The global cyber security market size stood at USD 112.01 billion in 2019 and is projected to reach USD 281.74 billion by 2027, exhibiting a CAGR of 12.6% during the forecast period from 2020 to 2027.

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Cyber security market growth is driven by the rising adoption of e-commerce online platforms and the emergence of disruptive technologies such as Artificial Intelligence (AI), Internet of Things (IoT), Blockchain, and others. For instance, in December 2019, Palo Alto Networks, Inc. acquired Aporeto, Inc., an IoT and machine identity-based company. This acquisition enabled Palo Alto Networks to strengthen the cloud native security platform and further expand its cloud security capability.

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Additionally, the adoption of cyber security solutions is expected to grow with increasing investments from countries such as India, Italy, Spain, Canada, Oman, South Korea, Qatar, and others. Also, rising demand for enterprise security solutions from industries including banking, financial services and insurance (BFSI), manufacturing, along with aerospace & defense and healthcare sectors is anticipated to boost the market size in the forthcoming years.

MARKET TRENDS

"Integration of Technologies such as Internet of things (IoT), Machine Learning and Big Data in Threat and Security Technique Upgradation by Key Vendors to drive the Market"

Companies in cyber security market are adopting technologies such as internet of things (IoT), machine learning, and big data in their security business units. Most of the companies operating in this market are shifting from a “signature-based” malware detection system to an IoT-enabled machine learning “signature-less” system. This shift would help them to understand ambiguous activities and events, and further help to detect and identify uncertain threats.

With the rising IoT market growth, the adoption of IoT solutions and services is also increasing in IT security applications. Therefore, the adoption of IoT and machine learning in security is considered as one of the swiftly developing cyber security market trends. Additionally, big data technology is assisting organizations in studying and analyzing the potential risks. Considering the impact of these technologies, the adoption of IoT and AI is increasing exponentially in the cyber security solutions.

"Growing Adoption of Cloud-based Services in IT Securities to Favor Market Growth"

One of the key trends that enable the overall growth of cyber security market is the rising adoption of cloud computing. Cyber security solutions are based on complex mathematical prediction models, handling large amounts of data. This data monitoring can only be fulfilled by cloud technology in a secure and reliable environment at low cost. Key players such as IBM Corporation, Cisco System and others, are focusing on integrating cloud computing with cyber security solutions. These cloud computing services are backed up by ‘Analytics as a Service’ (AaaS) offerings, allowing users to detect and mitigate uncertain threats quickly.

MARKET DRIVERS

"Rising Adoption of E-commerce Platforms and advent of Disruptive Technologies to Drive the Market"

In the present scenario, security related to the IT sector has become the primary concern for the corporate, public, and private division. The growing adoption of e-commerce and the advancement of disruptive technologies such as artificial intelligence and blockchain has increased the adoption of cyber security solutions in a connected network ecosystem. As per the current market, these factors will enormously boost the cyber security market growth in the coming years.

Additionally, cyber security solution providers are adopting AI, cloud, and ML technologies in their IT and electronic security systems. Increasing adoption of these technologies to mitigate cyber threats is fueling the demand for cyber security solutions.

"Increasing Investments by Governments in Cyber Security Solutions to Spur Growth Opportunities"

Cyber security has become an emerging discipline and has driven the focus of many global organizations and government to invest in advance security solutions. In the current period, governments of emerging countries are among the major customers for the cyber security solutions due to a huge volume of confidential data and information. According to a report by the European Cyber Security Organization, the government in the U.K. invested around USD 2.30 billion for the implementation of various cyber security programs in defense and research. This would help to boost the overall adoption rate for cyber security solutions across multiple industries in near future. All these investments, rising focus of organization, and support from government of various countries are projected to contribute in the growth of the market in terms of revenue.

KEY MARKET RESTRAINT

"Limitations Related to High Cost of Innovation and Budget Constraints for SMEs to Hinder the Market Growth"

With the growth in number of cyber security threats and attacking tools, the requirement for advanced cyber security solutions to deal with such attacks is growing exponentially. The traditional cyber security solutions are not enough accomplished of securing the organizations from advance threats of cloud, network, endpoint security, among others. In addition, huge algorithms are required for cyber security solution providers to develop technically advanced solutions. Further, high cost associated with cyber security solutions and services limits the adoption among small and medium enterprises.

MARKET SEGMENTATION

By Solution Analysis

"Rising Adoption of End-point Security by Enterprises to Boost the Market Growth"

Based on solutions, the market is divided into network security, cloud application security, end-point security, secure web gateway, internet security, and others. Among these, cyber security solutions in end-point security are expected to grow at a gradual CAGR. The cyber security solutions in the cloud application security area are expected to grow at the highest CAGR in the forecast years. This growth is owing to the rising investment and adoption of cloud technology among the various industries including financial institutions, IT & telecom, and others.

