Cybersecurity Market Size, Share & Industry Analysis, By Component (Solutions and Services), By Deployment (On-premises and Cloud), By Security Type (Network Security, Cloud Application Security, End-point Security, Secure Web Gateway, Application Security, and Others), By Enterprise Size (Small & Medium Enterprises (SMEs) and Large Enterprises), By Industry (BFSI, IT and Telecommunications, Retail, Healthcare, Government, Manufacturing, Travel and Transportation, Energy and Utilities, and Others), and Region Forecast, 2024-2032

The global cybersecurity market size was valued at USD 172.24 billion in 2023. The market is projected to grow from USD 193.73 billion in 2024 to USD 562.72 billion by 2032, exhibiting a CAGR of 14.3% during the forecast period. Additionally, the U.S. cyber security market is expected to significantly, reaching an estimated value of USD 166.73 billion in 2032, driven by rising number of E-commerce platforms in the market

Cybersecurity is a method of protecting systems, networks, and programs from digital attacks. Cyberattacks usually modify, access, or destroy sensitive information, extort users' money, or disrupt normal business processes. The increasing adoption of enterprise security solutions in manufacturing, Banking, Financial Services, and Insurance (BFSI), and healthcare is expected to drive market growth during the forecast period.

In the scope of the research report, we have included component solutions and services offered by companies, including IBM Corporation, Microsoft Corporation, Palo Alto Network, Inc., Broadcom, Inc., and others.

The COVID-19 pandemic severely affected the overall behavior of consumers and providers. The short-term closure of manufacturing units, job crunches, lack of resources, data breaches, and weakened supply chains has negatively affected business growth globally. Numerous small & medium businesses across the globe encountered permanent and temporary shutdowns. According to a survey conducted by NBER in 2020, 43% of respondents in the U.S. reported the temporary shutdown of small and medium businesses. The pandemic impacted small companies and start-ups globally, which significantly impacted the demand for internet security solutions and services.

Cybersecurity Market Trends

Integration of Technologies, such as the Internet of Things (IoT), Machine Learning, and Cloud to Drive Market Growth

Key players are implementing core technologies, such as machine learning, the Internet of Things (IoT), cloud technologies, and big data in their business security units. They are further adopting IoT and machine learning signature-less security systems. This adoption would help the players understand uncertain activities and trials and identify and detect uncertain threats.

With the rising growth in the IoT market, IoT solutions are gaining popularity across various information security applications. Consequently, adopting advanced technologies in internet security is considered a rapidly emerging market trend. Moreover, big data and cloud technology support enterprises in learning and exploring potential risks.

Another trend that aids the cybersecurity market growth is the increased adoption of cloud computing. Players in the market, including Cisco Systems, IBM Corporation, and others, focus on developing advanced solutions based on cloud computing. These services are designed on the Analytics as a Service (AaaS) platform, assisting users in identifying and mitigating threats rapidly.

The following are the major trending factors in 2024:

• The increasing importance of data privacy.


• Cybersecurity transformation due to AL and ML.


• Business strategy and security integration.


• Growing zero-trust architecture and approaching methods.

Cybersecurity Market Growth Factors

Rising Number of E-commerce Platforms to Drive Market Growth

The rising number of e-commerce platforms and technological advancements, such as artificial intelligence, cloud, and blockchain, have augmented internet security solutions in a connected network infrastructure. Additionally, e-commerce companies are focused on adopting network security solutions in their IT and electronic security systems. For instance, in September 2020, Askul Corp. adopted the advanced network security solution Shadankun, developed by Cybersecurity Cloud, Inc., in their business unit to secure their assets from cyber threats. The growing adoption of these technologies to eliminate cyber threats drives the demand for network security solutions.

The governments of India, Germany, France, Israel, Brazil, and other countries are investing in internet security solutions to secure their huge volume of confidential data and information. For instance, according to the European Cybersecurity Organization report, in 2020, the government in the U.K. financed around USD 2.30 billion to execute various network and internet security projects in defense and research. This investment would assist in driving the overall adoption rate for IT security solutions across multiple industries that will favor the market’s growth during the forecast period. 

In 2024, the cybersecurity industry is expecting a paradigm shift in a more coherent and business-involved approach that reflects a better understanding and management of cyber threats. This shift concerns the latest technology adoption and revolution, associated liability, maturity, integration, regulatory, quantification, communication, and behavioral shifts.

According to the report published by the ISC2 (International Information System Security Certification Consortium), approx. 92% of surveyed organizations have cybersecurity skill gaps in more than one business area. Moreover, these gaps are observed in cloud computing, AI/ML, and security, among others. This significant gap is expected to create a lucrative opportunity for the global cybersecurity market in the forecast period.

RESTRAINING FACTORS

Lack of Experts and Budget Constraints for SMEs to Hinder Market Growth

With the rising number of online security threats, the requirement for advanced solutions is growing exponentially. The obsolete network security solutions are not proficient enough in securing enterprises from advanced network, cloud, and endpoint security threats. Factors such as the lack of professionals and experts in developing and advancing security solutions are considered key restraining factors. The high cost of implementing and updating internet security solutions and services impedes the adoption of cybersecurity solutions among Small & Medium Enterprises (SMEs).

