Cyber Security Market Analysis North America, APAC, Europe, Middle East and Africa, South America - US, China, Japan, UK, Germany - Size and Forecast 2023-2027

Cyber Security Market Forecast 2023-2027

The Global Cyber Security Market size is estimated to grow by USD 203.5 billion accelerating at a CAGR of 13.57% between 2022 and 2027. The market is witnessing significant growth driven by the widespread adoption of mobile devices and the escalating need for robust IT security measures. Key trends include the integration of firewall technology with deceptive capabilities, and enhancing defense mechanisms against sophisticated cyber threats. Moreover, the surge in IT security budgets reflects the growing awareness and prioritization of cybersecurity across industries worldwide. This market growth and trends report also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.

What will be the size of the Cyber Security Market During the Forecast Period?

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The market is propelled by the increasing adoption of remote work and digital transactions, necessitating robust security measures. Key players like Cisco Systems and Broadcom are innovating in Managed Security Services (MSS) to address evolving cyber threats. Industries such as retail, finance, and healthcare are prioritizing internet security solutions to safeguard against cyberattacks. With advancements in cloud, machine learning, and artificial intelligence, cybersecurity strategies are bolstered to combat threats posed by blockchain and IoT technologies.

Market Dynamics and Customer Landscape

The market is experiencing rapid expansion fueled by the increasing adoption of digital technologies across industries. Leading players like McAfee, Cisco Systems, and Broadcom are at the forefront, offering robust solutions to combat cyber threats. With the rise of remote work and digital transactions, awareness of cybersecurity risks has heightened, driving demand for advanced security measures. Regulatory compliance, including HIPPA and GDPR, underscores the importance of data protection. Technologies such as AI, machine learning, and Big Data analytics are deployed for threat detection and prevention. The retail, financial, and healthcare sectors are prioritizing cybersecurity to safeguard sensitive information, propelling 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 Market Driver

The increase in the use of mobile devices arc furnaces route than the BF-BOF route is the key factor driving the cybersecurity market. With the increasing adoption of mobile devices, such as mobile phones, laptops, and tablets, the need for cybersecurity solutions is increasing. One of the major reasons for this is the increasing access to the Internet through such devices, which is increasing the chances of cyber threats. Furthermore, the use of mobile devices for personal and professional use is increasing access to critical data and information, which will increase the chance of unauthorized access in case of a stolen mobile device.

With technological advances, the acceptance of mobile devices for m-commerce, bill payment, and GPS is also increasing. The confidential information accessed by mobile devices requires high-level security against hacking. Hence, there is a high demand for advanced cybersecurity solutions, which in turn will boost the growth of the market in focus during the market forecast period.

Significant Market Trends

The adoption of IoT is the primary trend in the global cybersecurity industry. IoT enables better connectivity and resolves all critical situations. The technology is expected to be integrated with advanced features in the future, empowering it to perform better functions. For instance, devices installed in homes can be controlled with mobile applications, such as controlling power and temperature with thermostats. Certain wearable devices are expected to help count the number of stairs climbed, calories burned, and distance traveled. IoT has enabled proper communication between systems, devices, and services.

This has facilitated the transmission of a huge amount of data through networks at high speed. Owing to an increase in the use of wireless networks for interaction between people and machines, IoT is being affected by cyber threats. Thus, organizations implementing the IoT are investing heavily in cyber security solutions to overcome their concerns about data theft which in turn will boost the growth of the market in focus during the forecast period.

Major Market Challenge

The high cost of deployment is a major challenge to the global cybersecurity industry growth. One of the major challenges for the global market is the high deployment cost of cybersecurity solutions. The total installation cost includes the cost of software licensing, system designing and customization, implementation, training, and maintenance for an individual organization. An organization must recruit IT staff, for proper implementation of the cyber security software, which incurs additional costs. In addition, existing employees must be trained in the functioning of cybersecurity solutions. The maintenance of on-premises cyber security solutions requires in-house IT administration staff to manage and control issues, which would result in high implementation costs.