By Deployment Type Analysis

"Rising Popularity of Cyber Security Solutions with Enhanced Storage Capability to Drive the Market"

Based on the deployment type, the market is divided into cloud and on premise. The cloud segment is expected to grow with a remarkable CAGR during the forecast period. This growth is ascribable to the rising demand for massive store applications to store and secure data with enhanced security methods. Cloud-based cybersecurity solutions offer social networking privacy, online storage, system optimization, and others. Online cloud storage includes backup and restoring of data in the event of any data loss or data breaches. Also, cloud technology provides features such as cross-platform contacts restoring and backup that help to store information between various devices. Cloud-based cybersecurity solutions also secure confidentiality on social media networking sites by keeping track of the settings and recommending effective measures.

Furthermore, multinational companies are focusing on adopting cloud solutions in their business units. This adoption would help them to provide access to confidential information for an internal and cross-border operation to its workforces. For instance, in December 2019, Fortinet, Inc. integrated its cloud security portfolio with Google Cloud platform allowing its customer to migrate to the cloud platform for advanced security for their workloads and applications.

By Enterprise Size Analysis

"Key players are Planning to Expand their Business by partnering with SMEs to Aid the Market Growth"

Based on enterprise size, the market is segmented into small and medium enterprises and large enterprises. Among these, the small and medium enterprise segment is estimated to grow at the highest CAGR. This growth is mainly owing to the rising adoption of cybersecurity solutions across various industries including retail and financial organizations. Further, key players in this market are focused on expanding their business offerings by completing a deliberate partnership. For instance, in January 2020, GTT Communications, Inc., partnered with Fortinet, Inc., to provide cost-effective advanced security solutions to small and large enterprises clients.

By End-Use Analysis

"Rising Investment by Key Players to Boost the Market Growth"

Based on end-use, the market is segmented into BFSI, IT and telecommunications, healthcare, government, retail, travel and transportation, manufacturing, energy and utilities, and others. Among these industries, BFSI is expected to rise with a gradual CAGR during the forecast period. This growth is attributable to the rising demand for robust security and digital privacy system across financial and banking institutes. Additionally, an increase in the adoption of internet banking, online applications and cloud are driving the cyber security market growth. Cyber security solutions are helping banks, insurance and financial organizations to secure highly confidential data integrated with real-time intelligence against insistent cyber-attacks.

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Moreover, the healthcare segment is expected to rise at the highest CAGR during the forecast period. The healthcare sector has unique real-time methods of deploying cyber security solutions among various end use applications including hospitals, research & laboratories and clinics. In the healthcare industry, cyber security solutions help to cater the need for data protection, including customer health care records. Furthermore, in response to the rising cases of intense threats and breaches, several governments across the world are emphasizing on increasing investment in defense and research sectors to establish advanced and secure cyber safety infrastructure.

Furthermore, to fulfill the rising demand for customized security solutions, key companies in the market are aiming to accomplish acquisitions and partnerships with other players. For instance, in October 2018, IBM Corporation acquired Red Hat, Inc. With this acquisition, IBM Corporation will also be able to develop and cater to the security solutions across a wide range of industries.

REGIONAL ANALYSIS

North America is projected to capture the maximum market share in the cyber security market during the forecast period. High section security breaches and dependency is driving the demand for cyber security solutions and hence boosting overall market growth across the region. The evolution of the e-commerce online platform is boosting the market growth in North America. The government in countries such as the U.S. and Canada are implementing cyber security protocols to offers enhanced security measures.

Other market drivers include increasing spending by companies in this region and rising demand for enterprise security solutions across various industries including retail and government. For instance, during 2016-2018, in the U.S., several global providers of cyber security solutions namely Microsoft Corporation, Palo Alto Networks, Inc., IBM Corporation and others, have invested in developing advanced cyber security based on core technologies such as AI and IoT. For instance, during 2016-2018, Microsoft Corporation spent nearly USD 1 billion for the development of secure cloud operations. Similarly, Palo Alto Networks, Inc., invested around USD 400.7 million in 2018. Palo Alto Networks is robustly investing in the development of technology related to security and enhancement of subscription offerings.

