Software-defined security (SDSec) is a cybersecurity solution that separates the security functions from the hardware and transforms them into software modules. SDSec enables the centralized management, automation, and synchronization of security rules in various contexts, such as cloud, on-premise, and hybrid configurations. This concept is part of the larger Software-Defined Networking (SDN) movement and falls under the Software-Defined Everything (SDx) category. Implementing a software-defined security approach enables organizations to improve their flexibility, efficiency, and reactivity in addressing ever-evolving cybersecurity issues.
The widespread existence of interconnected devices, immense volumes of data, and countless applications greatly enhance the likelihood of assaults and data breaches. As the frequency and sophistication of cyber-attacks escalate, implementing more sophisticated and flexible security measures has become imperative. SDSec provides the capability to quickly adapt to new and emerging threats, making it a necessary option in the context of increasing cyber risks. According to the 2023 IBM Security X-Force study, there has been a notable increase in cybersecurity vulnerabilities worldwide. In 2022, the total count of monitored vulnerabilities rose to 23,964, a significant rise from the 21,518 recorded in 2021.
Based on a survey conducted by Cybersecurity Ventures, it is projected that the worldwide cost of cybercrime will reach USD 10.5 trillion per year by 2025, a significant increase from the USD 3 trillion recorded in 2015. According to a recent Gartner survey, 80% of companies wanted to increase their spending on information security in 2024. These aspects are anticipated to drive the expansion of the global software-defined security market.
The main market participants enhance their dominance through various strategic initiatives, including product launches, collaborations, expansions, and acquisitions. In September 2019, LookingGlass Cyber Solutions, a renowned firm specializing in intelligence-driven risk management, formally launched the LookingGlass Aeonik Security Fabric. This sophisticated security framework is specifically developed to tackle the complexities of contemporary network environments, which are progressively getting more linked and adaptable.
Aeonik is a cutting-edge cybersecurity solution with a sophisticated intrusion detection and prevention system (IDPS). It efficiently identifies, examines, interrupts, and addresses hostile activities within the network, instantly recognizing and mitigating threats as they happen. These initiatives are anticipated to create opportunities for market growth.
North America is the most significant global software-defined security market shareholder and is expected to expand substantially during the forecast period. North America is expected to dominate the global SDSec market because it has several leading and innovative SDSec providers, such as Cisco Systems, Intel Corporation, VMware, Symantec Corporation, and Palo Alto Networks. The North American software-defined security industry is driven by the region's susceptibility to increased cyber threats and attacks. Recent data from the Identity Theft Resource Center (ITRC) indicates a steady rise in the average number of breaches in the United States. The United States had a significant increase in data breaches, rising from 1,506 in 2017 to 1,826 in 2021. Furthermore, according to the statistics published in IBM's 2022 Cost of Statistics Breach Report, Canada was rated third in terms of the highest average overall cost resulting from data breaches. The country's average cost of data breaches rose to USD 5.40 million in 2021, up from USD 4.50 million in 2020.
Furthermore, the region demonstrates robust and comprehensive legislation and regulations and a heightened awareness of data security and privacy issues. Therefore, there has been an increased need for effective security apparatus. Moreover, the National Security Agency (NSA) released the Cybersecurity Information Sheet (CSI) titled "Managing Risk from Software Defined Networking Controllers" in 2023. The study provides recommendations to aid network administrators of National Security Systems (NSS), Department of Defense (DoD), and Defense Industrial Base (DIB) in mitigating the potential risks associated with software-based network management solutions, specifically Software Defined Networking Controllers (SDNC). These government efforts are expected to create opportunities for market growth.
The key players in the global software-defined security market are Citrix System Inc., Cisco Systems Inc., Fortinet Inc., Check Point Technologies, Intel Corporation, Juniper Networks Inc., Symantec Corporation, Catbird Networks Inc., Palo Alto Networks Inc., Dell Inc., and others.