Cybersecurity Market Segmentation Analysis

By Component Analysis

Solutions Segment Leads with Increasing Prioritization of IAM Solutions to Safeguard Sensitive Data

Based on component, the market is divided into solutions and services.

The solutions segment accounts for the largest share of the market. The solutions in the market include firewall/antimalware/antivirus, Intrusion Detection and Prevention System (IDPS), Identity and Access Management (IAM), Data Loss Prevention (DLP) & disaster recovery, Security Information and Event Management (SIEM), and others. IAM solutions' popularity has grown among enterprises as they play a vital role in protecting digital assets by managing and controlling user access to sensitive information and resources within a firm.

The services segment is expected to grow with the highest CAGR owing to the increasing demand for specialized expertise and managed security services to address evolving cyber threats.

By Deployment Analysis

Growing Need for Scalable and Cost-Effective Cybersecurity Solutions to Drive Cloud Segment’s Growth

Based on deployment, the market is segmented into on-premises and cloud.

The cloud deployment segment holds the highest share of the market and is expected to continue its dominance during the forecast period. Cloud-based solutions can quickly scale up or down per business needs, making them suitable for businesses of all sizes. They offer lower upfront costs and predictable subscription-based pricing models, making them more cost-effective for businesses.

On-premise deployment of such solutions offers greater control over security configurations and customization options.

By Security Type Analysis

Network Security Segment’s Dominance Led by Increasing Virtual Enterprise Network Environments

Based on security type, the market is divided into network security, end-point security, cloud application security, secure web gateway, application security, and others.

Network security contributed the highest market share in 2023 due to increasing virtual enterprise network environments. It protects critical infrastructure and sensitive data and ensures the integrity of information in networks, making it indispensable for businesses of all sizes.

Cloud application security is projected to grow at the highest CAGR in the forecast period (2024-2032) owing to the rising adoption of cloud infrastructure in the U.S., ASEAN, Germany, and Brazil.

By Enterprise Size Analysis

Increasing Adoption of Network Security Solutions by SMEs to Lead to Market Dominance

Based on enterprise size, the market is divided into Small & Medium Enterprises (SMEs) and large enterprises.

The Small & Medium Enterprises (SMEs) segment is projected to grow at the highest CAGR over the forecast period. This growth is owing to the increasing demand for end-point security solutions across various e-commerce startups, including retail and financial sectors.

The large enterprises segment is predicted to grow considerably due to increasing demand for application security services.

By Industry Analysis

BFSI Takes Center Stage with Rising Demand for Robust Security and Digital Privacy Systems

Based on industry, the market is segmented into BFSI, IT and telecommunications, retail, government, manufacturing, travel and transportation, healthcare, energy and utilities, and others.

The BFSI segment holds the highest share in the market due to the increasing demand for robust security and digital privacy systems across financial, insurance, and banking institutes. Cloud application security solutions help banks, insurance, and financial organizations secure highly confidential data incorporated with real-time intelligence against insistent cyber-attacks.

The healthcare segment is expected to grow with the highest CAGR during the forecast period. Across the healthcare industry, internet security solutions aid in providing data protection for customer healthcare records.

REGIONAL INSIGHTS

Based on geography, the market is studied across North America, Europe, Asia Pacific, the Middle East & Africa, and South America.

North America is likely to dominate with the highest cybersecurity market share during the forecast period. The rising number of high-section security breaches drives the demand for cloud application security solutions across the region. The increasing number of online e-commerce platforms boosts market growth in the U.S. and Canada. The government implements advanced network security protocols to offer enhanced security measures to enterprises.

The growing investment by end-users and the high demand for enterprise security solutions boost the adoption of security solutions. Global providers in the market, such as Palo Alto Networks, Inc., Microsoft Corporation, IBM Corporation, and others, are investing in developing advanced network security solutions. For instance,

• In 2021, IBM Security announced the latest and improved services to enable companies to manage their cloud security strategy, standards, and controls in hybrid cloud settings. The services include third-party and cloud-native technology and IBM experience to assist enterprises in developing consistent security systems across their cloud ecosystems.

Europe is expected to grow with a notable CAGR during the forecast period. The growth is significantly driven by the increasing number of internet security projects and related investments by major companies operating in the market in the U.K., Germany, Spain, France, Italy, and others. Key providers install advanced IT security solutions to secure the highly intimate information related to manufacturing operations and increase their productivity.

Asia Pacific is expected to grow exponentially during the forecast period. India, China, and South Korea are expected to grow with an excellent CAGR during the forecast period. The growth is owing to the increasing number of service providers and rising investments by government and foreign investors in various security projects. According to a report released by the online security firm Symantec Corporation, in 2019, India has been graded amongst the top 10 countries to counter secure web gateway crimes.

