U.S. Cyber Security Market Size, Share & Industry Analysis, By Security Type (Network Security, Cloud Application Security, End-point Security, Secure Web Gateway, Application Security, and Others), By Enterprise Type (Large Enterprises and Small & Medium (SMEs) Enterprises), By Industry (BFSI, IT & Telecommunication, Retail, Healthcare, Government, Manufacturing, Travel & Transportation, Energy & Utilities, and Others), and Country Forecast, 2024-2032

The U.S. cyber security market size was valued at USD 59.27 billion in 2023. The market is projected to grow from USD 65.70 billion in 2024 to USD 166.73 billion by 2032, exhibiting a CAGR of 12.3% during the forecast period.

Cyber security is the practice of protecting network user data from unauthorized access or theft, and businesses are heavily investing in protecting their assets and data against hackers. The demand for security solutions is increasing among various industries in the U.S. as the country is facing rising and persistently sophisticated malicious cyber campaigns that pose a threat to the private sector, public sector, ultimately, the security and privacy of the American people. As a result, the U.S. government is working to strengthen the country's cybersecurity capabilities and improve its overall technology governance strategy. The cyber threats are becoming more advanced, with ransomware attacks resulting in billions of dollars in economic losses in the U.S. According to IBM, the average cost of a ransomware attack in 2022 was over USD 4.5 billion.

The overall cyber security market in the U.S. is predicted to rise with a considerable CAGR during 2024-2032. The growth in the market is owed to the rising demand for security solutions, such as operation Technology and Industrial control systems (ICS), hardware and software across industries, including healthcare, electronics, and IT & telecom. With the rising investment in terms of business strategies, such as product launches, business expansion, mergers, acquisitions, and others, the market is expected to grow at a substantial CAGR during the forecast period.

During the COVID-19 pandemic, many companies allowed their employees to work from home. Before the pandemic, only about 7% of private business employees had the option to telecommute. According to a report published by Upwork, over 35 billion Americans will be working remotely by the end of 2025, an 87% increase compared to pre-pandemic statistics. With the rising use of in-home networks and devices connected to corporate platforms, cybercriminals can easily breach critical corporate systems and services. Furthermore, to deal with the pandemic attack, organizations in healthcare, IT & telecom, manufacturing, and other industries adopted advanced security measures for breach detection.

Impact of Generative AI on the Market

Generative AI plays a significant role in cybersecurity, and in some cases, generative AI is already supplementing cybersecurity management tools in a highly strategic manner. Generative AI leverages advanced algorithms and neural networks trained on vast datasets to produce content that simulates the original data’s form and structure. Generative AI models, including Variation Auto encoders and Generative Adversarial Networks, are used to create images, text, and video, and this process involves continuous feedback loops, where the output of the model is constantly evaluated and refined, enhancing their realism and accuracy over time.

Generative AI model trained on huge historical cybersecurity datasets helps to identify patterns and trends that help to predict future threats. Instead of taking action on threats as they occur, cybersecurity professionals can use GenAI to forecast the threat before it occurs and to enhance their existing security tools. GenAI offers an additional security layer by generating unique, complex passwords or encryption keys that are extremely difficult to crack. In the U.S., in 2023, the AI cybersecurity budget surged by 51% compared to 2021, and it is estimated that it will increase by an additional 43% by 2025. Generative AI has also given rise to a new generation of cyber threats as hackers have more opportunities to exploit vulnerabilities and more ways to execute their malicious campaigns.

U.S. Cyber Security Market Trends

Ongoing Trend of Zero Trust Security to Aid Market Growth

The term Zero Trust Security gained popularity in 2023, evolving from a niche approach to a fundamental aspect of cybersecurity strategy. It is gaining popularity as it works on the principle of “never trust, always verify.” Zero Trust Security model focuses on securing the environment and assumes that threats can exist both inside and outside the network. In the zero trust model, every access request is treated as a potential threat and requires strict access controls, identity verification, and continuous monitoring of network activities.

The zero trust model is effective in mitigating the risk posed by insider threats and lateral movement of attackers within a network and is designed to deliver security beyond the network layer and offer security at the application level. As per industry experts, around 10% of large enterprises will have zero trust security model by 2026. According to Cybertalks, the zero trust security model can reduce the cost of data breaches by USD 1.76 million. By 2024, the U.S. federal government has announced a memorandum mandating a federal zero trust architecture strategy, which compelled federal agencies to meet certain security standards. The above-mentioned factors are collectively boosting the U.S. cyber security market share.

