Cyber Security Market Size, Share & Trends Analysis Report By Component (Hardware, Software, Services), By Security Type (Network Security, Cloud Security, Application Security, Endpoint and IoT Security), By Organization Size (Large Enterprises, SMEs), By Deployment (On-Premise, Cloud), By End-User Industry (Aerospace and Defense, BFSI, IT and ITeS, Telecommunication, Energy and Utilities, Retail and eCommerce, Healthcare, Transportation and Logistics, Manufacturing, Media and Entertainment) and By Region(North America, Europe, APAC, Middle East and Africa, LATAM) Forecasts, 2022-2030

Market Overview

The global cyber security market size was valued at USD 197.42 billion in 2021. It is projected to reach USD 450.49 billion by 2030, growing at a CAGR of 9.60% during the forecast period (2022–2030).

Cyber security is the defense against cyber threats to systems connected to the internet, including their hardware, software, and data. Individuals and businesses utilize this technique to prevent illegal access to data centers and other digital systems. A strong cyber security strategy can effectively defend against malicious attacks that aim to access, modify, delete, destroy, or extort sensitive data. Security measures are crucial in preventing attacks that disable or damage the functionality of a system or device. The need for cyber security is expected to grow as more people, devices, and software applications exist in today's businesses, along with an abundance of sensitive or confidential data.

Market Dynamics

Global Cyber Security Market Drivers

Increasing Cybersecurity Incidents and Reporting Regulations

As a direct response to these cyber threats, the government drafted and enacted new regulations to tackle these issues. For instance, the Department for Digital, Culture, Media, and Sport (DCMS) in the United Kingdom published an annual report called the "Cyber security Breaches Survey" that includes official information on the most prevalent data breaches. A handbook on cyber-risk management for European company boards of directors has been developed due to the collaboration between the Internet Security Alliance (ISA) and The European Confederation of Directors Associations (ecoDa). Additionally, the COVID-19 outbreak has caused a significant increase in data threats for FY 2020. This is expected to increase demand for cyber security across several regions.

Growing M2M/IoT Connections Demanding Strengthened Cybersecurity

IoT market penetration rates and the number of linked devices, such as connected cars, machines, meters, wearables, and consumer electronics, have increased due to significant device cost reductions and developing business models. Attacks on consumer IoT are common, but the threat of disruption in manufacturing and related sectors grows cybersecurity's acceptance in the commercial environment. Additionally, the introduction of 5G is anticipated to hasten the adoption of connected devices in industries already working toward industrial revolution 4.0. The Internet of Things (IoT) has enabled the Industrial Revolution 4.0 to support cellular connectivity fully. The market's traction has also been greatly aided by machine-to-machine connectivity.

Global Cyber Security Market Restraint

Low Preparedness and High Reliance on Traditional Authentication

Organizations must be well-prepared and have various resources to recognize and recover from cyberattacks. In many circumstances, the organization may need to stop operating entirely for days to recover from a breach or attack. The time it takes to recover from an incident could be very long if there is poor preparation and insufficient infrastructure. Most Middle East, Asia-Pacific, and Latin America businesses suffer from a lack of readiness and a heavy reliance on conventional authentication techniques. According to Microsoft's 2018 Digital Transformation survey, the continued usage of password-only authentication solutions is the leading cause of the Middle East's higher rate of cyberattacks.

Global Cyber Security Market Opportunities

Rising Trend for BYOD, Artificial Intelligence, and Machine Learning

Sapho estimates that using a personal device at work saves the average employee 81 minutes per week in productivity, and 78% of workers say BYOD policies help them achieve a better work-life balance. However, security has always been the primary issue with bring-your-own-device policies. The most frequent reason for security vulnerabilities is thought to be user action. Marketing and media are both boosted by the promises of machine learning and artificial intelligence. Marketers and media have been drawn to machine learning and AI security over the past two years, with many falling prey to feature misunderstandings and blurred product differentiations.

Regional Analysis

The global cyber security market is bifurcated into four regions, namely North America, Europe, Asia-Pacific, and LAMEA.

North America Dominates the Global Market

North America is the most significant shareholder in the global cyber security market and is expected to grow at a CAGR of 8.40% during the forecast period. The US is the major contributor to this region. Healthcare cybersecurity crimes are rising in the US and remain one of the leading national concerns, driving businesses to develop solutions. According to the Healthcare Data Breach Report, published in January 2021 and based on the Health Insurance Portability and Accountability Act, there were 29,298,012 healthcare records compromised in 2020, a 25% increase from the previous year. According to Reuters, the US government intends to adopt an executive order requiring software suppliers to notify the federal government in the case of a security breach to tighten restrictions on cybersecurity breaches in businesses and government organizations.

Europe is anticipated to increase at a CAGR of 9.9%, generating USD 83.75 billion during the forecast period. The most significant contributor to the European region is the UK. According to the UK Government's report, phishing, impersonation, malware, and viruses were the most frequent attacks in the nation in 2020. The region has also observed a decrease in reporting of attacks or breaches among small businesses, going from 62% in 2019 to 39% in 2020, and a decrease in reporting violations among large businesses, going from 75% in 2019 to 64% in 2020. The government, working with telecommunications companies, is taking steps to combat cyberattacks and enhance security standards and practices throughout the UK telecoms industry due to the expansion of 5G and complete fiber broadband networks nationwide.

