Malware Analysis Market

Market Overview

The global malware analysis market size was valued at USD 8,860.21 million in 2022. It is projected to reach USD 83,460.21 million by 2031, growing at a CAGR of 28.3% during the forecast period (2023–2031). The expansion of the malware analysis market is propelled by an escalation in the susceptibility to malware and phishing threats.

Malware is a term used to describe a diverse range of disruptive software created by individuals known as hackers. During the process of conducting static and dynamic inspections, malware analysis employs a diverse range of tools, strategies, and methodologies to extract pertinent information from the infection. This approach entails extracting maximum information from malware with the aim of identifying the principal objective of the virus.

Malware analysis is the process of analyzing and determining the purpose and operation of the malware samples that are delivered. The information acquired from the malware analysis provides recommendations for developing a technique that may successfully identify malicious software. Moreover, it is a crucial component of creating effective removal solutions that can get rid of malware from a system that has been compromised.

Market Dynamics

Global Malware Analysis Market Drivers

Increasing Implementation of IoT and BYOD Trend

The increasing use of the Internet of Things (IoT) and Bring Your Own Device (BYOD) practices within enterprises has resulted in heightened vulnerability of devices and applications to Advanced Persistent Threats (APTs). Moreover, the proliferation of mobile devices within organizational settings presents a formidable challenge for IT teams in effectively managing and monitoring data flow across diverse platforms. Hence, enterprises are increasingly implementing malware analysis systems as a means of safeguarding vital information through the monitoring, categorization, and resolution of various forms of cyber threats. This trend is a significant driver for the growth of the malware analysis market.

Rising Malware and Phishing Threats among Enterprises

Malware, including viruses and Trojans, continues to have a unique place in the reserves of attackers. Malware is a common tool used by online criminals to seize control of machines or devices to profit financially. This is generally performed to directly use the machine to conduct fraudulent trades or malicious activities. Moreover, industries such as BFSI, healthcare, and the government sector are more vulnerable to such attacks due to the criticality of the data in these industries. Therefore, an increase in the risk of malware and phishing threats drives the growth of the malware analysis market.

Global Malware Analysis Market Restraint

Complexities of Device Security

Security is essential in wireless communications and other systems, and security issues are projected to become increasingly important and widespread in many devices. The design of security solutions encompasses several key considerations, namely cost, energy consumption, efficiency, and uniformity. The existence of diverse security needs among device manufacturers poses a persistent difficulty for vendors in achieving a standardized security design. Moreover, the inclusion of material from security engineers and embedded system designers is necessary for the solution providers, hence augmenting the intricacy of the process.

Global Malware Analysis Market Opportunities

Growing Implementation of Mobile Device Applications and Platforms

The utilization of mobile devices is experiencing rapid growth as businesses adopt the Bring Your Own Device (BYOD) approach. Due to the diverse array of programs, services, and functionalities offered by mobile devices, there is a substantial accumulation and transfer of data to and from these devices. The majority of data kept on mobile devices includes sensitive data such as usernames, credit card numbers, and passwords. This growing reliance on mobile devices motivates enterprises to develop effective malware analysis solutions such as Identity Access Management (IAM), asset management, Unified Threat Management (UTM), and monitoring and analytics.

Regional Analysis

North America Dominates the Global Market

Region-wise, the global malware analysis market is segmented into North America, Europe, Asia-Pacific, and LAMEA.

North America is the most significant global malware analysis market shareholder and is estimated to exhibit a CAGR of 26.8% during the forecast period. The expansion of the malware analysis market in North America is attributed to key players providing more security for data by assuring quick access and greater outreach due to increased rivalry among cloud-based service providers in this region. In addition, the proliferation of mobile and web technologies has emerged as a significant catalyst for the expansion of cyber security in the North American region. The escalating reliance on the internet and social media platforms constitutes a significant catalyst for expanding the market in this region. Moreover, the growing utilization of cloud computing, mobile data, and digitization has contributed to an escalated need for malware analysis solutions inside the specified geographical area.

Europe is estimated to exhibit a CAGR of 27.7% during the forecast period. Several governments and other organizations across the European region rely on digital networks and infrastructure, which makes this region vulnerable to cyberattacks. However, enterprises in Europe have access to modern digital security technology. Therefore, the growth of the European region is expected to be slower than that of the emerging regions such as Asia-Pacific and LAMEA. The major factors contributing to the growth of malware analysis in Europe include a rise in the mobile workforce, cloud-based services adoption, and advanced persistent threats (APTs) in this region.

In addition, the need for better risk and compliance solutions and the increased internet penetration rate have facilitated the adoption of cyber security in the region. Moreover, high spending patterns of organizations on security forums are expected to fuel the demand for malware analysis solutions in this region, as organizations need effective solutions to protect corporate data from malware threats.

