The cyber security market involves products and services designed to protect networks, computers, programs and data from digital attacks, damage or unauthorized access. Some common cyber security solutions include antivirus and firewalls that prevent unauthorized access and malware attacks. Network security protects systems and data from vulnerabilities in operating systems and web applications through regular updates and patches. IoT security solutions are also gaining traction with increasing deployment of IoT devices across various industries.
The global cyber security market is estimated to be valued at US$ 188.94 Bn in 2023 and is expected to exhibit a CAGR of 5.5% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Dynamics:
The growing adoption of cloud computing and internet of things (IoT) technologies is driving the cyber security market growth. Cloud platforms allow sharing of resources and services over the internet, however, they are also susceptible to cyber threats. Therefore, cloud service providers are investing significantly to enhance security controls for protecting customer data and applications hosted on public and private clouds. Similarly, IoT connectivity introduces new vulnerabilities as traditional security solutions cannot be deployed on evolving industry specific IoT networks. This has accelerated the demand for IoT-centric security solutions tailored for safeguarding connected devices and networks.
With increasing reliance on digital technologies among enterprises and consumers, the threat of cybercrimes and data breaches has heightened exponentially. Regulatory mandates by government organizations also compel companies to strengthen security compliance and disaster recovery plans. Major investment is being directed towards advanced security analytics and automation to proactively monitor network traffic, identify intrusions and respond quickly to sophisticated cyberattacks. These factors collectively are fueling revenue growth of the global cyber security market over the forecast period.
Segment Analysis
The global cyber security market is segmented based on component, enterprise size, vertical and region. By component, the security service segment dominates with the highest market share owing to the increasing demand for services such as risk assessment, vulnerability management, support, maintenance, and training & certification. Due to the increasing cyber threats, demand for these services has increased significantly.
PEST Analysis
Political: Governments across the globe have introduced stringent data protection laws and cyber security policies to strengthen cyber security measures for organizations. Some key regulations implemented are GDPR, CCPA, NIS Directive which has positively impacted market growth.
Economic: Cyber threats lead to huge financial losses for businesses each year. Organizations are increasingly investing in advanced security solutions to mitigate these risks and minimize losses. Industry experts predict global cyber security spending to surpass $1 trillion between 2017-2021, driving market revenues.
Social: With rising digitalization and use of connected devices, personal data and systems have become highly vulnerable to cyber-attacks. Increased awareness among individuals and enterprises regarding importance of data security is a major driver for cyber security adoption.
Technological: Advancements in technologies such as AI, ML are finding increasing usage for advanced threat detection and prevention. Market players are continuously innovating to develop robust and intelligent solutions for combating sophisticated cyber-crimes. This has accelerated the demand for next-gen security solutions.
Key Takeaways
The Global Cyber Security Market Size is expected to witness high growth during the forecast period, driven by increasing sophisticated cyber threats and stringent data regulations. The global cyber security market is estimated to be valued at US$ 188.94 Bn in 2023 and is expected to exhibit a CAGR of 5.5% over the forecast period 2023 to 2030.
North America dominates currently due to strict data privacy mandates and early adoption of advanced security technologies by organizations in the region.
Key players operating in the cyber security market are Amway, Asahi Group Holdings, Ltd., Pfizer Inc., Meiji Holdings Co., Ltd., Everest NeoCell LLC., Reserveage Nutrition, Vitabiotics Ltd., The Boots Company PLC, and Murad Europe Ltd, among others. The rapidly growing BFSI, healthcare, and government sectors present lucrative opportunities for vendors given the sensitivity of data in these verticals. However, high solution costs and lack of skilled security personnel are some challenges restraining complete market potential.