Additionally, the Middle East & Africa (MEA) and South America are expected to grow considerably during the forecast period. This growth is due to the rising investment by the government and private enterprises in GCC, South Africa, and other countries. Furthermore, the increasing adoption of strategies such as mergers and partnerships among key players in the market will boost security solutions. For instance, in November 2018, Z Services extended its collaboration with TitanHQ. TitanHQ offers web filtering, email filtering, and email archiving Security-as-a-Service services. This partnership aims to provide security features such as compliance with the protection-as-a-service model, internet threat protection, and enriched business productivity.

List of Key Companies in Cybersecurity Market

Cisco Systems Focuses on Expanding its Product Offerings by Emerging Technologies Adoption

Cisco Systems, Inc. is focused on advancing its network capabilities by adopting emerging technologies, such as machine learning and advanced analytics. Cisco Systems offers comprehensive internet security solutions based on network-related areas. The offerings are superior threat protection, web, unified threat management, network and data center security, access and policy, email security, advisory, integration, and managed services.

• September 2023 – Cisco Systems, Inc., signed an agreement to purchase a cybersecurity firm ‘Splunk’ for USD 28 billion. The deal upsurges Cisco’s software business and capitalizes on the increasing use of artificial intelligence.

LIST OF KEY COMPANIES PROFILED:

• Cisco Systems, Inc. (U.S.)


• IBM Corporation (U.S.)


• Fortinet, Inc. (U.S.)


• Proofpoint, Inc. (U.S.)


• Microsoft Corporation (U.S.)


• Palo Alto Networks, Inc. (U.S.)


• Zscaler, Inc. (U.S.)


• Broadcom, Inc. (U.S.)


• F5 Networks, Inc. (U.S.)


• Check Point Software Technologies (Israel)


• Sophos Ltd. (U.K.)

KEY INDUSTRY DEVELOPMENTS:

• March 2024 – Darktrace partnered with Xage Security to aid firms in preventing insider threats and cyberattacks on critical infrastructures. The partnership combined AI-powered threat detection of Darktrace with zero trust protection of Xage Security, making identifying and responding to breaches easy.


• March 2024 – Liquid C2 partnered with Google Cloud and Anthropic (an artificial intelligence company) to offer advanced Cybersecurity solutions, cloud, and generative AI features to African firms. The partnership enabled Liquid C2 clients to improve security measures securing their digital assets.


• March 2024 – Check Point Software Technologies launched Harmony SaaS solution to prevent and protect from SaaS-based threats. The new launch protects clients by incorporating it into their existing infrastructure and aids in real-time threat prevention.


• December 2023 – IBM Corporation signed a contract with the NATO Communications and Information Agency (NCI Agency) to strengthen the Alliance's cybersecurity posture. This deal will improve asset management and security visibility across all NATO enterprise networks.


• December 2023 – IBM Consulting and Palo Alto Networks announced a strategic partnership to strengthen their end-to-end security postures and navigate evolving security threats. The partnership will jointly offer enhanced security solutions delivered by IBM Consulting Cybersecurity Services, integrating Palo Alto Networks security technologies.

REPORT COVERAGE

The research report highlights leading regions across the world to offer a better understanding to the user. Furthermore, the report provides insights into the latest industry growth trends and analyzes technologies that are being deployed at a rapid pace at the global level. It further offers some drivers and restraints, helping the reader gain in-depth knowledge about the market.

REPORT SCOPE & SEGMENTATION

ATTRIBUTE	DETAILS
Study Period	2019-2032
Base Year	2023
Estimated Year	2024
Forecast Period	2024-2032
Historical Period	2019-2022
Growth Rate	CAGR of 14.3% from 2024 to 2032
Unit	Value (USD billion)
Segmentation	By Component Solutions Firewall/Antimalware/Antivirus Intrusion detection and prevention system (IDPS)  Identity and Access Management (IAM) Data Loss Prevention (DLP) & Disaster Recovery Security information and event management (SIEM) Others (Encryption & Tokenization and Risk & Compliance) Services By Deployment On-premises Cloud By Security Type Network Security Cloud Application Security End-point Security Secure Web Gateway Application Security Others By Enterprise Size Small & Medium Enterprises (SMEs) Large Enterprises By Industry BFSI IT and Telecommunications Retail Healthcare Government Manufacturing Travel and Transportation Energy and Utilities Others By Region North America (By Component, Deployment, Security Type, Enterprise Size, Industry, and Country) U.S. Canada Mexico South America (By Component, Deployment, Security Type, Enterprise Size, Industry, and Country) Brazil Argentina Rest of South America Europe (By Component, Deployment, Security Type, Enterprise Size, Industry, and Country) U.K. Germany France Italy Spain Russia Benelux Nordics Rest of Europe Middle East & Africa (By Component, Deployment, Security Type, Enterprise Size, Industry, and Country) Turkey Israel GCC North Africa South Africa Rest of the Middle East & Africa Asia Pacific (By Component, Deployment, Security Type, Enterprise Size, Industry, and Country) China India Japan South Korea ASEAN Oceania Rest of Asia Pacific