Security Analytics Market Size, Share & Trends Analysis Report By Offerings (Solutions, Services), By Application, By Organization Size, By Industry Vertical, By Region, And Segment Forecasts, 2020 - 2027

Report Overview

The global security analytics market size was valued at USD 7.01 billion in 2019 and is expected to grow at a compound annual growth rate (CAGR) of 14.6% from 2020 to 2027. Growing superiority in threat attacks employed by mature threat actors that remain undetected using predefined security tools or signature matching technologies is encouraging enterprises to adopt security analytics solutions. Furthermore, increasing cyber threats from advanced targeted attacks (ATA) or advanced persistent threats (APT) are driving the market. The APTs or ATAs often stay undetected and remain within the enterprise networks for a longer period of time, which, in turn, causes severe damages to the network infrastructure. Hence, the adoption of security analytics increases to detect and remediate such threats.

The standard solutions can detect only the known patterns or the data that we wanted to protect. For instance, data loss prevention (DLP) solutions can be deployed to protect file signatures and card information. However, for the unknown data leakages beyond known data or encrypted communications, the standard solutions fail to detect. According to the 2017 M-Trends Report published by FireEye, Inc., it takes a median time of 99 days to detect an ATP or ATA. Hence, the criticality of damage increases by the time it remains undetected. As a result, enterprises are adopting security analytics solutions to detect the beaconing activity of the unknown threats beyond the capabilities of DLP solutions.

Disruption in digitization and rise in social, mobile, and interconnected systems attract additional risk factors to organizations and their supply chain partners. In the midst of rising threat risks, stringency in security-related regulations increases. With the growing complexities in managing compliances and network infrastructures from threats, security, and risk professionals are integrating security analytics solutions to enterprise governance, risk, and compliance processes. The integration helps the security teams to develop a common interface and framework around business risks. For instance, Gurucul, a U.S.-based cybersecurity enterprise, offers behavior-based security analytics solutions that include reporting, monitoring, and case management capabilities. These capabilities help enterprises in managing compliance mandates, such as HIPPA, PCI DSS, and GDPR.

Security analytics solutions combine the capabilities of aggregating, analyzing, and monitoring security-related data across an enterprise network. The inclusion of such capabilities also helps security and risk professionals to detect, investigate, and monitor threats in real-time. For instance, RSA Security LLC. offers a security analytics platform that provides comprehensive security monitoring, malware analytics, compliance reporting, and incident investigation. Furthermore, advancement in technologies such as machine learning (ML) and artificial intelligence (AI) in security analytics tools allows enterprise security teams to remain proactive and identify abnormal behavior of end users and vulnerabilities in IT systems.

Exponential cases of COVID-19 have influenced industries to promote remote working environment and follow work from home policies. Following such standard protective measures has resulted in growth in the usage of third-party networks, digital platforms, and personal computing devices. Using such network connectivity solutions increases risks from cyberattacks and advanced malware. Furthermore, surge in high digital traffic exposed an opportunity to numerous phishing attacks, online frauds, denial of inventory, and ransomware attacks. As a result of increased risk from cybercrimes and cyber threats, enterprises may look for advanced analytics-based security solutions to manage and detect anomaly behavior of any suspicious attacks in the networks.

Offerings Insights

Based on the offerings, the solutions segment held the largest revenue share of 65.1% in 2019. The market is categorized based on the different types of solutions and services offered by cybersecurity vendors to detect, investigate, and diagnose unknown threats by understanding their anomalies' behaviors. This attributed to increasing need to detect complex cyberattacks and improve response time in preventing breaches. Furthermore, rise in the need to comply with the changing industry and government standards and regulations is another responsible for the segment growth.

The services segment is anticipated to emerge as the fastest growing segment over the forecast period. The services include the combination of professional and managed support services offered by the vendors to the enterprises for implementing and maintaining security analytics solutions. Increasing cases of data breaches and growing complexities in managing advanced network infrastructures, along with enterprise compliances, are motivating enterprises to adopt consulting and implementation services. Cybersecurity vendors implement a mix of consulting, training, and support services by analyzing the enterprises’ existing infrastructures before installing security analytics solutions.

Application Insights

The network security analytics segment dominated the market with a share of 53.2% in 2019. Growing demand for behavioral-based security analytics to monitor network telemetry and firewall logs and comply with enterprise policies is driving the segment. Furthermore, increase in risks from malware that remain undetected in network layers and encrypted network traffics is influencing enterprises to adopt solutions. Apart from network security analytics, the market is categorized into endpoint security analytics, web security analytics, and application security analytics.

The application security analytics segment is expected to register the fastest CAGR over the forecast period. Growing demand to detect and remediate malware, APTs and other advanced threats from enterprise applications and data is surging the segment adoption. Furthermore, an increase in usage of digital applications and rise in executing dynamic applications across client servers are other factors responsible for the segment adoption. Moreover, increasing demand for secure web application and mobile application developments across the globe is driving the segment.

Organization Size Insights

Based on the organization size, the large enterprise segment dominated the market with a share of 74.5% in 2019. Large enterprises are expected to maintain their lead throughout the forecast period. Increase in the instances of threats across large network infrastructures and database servers among the large enterprises is uplifting segment growth. Moreover, growing investments by large enterprises to prevent data breaches and maintain compliance are responsible for the segment growth.

