The global security analytics market size was valued at USD 10.44 billion in 2022. It is projected to reach USD 34.49 billion by 2031, growing at a CAGR of 14.2% during the forecast period (2023-2031).
Security analytics is a cybersecurity approach that emphasizes data analysis to generate anticipatory security measures. Business organizations are unable to predict future threats and breaches, and with security analytics solutions, they can identify security issues before they harm the security infrastructure. Intricacies in the enterprise network have paved the way for many blind spots. Nowadays, employees use multiple devices to connect to the network, and public cloud services are rapidly growing in every industry. While the widespread adoption of these services has resulted in an increase in revenue for businesses, it also increased the chances of security breaches. The growth of big data technologies and security intelligence has created immense opportunities for the security analytics market. Security analytics merges the capabilities of big data and threat intelligence to identify, monitor, and mitigate upcoming attacks and threats. Key market players are focusing on innovative product developments to attract more clients. For instance, in 2019, IBM enhanced its security analytics platform, IBM QRadar, with Watson Solution. The platform can expose secret threats and helps users with security risk analysis, allocation, mitigation, and response.
Nowadays, hackers employ more sophisticated systems to attack security infrastructure; some threats can even remain unidentified for several months. Unidentified threats, coupled with the rising prevalence of data attacks and the increasing amount of impacted registers, can lead to significant monetary losses. IBM pegs the cost of a data breach in the U.S. at USD 7.35. Hence, organizations are shifting from the protection of threats to the identification of threats. Security analytics solutions monitor general threat patterns and notify whenever an anomaly is identified. The analysis of digital data and workload patterns must be accelerated through the use of an intelligent, integrated analytics platform that can automate scanning. The analytics-driven platform enables data scientists to gather insightful knowledge, transform raw data into insightful statistics, and anticipate threat risks. The intelligent statistics process is made more effective by utilizing edge analytics, big data analytics, deep learning, and artificial intelligence (AI). The incorporation of such cutting-edge analytics technologies will probably make it possible to analyze data automatically. Deep insights like proactive identification, risk factors, and user behavior would be produced as a result, among other things, using data sources from various dimensions. The market for security analytics will grow as a result of these factors in the years to come.
The pressure on IT teams to convey the results of security analysis to the higher management and stakeholders is usually high. Attributing to the alarming rate at which the incidents of security breaches are increasing, chief information security officers are concerned about sophisticated malware attacks, including advanced persistent threats. Security analytics offers fewer false alarms and time-to-resolution metrics, which further help analysts detect threats quickly and respond to these issues, facilitating early detection and saving organizations from monetary losses.
Attackers are harnessing advanced and sophisticated solutions for security breaches. Rising internet penetration, coupled with government regulations, propels the security analytics market. However, a lack of expertise, a shortage of skilled security analysts, and knowledge regarding sophisticated targeted attacks are anticipated to inhibit market growth.
There are now a lot more vulnerabilities and cybercrimes due to the growth of IoT, connected network devices, and cloud computing. Companies can now deploy internet connections throughout the organization thanks to lower-cost devices, software, and other digital services combined with increased bandwidth capacities. As a result, businesses now rely more on data centers and cloud computing to store their data. These developments have aided in the swift transformation of the threat intelligence and security services provided by businesses. A hyper-connected ecosystem has been produced by the growing use of cloud computing, IoT, and service centralization, which has increased attackers' capacity to expose information via a variety of channels. Additionally, analytics-driven security solutions would make it possible to overcome the difficulties brought on by security threats. As a result, it is anticipated that greater reliance on cutting-edge technologies like cloud computing and IoT will propel the market's growth.
The global security analytics market is segmented by component, application, and end-use industry.
Based on components, the global security analytics market is bifurcated into solutions and services.
The solutions segment is the highest contributor to the market and is expected to grow at a healthy CAGR during the forecast period. The higher growth is attributed to the rising need to identify intricate cyberattacks and accelerate response times to stop breaches. Another factor contributing to the segment growth is the growing need to adhere to government and changing industry standards and regulations. The market players are providing solutions like IBM Corporation's QRadar, Cisco's Stealthwatch and Rapid Threat Containment, and McAfee's Mvision EDR endpoint threat detection. Businesses use these solutions to gain visibility into potential threats and spot questionable behavior based on observations from the field. The end-user's growing adoption of these solutions will drive the market's expansion.
The services segment is expected to witness a higher CAGR and primarily constitutes the support provided by security providers to support their customers for the effective utilization and maintenance of security analytics systems. The services segment is further bifurcated into managed services and professional services.
Based on application, the global security analytics market is bifurcated into network security analytics, application security analytics, web security analytics, and endpoint security analytics.
