Even as the digitalisation of businesses is rising, cybersecurity has emerged as the top priority for organisations and consumers, and their expenses on cybersecurity are also increasing. According to a report, the global cybersecurity revenue is expected to register a compound annual growth rate (CAGR) of 8.7 per cent to $334 billion in 2026, from $220 billion in 2021.
“Cybersecurity has emerged as a top priority for organizations and consumers alike, especially following the spread of the COVID-19 pandemic, which led to new ways of living and working with a huge reliance on digital infrastructure that remains vulnerable to cyberattacks,” data and analytics company GlobalData has said in its report.
It added that increasing regulatory and government focus on data localisation for ensuring the security of consumer as well as enterprise IT data will be among the major cyber security market growth drivers. The cyber security market forecasts look promising with the proliferation of digital transformation, cloud, and IoT & connected devices.
The report said the Asia-Pacific cybersecurity market led by China, India, and Japan captured a sizeable revenue share of the overall demand in 2021. “The Indian cybersecurity market witnessed growth at CAGR exceeding 10 per cent, higher than China and Japan. The evolving BYOD trend in the country is expected to favor growth over the forecast period.
The report said Europe emerged as the second-highest market in terms of cybersecurity demand in 2021. Government investments to secure networks and proliferation of small-medium business contributed to the regional demand in 2021. The regional market is expected to grow at a CAGR exceeding 5% from 2021 to 2026.
The surge in the volume and sophistication of cyberattacks across organisations is expected to favour the enterprise cybersecurity market revenue growth over the forecast period.
The report said, “The BFSI sector is the largest end-use market for enterprise cybersecurity with revenue from it estimated at $20.5 billion for 2021 and set to grow over $30 billion by 2026 over the forecast period. The major factor in the growth in the IT security market for the BFSI sector is the shift towards digital operations and extensive adoption of online banking.”
It also said that towards the end of 2021, the number of M&A deals involving cybersecurity companies reached 40 a month. Moreover, with increasing numbers of ransomware and supply chain attacks, there is every likelihood that the number of cybersecurity M&A deals will continue to rise. “The consumer cyber security market share is consolidated with vendors including NortonLifeLock Inc., ESET spol. s r.o., McAfee LLC, AVAST Software s.r.o., Trend Micro Incorporated, Kaspersky, BlackBerry (Cylance), among others.”
Madhumita Chaudhary, practice head at GlobalData, said, “Despite the continued investments and growth in the cyber security space, the frequency of attacks and breaches have shown no signs of abatement. More than billions of records containing critical information were compromised since the pandemic. As such, enterprise cyber security will continue to dominate the overall cyber security demand in terms of market share, capturing a sizeable revenue share exceeding 90 per cent in 2021.”
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