The rising adoption of e-commerce platforms and the emergence of disruptive technologies, such as Artificial Intelligence (AI), Internet of things (IoT), and Blockchain, drive the cybersecurity market. For instance, in December 2019, Palo Alto Networks, Inc., an IoT, and machine identity-based company. This acquisition enabled Palo Alto Networks to strengthen the cloud natively security platform and further expand its cloud security capability.
Companies in the cybersecurity 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 will help them understand ambiguous activities and events and further, help detect and identify uncertain threats.
The adoption of IoT and machine learning in security is considered a swiftly developing cybersecurity market trend. Additionally, big data technology is assisting organizations in studying and analyzing potential risks. Considering the impact of these technologies, the adoption of IoT and AI is increasing exponentially in cybersecurity solutions.
One of the key trends enabling the growth of the cybersecurity market industry is the rising adoption of cloud computing. Cybersecurity solutions are based on complex mathematical prediction models, handling large volumes of data. This data monitoring can be only being fulfilled by cloud technology in a secure and reliable environment at a low cost. Key players, such as IBM Corporation and Cisco Systems, are focusing on integrating cloud computing with cybersecurity solutions. These cloud computing services are backed up by Analytics as a Service (AaaS) offerings, allowing users to detect and mitigate uncertain threats quickly.
In the present scenario, security related to the IT sector has become the primary concern for the corporate, public, and private divisions. The growing adoption of e-commerce and the advancement of disruptive technologies, such as artificial intelligence and blockchain, will accelerate the adoption of cybersecurity in the coming years. Additionally, cybersecurity solution providers are adopting AI, cloud, and ML technologies in their IT and electronic security systems. The increasing adoption of these technologies to mitigate cyber threats is fueling the demand for cybersecurity solutions.
Cybersecurity solutions in end-point security are expected to grow in the forecast period. This growth is owing to the rising investment and adoption of cloud technology among various industries including financial institutions, IT & telecom, and others.
By deployment type, the cloud segment is expected to grow significantly during the forecast period, ascribing to the rising demand for massive store applications for storing and securing data with enhanced security methods. Cloud-based cybersecurity solutions offer social networking privacy, online storage, system optimization, and others. Online cloud storage also offers backup and the ability to restore data in the event of data loss or data breach. Also, cloud technology provides features such as cross-platform contact restoring and backup, which help 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.
Multinational companies are focusing on adopting cloud solutions in their business units. This adoption would help them provide access to confidential information for an internal and cross-border operation to their workforces. For instance, in December 2019, Fortinet, Inc. integrated its cloud security portfolio with the Google Cloud Platform, allowing its customer to migrate to the cloud platform for advanced security for their workloads and applications.
By enterprise size, the small and medium enterprises segment is expected to grow significantly during the forecast period, mainly owing to the rising adoption of cybersecurity solutions across various industries, including retail and financial organizations. Key market players catering to this segment are focused on expanding their business offerings by forging partnerships. For instance, in January 2020, GTT Communications, Inc. partnered with Fortinet, Inc. to provide cost-effective advanced security solutions to small and large enterprise clients.
By end-use, the BFSI segment is expected to observe significant growth during the forecast period, attributing 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 cybersecurity market growth. Cybersecurity solutions are helping banks and insurance and financial organizations secure highly confidential data integrated with real-time intelligence against insistent cyber-attacks.
The healthcare segment is also expected to grow significantly during the forecast period. The sector has unique real-time methods of deploying cybersecurity solutions among various end-use applications, including hospitals, research laboratories, and clinics. In the healthcare industry, cybersecurity solutions help cater to the need for data protection, especially for customer healthcare records. Furthermore, in response to the rising cases of intense threats and breaches, several governments across the world are emphasizing investments in defense and research sectors to establish advanced and secure cyber safety infrastructure.
Key companies in the market are focusing on strategic acquisitions and partnerships to meet the growing demand. For instance, in October 2018, IBM Corporation acquired Red Hat, Inc. With this acquisition, IBM Corporation will be able to develop and deliver security solutions across a wide range of industries.
North America is expected to capture the largest value share in the cybersecurity market industry during the forecast period. High section security breaches and dependency, the evolution of e-commerce platforms, and the implementation of cybersecurity protocols, drive the demand for cybersecurity solutions across the region. Other market drivers include increasing spending by companies and the rising demand for enterprise security solutions across various industries, including retail and government.
During 2016–2018, in the U.S., several global providers of cybersecurity solutions, namely Microsoft Corporation, Palo Alto Networks, Inc., IBM Corporation, invested in developing advanced cybersecurity solutions 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 the enhancement of subscription offerings.
In Europe, market growth is considerably driven by increasing cyber projects and related investments by key companies in the U.K., Germany, France, Spain, and Italy. Significant developments in this region are the result of the rising demand for cybersecurity solutions from the manufacturing and retail industries. Key manufacturers in the region are focusing on deploying advanced cybersecurity solutions to secure information related to manufacturing operations and hence, increase productivity. And governments are focused on adopting various cybersecurity solutions in defense and surveillance to create a robust, secure platform for the functioning of the military.
The increasing demand for location-based services from the transportation and logistics, entertainment, and education and research sectors drives the market growth in Asia-Pacific. To cater to the rising demand for cybersecurity solutions and services from these industries, several companies in the region are focusing on developing and introducing advanced cybersecurity solutions. The markets in China, India, and Korea are anticipated to develop exceptionally during the forecast period owing to rising investments by government and foreign investors in various smart city projects. A report released by the online security firm Symantec Corporation ranks India among the top ten countries recording cybersecurity crimes. As per a global survey, India ranks third in terms of the number of internet users around the globe, followed by the U.S. and China. The historical data and available statistical data will assist SMEs in adopting cybersecurity solutions across their business unit.
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 cybersecurity 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.