Cyber Security Market Size, Share & Trends Analysis Report By Component, By Security Type, By Solution, By Services, By Deployment, By Organization Size, By Application, By Region, And Segment Forecasts, 2023 - 2030

Report Overview

The global cyber security market size was estimated at USD 202.72 billion in 2022 and is projected to grow at a compound annual growth rate (CAGR) of 12.3% from 2023 to 2030. The growing number of cyber-attacks owing to the proliferation of e-commerce platforms, the emergence of smart devices, and the deployment of the cloud are some of the key factors propelling the market growth. Increasing usage of devices equipped with the Internet of Things (IoT) and intelligent technologies is expected to increase the cases of cyber threats. As such, end-user organizations are anticipated to integrate advanced cyber security solutions to mitigate the cyber-attacks risk, supporting the market growth.

With the cyber environment emerging as a highly integrated system, the need for an adaptive, multi-layered, and self-learning security system has become imperative. In addition, factors such as the emergence of mobile-networked devices, the prevalence of electronic communications, the growth of social media, and an increasing reliance on Big Data have created a need for the defense cybersecurity system to be updated with the changing cyber threat scenario. Governments across the globe have increased their spending on cybersecurity solutions to protect devices and confidential data from cyberattacks, supporting the market growth.

Advancements in emerging technologies, such as Artificial Intelligence (AI), Machine Learning (ML), big data analytics, IoT, 5G, edge computing, and cloud computing, are allowing market players to introduce new solutions based on these technologies, attract potential business clients, and expand their revenue streams. For instance, in June 2021, Broadcom Inc. launched Adaptive Protection, a new security solution as a part of Symantec’s Endpoint Security Solution. The solution is powered by ML technology and provides customized and automated enhanced security on cyber-attacks. The software helped save customers' overhead costs by leveraging the power of AI to customize the endpoint security based on the customer’s deployment architecture, creating opportunities for the market.

The market is expected to continue to grow due to the increasing adoption of Choose Your Own Device (CYOD) and Bring Your Own Device (BYOD) policies by end-user organizations. Several employees across the globe are anticipated to continue working from remote premises or homes with the increasing BYOD trend. The CYOD and BYOD models allow employees to access business information through cloud platforms making them vulnerable to data theft. Traditional cyber security solutions cannot protect devices from all forms of Advanced Persistent Threats (APT) or malware attacks, fueling demand for advanced cyber security solutions.

Stringent regulations being drafted by various governments across the world regarding data security and privacy protection & compliance are particularly expected to drive the demand for enterprise cybersecurity solutions. In April 2019, the Council of the European Union adopted the EU Cybersecurity Act, which introduces a system of certification schemes across Europe and also strengthens & revamps the EU Agency for Cybersecurity (ENISA), the EU Agency for Cybersecurity. Furthermore, in the UK, the National Cyber Security Centre (NCSC), a part of the Government Communications Headquarters (GCHQ) since 2016, has been heading the cybersecurity mission. The NCSC helps in safeguarding critical services from cyberattacks, improving the underlying security of the Internet through technological enhancements, and managing significant incidents, supporting the growth of the market.

Components Insights

The services segment accounted for the largest revenue share of 54.3% in 2022. The strong preference of organizations for deploying suitable cyber security solutions based on the organizational structure is driving the adoption of cyber security services across several industries and sectors. Small and Medium-sized Enterprises (SMEs) have limited budgets due to which these organizations prefer consulting before implementing any solutions, supporting the segment growth in the market. Several organizations are subscribing to cyber security services as part of their efforts to build a robust security structure for mitigating cyberattacks.

The hardware segment is expected to register the fastest CAGR of 14.8% over the forecast period as several organizations are implementing cyber security platforms and upgrading their existing platforms. Security vendors are developing cyber security solutions based on artificial intelligence and machine learning, which necessitate high-end IT infrastructure. With a notable increase in cyber threats from several anonymous networks, various end-user businesses and Internet Service Providers (ISPs) are anticipated to deploy advanced security hardware, such as encrypted USB flash drives, as Intrusion Prevention Systems (IPS).

Security Type Insights

The infrastructure protection segment accounted for the largest revenue share of 27.0% of the overall revenue in 2022. The convergence of technologies increases the adoption of cloud-based services, and initiatives, such as BYOD, are expected to increase network security threats and vulnerability. Global software companies are focusing on improving their infrastructure security software portfolio through mergers and acquisitions to enhance their brand identity. For instance, in April 2020, Accenture acquired Revolutionary Security, a cybersecurity services provider for the operational technology (OT) & IT sector, for an undisclosed amount. The former company aimed to strengthen its security infrastructure portfolio and attract a potential targeted audience with this acquisition, fueling the segment's growth.

