Cyber Security Market Size
The cyber security market is expected to see significant growth over the next several years. In 2021, it was valued at 139.77 billion U.S. dollars. From 2022 to 2029, it is projected to increase to 376.32 billion U.S. dollars, with a compound annual growth rate of 13.4%. The COVID-19 pandemic has had a significant impact on the market, causing a higher demand for security solutions across all regions. In 2020, the market saw a 7.7% increase from the previous year.
The cyber security market is driven by the increasing use of online e-commerce platforms and the emergence of technologies such as the internet of things (IoT), artificial intelligence (AI), and cloud security. Many companies are developing AI-based internet security solutions, and there is growing demand for such solutions from a range of countries including Germany, France, India, Spain, South Korea, Italy, Canada, and Qatar. The adoption of enterprise security solutions in industries like manufacturing, banking and financial services, insurance, and healthcare is also expected to contribute to market growth in the coming years.
Increasing number of e-commerce platforms is expected to drive growth in the cyber security market.
The increasing use of e-commerce platforms and the development of technologies like artificial intelligence, cloud, and blockchain has led to a greater need for internet security solutions in connected network infrastructure. E-commerce companies are also adopting network security solutions to protect their IT and electronic security systems from cyber threats. Governments around the world, such as those in India, Germany, France, Israel, and Brazil, are investing in internet security solutions to secure their confidential data and information. For example, the U.K. government invested 2.30 billion U.S. dollars in network and internet security projects in defense and research in 2020. This increased adoption of IT security solutions across various industries is expected to drive growth in the global cyber security market in the coming years.
Increasing Adoption of Network Security Solutions by SMEs to Lead to Market Dominance
The cyber security market can be divided by enterprise size into small and medium enterprises (SMEs) and large enterprises. The SME segment is expected to see the highest compound annual growth rate, driven by the increasing demand for end-point security solutions in e-commerce companies and various sectors including retail and finance. The large enterprise segment is also expected to experience significant growth due to the increasing demand for application security services.
Increasing Demand for Services by Enterprises to Boost the Growth
The cyber security market can be divided into two segments: solutions and services. The solutions segment is further divided into categories such as network security, endpoint security, cloud application security, end-point security, secure web gateway, application security, and others. The increasing use of end-point security hardware, software, and access management tools in various industries, including IT and telecom and financial institutions, is expected to drive growth in this segment. The service segment is expected to see strong growth due to the rising demand for consulting, updating, and maintenance services by large and medium enterprises.
Rising Demand for Robust Security and Digital Privacy Systems
The cyber security market can be segmented by industry into BFSI (banking, financial services, and insurance), IT and telecommunications, retail, government, manufacturing, travel and transportation, healthcare, energy and utilities, and others. The BFSI sector is expected to see significant growth during the forecast period due to the increasing demand for robust security and digital privacy systems in financial, insurance, and banking institutions. Cloud application security solutions help these organizations protect confidential data and provide real-time intelligence against cyber attacks. The healthcare industry is also expected to experience significant growth, as internet security solutions protect customer health care records. For example, IBM Corporation acquired Red Hat, Inc. in 2018 and has since developed and provided security solutions across a range of industries worldwide.
Global Cyber Security Market Share by Industry in 2021
Rising Popularity of Cybersecurity Solutions with Enhanced Storage Capability
The cyber security market can be divided by deployment type into cloud and on-premise. The cloud segment is expected to see the highest compound annual growth rate, driven by the increasing demand for secure data storage and the development of advanced cloud-based security solutions through partnerships and collaborations. The on-premise segment is also expected to experience significant growth due to the rising demand for managed security services.
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