market share of 51.05% in terms of revenue. It was valued at 39.95 billion and is projected to continue its dominance over the forecast period. An increase in number of cyber-attacks on small and medium organization is anticipated to boost demand for enterprise security solutions. Furthermore, increasing number of government regulations worldwide regarding data security & privacy and compliance is anticipated to be a key driver for segment growth.

In light to reduce the threat of cyber-attacks, organizations are deploying endpoint security solutions as conventional firewall and antivirus which are incapable of securing the systems. The endpoint security segment was valued at USD 10.12 billion in 2015, growing at a CAGR of 12.0% from 2016 to 2024.

The application security segment is anticipated to witness highest CAGR of 18.3% over the forecast period. The segment growth is attributed to the rise in breaches, which targets business applications, as well as regulation and compliance for application security, are expected to drive the segment growth in next five years. Moreover, safeguarding business application critical data is of prime importance and is anticipated to propel demand for the segment over the forecast period.

Application Insights

The defense/government segment witnessed high market share of over 27.27% in 2015. The higher spending is owed to the concern of data breach of intelligence, research and development activities, and financial activities that can potentially lead to cyber terrorism.  Moreover, the government sector is increasingly targeted with attacks including negligent insiders, malicious malware, and zero-day attack, among others. Thus, mitigating cyber-attacks through robust security architect is a key trend which will drive segment growth over the forecast period.

U.S. cyber security market

In the recent past BFSI emerged as a potent sector for increased cybercrime activities. Thus, BFSI is expected to emerge as a predominant sector as cyber-attacks in the banking sector has soared. The BFSI is among the backbone of economies, and its security is a matter of high concern. In response to the growing threats and breaches, governments across all the geographic region are increasing its spending aimed to provide high cyber security infrastructure.

Deployment Insights

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 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 as these solutions are cost-effective. Thus, the cloud-based segment is anticipated to witness highest CAGR 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. The adoption of public cloud is accelerating at a high pace leading to the demand for cloud-based security solutions.

Regional Insights

In 2015, North America dominated the cyber security market accounting for a market revenue of USD 30.95 billion which was over 39.54% share of the global market. The high market share is owed to the presence of prominent players offering advanced solution and services to all the sectors in the region. Further, growing awareness of cybersecurity among small and medium organizations is anticipated to propel the demand for cyber security solutions over the forecast period.

However, Asia Pacific is expected to emerge as the fastest-growing regional market with a CAGR of 15.5% over the forecast period. The increasing importance of Asia on the global economy in the matter of security and has stimulated national cybersecurity efforts in the region. Countries such as India and China are rapidly moving toward digitization in all the sector which is anticipated to increase the cybercrime activities in the region. Thus, Chinese and the Indian government 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.

Cyber Security Market Share Insights

The global cyber security market is highly competitive, owing to the presence of various prominent players that exist in this market. The players in the cyber security market are poised to witness growth owing to an increased cyber threat landscape. The security providers are offering the increased sophistication of their services aimed to mitigate unforeseen cyber-attack. Companies that embrace trust as a competitive advantage are providing security on three core tenets namely detection, prevention and reaction. For instance, solutions such as Symantec Advanced Threat Protection (ATP) leverage existing threat-protection infrastructure. It helps companies to achieve an effective data-protection regime.

Industry players include Symantec Corporation, Cisco Systems Inc., Checkpoint Software Technologies Ltd, Fortinet Inc. and Trend Micro, among others. 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.

Report Scope

Attribute

Details

Base year for estimation

2016

Actual estimates/Historical data

2014 - 2015

Forecast period

2017 - 2024

Representation

Revenue in USD Billion & CAGR from 2016 to 2024

Regional scope

North America, Europe, Asia Pacific, Latin America, and MEA

Country scope

U.S., Canada, UK, Germany, China, India, Japan, and Brazil

Report coverage

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

15% free customization scope (equivalent to 5 analyst working days)

If you need specific market information that is not currently within the scope of the report, we will provide it to you as a part of the customization


Segments Covered in the Report

This report forecasts revenue growth at global, regional & country levels and provides an analysis on the industry trends in each of the sub-segments from 2014 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, services, deployment, organization, application and region:

  • Component Outlook (Revenue, USD Billion, 2014 - 2024)

    • Solution

    • Services

  • Security Type Outlook (Revenue, USD Billion, 2014 - 2024)

    • Enterprise security

    • Endpoint security

    • Cloud security

    • Network security

    • Application security

    • Others

  • Solution Outlook (Revenue, USD Billion, 2014 - 2024)

    • UTM

    • IDS/IPS

    • DLP

    • IAM

    • SIEM

    • DDoS

    • Risk and compliance

    • Others

  • Services Outlook (Revenue, USD Billion, 2014 - 2024)

    • Professional services

    • Managed services

  • Deployment Outlook (Revenue, USD Billion, 2014 - 2024)

    • Cloud

    • On-premise

  • Organization Outlook (Revenue, USD Billion, 2014 - 2024)

    • Small and medium enterprise

    • Large enterprises

  • Application Outlook (Revenue, USD Billion, 2014 - 2024)

    • IT & Telecom

    • Retail

    • BFSI

    • Healthcare

    • Defense/government

    • Automotive

    • Others

  • Regional Outlook (Revenue, USD Billion, 2014 - 2024)

    • North America

      • U.S.

      • Canada

    • Europe

      • UK

      • Germany

    • Asia Pacific

      • China

      • India

      • Japan

    • Latin America

      • Brazil

    • MEA

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