The global cyber security market size was reached at USD 211.48 billion in 2022 and it is projected to surpass around USD 691.64 billion by 2032, expanding at a CAGR of 12.58% during the forecast period 2023 to 2032.
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Cyber security is a critical and rapidly evolving field that focuses on protecting computer systems, networks, and data from various forms of cyber threats, including cyberattacks, data breaches, and unauthorized access. It encompasses a range of technologies, processes, and practices designed to safeguard digital information and the infrastructure that processes, stores, and transmits it. Cyber security measures and practices include a wide range of strategies and technologies, such as firewalls, antivirus software, intrusion detection systems, encryption, access control, vulnerability assessments, and incident response plans. As technology becomes increasingly deployed into daily lives, businesses, and governments, the importance of cyber security cannot be overlooked. The cyber security market plays a pivotal role in addressing these evolving threats and safeguarding digital assets.
The cyber security market is driven by numerous factors such as rising cyber threats, data privacy regulations, digital transformation, technological advancements, data breaches and privacy concerns and many others. The global cyber security market is expected to grow at a robust pace with the rising rate of digitization across the globe. The market aims on offering multiple solutions for tackling with cyber-attacks and crime. The rising demand from banking and other financial sector for controlling cyber-attacks create a significant growth factor for the market to grow. Moreover, multiple governments are focused on protecting confidential data and sites with advanced cyber security services and solutions, the element is observed to act as a major growth factor for the market.
| Report Coverage | Details |
| Market Size in 2023 | USD 238.08 Billion |
| Market Size by 2032 | USD 691.64 Billion |
| Growth Rate from 2023 to 2032 | CAGR of 12.58% |
| Largest Market | North America |
| Base Year | 2022 |
| Forecast Period | 2023 to 2032 |
| Segments Covered | By Component, By Security Type, By Solution, By Services, By Deployment, By Organization Size, By Application |
| Regions Covered | North America, Europe, Asia-Pacific, Latin America, and Middle East & Africa |
Driver:
The rise of automotive hacking
Autonomous software that provides seamless communication for drivers in engine timing, door locks, and airbags along with a cutting-edge driver support system. These cars' communication methods, Bluetooth and WiFi, expose them to several security flaws and hacking risks. In 2023, as autonomous cars become more prevalent, there may be an increase in attempts to take control of them or listen in on conversations via microphones. Self-driving or autonomous cars employ a process that is significantly more complicated and calls for stringent cybersecurity precautions. Thus, driving the market growth during the forecast period.
Restraint:
Lack of skilled professionals
There is a shortage of qualified cybersecurity professionals with the skills and expertise needed to protect organizations from evolving threats. This skills gap hampers organizations' ability to implement and manage effective cybersecurity measures. Thus, the shortage of skilled professionals is expected to be a major restraining factor to the market growth over the forecast period.
Opportunity:
Emergence of remote working culture
Many businesses have been compelled to transition to remote working because of the pandemic, which has created additional cybersecurity issues. Due to the frequently less secure networks and devices they use, remote employees may be more susceptible to cyberattacks. To safeguard their remote workers, firms must implement proper security measures, such as multi-factor authentication, secure VPNs, and automatic patching. Thus, the emergence of a remote working culture is expected to offer a lucrative opportunity for market growth during the forecast period.
Based on the components, the global cybersecurity market is segmented into software, hardware and services. The services segment is expected to hold the largest market share over the forecast period. The cyber security market encompasses a wide range of services designed to help organizations protect their digital assets and defend against cyber threats. These services are offered by cybersecurity firms, consulting companies, managed security service providers and others. The widespread adoption of cyber security in numerous sectors is being driven by enterprise's strong desire to implement appropriate solutions according to organizational structures. For instance, according to secondary sources, around 493 million ransomware attacks were experienced by organizations globally in 2022. Thus, these facts support the segment growth during the analysis period.
