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The information security products and services market is estimated to grow at a CAGR of 17.36% between 2022 and 2027. The size of the market is forecasted to increase by USD 242.25 billion. The growth of the market depends on several factors, including advanced and sophisticated threats, increased dependence on the Internet, and the increase in the number of smart-connected devices.
This report extensively covers market segmentation by deployment (on-premise and cloud), type (hardware, software, and services), and geography (North America, Europe, APAC, South America, and Middle East and Africa). It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.
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The increase in the number of smart connected devices is notably driving the market growth, although factors such as system integration and interoperability issues may impede the market growth. Our researchers analyzed the data with 2022 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
Key Information Security Products and Services Market Driver
The increase in the number of smart connected devices is notably driving the information security products and services market growth. Connected devices include imaging devices with cellular communications, portable navigation devices, and media players. The demand for information security products and services is expected to grow during the forecast period, as they help end-users simplify the management, monitoring, and maintenance of connected devices.
Technologies such as radio frequency identification (RFID), sensors, barcodes, and global positioning system (GPS) help in the efficient monitoring and managing of physical assets in many sectors. For instance, RFID-tagged products are easier to track in the supply chain, and RFID helps manage and maintain inventory levels. This increases the efficiency of enterprises and improves business values. In addition, the adoption of IoT analytics helps enterprises experience significant improvements in business processes. These factors will fuel the growth of the global cyber security market during the forecast period.
Significant Information Security Products and Services Market Trend
The increase in the adoption of BYOD is a key trend influencing the information security products and services market growth. Enterprise mobility has gained traction in corporate offices, as employees prefer to use their own smartphones, tablets, and portable computers at work. The adoption of BYOD requires specific information security solutions and IT service delivery frameworks to ensure secure and productive work environments.
The BYOD policy is a cost-effective solution, as it enhances mobility and improves employee productivity. BYOD programs help companies reduce their costs by minimizing capital expenditure and improving efficiency. For the successful implementation of BYOD programs, vendors provide information security solutions to create an environment where the workforce can use personal devices through robust Internet connectivity infrastructure. These factors will support the growth of the global market during the forecast period.
Major Information Security Products and Services Market Challenge
System integration and interoperability issues may impede the information security products and services market growth. The adoption of advanced technologies in many industries, such as BFSI, telecom, transportation, and the public sector, is increasing significantly, which leads to system integration and interoperability issues. Some of the key issues faced by information security products and service providers include technical issues, server errors, and other malfunctions. Therefore, vendors must conduct several trials before introducing information security solutions in the market to ensure high accuracy.
System integration and interoperability issues primarily occur when organizations update their IT systems or merge their IT infrastructure with acquired companies. However, as most information security solutions currently available in the market are standardized, they may not comply with an organization's requirements. Moreover, many vendors are unable to provide customized solutions to individual organizations due to the excessive costs involved. This is discouraging organizations from implementing information security solutions, which in turn, may hinder cyber security market growth during the forecast period.
Key Information Security Products and Services Market Customer Landscape
The report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Global Information Security Products and Services Market Customer Landscape
Vendors are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
The report also includes detailed analyses of the competitive landscape of the market and information about 15 market vendors, including:
Qualitative and quantitative analysis of vendors has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize vendors as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize vendors as dominant, leading, strong, tentative, and weak.
The market share growth by the on-premise segment will be significant during the forecast period. The on-premises security segment is growing at a slower pace of around 6% during the forecast period. As on-premises information security is highly secure compared to cloud solutions, this market segment is dominated by large organizations as customers are more concerned about functionalities than cost-effectiveness.
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The on-premise segment showed a gradual increase in the market share of USD 55.55 billion in 2017 and continued to grow by 2021. Large organizations generally prefer on-premise solutions, as customers are more concerned about functionalities than cost-effectiveness. Enterprise risk management is highly important in the current environment, where cyber threats are becoming more advanced. A data leak can significantly harm the reputation of an organization or its stakeholders. These factors will drive the growth of this segment during the forecast period.
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North America is estimated to contribute 35% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. The US and Canada are the key contributors to the market in the region. The growth of the regional market is attributed to factors such as the availability of adequate infrastructure, the high frequency and volume of malware, the presence of numerous global financial institutions and large companies, compliance regulations, and increased adoption of advanced technologies among organizations.
This report forecasts the contribution of all the segments to the growth of the market. In addition, we have included the COVID-19 impact and the recovery strategies for each segment. During 2020 and 2021, regular business operations across North America were restricted due to the COVID-19 pandemic. This had a negative impact on the information security products and services market in North America. However, the cloud-based segment contributed to the growth of the market, as employees of many organizations were working remotely. Moreover, after the number of COVID-19 cases declined, organizations slowly picked up their pace. The advent of new technologies and innovations in cloud and IoT, along with the growing popularity of digital transformation, raised the importance of cybersecurity. These factors are expected to help the market record a high growth rate during the forecast period.
The report forecasts market growth by revenue at global, regional, and country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027.
Information Security Products and Services Market Scope |
|
Report Coverage |
Details |
Page number |
168 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 17.36% |
Market growth 2023-2027 |
USD 242.25 billion |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
15.93 |
Regional analysis |
North America, Europe, APAC, South America, and Middle East and Africa |
Performing market contribution |
APAC at 35% |
Key countries |
US, China, Japan, UK, and Germany |
Competitive landscape |
Leading Vendors, Market Positioning of Vendors, Competitive Strategies, and Industry Risks |
Key companies profiled |
Broadcom Inc., Check Point Software Technologies Ltd., Cisco Systems Inc., CrowdStrike Holdings Inc., Dell Technologies Inc., Fortinet Inc., Fujitsu Ltd., Hewlett Packard Enterprise Co., International Business Machines Corp., Juniper Networks Inc., LogRhythm Inc., McAfee LLC, Optiv Security Inc., Palo Alto Networks Inc., RSA Security LLC, Securonix, SonicWall Inc., TIBCO Software Inc., Trend Micro Inc., and VeraCore Software Solutions Inc. |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, and Market condition analysis for the forecast period. |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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