- Market growing quickly in response to increased cyber attacks
- Governments employing different cyber security strategies
- Report finds vulnerabilities in cyber security programs
In 2016, the cyber security market reached $122.45 billion globally and is forecasted to reach $202.36 billion by 2021, according to a report by MarketsandMarkets. This represents a compound annual growth rate (CAGR) of 10.6%.
A report by Strategic Defence Intelligence however, estimates the market was valued at $11.9 billion globally in 2016 and will reach $18.5 billion by 2026, increasing at a CAGR of 4.5%.
From 2016 to 2026, cyber security spending on a cumulative basis is expected to be $171.8 billion globally.
No matter which figure is accurate, the market is growing quickly because of the increase in security breaches. These attacks have led to an increase in cyber security investments globally and spending on innovative technologies. Governments and militaries also are investing in initiatives to secure IT and communication networks, and maritime and offshore installations.
There are three approaches nations can take toward cyber security: the deploy of nationwide intrusion detection and prevention systems that span the entire government network, the use of legislation and penalties to mandate cyber security practices, or the establishment of cyber security centres and emergency response teams that involve stakeholders from governments, vendors, and critical national infrastructure operators.
In addition to governments and militaries, cyber security is employed in a number of industries including aerospace, retail, public utilities, healthcare, IT and telecommunications, manufacturing, and banking, financial services and insurance (BFSI).
BFSI is forecasted to have the fasted growing CAGR because of the increase in web and mobile applications, areas vulnerable to advanced cyber-attacks.
Cyber Security Vulnerabilities
A report by Intel Security found a large gap between the organizations that claim to have a cyber security strategy and those that actually implement it. While 93% of organizations have cyber security plans, only 43% have put those plans into practice.
The report also found a gap in perception. While 60% of IT executives believed security strategies were fully implemented, only 30% of IT staff believed they were.
Global Cyber Security Market
- The network security segment holds 43% of the market followed by data security at 25% and identity and access at 17%. The remaining 15% of market share is expected to be accounted for by the cloud security segment.
- Network security holds the largest market share because of the need for regulatory requirements and stringent compliance. As hackers try to gain access to sensitive data, the network security segment will grow.
- Application security will grow at the highest CAGR because of the increase in Bring Your Own Device and the Internet of Things.
- North America has the largest regional market share at 57%.
- Asia-Pacific holds a 20% market share, and Europe holds 12%.
- Latin America, the Middle East, and Africa hold 11% of the market.
- Asia-Pacific is expected to witness the highest growth rate as emerging economies quickly deploy cyber security solutions.