The cloud security segment is expected to exhibit the fastest CAGR of more than 15.0% over the forecast period. The growing demand for managed security solutions and the increasing adoption of the cloud is expected to drive the demand for cloud security solutions. The companies operating in the cloud security market are focusing on strengthening their product portfolios to attract potential business clients. For instance, in October 2022, Datadog, Inc., an IT security solutions company, launched a Cloud Security Management solution that combines capabilities from Cloud Workload Security (CWS) and Cloud Security Posture Management (CSPM) to assist security and DevOps teams in enhancing the security of cloud-native applications.

Solution Insights

The Identity and Access Management (IAM) segment accounted for the largest revenue share of 29.5% in 2022. IAM solutions mitigated identity theft through risk-based programs with features that focus on implementing entitlement management and logical access control. Increasing spending on security solutions by large-scale enterprises and government bodies to adhere to regulatory compliance and control identity theft is anticipated to boost segment growth. Growing unauthorized access is impelling various end-use companies to adopt IAM to mitigate digital security risks and provide a secure platform for sharing information within the organization.

The Intrusion Detection Systems (IDS)/Intrusion Prevention Systems (IPS) segment is expected to exhibit the highest growth rate with a CAGR of more than 13% over the forecast period. The increasing adoption of network security products and the growing IT security spending are expected to drive the segment growth over the forecast period. An IDS/IPS consistently monitors the entire traffic on the network and identifies any malicious behavior observed within a network.

Service Insights

The professional services segment held the highest market share of 72.3% in 2022. The significant market share can be attributed to the rising demand for professional services, such as physical security testing, enterprise risk assessment, and penetration testing. The lack of skilled cybersecurity professionals is another key factor driving the segment's growth. Moreover, end-user organizations prefer professional service providers' consultation and expertise to minimize enterprise security risks with the implementation of cost-effective security solutions.

The managed services segment is anticipated to expand at a CAGR of 12.4% during the forecast period. The segment growth can be attributed to the growing demand for IT security services to maintain security solutions. Managed services offer a cost-effective way to manage the organization's IT security workload without any need for the internal team. Furthermore, these service providers focus on enhancing security operations by observing threat patterns & managing security solutions to minimize cyber-attacks.

Deployment Insights

The on-premises segment held the highest market share of 61.7% in 2022 and is expected to maintain its dominance over the forecast period. The majority of large enterprises focus on complete ownership of the solutions to ensure an optimum level of data security, which is driving segment growth. Moreover, on-premises security solutions reduce the dependency on third-party companies providing data monitoring and protection.

The cloud segment is anticipated to expand at a CAGR of 13.0% during the forecast period. The significant growth can be attributed to the migration of on-premises solutions to cloud platforms by enterprises. Furthermore, cloud-based solutions are cost-effective and easy to deploy & manage, which contribute to the segment growth. In addition, cloud technology allows solutions to access remotely across various devices, which is anticipated to drive the segment growth.

Organization Size Insights

The large enterprise segment held the highest revenue share of 68.5% in 2022. The significant segment growth can be attributed to the increased spending by these enterprises on IT infrastructure to strengthen digital security to protect the large volumes of data storage. Furthermore, large enterprises possess several servers, storage equipment, endpoints, & networks, which make them vulnerable to substantial monetary losses due to cyber-attacks. To avoid such issues, large enterprises are focusing on adopting cyber security solutions to secure their data, supporting market growth.

The Small and Medium Enterprises (SMEs) segment is expected to register the highest growth rate of 13.3% over the forecast period. Due to budget constraints, SMEs are more vulnerable to cyber-attacks owing to their low level of security. Moreover, a lack of security policies and employee skills also makes them prone to cyber-attacks. To overcome these challenges, SMEs resort to cyber security insurance as it protects them from financial losses caused by malicious software attacks and data breaches, supporting the segment's growth.

Application Insights

The defense/government segment held the highest market share of more than 25% of the overall market in 2022. Cybersecurity solutions offer network integrity solutions to defense and government agencies, enabling them to ensure the security of their intellectual property, sensitive data & communications, and other intangible assets. Effective and multi-dimensional cybersecurity measures are necessary to prevent data breach threats in these areas. Several governments worldwide are investing heavily in strengthening the cyber security of their nations, which is eventually contributing to the segment growth.

