Cybersecurity Market Size & Forecast

The Cybersecurity Market is expected to reach $311.4 billion by 2031, at a CAGR of 12.8% from 2024 to 2031. The growth of this market can be attributed to several factors: the growing significance of cybersecurity solutions in the banking sector, the growing number of data breaches and cyber-attacks, increasing IoT deployment, and government initiatives aimed at encouraging the adoption of cybersecurity solutions. Moreover, the growing need for cloud-based security solutions among SMEs and the increasing use of AI, ML, and blockchain technologies for cyber defense is expected to offer growth opportunities for the players operating in this market.

Cybersecurity Market Growth Drivers

Growing Significance of Cybersecurity Solutions in the Banking Sector Drives Market Growth

The BFSI sector is highly dependent on IT infrastructure for delivering services, such as mobile, online, and core banking. Identity fraud is a major concern during financial transactions through online banking portals and insurance apps. With consistent technological advancements across BFSI channels, banks, and other financial services, institutions are facing data breaches & identity frauds at an unprecedented rate. To counter the cyberattacks, banks and financial institutions are investing heavily in incorporating cybersecurity solutions to protect customers and digital assets against data breaches and fraud. Hence, the rising number of data breaches and cyberattacks drives the demand for cybersecurity solutions in the BFSI sector.

Cyberattacks have become a major challenge for the banking sector, due to which banks and financial institutions are investing heavily in incorporating cybersecurity solutions to protect customers and digital assets against data breaches and fraud. For instance, in February 2023, Okta, Inc. (U.S.) partnered with Plaid (U.S.), a financial services company, to help banks and financial institutions adopt OAuth and APIs for exchanging data with third parties. This partnership provides the financial services ecosystem a more secure way to accelerate their open finance initiatives and deliver seamless connectivity for potentially millions of consumers. Such developments are expected to support the growth of this market.

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Government Initiatives Aimed at Encouraging the Adoption of Cybersecurity Solutions Drive Market Growth

The cybersecurity solutions regulatory landscape is evolving rapidly as governments seek to mitigate growing cyber risks and protect organizations. Governments around the globe are undertaking initiatives to encourage the adoption of cybersecurity solutions, driving the growth of the cybersecurity market. For instance, In June 2022, the Government of Canada introduced Bill C-26, an Act Respecting Cyber Security (ARCS). This proposed legislation will protect Canadians and bolster cybersecurity across the financial, telecommunications, energy, and transportation sectors. Further, in April 2020, the U.S. government passed a new IoT cybersecurity law, the NIST Internet of Things Cybersecurity Improvement Act, to increase cybersecurity for IoT devices.

Many standards, regulations, and initiatives are introduced to enhance security through cybersecurity solutions. Regulatory frameworks for cybersecurity solutions are becoming progressively stringent as governments have recognized the need for security while offering cost-effective, efficient, and safe solutions to citizens. Hence, government initiatives encouraging the adoption of cybersecurity solutions are driving the growth of this market.

Cybersecurity Market Trend

Explosion Of BYOD and Mobile Devices

The IT infrastructure has become more complex and heterogeneous with the introduction of new platforms, BYOD policies, CYOD trends, business applications, and other technologies. The rapid advancements in mobile computing have led to the growing popularity of BYOD and CYOD trends in corporate environments. With the growing adoption of BYOD, organizations are subscribing to cybersecurity solutions to protect devices, such as laptops, smartphones, tablets, and desktops, from cyber threats. There is a rising need to secure the devices inside the office premises and secure those with remote access to the corporate network. These factors significantly increased spending on cybersecurity solutions, which is expected to drive the market's growth.

Cybersecurity Market Analysis: Key Findings

By Offering: In 2024, the Solutions Segment to Dominate the Cybersecurity Market

In 2024, the solutions segment is expected to account for the larger share of above 57.0% of the cybersecurity market. The segment’s large share is attributed to the increasing adoption of cybersecurity solutions to monitor network activity for suspicious behavior, prevent cyberattacks, and deliver applications to users with greater security and the growing need to secure data in transit and prevent unauthorized access. In addition, the benefits offered by the solutions segment, such as high performance, reliability, comprehensive vulnerability coverage, efficiency, and security of real-time applications, contribute to this segment's growth. Furthermore, several leading key players are taking initiatives to support the growth of this segment. For instance, in January 2023, VIPRE Security Group (U.S.) launched its endpoint detection & response (EDR) solution. This endpoint detection & response solution delivers streamlined, sophisticated, high-performing cloud-based EDR management in a single, easy-to-navigate console. Also, this segment is projected to register a higher CAGR during the forecast period of 2024–2031.

By Security Type: In 2024, the Network Security Segment to Dominate the Cybersecurity Market

In 2024, the network security segment is expected to account for the largest share of above 34.0% of the cybersecurity market. The segment’s large share is attributed to the rising data and security breaches, the growing demand for filtering and monitoring network traffic, the growing number of malware attacks on enterprise networks, and the increasing need to protect connected network infrastructure. Also, several leading key players are taking initiatives to redefine business strategies. For instance, in November 2022, Fortinet, Inc. (U.S.) launched its FortiGate Cloud-Native Firewall (FortiGate CNF) to simplify network security operations. FortiGate CNF delivers enterprise-grade security managed by Fortinet and cloud-native integrations on AWS to simplify, scale, and modernize security operations.

However, the cloud security segment is expected to register the highest CAGR during the forecast period of 2024–2031. The rising need to secure workload on the cloud, the increasing demand for advanced threat detection solutions across industries, the growing adoption of cloud security solutions among SMEs, and the growing sophistication of cybercrimes are expected to support the growth of this segment. Furthermore, several leading key players are taking initiatives to support the growth of this segment. For instance, In September 2022, Radware Ltd . (Israel) opened its new cloud security center in Italy to deliver cloud security services across Italy.

