Ever-growing technology advancements are presenting enormous opportunities to the IT industry.

However, cyber threats are also growing in parallel challenging the technology developments.

The scope and type of cybersecurity threats are fast evolving and security has become the major bottleneck for companies of all sizes, globally.

These challenges present a strong future for the growth of the global cybersecurity market.

As per the market estimates, the global cybersecurity market is estimated to grow from a market size of USD 152.71 billion in 2019 to USD 248.6 billion by 2023, at a CAGR of 10.2 percent.

The rise in frequency and advancements of cyberattacks, increased usage of digital technologies like IoT, strict data protection regulations targeting information security and increasing rate of supply-chain-based attacks targeting the software supply chain are going to be the key drivers for cybersecurity demand.

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Global Cybersecurity Market Demand by Segment

• By Component, the services segment is expected to witness the highest CAGR due to the demand for cybersecurity managed services over the forecast period. An increase in cloud adoption as a means to critical infrastructure management is going to drive the demand for cybersecurity managed services.
• By Solution, the encryption segment is estimated to grow at the fastest rate owing to the growing demand among enterprises for data security needs.
• By Deployment, cloud-based deployment is expected to register the highest CAGR owing to its demand across organizations for critical data storage.
• By Region, North America is going to lead the global cybersecurity market, followed by Europe, because of the presence of market-leading players. Whereas, Europe is going to be next on the list for its GDPR compliance. Whereas, factors like economic development, increased scope of cyberattacks, increasing smartphone penetration, and cloud-based services, are among other factors estimated to drive the demand.
• By Sector, the Government sector, followed by BFSI and healthcare, presents a great opportunity for the global cybersecurity market. Increasing BYOD adoption and IoT trends are going to drive the demand.
• By Drivers, the growing frequency of attacks on endpoints, networks, data, and other crucial points that can cause huge financial losses are making cybersecurity a need of the hour for enterprises, globally. This is eventually driving the demand for cybersecurity services.

Usage of pirated software and counterfeiting measures due to high open source usage.

Some other facts leading to cybersecurity services demand include:

According to a Global Software Survey,

• 37 percent of software installed on PCs globally are unlicensed versions
• 46 percent of organizations are worried about malware attacks due to unlicensed versions
• 40 percent are worried about attacks through unauthorized access to network infrastructure
• 30 percent are worried about ransomware attacks
• 28 percent are concerned about system outages and downtime issues
• 25 percent deeply concerned about the time and cost associated with network disinfection

Opportunities

AI and Machine Learning present a good opportunity for cybersecurity vendors in addressing critical threats. By analyzing data records, AI and ML techniques identify and record threat instances and try to address the occurrence of similar instances in the future.

Blockchain is another technology that most enterprises are relying on to deal with DDoS attacks.

Challenges

The lack of skilled personnel is one of the primary challenges that organizations are facing in implementing cybersecurity solutions. According to a 2016 Cybersecurity Trends report, more than two-thirds of organizations report a dearth of skilled cybersecurity professionals, globally.

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Only 13 percent of companies report existence of related talent at the local level.

According to the Information Systems Audit and Control Association (ISACA), the world required around 2 million cybersecurity professionals as of 2019.

This makes it evident that the lack of skilled professionals is the key hindering factor in the global cybersecurity market.