In Asia-Pacific, malware-attack cases have increased substantially due to rising internet penetration, an increase in mobile data usage, and a rise in the trend of using BYOD among organizations. The Asia-Pacific area is witnessing a significant rise in the use of malware analysis solutions, mostly driven by the escalating mobile data consumption for diverse applications such as mobile banking and social media. In addition, the rise in penetration of smartphones and the internet in countries such as India and China has fueled the adoption of malware analysis in this region. Moreover, the rise in the need to support secure enterprise mobility practices within organizations is expected to boost the demand for malware analysis solutions.

LAMEA is an emerging market with a significant percentage of cybercrimes such as online thefts, banking frauds, DDoS attacks, phishing scams, and password attacks. The major factors contributing to the growth of malware analysis in LAMEA are increasing cyber security events in public and financial sector organizations, which encourage organizations to implement effective solutions such as identity and access management (IAM), malware analysis, anti-virus solutions, and others. Moreover, the proliferation of cloud computing, bring-your-own-device (BYOD) policies, and analytics technologies have significantly contributed to the expansion of the malware analysis market. This can be ascribed to the heightened demand among organizations to safeguard their digital assets and IT infrastructure.

Competitive Analysis of the Global Malware Analysis Market: 

Segmental Analysis

The global malware analysis market is segmented into components, deployment mode, organization size, and industry vertical.

Based on components, the global malware analysis market is classified into solutions and services. 

The solution segment dominates the global market and is estimated to grow at a CAGR of 27.3% during the forecast period. Malware analysis studies how malware functions and the possible infection outcomes of a specific malware. The attackers create all types of malware to enter the system through various sources to infect without the user's authorization. Some common use cases of malware analysis solutions include Security Incident Management Systems, Malware research, Sign of Compromise Extraction, and others. The malware analysis process typically encompasses four primary steps, including automated malware analysis, analysis of static features, analysis of interactive behavior, and code reversing.

Based on deployment mode, the global malware analysis market is segmented into on-premise and cloud. 

The on-premise segment owns the highest market share and is estimated to grow at a CAGR of 26.3% during the forecast period. The on-premise deployment model for malware analysis enables installation of the solution and permits organization sizes to run on systems present in the premises of an organization instead of being put on server space or cloud. These solutions offer enhanced security features, which drive their adoption in large-scale financial institutions and other data-sensitive organizations where security is a priority. The deployment of this malware analysis is made easier by the continuous system used by on-premises systems, known for better server maintenance.

Additionally, the on-premise deployment approach is highly beneficial in large businesses due to the high implementation costs and requirement for connected servers and system management tools. Moreover, greater data security than cloud-based solutions encourages businesses' adoption, fueling demand for this subsegment of the malware analysis market.

Based on organization size, the global malware analysis market is classified into large enterprises and SMEs. 

The large enterprises segment dominates the global market and is estimated to exhibit a CAGR of 26.3% during the forecast period. Large enterprises have focused on implementing effective security solutions such as static as well as dynamic malware analysis in recent years, as these malware analysis solutions are anticipated to change the landscape of threat detection and remediation. In addition, most of the large enterprises are responsive toward taking security measures; however, senior management across these large enterprises still struggles to implement an effective cybersecurity strategy, which provides an opportunity for the market. Moreover, the need to protect data and the rise in awareness of security breaches due to malware attacks boost the growth of the malware analysis market across large enterprises.

By industry vertical, the global malware analysis market is classified into aerospace and defense, BFSI, public sector, retail, healthcare, IT and telecom, energy and utilities, manufacturing, and others.

The BFSI segment owns the highest market share and is estimated to grow at a CAGR of 26.9% during the forecast period. The rise in occurrences of cyberattacks is gradually weakening the trust of consumers, which is one of the major factors that drive the growth of the malware analysis market in this sector. Similarly, providing sealed security and digital privacy is necessary for financial institutions, as banks and financial institutions are taking advantage of mobile, cloud, and social technologies to ensure effective financial management. This drives the market for malware analysis solutions in the BFSI industry.

The aerospace and defense industry majorly relies on computer systems for its ground and flight operations. The demand for malware analysis solutions is constantly increasing in the aerospace and defense industry, as the security of airline systems can directly influence the productivity and operational safety of the industry and can indirectly impact the services. In addition, the increase in demand for cloud-based security solutions and the need to protect crucial information has necessitated the deployment of malware analysis solutions in this sector. Moreover, the rise in the need to protect networks from advanced cyber threats fuels market growth.

Recent Developments

• October 2023- Veeam Software, a prominent company specializing in Data Protection and Ransomware Recovery, unveiled the latest version of their Veeam Data Platform, known as 23H2. This update also encompasses the release of Veeam Backup & Replication v12.1. The announcement took place at the esteemed VeeamON Resiliency Summit, a global event.