By Organization Size: In 2024, the Large Enterprises Segment to Dominate the Cybersecurity Market

In 2024, the large enterprises segment is expected to account for the larger share of above 72.0% of the cybersecurity market. This segment's large market share is attributed to its strong infrastructure and skilled IT personnel's management of cybersecurity platforms. Furthermore, large enterprises focus on desired security channels against cyber threats to retain their customers, boost sales, and validate necessary steps to overcome market interruptions.

However, the small & medium-sized enterprises segment is expected to register the highest CAGR during the forecast period of 2024–2031. The increasing adoption of cybersecurity solutions & services among small & medium-sized enterprises (SMEs) to track, monitor, and manage assets, the growing digital transformation across industries, and the increasing number of cyberattacks on networks are expected to support the growth of this segment.

By Deployment Mode: In 2024, the On-premise Deployments Segment to Dominate the Cybersecurity Market

In 2024, the on-premise deployments segment is expected to account for the larger share of above 58.0% of the cybersecurity market. The segment’s large share is attributed to the greater control of cybersecurity infrastructure offered by on-premises solutions, the high preference for on-premise deployments among large enterprises, and the availability of trained IT professionals and supportive infrastructure.

However, the cloud-based deployments segment is expected to register the highest CAGR during the forecast period of 2024–2031. The rapid evolution of new avenues for cloud-based deployments, the superior flexibility offered by cloud-based deployments, and the increasing incorporation of cloud-based solutions by small & medium-sized enterprises are expected to support the growth of this segment.

By Sector: In 2024, the BFSI Segment to Dominate the Cybersecurity Market

In 2024, the BFSI segment is expected to account for the largest share of above 22.0% of the cybersecurity market. The large market share of this segment is attributed to the rising fraudulent activities, rising adoption of cybersecurity solutions for various financial processes, rising demand for fraud detection, and surging need for improving the agility of work and customer experience. Also, several leading key players are taking initiatives to support the growth of this segment. For instance, in July 2021, Tata Communications (India) launched its IZO™ Financial Cloud, a customized community cloud platform designed to adhere to the strict data privacy, protection compliance, and security standards established by Indian regulators for the BFSI sector. This platform helps create an open financial environment that gives BFSI and FinTech companies the groundwork to support cutting-edge digital services.

However, the healthcare segment is expected to register the highest CAGR during the forecast period of 2024–2031. The rising adoption of telemedicine devices and remote healthcare services, the rising number of cyberattacks, and the increasing need for securing connected medical devices and effective cloud security measures are expected to support the growth of this segment.

Geographical Analysis

In 2024, North America to Dominate the Cybersecurity Market

In 2024, North America is expected to account for the largest share of above 38.0% of the cybersecurity market. North America’s major market share is attributed to the presence of prominent players offering advanced cybersecurity solutions to various sectors. Furthermore, the growing adoption of cybersecurity solutions in BFSI, retail, and IT & telecommunications sectors, growing adoption of advanced technologies, and rising demand for cloud-based security solutions are also contributing to the growth of the cybersecurity market in North America. In addition, the presence of prominent players offering advanced cybersecurity solutions to support market growth. For instance, in April 2021, Digital Guardian (U.S.) launched its data loss prevention-as-a-service solution to meet the unique security demands of midmarket enterprises across North America.

However, the Asia-Pacific is projected to register the highest CAGR of 16.0% during the forecast period of 2024–2031. The rapid growth of this region is mainly driven by factors such as surging demand for cybersecurity solutions due to the increasing number of connected devices in the region, the growing need to deploy advanced cybersecurity solutions to ensure data, network, and device security, and government initiatives to ensure the highest level of cybersecurity for the region’s industrial sector. Furthermore, increasing ransomware attacks on connected devices and market players’ efforts to launch advanced cybersecurity solutions are also supporting the growth of this regional market.

Cybersecurity Market: Key Companies

The report offers a competitive analysis based on an extensive assessment of the leading players’ product portfolios, geographic presence, and key growth strategies adopted in the last 3–4 years. Some of the key players operating in the cybersecurity market are Cisco Systems, Inc. (U.S.), Fortinet, Inc. (U.S.), IBM Corporation (U.S.) Check Point Software Technologies Ltd. (Israel), Microsoft Corporation (U.S.), Palo Alto Networks, Inc. (U.S.) CrowdStrike Holding, Inc. (U.S.), Trend Micro Incorporated (Japan), Rapid7, Inc. (U.S.), Qualys, Inc. (U.S.), Secureworks, Inc. (U.S.), Alert Logic, Inc. (U.S.), F5 Networks, Inc. (U.S.), Watchguard Technologies, Inc. (U.S.), and Oracle Corporation (U.S.).

Cybersecurity Industry Overview: Latest Developments from Key Industry Players

• In March 2023, CrowdStrike Holding, Inc. (U.S.) partnered with Dell Technologies Inc. (U.S.) to help organizations prevent, detect, and respond to cyber threats with frictionless and cost-effective offerings.
• Trend Micro Incorporated (Japan) opened its Cloud One regional data center in India to uphold data sovereignty and safeguard data privacy in the country.
• In July 2021, Fortinet, Inc. (U.S.) launched its FortiGate 3500F Next-Generation Firewall (NGFW) to protect organizations with hybrid data centers against the ever-growing threat landscape and ransomware attacks.

Cybersecurity Market Research Summary

Key questions answered in the cybersecurity market report: