The cyber security market consists of security software and hardware such as encryption, authentication, identity and access management, antivirus and malware, security and vulnerability management, risk and compliance management, and intrusion detection systems. Cyber security protects networks, programs, and data from digital attacks. It is crucial for governments and businesses of all sizes to protect highly sensitive data and intellectual property from cyber threats. The need for effective cyber security has increased dramatically with the digital transformation across various industries. The rising frequency of cyber-attacks is compelling organizations to strengthen their security infrastructure with advanced security solutions. The global cyber security market is estimated to be valued at US$ 218.79 Bn in 2024 and is expected to exhibit a CAGR of 8.1% over the forecast period 2024 to 2031.
Key Takeaways
Key players operating in the cyber security market are Symantec Corporation, IBM Corporation, Check Point Software Technologies, Microsoft Corp, Trend Micro Incorporated, Lockheed Martin Corporation, Sophos Ltd, Intel Corporation, Verizon Communication Inc., and SecureWorks Inc.
Key opportunities in the market include growing demand for cloud-based security solutions due to an increasing number of organizations migrating to cloud-based applications and services. The market is also witnessing surging adoption of IoT devices that need to be secured from cyber-attacks.
Globally, North America holds the largest share in the cyber security market due to stringent data protection regulations. However, Asia Pacific is expected to witness the fastest growth rate owing to increasing investments by key players and governments in advanced cyber security infrastructure in major countries like China and India. Rapid digitalization and Internet penetration in the region have also fueled the demand for robust cyber security.
Market Drivers
One of the key drivers for the cyber security market growth is the rising prevalence of sophisticated cyber-attacks. According to a report, over 1.5 million new malware threats are detected daily. Ransomware attacks, phishing scams, data breaches are on the rise causing financial and reputational losses to both individuals and businesses. This has boosted investments in advanced cyber defence systems.
Market Restrains
High costs associated with the deployment and maintenance of cyber security solutions is a major challenge, especially for SMEs and startups having limited budgets. Lack of skilled security professionals also restrains the growth of the cyber security industry.
Segment Analysis
The cyber security market is dominated by the network security segment. Network security helps organizations secure their networks and endpoints against unauthorized access, malware, and networking attacks through solutions like firewalls, virtual private networks (VPNs), antivirus software and intrusion detection systems. The network security segment accounts for over 30% of the total cyber security market share due to growth in cloud computing models and increasing digitalization across industries.
The cloud security sub-segment is also growing at a high rate due to rising adoption of cloud-based solutions by organizations for cost savings and scalability. Over 50% of organizations globally are predicted to use public cloud platforms by 2031, driving the demand for cloud security technologies that help protect cloud infrastructure and the data stored on it.
Global Analysis
The North American region currently dominates the cyber security market with a share of over 35% due to stringent data privacy regulations and rising defense spending in the US. However, the Asia Pacific region is expected to experience the highest CAGR during the forecast period owing to digital transformation initiatives by governments and increasing internet penetration. Countries like China, India, and Japan are aggressively focusing on strengthening their cyber defense capabilities which is fueling market growth. Government organizations are also collaborating with private cyber security companies in the region to build comprehensive protection against cyber threats.
*Note:
- Source: Coherent Market Insights, Public sources, Desk research
- We have leveraged AI tools to mine information and compile it
