Marketsandmarkets has published a new report revealing that the global cyber security market size is projected to grow from USD 190.4 billion in 2023 to USD 298.5 billion by 2028 at a CAGR of 9.4% during the forecast period. The expansion of the cyber security market is primarily driven by the escalating number and sophistication of cyber threats as organisations and individuals increasingly operate in a digitally interconnected world.
The widespread adoption of technologies like cloud computing, the IoT, and AI further amplifies the need for robust cyber security measures. Additionally, stringent regulatory requirements for data protection across various industries compel businesses to enhance their cyber security frameworks. The rapid digital transformation, coupled with a heightened awareness of cyber risks, also plays a crucial role in fueling the growth of the cyber security market.
Historically healthcare lags behind in cyber security investment
The healthcare and life sciences sector is expected to grow at the highest CAGR in the cyber security market for several reasons. The sector deals with vast amounts of sensitive personal health information, making it a prime target for cyber attacks. With the increasing use of technology in healthcare, such as electronic health records and connected medical devices, there is a larger surface for potential cyber threats. These technologies, while improving patient care and operational efficiency, also create vulnerabilities that need strong cyber security measures. Additionally, the healthcare sector must comply with stringent regulations regarding patient data protection, like HIPAA in the US. Historically, the healthcare sector has not been as heavily invested in cyber security as others, which means there is a lot of ground to cover quickly. Thus, the need for rapid improvement in cyber security, driven by both increasing threats and regulatory requirements, is why the healthcare and life sciences vertical is anticipated to see significant growth in cyber security investment and development.
Growing number of complex threats
The solutions segment in the cyber security market is anticipated to have the largest market size due to several key factors. Firstly, the growing number of cyber threats, which are becoming more complex, requires sophisticated and comprehensive cyber security solutions. These threats are no longer limited to large organisations but affect businesses of all sizes and individuals, broadening the market for cyber security solutions. Secondly, the rapid digital transformation across various industries has made businesses more reliant on digital infrastructure. This shift demands robust cyber security measures to protect sensitive data and ensure business continuity.
Increased demand to safeguard AI, IoT and cloud computing
Additionally, as companies increasingly adopt technologies like cloud computing, the IoT, and AI, the need for advanced security solutions to safeguard these technologies becomes more pronounced. Furthermore, regulatory requirements across the globe are becoming stricter in terms of data protection, pushing companies to invest in reliable cyber security solutions to comply with these regulations. All these factors contribute to the growing market size of the solutions segment in the cyber security landscape.
Asia is experiencing a surge in digital activities
The Asia Pacific region, encompassing well-established economies like China and Japan and emerging economies like India, is poised for the highest CAGR during the forecasted period due to several key factors. Rapid economic growth in the Asia Pacific region led to a significant increase in digitalisation across businesses and government sectors, creating a larger target for cyber threats. This surge in digital activities necessitates stronger cyber security measures. Additionally, the region is experiencing a rapid expansion in internet usage and smartphone adoption, further increasing the need for robust digital security. Many countries in the Asia Pacific are also developing and enforcing stricter data protection regulations, compelling businesses to enhance their cyber security infrastructure. Moreover, as industries in the region such as banking, healthcare, and retail increasingly adopt digital technologies, they become more vulnerable to cyber attacks, thus driving the demand for advanced cyber security solutions. The combination of these factors contributes to the anticipated high growth rate in the cyber security market in the Asia Pacific region.
Market players
There is a wide range of players in this market including large conglomerates and multi-national corporations, most are from the US, with a few from other countries such as the UK, Ireland, India, U.A.E and Finland. Some of those mentioned by the researchers in the report, for example, are IBM, Cisco, Microsoft, Palo Alto Networks, Fortinet, Check Point, Trellix, Trend Micro, Rapid7, Micro Focus, AWS, Oracle, Accenture, Cyberark, Sentinelone, Qualys, F-secure, F5, RSA Security, Sophos.
Source: SECURITY WORLD MARKET