Based on the security type, the global cyber security market is segmented into endpoint security, cloud security, network security, application security, infrastructure protection, data security and others. The infrastructure protection segment is expected to dominate the market during the forecast period. Infrastructure protection includes the protection of essential systems and assets, such as power grids, water treatment facilities, nuclear plants, and transportation networks, from cyber threats. Ensuring the continuous and reliable operation of this critical system is paramount.
On the other hand, cloud security is expected to grow at a significant rate over the forecast period. The need for cloud security is anticipated to be driven by the rising demand for managed security solutions and expanding cloud usage. To attract new business consumers, organizations in the cloud security sector are concentrating on expanding their product lines. To help security and DevOps teams improve the security of cloud-native applications, Datadog, Inc., a provider of IT security solutions, introduced a cloud security management solution in October 2022. This solution combines features from cloud workload security and cloud security posture management. Thus, driving the market growth during the forecast period.
Based on the solution, the global cyber security market is segmented into Unified Threat Management (UTM), IDS/IPS, DLP, IAM, SIEM, DDoS, Risk and compliance Management and Others. The IAM segment is expected to capture the largest market share over the forecast period. Identity and Access Management (IAM) is a critical component of the cyber security market that focuses on managing and controlling user identities, access privileges, and authentication to secure digital resources and systems. IAM solutions play a pivotal role in ensuring that the right individuals or entities have appropriate access to systems, data, and applications, while also enhancing security and compliance.
Based on the services, the global cyber security market is segmented into professional services and managed services. Professional services are expected to dominate the market during the projected period. The sizeable market share may be attributable to the growing demand for professional services like penetration testing, business risk analysis, and physical security testing. Another important reason fueling the segment's expansion is the shortage of qualified cybersecurity personnel. Additionally, end-user businesses favor the advice and experience of professional service providers to reduce business security risks through the installation of affordable security solutions.
Based on the deployment, the global cyber security market is segmented into cloud-based and on-premises. The cloud-based segment is expected to grow at the fastest rate over the forecast period. Cloud-based cybersecurity solutions can easily scale to accommodate the growing needs of organizations. Whether it's protecting a small business or a large enterprise, cloud-based solutions can adapt to the changing threat landscape.
Moreover, cloud-based solutions often follow a subscription or pay-as-you-go model, reducing the upfront costs associated with traditional on-premises security solutions. This cost-effectiveness appeals to organizations looking to manage their budgets efficiently. Furthermore, cloud-based security providers typically handle updates, patches, and maintenance, ensuring that organizations are protected with the latest security features without the need for manual intervention. Thus, these benefits are expected to drive segment expansion.
Based on the organization size, the global cybersecurity market is segmented into SMEs and Large Enterprises.
The large enterprises segment is expected to dominate the market during the forecast period. Large enterprises often have extensive and complex IT infrastructures, including data centers, multiple offices or locations, and a wide range of devices and applications. This complexity requires comprehensive security solutions.
Based on the application, the defense/government segment is expected to capture a significant market share over the forecast period. The cybersecurity market for defense and government is a specialized and critical segment within the broader cybersecurity industry. Defense and government organizations face unique cybersecurity challenges due to their role in national security, the sensitivity of the data they handle, and the constant threat of cyberattacks from nation-states and others. Thus, driving the market revenue growth.
North America is expected to dominate the market during the forecast period. The region experiences a wide range of cyber threats, including ransomware attacks, data breaches, nation-state-sponsored cyber espionage, and various forms of cybercrime. The region is a prime target due to its economic significance and technological advancements. For instance, the second-highest number of data intrusions in the United States in a single year occurred in 2022, according to The Identity Theft Research Center's (ITRC) Annual Data Breach Report.
A minimum of 422 million people were affected. Moreover, the favorable regulatory environment is another important factor that propels market penetration over the projection period. Both the United States and Canada have stringent data protection and privacy regulations, such as the General Data Protection Regulation (GDPR) equivalent in Canada (PIPEDA) and various state-level data breach notification laws in the U.S. Compliance with these regulations drives cybersecurity investments. Thereby, driving the market growth in the region.
Segments Covered in the Report:
By Component
By Security Type
By Solution
By Services
By Deployment
By Organization Size
By Application
By Geography
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