Cyber Security Market Is Estimated To Witness High Growth Owing To Increasing Cyber Attacks And Rising Digitalization
The Cyber Security Market is estimated to be valued at US$ 245.87 Bn in 2024 and exhibit a CAGR of 12.3% over the forecast period 2024-2031. The market is witnessing high growth due to increasing instances of cyberattacks and growing digital footprint of organizations. Furthermore, the proliferation of IoT devices and process automation is also fueling demand for robust cyber security solutions.
Market Dynamics:
The growth of the global cyber security market is primarily driven by the increasing number of cyber attacks globally. Cyber criminals are exploiting vulnerabilities in existing security systems to gain unauthorized access to critical data and systems. This has compelled organizations to heavily invest in advanced security solutions to protect their IT infrastructure and sensitive information. Additionally, the rapid digital transformation among industries has significantly increased their digital footprint, exposing them to cyber threats. As businesses increasingly rely on digital technologies, the need for implementing comprehensive cyber security strategies has become imperative. The market players are developing sophisticated security solutions focused on detecting and responding to multifaceted cyber threats. They are also offering customized security services and solutions tailored to the changing requirements of organizations.
Two Key Drivers Fuelling Growth in the Global Cyber Security Market
The increasing number of data breaches and cyber-attacks is a major driver boosting demand for advanced cyber security solutions across industries globally. Cyber criminals are employing more sophisticated techniques to steal sensitive data and disrupt business operations. This has heightened the need for robust solutions to protect networks, applications, endpoints and critical infrastructure from security threats. Many organizations are now allocating higher budgets towards strengthening their cyber defenses in light of growing risks.
Rising digitization of processes is another key factor propelling the cyber security industry forward. As businesses embrace digital transformation and move workloads to the cloud, their attack surface expands considerably. This exposes more entry points for hackers to exploit. Consequently, there is intensifying focus on implementing multi-layered security controls to safeguard expanding digital assets and platforms. Technologies like IoT, mobility, artificial intelligence and big data analytics have also increased networking complexity. Cyber security vendors are leveraging these transforming tech trends to roll out next-gen solutions tailored for modern, hybrid IT environments.
Regulation Variances and Skills Shortage Pose Challenges
Lack of harmonization in global cyber security regulations presents a challenge for vendors targeting a worldwide customer base. Different jurisdictions have their own sets of data protection and privacy laws which companies must comply with. Navigating divergent compliance norms across regions inflates operation costs for cyber security providers. It also makes it difficult to offer consistent, standardized solutions internationally.
Shortage of qualified cyber security professionals is another restraint on broader market growth. Demand for skilled security analysts, engineers and architects has ballooned due to growing threat landscape. However, the supply of trained talent has failed to keep pace. This widens the experience gap and talent crunch. It negatively impacts service delivery standards and the ability to rapidly develop new product offerings. The skills crisis continues restricting industry expansion despite rising investments.
Opportunities in New Technologies and Developing Markets
Emerging technologies spanning artificial intelligence, blockchain, 5G, and quantum computing open up new opportunities for cyber security vendors to innovate. As these disruptive technologies reshape enterprise architectures, they throw up novel risks which need mitigation. Cyber security market players are partnering with tech leaders and investing in R&D to build next-generation solutions leveraging the capabilities of these evolving areas. These allow preempting newer threats in a proactive manner.
Growing internet and technology adoption in developing economies provides another key avenue for market growth. Countries in Asia Pacific, Latin America, Middle East and Africa currently exhibit relatively low levels of cyber security penetration compared to developed markets. However, they are digitizing rapidly and cybercrime is rising steadily. This untapped potential represents a multi-billion dollar opportunity for global and regional cybersecurity solution providers to tap into over the coming years.
Link: https://www.coherentmarketinsights.com/market-insight/cyber-security-market-1119
Key Developments:
- In November 2023, Microsoft launched the Secure Future Initiative (SFI), a company-wide effort to drive the next evolution of cybersecurity protection. This initiative unites teams across Microsoft to enhance cybersecurity safeguards, concentrating on three key pillars: AI-powered cyber defenses, improvements in core software engineering practices, and advocacy for stricter enforcement of international standards to shield civilians from malicious cyber activities.
- In October 2023, IBM unveiled the next evolution of its managed detection and response service offerings, introducing the new Threat Detection and Response (TDR) Services. These services leverage advanced AI technologies to provide constant monitoring, investigation, and automated remediation of security alerts from all relevant technologies across clients' hybrid cloud environments.
- In September 2023, Snowflake, the Data Cloud company, and Lacework, the data-driven cloud security firm, announced an expanded partnership to further automate cloud security at scale and advance the future of cloud infrastructure. The extended partnership gives security teams direct access to their Lacework cloud security data through Snowflake's secure data sharing, enabling unified visibility and custom automation.
- In September 2023, more than 20 e-commerce companies adopted the Open Commerce solution jointly developed by Google Cloud and the Open Network for Digital Commerce (ONDC). This open-source solution streamlines the onboarding process for buyers, sellers, and logistics providers to the ONDC network.
- In September 2023, NortonLifeLock Inc. unveiled Norton Small Business, an all-encompassing cybersecurity solution designed to empower entrepreneurs and small business owners in safeguarding their financial futures. This integrated offering provides triple-layer protection, enabling small businesses to easily secure their team's online activities, devices, and customer data through a streamlined, comprehensive cybersecurity platform.
Key Players:
Accenture, AWS, Broadcom, Check Point, Cisco, CrowdStrike, CyberArk, Fortinet, IBM, Microsoft, Oracle, Palo Alto Networks, Proofpoint, Rapid7, Trend Micro