The healthcare segment is expected to hold the highest CAGR of more than 14.0% from 2023 to 2030. The segment growth can be attributed to the rising adoption of connected devices, smartphones, and cloud-based solutions. Healthcare facilities possess diverse information systems, such as Electronic Health Records (EHRs), e-prescribing systems, radiology information systems, clinical decision support systems, and practice management support systems. As such, companies operating in the healthcare sector are expected to adopt cybersecurity solutions to safeguard digital infrastructure, thereby driving the growth of the market.

Regional Insights

North America held the highest market share of 34.9% in 2022. In North America, cyberspace is expanding progressively in line with the continued advances in the latest technologies, such as big data and the Internet of Things (IoT). Furthermore, the proliferation of IT companies and their diversified businesses in the region is creating a need for the protection of endpoint devices. The governments of the U.S. and Canada are also pursuing various initiatives to increase awareness about cyber security among organizations and to encourage and support them in adopting adequate cyber security measures.

The market in Asia Pacific is expected to register the fastest CAGR of more than 15.0%, over the forecast period. The growth of this region can be attributed to the growing number of data centers, the increasing adoption of cloud technologies, and the proliferation of IoT devices. Furthermore, several organizations in the Asia Pacific region prefer cyber security solutions with built-in capabilities to detect any potential vulnerabilities, driving the regional market growth.

Key Companies & Market Share Insights

The market is characterized by the presence of several players offering differentiated security solutions with advanced features. Companies are engaged in introducing products with AI and ML capabilities, which help organizations automate their IT security. For instance, in April 2023, VMware, Inc. unveiled new cyber security solutions to address the increasing scale and sophistication of cyberattacks. Its VMware Cloud Configuration and Carbon Black Workload improve the security of cloud-native architecture. Some of the prominent players in the global cyber security market include:

• BAE Systems Plc

• Broadcom, Inc.

• Centrify Corporation

• Check Point Software Technology Ltd.

• Cisco Systems, Inc.

• FireEye, Inc.

• Fortinet, Inc.

• International Business Machines Corporation

• Lockheed Martin Corporation

• LogRhythm, Inc.

• McAfee, LLC.

• Palo Alto Networks, Inc.

• Proofpoint, Inc.

• Sophos Ltd.

• Trend Micro Inc.

Cyber Security Market Report Scope

Global Cyber Security Market Report Segmentation

The report forecasts revenue growth at the global, regional, and country levels and provides an analysis of the latest trends in each of the sub-segments from 2018 to 2030. For this study, Grand View Research has segmented the cyber security market report on the basis of component, security type, solution, services, deployment, organization, application, and region:

• Component Outlook (Revenue, USD Billion, 2018 - 2030)

  • Hardware

  • Software

  • Services

• Security Type Outlook (Revenue, USD Billion, 2018 - 2030)

  • Endpoint Security

  • Cloud Security

  • Network Security

  • Application Security

  • Infrastructure Protection

  • Data Security

  • Others (Wireless Security, Web & Content Security)

• Solution Outlook (Revenue, USD Billion, 2018 - 2030)

  • Unified Threat Management (UTM)

  • IDS/IPS

  • DLP

  • IAM

  • SIEM

  • DDoS

  • Risk & Compliance Management

  • Others (Firewall, Antimalware, Antivirus)

• Services Outlook (Revenue, USD Billion, 2018 - 2030)

  • Professional Services

    • Risk and Threat Assessment

    • Design, Consulting, and Implementation

    • Training & Education

    • Support & Maintenance

  • Managed Services

• Deployment Outlook (Revenue, USD Billion, 2018 - 2030)

  • Cloud-based

  • On-premises

• Organization Size Outlook (Revenue, USD Billion, 2018 - 2030)

  • SMEs

  • Large Enterprises

• Application Outlook (Revenue, USD Billion, 2018 - 2030)

  • IT & Telecom

  • Retail

  • BFSI

  • Healthcare

  • Defense/Government

  • Manufacturing

  • Energy

  • Others (Education, Media & Entertainment)

• Regional Outlook (Revenue, USD Billion, 2018 - 2030)

  • North America

    • U.S.

    • Canada

  • Europe

    • UK

    • Germany

    • France

    • Italy

    • Spain

  • Asia Pacific

    • China

    • India

    • Japan

    • Australia

    • South Korea

  • Latin America

    • Brazil

    • Mexico

    • Argentina

  • Middle East & Africa

    • UAE

    • Saudi Arabia

    • South Africa