The cyber security market refers to the industry that provides products and services to protect computer systems, networks, and sensitive information from cyber attacks and data breaches.
The cyber security market includes a wide range of products and services, including firewalls, antivirus software, encryption tools, intrusion detection and prevention systems, security information and event management (SIEM) software, and consulting and managed security services.
The market for cybersecurity in 2021 was USD 216.10 billion, and by 2030 it will be worth USD 478.68 billion, at a 9.5% CAGR during the forecast period.
The cyber security market is growing due to the rising frequency of cyber attacks, which is leading to greater demand for cybersecurity products and services. In addition, the growing adoption of cloud computing, IoT devices, and other emerging technologies is creating new vulnerabilities that must be addressed.
Market Dynamics
Drivers
- Increasing frequency and complexity of cyber attacks: The growing number and sophistication of cyber attacks is a major drivers of the cyber security market. Cybercriminals are constantly developing new techniques and tools to bypass security measures, making it necessary for organizations to invest in stronger and more advanced cybersecurity solutions.
- Regulatory compliance: Many industries have strict regulations governing the protection of sensitive information, such as healthcare, financial services, and government. Compliance with these regulations drives demand for cybersecurity solutions that ensure data protection and privacy.
- Growing adoption of cloud computing and IoT: As more businesses move their data and operations to the cloud and adopt IoT devices, there is a greater need for cybersecurity solutions to protect these systems from cyber threats.
- Increased awareness of cybersecurity risks: High-profile data breaches and cyber attacks have raised public awareness of the importance of cybersecurity, leading to greater demand for cybersecurity solutions from both businesses and consumers.
Restraints
A major factor limiting the market’s growth is the high implementation costs of cybersecurity solutions. The installation expense comprises the software license cost, system planning and modification, implementation, training, and maintenance for a specific company. For the appropriate deployment of cyber security software, a firm needs to hire IT employees, which results in increased expenditures. High implementation costs would emerge from the ongoing need for internal IT administration workers to manage and control difficulties with on-premises cyber security systems.
Market Segmentation
By Component, in 2022, the services segment was the largest market contributor with a 50% revenue share. This is due to the growing demand from small and medium businesses for consultation services and upkeep and upgrade services. Due to their small teams and tight budgets, SMEs frequently confer with other organizations before adopting solutions.
By Security Type, with a contribution of more than 25% to total revenue in 2022, the infrastructure security sector had the largest revenue share. The large market share is due to the expansion of connected and IoT devices and the building of more data centers. Additionally, various initiatives launched by governments in some areas, such as the European Programme for Critical Infrastructure Protection (EPCIP) and the Critical Infrastructure Protection Program in the United States, will support market expansion.
By Solution, in 2022, the IAM segment led the entire market with 27% of the revenue share. The large market share is due to the rising number of mobile endpoint devices subjecting the firm to data breaches and cyber-attacks. Additionally, the increasing need to regulate user access to vital information during the epidemic will support market expansion.
By Application, in 2022, the defense/government sector led the market with 20% of the revenue share. Due to the sensitive information they hold, government and military groups constantly face a security threat from state-sponsored hacktivists. As a result, several governments worldwide are making significant investments to improve their countries’ cyber security, ultimately contributing to the category growth.
Regional Analysis
In 2022, North America had a 34.92% market share, followed by Asia Pacific. The early availability and acceptance of new technologies have facilitated the expansion of the North American industry. Additionally, the large global capital and IT market. And their diverse range of companies necessitate effective endpoint device administration and security across unidentified networks. These factors are causing major corporations and small. And medium-sized businesses (SMEs) in the region to spend more money on cybersecurity solutions. Which will support the expansion of the cybersecurity market.
Key Players
- Accenture
- Broadcom Inc.
- IBM Corporation
- HCL Technologies Limited
- Cognizant
- F5 Networks Inc.
- Infosys Limited
- Capgemini
- L&T Technology Services Limited
- Tech Mahindra Limited
- PwC International Limited Broadcom Inc.
- FireEye Inc.
- Tata Consultancy Services
- Wipro Limited
The market for cybersecurity in 2021 was USD 216.10 billion. And by 2030 it will be worth USD 478.68 billion, at a 9.5% CAGR during the forecast period. Factors accelerating the cybersecurity market are the growing number of smart devices. The rise of e-commerce platforms, and the rise in cyberattacks.
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