May 22, 2024

Cyber Security Market is Transforming Due to Digitalization Trends

 

The growing digitalization and increased usage of connected devices have opened new avenues for cybercriminals. Cyber security ensures safety of confidential data and networks from unauthorized access, activities, or tampering. It helps protect systems, networks, programs and data from digital attacks, damage or unauthorized access. Cyber security products provide data backup, authentication, firewalls, encryption, and identity access management to residential, commercial and government infrastructure. The Global Cyber Security Market is estimated to be valued at US$ 218.79 Billion in 2024 and is expected to exhibit a CAGR of 8.1% over the forecast period 2024 to 2031.

Key players operating in the Cyber Security market are Symantec Corporation, IBM Corporation, Check Point Software Technologies, Microsoft Corp, Trend Micro Incorporated, Lockheed Martin Corporation, Sophos Ltd, Intel Corporation, Verizon Communication Inc., and SecureWorks Inc. With the increasing digital transformation across various industries, there is a growing need to protect critical networks and systems. Cyber security products and services help safeguard confidential data and prevent revenue and information loss from cyber threats. The rising adoption of Internet of Things (IoT) and edge computing has expanded the attack surfaces for hackers, driving greater investments in advanced cyber security solutions.

The increasing shift towards remote working culture accelerated by the COVID-19 pandemic has further amplified the need for enhanced cyber security protections. Many organizations lack competence to secure extensive remote access infrastructure, presenting cybercriminals an opportunity. There is a growing demand for cloud-based security-as-a-service solutions that offer effective monitoring and management of user access remotely. Additionally, regulatory mandates regarding data privacy and security have encouraged several industries to boost cyber security spending. Several governments are also upgrading their national cyber defense systems to protect critical infrastructure from state-sponsored attacks.

With growing globalization of businesses, international operations are also at high risk of being targeted. Ransomware attacks and data breaches can severely impact corporate reputation and bottom-lines. Many corporations are thus focusing on implementing centralized security strategies to get visibility and control over their global IT assets and risk profile. This includes identifying security gaps, ensuring policy compliance and protecting brand value across borders. Managed security service providers are helping multinational firms establish standardized security protocols suitable for diverse compliance needs worldwide.

One of the key trends driving investments in the cyber security market is the rising sophisticated nature of cyber attacks. Hackers are using advanced tactics like artificial intelligence, insider threats and zero-day exploits to bypass traditional defenses. This has accelerated the development of new proactive security approaches like cyber deception, adaptive threat detection and threat hunting to detect even highly customized attacks. Major technology players are investing heavily in predictive technologies underpinned by machine learning and user behavior analytics to help organizations stay ahead of evolving attack patterns.

Porter’s Analysis
Threat of new entrants: Cyber security solutions require significant investment and expertise to develop making the entry difficult for new companies. Bargaining power of buyers: Buyers have moderate bargaining power due to the presence of several solution providers and frequent security breaches forcing them to invest in security. Bargaining power of suppliers: Suppliers have low to moderate power due to the availability of alternate sources and commoditization of certain security products. Threat of new substitutes: Substitutes are emerging such as AI and automation but security continues to remain important for organizations. Competitive rivalry: Fierce competition exists between major players due to growth opportunities in the market.

Geographical Regions

North America accounts for the largest share in the global cyber security market in terms of value due to stringent data regulations, increasing spending on security solutions by government and enterprises. Asia Pacific is expected to grow at the fastest rate during the forecast period driven by rapid digitalization, emerging technologies and economic growth in countries such as China and India increasing the threat landscape.

*Note:

  1. Source: Coherent Market Insights, Public sources, Desk research
  2. We have leveraged AI tools to mine information and compile it