Furthermore, a cyber security solution contains additional hidden costs, such as costs involved in providing knowledge, experience, and skill development of the solution to understand its functionality. The high cost is a challenge for the organization to implement in-house cybersecurity solutions, which is inhibiting the growth of the global cybersecurity industry. Thus, the high cost of deployment will impede the growth of the market in focus during the forecast period.

Customer Landscape

This market research and growth 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 Cyber Security Market Customer Landscape

Who are the Major Market Companies?

Companies 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.

AO Kaspersky Lab - The company offers cyber security such as Kaspersky Total Security. The company also offers solutions such as antivirus, internet security, cloud-based security, and other security solutions to individual customers that can be used on a single PC or mobile device.

The report also includes detailed analyses of the competitive landscape of the market and information about 15 market companies, including:

• Booz Allen Hamilton Holding Corp.
• Broadcom Inc.
• Check Point Software Technologies Ltd.
• Cisco Systems Inc.
• Dell Technologies Inc.
• Fortinet Inc.
• F Secure Corp.
• General Dynamics Corp.
• Hewlett Packard Enterprise Co.
• International Business Machines Corp.
• Juniper Networks Inc.
• Lockheed Martin Corp.
• McAfee LLC
• Microsoft Corp.
• Northrop Grumman Corp.

Qualitative and quantitative analysis of companies 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 companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.

Market Segmentation

This report extensively covers market segmentation by deployment (on-premise and cloud-based), end-user (government, BFSI, ICT, manufacturing, and others), and geography (North America, APAC, Europe, Middle East and Africa, and South America). The deployment segment of the market is witnessing significant advancements driven by emerging technologies like Big Data Analytics and Cloud Computing. Organizations are prioritizing compliance with regulatory standards such as HIPPA and GDPR to ensure robust data protection measures. With the proliferation of digital technologies, cybersecurity solutions are increasingly vital in safeguarding sensitive information. Heightened awareness of cybersecurity risks further underscores the importance of deploying robust security frameworks to mitigate threats and vulnerabilities effectively. Compliance with standards like CSIS is crucial for organizations aiming to fortify their cybersecurity posture and navigate the evolving threat landscape with confidence.

By Deployment 

The market share growth by the on-premise segment will be significant during the forecast period. On-premises cyber security is considered highly secure as it is managed and maintained by enterprises in the end-user industry. Enterprises have complete control over their on-premises solutions because of monitored and restricted access, and it also allows them to customize the cyber security solution according to their requirements. Such factors will increase segment growth during the forecast period.

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The on-premise segment was valued at USD 63.27 billion in 2017 and continued to grow by 2021. The market for on-premises cyber security is expected to decline due to the growing adoption of cloud-based cyber security. Also, for on-premises cyber security, enterprises must buy software licenses as well as maintain IT staff to manage the solution, regularly upgrade the software, and install data-protection solutions. It also requires in-house hardware, which, in turn, requires high capital investment. This is expected to limit the growth of the on-premises solutions segment during the forecast period.

Key Regions

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North America is projected to contribute 34% by 2027. Technavio’s analysts have elaborately explained the regional trends and drivers that shape during the forecast period. North America is the largest geographical segment of the global market and will continue to remain the largest segment during the forecast period. The cybersecurity industry in North America is expected to grow at a steady rate during the forecast period. The key market in North America is the US. A few important factors contributing to the market growth in North America are the increased adoption of cyber security solutions by end-user industries, the shift of conventional IT services to internet-based IT systems, growth of end-user industries, increased government initiatives for the implementation of cyber security solutions, and the growing number of IT companies and IT startups. Although the saturating economic condition of the US is expected to hamper market growth during the forecast period, several government initiatives and regulations over the use of cyber security solutions are expected to fuel the demand for cyber security solutions in North America. 

