The Cybersecurity Market Is Rapidly Growing
Highlights from a 2020 Global Market Insights report on the growing cybersecurity market
By Lauren Borchart03/12/2021
According to a 2020 report from Global Market Insights (GMI), the cybersecurity market has been flourishing in recent years. It surpassed $150 billion in 2019 and is expected to exceed $400 billion and grow at over 15% Compound Annual Growth Rate (CAGR) between 2020 and 2026. As organizations migrate their main businesses to digital platforms, the need for cybersecurity policies has grown.
This growth is due to the rising demand for secure networks and safe data accessibility. And, during the COVID-19 quarantine phase, forms of cybercrimes like phishing and hacking increased rapidly as internet use rose.
The Growing (and Global) Cybersecurity MarketThe spike in the cybersecurity market is being seen in all parts of the world. In the UK, the Identity, Authentication and Access Management (IAAM) segment is set to have a growth of almost 18% by 2026. The IAAM segment includes tools that allow system administrators to regulate access to networks. These tools have been growing in popularity in UK businesses that use advanced authentication.
Japan has a significant revenue share in the cybersecurity market with 65% share in 2019. Japanese companies have faced rising complexities revolving around implementing cybersecurity networks and services which has made their market demand rise. In addition to this, growing cyberattacks, workforce mobility and compliance mandates have all attributed to the growth of the cybersecurity market in Japan. The market in Japan is expected to continue to grow at an accelerated pace as Japanese enterprises have shown increasing interest in Security-as-a-Service (SaaS) models, which ensure effective management of cybersecurity across cloud networks.
Canada also had a significant impact on the cybersecurity market. The Canadian large enterprises segment held a 60% market share in 2019 and is projected to continue its growth. This is due to the increased cost of cyberattacks, which led to cybersecurity protocols being implemented in large companies. Cyberattacks have become an increasing issue in Canada, as 2019 saw large companies in Canada lose $10.5 million on average due to cybersecurity breaches. This cost was a 12% increase in 2019, which lead to about 88% of all large Canadian organizations to implement cyber security policies, growing the market significantly.
Cybersecurity issues are expected to make the banking market in Brazil experience significant growth through 2026. The banking sector is projected to expand 25% CAGR through 2026. This growth is driven by the rise of cyberattacks on banking institutions in Brazil. The rise of these attacks has caused financial losses, reputation damage of organizations and erosion of substantial market value. Brazil ranked 8th in the list of countries with the most phishing attacks in 2018, according to the ISTR. That year in Brazil, one in 2,117 emails was a phishing attack. Due to the high number of scams occurring in Brazil, protection and policies to combat them has become a huge concern, driving the market growth.
North America has also seen its share of growth in the cybersecurity market recently. In 2019, North America held over 45% share of the global cybersecurity market. This increase has been driven by advanced internet security solutions being implemented early on by major companies. The fact that so much of our world has become dependent on digital innovations, coupled with the high adoption rate of internet across the world, are also factors in the growth of the cybersecurity market in North America.
Cybersecurity Partnerships and AcquisitionsRecent emphasis on monitoring and safeguarding important cyber assets, and an increased interest in cybersecurity in general, have helped the market grow. As big industries like finance, healthcare and small and medium-sized businesses (SMBs) have gone digital, data breaches have gained more attention. This has created the desire for major industries to invest in cybersecurity protocols and has led to the growth of the market.
While the demand for cybersecurity is growing across the world, the market is getting increasingly competitive as new cybersecurity products launch, and more major providers form partnerships. Some of the major players in the market include Cisco Systems Inc., Hewlett Packard Enterprise Development LP, IBM and Intel Corporation. The field has become so saturated recently that many large companies have been acquiring smaller companies and start-ups to diversify the products they offer and gain power in the cybersecurity industry.
Part of this push for power and innovation has been caused by the rise of SMBs in the market, like Argus, CloudKnox and DarkTrace. These businesses have put pressure on larger companies to create and launch new products with added functionalities in order to stay competitive. Start-ups have also adopted the “freemium” model, where a basic product is provided free of charge, but additional add-ons or services cost money. This business model has helped them to create a significant presence in the market and become competitors to larger enterprises within the industry.
In our ever-digitizing world, cybersecurity protocols and programs are becoming increasingly necessary. Especially after this past year of digital school, work and life, the growth of the cybersecurity industry will be one to watch in the coming years.
Lauren Borchart is an intern with MSPC.
See more by Lauren Borchart