Rise in malware and phishing threats among enterprises, increase in adoption of IoT and BYOD trend, and surge in demand for cloud-based cybersecurity solutions drive the growth of the global cyber security market.
Allied Market Research published a report, titled, “Global Cyber Security Market by Component (Solution, Services), by Solution (Identity Access Management, Infrastructure Security, Governance, Risk & Compliance, Unified Vulnerability Management Service Offering, Data Security & Privacy Service Offering, Others), by Deployment Model (On-Premise, Cloud), by Enterprise Size (Large Enterprise, SMEs), by Industry Vertical (Telecom, Automotive, BFSI, Public Sector, Retail, Healthcare, IT, Energy & Utilities, Manufacturing, Others): Global Opportunity Analysis and Industry Forecast, 2021-2030”. According to the report, the global cyber security industry generated $197.36 billion in 2020, and is anticipated to generate $478.68 billion by 2030, witnessing a CAGR of 9.5% from 2021 to 2030.
Prime determinants of growth
The software industry is the major consumer of cybersecurity solutions. In the present corporate environment, both developed and emerging areas have seen an increase in the usage of this technology. In order to provide unique and contemporary security products to clients, businesses use effective strategies. Increased awareness among enterprises of all kinds when it comes to securing their information as well as an increase in ransom-ware assaults among small businesses, charities, and government agencies, are developing trends in the cybersecurity sector. As a result, every firm is increasing their expenditure in order to preserve their sensitive and critical data.
The solution segment to maintain its leadership status throughout the forecast period
Based on component, the solution segment held the highest market share in 2020, accounting for nearly two-thirds of the global cyber security market revenue, and is estimated to maintain its leadership status throughout the forecast period, owing to the fact that growing need for vulnerability assessment, penetration testing, and ensuring compliance with top government, defense, and industry security standards is one of the primary reasons enterprises are increasing their investments in the cybersecurity solutions market. However, the service segment is projected to manifest the highest CAGR of 11.0% from 2021 to 2030, owing to increase in adoption of digital technologies across various industries and availability of desired information from anywhere at any time are putting data privacy and protection at greater risk.
The data security and privacy service offering segment to maintain its leadership status throughout the forecast period
Based on solution, the data security and privacy service offering segment held the highest market share in 2020, accounting for more than one-fourth of the global cyber security market revenue, and is estimated to maintain its leadership status throughout the forecast period, owing to a rise in security incidents causes loss of IT assets & data and damages brand equity. Thus, industries such as healthcare, BFSI, and education institutions deploy incident management solutions. However, the unified vulnerability management service offering segment is projected to manifest the highest CAGR of 11.1% from 2021 to 2030, owing to the fact that the unified vulnerability management solution offers features such as reduced network complexity and single-point & single-window administration for all security functions, which is a major factor expected to boost the growth of this segment.
The on-premise segment to maintain its lead position during the forecast period
Based on deployment mode, the on-premise segment accounted for the largest share in 2020, contributing to more than half of the global cyber security market revenue, as the on-premises deployment model is most prevalent with large enterprises, as it requires significant investment to purchase and implement interconnected hardware, servers, and software to manage the system. However, the cloud segment is expected to portray the largest CAGR of 10.7% from 2021 to 2030, and is projected to maintain its lead position during the forecast period. This is owing to a increase in usage of mobile devices and surge in demand for scalable, agile solutions are driving the demand for cloud-based cybersecurity solutions.
The large enterprise segment to maintain its lead position during the forecast period
Based on enterprise size, the large enterprise segment accounted for the largest share in 2020, contributing to more than three-fifths of the global cyber security market revenue, as large enterprises have focused on implementing effective security solutions such as user access management, identity & access management, and security incident management, due to the increase in instances of cyberattacks in recent years. However, the SMEs segment is expected to portray the largest CAGR of 10.9% from 2021 to 2030, and is projected to maintain its lead position during the forecast period. This is owing to the fact that SMEs cannot manage to pay for layered defense security strategies, which is usually present in larger enterprises. Thus, the need to implement cost-effective cybersecurity solutions, such as risk & compliance, encryption, and incident management drives the adoption of cybersecurity among SMEs.
The BFSI segment to maintain its lead position during the forecast period
Based on industry vertical, the BFSI segment accounted for the largest share in 2020, contributing to nearly one-fifths of the global cyber security market revenue, as An increase in the number and frequency of cyberattacks in the BFSI sector has led to the development of complete cybersecurity programs that adhere to the governance, risk, and compliance standards. However, the energy & utilities segment is expected to portray the largest CAGR of 11.7% from 2021 to 2030. This is owing to the fact the energy & utilities industry has incorporated new technologies, which are crucial for the functioning of electric grids. Electric, gas, and water utilities are based on highly regulated structures that acquire considerable infrastructure investment.
North America to maintain its dominance by 2031
Based on region, North America held the highest market share in terms of revenue in 2021, accounting for nearly one-third of the global cyber security market revenue, owing to an increase in cloud-enabled activities and growth in cloud marketplace trends such as the adoption of multi & hybrid cloud environments and private cloud repatriation in North America. However, the Asia-Pacific region is expected to witness the fastest CAGR of 11.0% from 2021 to 2030, and is likely to dominate the market during the forecast period, owing to the fact that cyberattack cases have increased at a substantial rate in Asia-Pacific, due to an increase in penetration of the internet, a surge in usage of mobile data, and a rise in the trend of using BYOD among organizations.