The worldwide cybersecurity market is defined by market sizing estimates that range from $75 billion in 2015 to $170 billion by 2020.
- Market research firm Gartner says global spending on IT security is set to increase 4.7 percent in 2015 to $75.4 billion, and the world will spend $101 billion on information security in 2018.
- The cyber security market is estimated to grow to $170 billion (USD) by 2020, at a Compound Annual Growth Rate (CAGR) of 9.8 percent from 2015 to 2020, according to a report from Markets and Markets. The aerospace, defense, and intelligence vertical continues to be the largest contributor to cybersecurity solutions.
- North America and Europe are the leading cybersecurity revenue contributors, according to a report from TechSci Research. Asia-Pacific is rapidly emerging as a potential market for cyber security solution providers, driven by emerging economies such as China, India and South-East Asian countries, wherein, rising cyber espionage by foreign countries is inducing the need for safeguarding cyber space.
- According to IDC, the hot areas for growth are security analytics / SIEM (10 percent); threat intelligence (10 percent +); mobile security (18 percent); and cloud security (50 percent). According to a report from Markets and Markets, the cloud security market is expected to be worth $8.7 billion by 2019.
- The “PwC Global State of Information Security Survey 2015” found that U.S. information security budgets have grown at almost double the rate of IT budgets over the last two years.
- Million dollar plus cybersecurity deals (vendors selling to end-users) are on the rise. In a research note earlier this year, analysts at FBR & Co., an Arlington, Va. based investment banking and M&A advisory firm, indicate that the number of seven-figure (cybersecurity) deals have increased by 40 percent year-over-year.
- “Given the ongoing, evolutionary nature of cyber-attacks, coupled with the relatively low share of total IT spend security accounts for, we believe industry growth rates will remain stronger than industry forecasts” states Columbia Threadneedle Investments. We expect 10-15 percent growth over the next 3-5 years versus the 8-10 percent forecasted by industry analysts like Gartner. This creates immense opportunities for innovative cybersecurity companies as well as potentially outsized investment returns for those capitalizing on the theme.Cyber attacks costing businesses $400 billion to $500 billion + a year.RSA Conference USA 2016 | Where the world talks security | Feb. 29-Mar. 4, 2016 | San Francisco CA
- The British insurance company Lloyd’s estimates that cyber attacks cost businesses as much as $400 billion a year, which includes direct damage plus post-attack disruption to the normal course of business. Some vendor and media forecasts put the cybercrime figure as high as $500 billion and more.
- According to the “World Economic Forum (WEF) Global Risks 2015 Report”, most cybercrime incidents go unreported, and few companies come forward with information on their losses. That is not surprising given the risk to an organization’s reputation and the prospect of legal action against those that own up to cybercrime.
- The World Economic Forum (WEF) says a significant portion of cybercrime goes undetected, particularly industrial espionage where access to confidential documents and data is difficult to spot.
- TechSci Research says the banking and financial services sector has been the prime target of cyber criminals over the last five years, followed by IT & telecom, defense, and the oil and gas sector.
- Cybersecurity insurance is one of the fastest growing sectors in the insurance market, according to the PwC Global State of Information Security Survey 2016. A recent PwC report forecasts that the global cyberinsurance market will reach $7.5 billion in annual sales by 2020, up from $2.5 billion this year.
- A recent study published by the Atlantic Council and the Zurich Insurance group estimates that cyberattacks could cost up to $90 trillion by 2030 if cybersecurity fails to advance at a rapid pace.
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Credit: CyberSecurity Ventures