Europe Cyber Security Market Size, 2019 (USD Billion)

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Europe is expected to grow with the highest CAGR during the forecast period. In Europe, the market growth is considerably driven by increasing cyber projects and related investments by major companies in countries, namely the U.K., Germany France, Spain, Italy, and others. Significant developments in this region is the result of the rising demand for cyber security solutions from the manufacturing and retail industry. Key manufacturers in this region are focusing on deploying advanced cyber security solutions to secure the information related to manufacturing operations and hence increase their productivity. The government in countries are focused on adopting various cyber security solutions in defense and surveillance to create a robust, secure platform for the functioning of the military.

While Asia Pacific is expected to grow with a remarkable CAGR during the forecast period. The growth in this region is probably to occur owing to increasing demand for location-based services from industries including transportation & logistics, entertainment and education & research sectors. To cater to the rising demand for cyber security solutions and services from these industries, several companies in this region are focusing on developing and introducing advanced cyber security solutions. The market growth in countries such as China, India, and Korea are anticipated to develop with an exceptional CAGR during the forecast period owing to rising investments by government and foreign investors in various smart city projects. According to a report released by the online security firm and Symantec Corporation, India has been ranked among the top ten countries to witness the cyber security crimes. Also, according to a global survey, India holds the third rank in terms of the number of internet users across the globe, followed by the U.S. and China. This historical data and available statistical data will assist the SMEs in adopting cyber security solutions across their business unit.

Further, the Middle East & Africa (MEA) and Latin America regions are anticipated to experience a steady CAGR during the forecast period. This growth is likely owing to the increased spending by the local government and private enterprises to adopt the latest technologies such as AI and others. Additionally, market growth in the MEA is on account of the rising mergers & partnerships among key players to withstand their market positioning. For instance, in November 2018, Z Services expanded its partnership with TitanHQ provider of web filtering, email filtering, and email archiving Security-as-a-Service. This partnership aids to provide features including internet threat protection, compliance in the protection-as-a-service model and enriched business productivity.

KEY INDUSTRY PLAYERS

"Market leaders such as Cisco System to Focus on Expanding their Product Offerings"

Cisco Systems, Inc. is focusing on enhancing its network capabilities by applying the latest technologies such as machine learning and advanced analytics. The company provides a wide range of cyber security solutions based on network-related areas. Some of the key solutions include superior threat protection, web, unified threat management, network and data center security, access and policy, email security, and advisory, integration, and managed services.

November 2019 – Cisco System launched platform enhancements and services. This platform assists its users to enhance their environments by increasing the speed of threat detection and moderation.

December 2019 – Cisco Meraki expanded its product portfolio offerings along with the incorporation with Cisco networking innovation into its solutions. This strategy would assist the company in providing a simple, secure, and intelligent platform for building and managing the network for digital business.

Some of the Key Companies Profiled in the Report are:

FUTURE SCENARIO

The emergence of cyber security is proceeding towards the development of a robust security environment for the public and private sector. This development would help organizations to predict and mitigate possible outraged threats associated with their business units. The adoption of cyber security solutions may enhance the end-to-end security standards and accelerate the detection and mitigation of different cyber threats in the years to come.

REPORT COVERAGE

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The global cyber security market report offers qualitative and quantitative insights on cybersecurity solutions and detailed analysis of market size & growth rate for all possible segments in the market.

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Along with this, the report provides an elaborative study of market dynamics, emerging trends, opportunities, and competitive landscape. Key insights offered in the report are the adoption trends of cybersecurity solutions, recent industry developments such as partnerships, mergers & acquisitions, consolidated SWOT analysis of key players, business strategies of leading market players, macro and micro-economic indicators, and key industry trends.

Segmentation Table









SEGMENTATION





DETAILS









Study Period





2015 - 2027









Base Year





2019









Forecast Period





2020 - 2027









Historical Period





2015 - 2018









Unit





Value (USD billion)









Segmentation





By Solution



Network Security



Cloud Application Security



End-point Security



Secure Web Gateway



Internet Security



Others











By Deployment Type



Cloud



On Premise











By Enterprise Size



Small & Medium Enterprise



Large Enterprise











By End-use



BFSI



IT and Telecommunications



Retail



Healthcare



Government



Manufacturing



Travel and Transportation



Energy and Utilities



Others











By Region



North America (the U.S. and Canada)



Europe (Germany, the U.K., France, Spain, Italy and Rest of Europe)



Asia Pacific (China, Japan, India, South East Asia, and Rest of Asia Pacific)



Middle East & Africa (United Arab Emirates, Saudi Arabia, Qatar, Kuwait, Bahrain, Oman, Morocco, South Africa, and Rest of the Middle East & Africa)



Latin America (Brazil, Mexico and Rest of Latin America)











KEY INDUSTRY DEVELOPMENTS