In the Asia-Pacific region, China is the major contributor to the cyber security market share. China has increased its defensive capabilities due to increased cyberattacks against the nation. The nation also has a strong chance of serving as a critical point of origin for cyberattacks in other regions. Attacks against Microsoft's mail server software in March 2021 have been attributed to a Chinese cyberspying organization. A lot of data in China has been left vulnerable to manipulation and espionage due to China's extensive surveillance infrastructure, which is made possible by inadequate or occasionally nonexistent encryption.

According to the ITU's Global Cybersecurity Index, Brazil is currently ranked 70th. Brazil has the second-highest rate of cybercrime worldwide, after Russia, according to Tempest. As a result, cybercrime—which also entails the theft of money, private information, and intellectual property—costs Brazilian businesses up to USD 10 billion yearly. The nation has already dealt with various malware challenges, including serious cyberattacks — a series of distributed denial of service (DDoS) — during the 2016 Olympics, which resulted in significant losses. Brazilian businesses saw the lowest average overall cost of a data leak, at USD 1.12 million.

Segmental Analysis

The global cyber security market is segmented by product type, deployment, and end-user.

By Product Type Analysis

Based on product type, the global cyber security market is bifurcated into solutions and services. 

The services segment is the highest contributor to the market and is expected to grow at a CAGR of 12.20% during the forecast period. This segment comprises various professional services offered to businesses, including consulting, integration and deployment, training, and support. These services range from defining strategies to deploying the best solution to enhancing particular areas and implementing enhanced data protection strategies. The market's service providers are attempting to give an individualized solution, either online or in-person. These services' components include help with solution integration and data migration, among other things. Reviewing the present architecture, use cases, and business objectives also help to ensure that the organization stays in line with its current requirements.

Due to global IT initiatives and rising smartphone penetration, applications widely utilized in businesses and for personal use are being adopted rapidly. The deployment of 5G is also projected to speed up the use of linked devices in industries already preparing for the industrial revolution 4.0. This revolution has boosted cellular connectivity across the business through the emergence of IoT. Enterprises face a significant issue managing these point products with no integration and a lack of insight when they consider offering complete visibility combined with advanced layer security, including intrusion prevention, web filtering, threat protection, and application management.

By Deployment Analysis

Based on deployment, the global cyber security market is bifurcated into cloud and on-premise.

The on-premise owns the highest market share and is expected to grow at a CAGR of 10.90% during the projected period. A relatively high upfront cost of product licenses, equipment, and IT services makes setting up an on-premise system prohibitively expensive. In contrast, cloud-based technologies are incredibly versatile and economical for businesses, allowing them to handle both without spending as much on hardware, software, or staff. However, an excellent on-premise solution can be purchased with an upfront cost and used dependably throughout time without recurring costs like a cloud solution. Additionally, since the deployment is being done on-premise, there are fewer worries about hardware security.

The business becomes considerably more enticing due to the benefit of lower capital expenditure requirements offered by cloud-based solutions. By eliminating the need for enterprises to invest in hardware components, cloud-based services can considerably reduce the Capex requirement. Additionally, cloud solutions make it possible to anticipate application costs more accurately, and businesses don't have to invest as much money upfront in adopting the technology. Cloud-based solutions are also significantly less expensive because of the savings in areas like hardware and IT support. Organizations can adjust their bandwidth to their operational needs due to the flexibility offered by cloud technology. This strategy can save expenses and provide businesses with a competitive advantage.

By End-User Analysis

Based on end-user, the global cyber security market is bifurcated into BFSI, healthcare, aerospace and defense, IT and telecom, government, retail, manufacturing, and other end-user verticals.

The BFSI segment is the highest contributor to the market and is expected to grow at a CAGR of 12.90% during the forecast period. The BFSI sector, with its sizable customer base and the sensitive financial data at risk, is one of the essential infrastructure areas that frequently experience data breaches and cyberattacks. Cybercriminals are developing a wide range of nefarious cyberattacks to paralyze the financial industry since it is a highly lucrative operating model with great returns and the extra benefit of being relatively low risk and detectable. Threats from these attacks include Trojans, malware, ATM malware, ransomware, mobile banking malware, data breaches, institutional invasion, data thefts, financial breaches, etc.

The critical infrastructure of any nation includes significant sectors related to information technology and telecommunications, and many industries depend on them to function. Therefore, its effects may be extensive and far-reaching if a cyber-attack targets the IT and telecommunications sectors. The telecom sector, which affects every aspect of daily life and vital infrastructure, may be vulnerable to cyberattacks. Significantly, the sector manages intricate networks and keeps vast quantities of private information about people and businesses. These factors make this field more appealing to hackers or bad actors, expanding the need for cyber security.

Impact of covid-19

The pandemic had caused a lockdown in almost all the countries across the world backed up by strict government regulations such as social distancing and quarantine. A severe effect of the lockdown was observed on the economy of various countries which further canceled certain construction projects temporarily or permanently.

Further, immediate long-term effects were seen in the supply chain and the deployment of smart solutions required in the smart buildings. However, the ease offered and the multiple benefits of the smart building solutions are anticipated to increase the deployments during the time.

Recent Developments

1. June 2022- CyberArk, the industry pioneer in identity security, released new capabilities for its Endpoint Privilege Manager that expand security to Linux platforms.
2. July 2022- At the CyberArk Impact 2022 conference, CyberArk, the industry pioneer in identity security, announced several announcements that will put cybersecurity innovation at the forefront of identity protection.