The network security analytics segment is the highest contributor to the market and is expected to grow at a healthy CAGR during the forecast period. Nowadays, industry verticals are adopting IoT network connections, which drive the growth of the segment. Network security is a proactive approach to protect networks from sophisticated threats by gathering and examining various types of network security events for the generation of an extensive solution. Deep packet analysis is also performed on the network traffic by security analytics for the detection of malware prior to its entry into the network. Next-generation threats easily penetrate traditional security systems and hack important data. Thus, the implementation of security analytics for network security is becoming a trend these past few years.
The application security analytics segment is expected to grow at a significant rate. The segment adoption is soaring due to the rising demand to identify and remove malware, APTs, and other advanced persistent threats from corporate applications and data. Other factors contributing to the segment's adoption include a rise in the use of digital applications and the execution of real-time applications across client servers. The segment is also being driven by a global increase in demand for safer web-based and smartphone application developments.
Based on the end-user industry, the global security analytics market is bifurcated into BFSI, government and defense, IT and telecom, manufacturing, healthcare, energy and utilities, and consumer goods and retail.
The BFSI segment is the highest contributor to the market and is expected to grow at a healthy CAGR during the forecast period. The rise in phishing attacks and fraud in third-party payment integrations, rising risks associated with using mobile banking applications, and strict regulatory compliance requirements are all cited as reasons for the segment's growth. A growing number of banking and financial service providers are exposed to numerous risks and data breaches as a result of the transition to cloud-based technologies for shared banking services provided to third-party networks, vendors, and customers. Banking and financial institutions are being influenced to upgrade their network security with analytics-driven security solutions due to their exposure to cyber threats from various applications and the requirement to manage security checks effectively in real time.
The government and defense segment is expected to grow at a significant rate as the sector handles sensitive and vital information, and the escalating number of security breaches in the sector has paved the way for advanced security solutions. In October 2019, details regarding more than 92 million Brazilian citizens were reportedly on sale on the dark web. Similarly, governments experience many such data thefts, which necessitate advanced solutions, such as security analytics, for data protection.
The global security analytics market is bifurcated into four regions, namely North America, Europe, Asia-Pacific, and LAMEA.
North America region is the highest contributor to the market and is expected to grow at a healthy CAGR during the forecast period. North America dominates the global security analytics market as an early adopter of advanced technological solutions with the highest number of security theft incidents. The region is the most expensive one for SMEs to endure a security breach, which drives the demand for evolved cybersecurity approaches. Splunk Inc., Cisco Systems, Inc., IBM Corporation, and other players operating in the region are also front runners on a global scale, which undoubtedly augments the regional market value. Governments in North America consider cybersecurity the most challenging task. The advent of the Internet of Things (IoT), Bring Your Own Device (BYOD), and cloud adoption have led to rapid technological expansion in the region, prompting the introduction of next-generation threats. To mitigate the challenges caused by advanced security threats, companies of various sectors in the region are adopting security analytics solutions.
Asia Pacific is expected to witness dynamic growth in the security analytics market during the forecast period. Advanced-level threats are becoming more prevalent in the region as a result of growing enterprise adoption of mobile applications, BYOD trends, IoT applications, and cloud-based deployments. Organizations in the region are being influenced to implement security analytics solutions due to rising worries about data security and network vulnerabilities. The implementation of these solutions in the region is additionally being sparked by growing awareness of the damage that advanced targeted threats can cause as well as the capacity of security analytics solutions to identify and address real-time APT or ATA. In April 2022, The Indian Ministry of Electronics and Information Technology recently highlighted its first-ever cybersecurity policy, asking that service providers, intermediaries, data centers, body corporates, and governmental organizations compel any breaches or leaks to be reported within six hours of being discovered. Thus, government regulations to protect data and prevent any data breaches will drive market growth in the region.
Europe is expected to witness significant growth in the security analytics market during the forecast period due to the rapid digitalization of many industries in the European Union, such as health, energy, and transportation; cybersecurity is acquiring strategic significance. Companies in the region are now required by the General Data Protection Regulation (GDPR) of the EU to notify the national data protection authorities of any data breaches. The General Data Protection Regulation (GDPR) of the European Union mandates that businesses and organizations notify supervisory authorities as well as their clients in the event of a data breach that could jeopardize the rights and liberties of individuals. This notification must be made within 72 hours of a breach's discovery. This will force businesses to keep track of the instances of violations and adopt practical solutions to prevent them in the future. These factors will fuel market expansion in the region.
The LAMEA region is expected to witness moderate growth in the global security analytics market during the forecast period. In the Middle East, South America, and Africa, increasing social media, cloud computing, and mobile service usage is anticipated to increase demand for security services and technology. The region is growing its information and technology services in a number of industries. Cybercrimes are made possible by our growing reliance on connectivity, cutting-edge technologies like IoT, and an increasing number of endpoint devices. The industry is more vulnerable to cyber threats because it is a developing area. As a result, the region is probably going to present profitable market opportunities soon.
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