The SME segment is expected to emerge as the fastest growing segment over the forecast period. Increase in the adoption of cloud-based servers and digital applications among SMEs involves high risks of data breaches. Furthermore, increase in BYOD trends and dependencies on third-party vendors expose organizations to advanced threats. As a result of increased threats, organizations are increasingly adopting advanced security analytics solutions to prevent any data breaches.

Industry Vertical Insights

Based on the industry vertical, the BFSI segment accounted for the largest share of 21.0% in 2019. The segment growth is attributed to rising phishing attacks and frauds in third party payment integrations, increasing risks from accessing mobile banking applications, and growing stringency to comply with regulatory requirements. Increasing transition to cloud-based technologies to provide shared banking services to third party networks, vendors, and customers also exposes banking and financial service providers to numerous threats and data breaches. Exposure to cyber threats from different applications and the need to manage security audits effectively in real-time are influencing banking and financial institutes to upgrade their security architecture with analytics-driven security solutions.

The healthcare segment is expected to witness the fastest growth over the forecast period. Demand for security analytics solutions is expected to increase among healthcare enterprises owing to rising adoption of advanced technologies, such as electronic health records (EHR), remote patient monitoring, and revenue cycle management. Rapid adoption of technologies exposes organizations to a high risk of data breaches in the industry. For instance, according to the 2018 Data Breach report published by Verizon, a higher number of insider threats were reported as compared to any other industry. Furthermore, increasing fraud among healthcare providers and consumers and risks from advanced persistent threats, such as ransomware, is promoting the adoption of security analytics among healthcare providers.

Regional Insights

North America dominated the market for security analytics with a share of 40.9% in 2019. Adoption of security analytics is expected to grow at a significant rate over the forecast period. The U.S. accounted for the largest revenue share in the region in 2019. Key factors such as higher number of data breaches incidents, malware attacks, and advanced persistent threats, coupled with the highest technological adoption in the region, contribute to regional growth. Furthermore, increasing investment in cybersecurity solutions and demand for security compliance management solutions are some of the other factors responsible for the adoption of security analytics in North America.

Asia Pacific is expected to emerge as the fastest growing regional segment over the forecast period. Increasing adoption of mobile applications, IoT applications, BYOD trends, and cloud-based deployments among the enterprises is triggering a rise in advanced level threats in the region. Increasing concerns of data security and vulnerabilities in networks are influencing enterprises to adopt security analytics solutions in the region. Additionally, increasing awareness related to the destruction caused by advanced targeted threats and the capabilities of security analytics solutions to detect and remediate real-time APT or ATA is driving the adoption of these solutions in the region.

Key Companies & Market Share Insights

The evolving threat landscape and its consequences across all application areas have provided an opportunity for security professionals and vendors to innovate their product lines. The established security vendors are actively involved in implementing advanced technologies, such as artificial intelligence, analytics tools, user-behavior analysis, and machine learning, to identify the ATA’s events and attack behaviors in real-time.

Furthermore, rapidly changing landscape is influencing many startups to develop and provide security analytics solutions. As the market is fragmented, participants are engaged in numerous strategic initiatives such as mergers and acquisitions to maintain their business growth. For instance, in April 2016, IBM acquired Resilient Systems Inc., an incident response platform provider. Through the acquisition, IBM expanded its existing security intelligence portfolio capabilities.

Additionally, in 2018, Palo Alto Networks, Inc. completed a series of acquisitions to improve its business profitability in the market. In March 2018, the company acquired Evident.io, a U.S.-based enterprise that offers cloud-based security solutions. With the acquisition, Palo Alto Networks, Inc. expanded its leadership in cloud security solutions. Furthermore, in October 2018, the company again acquired RedLock Inc., a U.S.-based cloud-based threat defense solution provider. The acquisition helped Palo Alto Networks, Inc. to combine the capabilities of Evident.io and RedLock, Inc. technologies to offer cloud-based security analytics solutions to their clients. Some of the prominent vendors operating in the global security analytics market are:

• Cisco Systems, Inc.

• IBM

• Splunk Inc.

• FireEye, Inc.

• McAfee, LLC

• Fortinet, Inc.

• Exabeam

• Palo Alto Networks, Inc.

• LogRhythm, Inc.

• Forcepoint

• Juniper Networks, Inc.

• Securonix

• SumoLogic

• Broadcom (Symantec Corporation)

Security Analytics Market Report Scope

Segments Covered in the Report

This report forecasts revenue growth at the global, regional, and country levels and provides an analysis of the latest industry trends and opportunities in each of the sub-segments from 2016 to 2027. For the purpose of this study, Grand View Research has segmented the global security analytics market report on the basis of offerings, application, organization size, industry vertical, and region:

• Offerings Outlook (Revenue, USD Million, 2016 - 2027)

  • Solutions

  • Services

• Application Outlook (Revenue, USD Million, 2016 - 2027)

  • Web Security Analytics

  • Network Security Analytics

  • Endpoint Security Analytics

  • Application Security Analytics

  • Others

• Organization Size Outlook (Revenue, USD Million, 2016 - 2027)

  • SMEs

  • Large Enterprises

• Industry Vertical Outlook (Revenue, USD Million, 2016 - 2027)

  • BFSI

  • Telecom & IT

  • Retail

  • Healthcare

  • Government & Defense

  • Manufacturing

  • Others

• Regional Outlook (Revenue, USD Million, 2016 - 2027)

  • North America

    • The U.S.

    • Canada

  • Europe

    • The U.K.

    • Germany

  • Asia Pacific

    • China

    • India

    • Japan

  • Latin America

    • Brazil

    • Mexico

  • MEA