Market Analyst Overview

The market is witnessing significant growth driven by the increasing adoption of digital technologies and the rising awareness of cybersecurity risks across various sectors including retail, financial, and healthcare. Organizations are leveraging advanced technologies such as AI, machine learning, and big data analytics to enhance their cybersecurity posture and protect against evolving threats. With the proliferation of cloud computing and Internet of Things (IoT) devices, ensuring data protection and regulatory compliance under frameworks like HIPPA and GDPR has become paramount. Additionally, the shift towards remote work and the rise of digital transactions on e-commerce platforms necessitate robust internet security solutions and services and block chain technology to safeguard sensitive information and mitigate cyber threats.

The market is experiencing rapid growth due to the escalating frequency of cyber attacks and operational disruptions across various sectors, particularly in retail and financial industries. Organizations are increasingly investing in cybersecurity workforce and deploying advanced technologies such as artificial intelligence to fortify their defenses against evolving threats. Additionally, the adoption of SaaS and IaaS models for cloud-based cybersecurity solutions has surged, although challenges persist in deployment and implementation. Network security remains a critical focus area, with the deployment of Next-Generation Firewalls (NGFWs) and emphasis on application security. The cybersecurity market ecosystem encompasses a wide range of sectors including IT, telecommunications, travel, transportation, energy, and utilities.

The market is witnessing significant growth as organizations, especially in the retail and financial sectors, prioritize safeguarding their digital assets against evolving threats. Entities are increasingly turning to advanced compliance standards like PCI DSS and ONDC to enhance their security posture. With the rise in cyber threats, the demand for threat detection and response solutions has surged, driving the adoption of Cloud Security Services. However, the shortage of skilled cybersecurity professionals remains a challenge. Organizations are investing in MSS solutions and collaborating with institutions like the NBER and CSIS to fortify their cyber defenses and mitigate risks in the ever-evolving cyber landscape.

Segment Overview

The market analysis and report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027.

• Deployment Outlook 
  • On-premise
  • Cloud-based

• End-User Outlook 
  • Government
  • BFSI
  • ICT
  • Manufacturing
  • Others

• Region Outlook 
  • North America
    • The U.S.
    • Canada
  • Europe
    • The U.K.
    • Germany
    • France
    • Rest of Europe
  • APAC
    • China
    • India
  • South America
    • Chile
    • Argentina
    • Brazil
  • Middle East & Africa
    • Saudi Arabia
    • South Africa
    • Rest of the Middle East & Africa

Cybersecurity Market Scope
Report Coverage	Details
Page number	180
Base year	2022
Historic period	2017-2021
Forecast period	2023-2027
Growth momentum & CAGR	Accelerate at a CAGR of 13.57%
Market growth 2023-2027	USD 203.5 billion
Market structure	Fragmented
YoY growth (%)	11.69
Regional analysis	North America, APAC, Europe, Middle East and Africa, and South America
Performing market contribution	North America at 34%
Key countries	US, China, Japan, UK, and Germany
Competitive landscape	Leading companies, Market Positioning of companies, Competitive Strategies, and Industry Risks
Key companies profiled	AO Kaspersky Lab, Booz Allen Hamilton Holding Corp., Broadcom Inc., Check Point Software Technologies Ltd., Cisco Systems Inc., Dell Technologies Inc., Fortinet Inc., F Secure Corp., General Dynamics Corp., Hewlett Packard Enterprise Co., International Business Machines Corp., Juniper Networks Inc., Lockheed Martin Corp., McAfee LLC, Microsoft Corp., Northrop Grumman Corp., Raytheon Technologies Corp., Sophos Ltd., The Boeing Co., and Trend Micro Inc.
Market dynamics	Market trends and 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 market 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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What are the Key Data Covered in this Market Research Report?

• CAGR of the market during the forecast period
• Detailed information on factors that will drive the market growth and forecasting between 2023 and 2027
• Precise estimation of the size of the market size and its contribution to the parent market
• Accurate predictions about upcoming trends and changes in consumer behavior
• Market growth analysis across North America, APAC, Europe, Middle East and Africa, and South America
• A thorough analysis of the market’s competitive landscape and detailed information about companies
• Market forecasting of factors that will challenge the growth of market companies

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