by D. Howard Kass • Jan 24, 2023
The global cybersecurity market is projected to reach $300 billion by 2027, clipping along at a compound annual growth rate (CAGR) or slightly more than 11% throughout the forecast period of 2019-2027, a new report by Research and Markets said.
According to the analyst, the market’s strong growth owes to:
- An increasing demand for network security and privacy
- Growing adoption of cloud computing
- Rising need for digital transformation in the telecom industry
- Frequency of cyberattacks
- Increasing regulations for information security
IoT Tops Market
To give an idea of how the market has changed, based on solutions, in 2018, the year immediately prior to the forecast period, the largest share of the cybersecurity market came from solutions. Now the largest market share (Research and Markets didn’t say how large) comes from the growing number of IoT deployments, the increasing focus on solution-centric security capabilities, and the rising vulnerabilities on endpoint devices.
In addition, the benefits offered by cybersecurity, such as high performance, reliability, comprehensive vulnerability coverage, efficiency, and security of real-time applications, add to the growth of the segment.
Similarly in 2018, by type the network security segment accounted for the largest share of the cybersecurity market. Now, the largest market share of this segment is attributed to the growing demand for web and content filtering, the increasing adoption of cloud computing technologies, and the increasing need to protect connected network infrastructure.
In another example, in both 2018 and now, large enterprises segment accounted for the biggest share of the cybersecurity market due to its strong infrastructure and management of cybersecurity platforms by skilled IT personnel.
Government Cyber Needs Dominate
Based on end-use industry, the government segment accounts for the largest share of the cybersecurity market. The large market share of this segment is attributed to the growing concerns regarding a data breach of intelligence, financial activities, research and development activities, and high spending on security solutions.
In 2018, North America accounted for the largest share of the cybersecurity market. The large share of this market is attributed to the increasing technological advancements in North America, developed internet infrastructure, high adoption of technology, and the presence of a majority of the established cybersecurity vendors and start-ups. The high proliferation of IoT devices and cloud-based services is further propelling the growth of the cybersecurity market across North America.
However, Asia-Pacific is projected to register the highest CAGR during the forecast period. The presence of fast-growing economies, improvement in the business environment and infrastructure, rapid digitization, and the increasing threats of cyberattacks on healthcare, banking, financial services and insurance, and retail industries in the region are expected to drive the growth of the cybersecurity market in Asia-Pacific.