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U.S. Cyber Security Market Growth Factors

Rising Instance of Sophisticated Cyber Threats to Drive Market Growth

With the ongoing technology propagation globally, the usage of digital solutions, connected devices, and IT systems is increasing radically. This emerging digital infrastructure is based on the communication between various critical business data and applications across multiple platforms, devices, and users. In order to access essential business information, cybercriminals are now adopting foolproof hacking techniques to penetrate an organization’s IT infrastructure. The FBI’s Internet Crime Complaint Center reported around 880,418 complaints in 2023, an increase of 10% from 2022 from the public in the U.S. Various forms of cyber-attacks exist, including DDoS attacks, malware injections and phishing, social engineering, and brute-force attacks. These are capable of causing considerable financial and data losses. As per the FBI’s Internet Crime Report, data phishing was the most reported incident in 2022 and resulted in a loss of USD 52 million.

With the rising number of security breaches, organizations across various industries are deploying security solutions to safeguard their critical data, networks, endpoints, and users against such attacks. As per IBM, around 51% of organizations are heavily investing in cyber security in response to a breach they experienced. Also, according to a survey by Fortra, 1 in 3 U.S. companies are purchasing data-breach insurance coverage or cyber liability insurance. The rising awareness of security among Micro Small and Medium Enterprises (MSMEs) is also anticipated to supplement the U.S. cyber security market growth.

RESTRAINING FACTORS

Limitations Related to High Cost of Innovation for Security Technologies and Budget Constraints to Hamper Market Growth

With the emergence of advanced security threats and smarter attack tools, the requirement for advanced security solutions for dealing with these attacks is increasing exponentially. The traditional and patent cyber security solutions of organizations are not capable of safeguarding enterprises from cloud, endpoint network, and application security-related threats. An enormous sum is required for the security solution providers to develop technically advanced counterparts. The increasing cost of these solutions is limiting the adoption among enterprises, particularly SMEs, to a considerable extent. Also, the capital expenditure of the security solution providers increases as the R&D team expands.

U.S. Cyber Security Market Segmentation Analysis

By Security Type Analysis

Adoption of Network Security Solution among Enterprises for Protecting Information to Boost Segment Growth

By security type, the market is segmented into network security, cloud application security, end-point security, secure web gateway, application security, and others.

The network security segment dominated the market in 2023. Network security helps to minimize the risk of cyber-attacks, breaches and infection and helps to protect confidential information away from unauthorized access. Network security demand is increasing due to remote working policies created amid the COVID-19 pandemic.

Cloud application security is estimated to register the highest CAGR during the forecast period as cloud-based security solutions employ advanced encryption techniques to safeguard data both in rest and transit, ensuring its integrity and confidentiality. Therefore, the demand for cloud security solutions is increasing.

By Enterprise Type Analysis

Increasing Cyber-attacks Among SMEs to Boost Segment Growth

By enterprise type, the market is segmented into large enterprises and SMEs.

The SMEs are estimated to showcase the highest CAGR of 13.2% during the forecast period, as SMEs in the U.S. are highly vulnerable to cyber incidents. According to the Hiscox report, around 41% of SMEs reported cyber-attacks in 2023 from 38% in 2022. In 2023, SMEs in the U.S. paid around USD 16,000 for cyber ransom. Due to increasing cyber-attacks, SMEs are investing in cyber security as around 33% of U.S. SMEs consider cyber risk high or very high ahead of economic issues.

The large enterprises segment dominated the market in 2023 as cyber-attacks can cause massive damage and reputational damage among large enterprises. Due to this, large enterprises are adopting cyber security solutions for digital protection.

By Industry Analysis

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Healthcare Sectors Gains Prominent Position with its High Security Risk and Increased Phishing Attacks

By industry, the market is segmented into BFSI, IT & telecommunication, retail, healthcare, government, manufacturing, travel & transportation, energy & utilities, and others.

The healthcare segment dominated the market in 2023 and is estimated to register the highest CAGR during the forecast period as the healthcare sector is more vulnerable to security risk and is an attractive target for cybercriminals due to technological dependence, sensitive data, and unique vulnerability to disruptions. In February 2024, the largest healthcare payment processor company, Change Healthcare, was a victim of a ransomware attack that interrupted services across the country. The attack exposed healthcare worker’s paychecks, impacted the ability to fill prescriptions and even disrupted patient care throughout the healthcare system. Also, in 2022, healthcare organizations in the U.S. reported around 344 cases of data compromises, and from January to October 2023, the healthcare organizations reported 69 cases of data violation. However, due to increasing cyber threats, organizations in the sector are investing in cyber security.

BFSI is expected to grow at a significant growth rate as the BFSI sector adopts digital transformation. Due to increasing cyber risk, collaboration between financial institutions, regulatory bodies, and cybersecurity experts become important for building a resilient and secure financial ecosystem.

COUNTRY INSIGHTS

The market is witnessing significant growth in the U.S. The demand for cyber security in the U.S. is increasing owing to a continuous surge in digital crimes among organizations and individuals. Data breaches have become more persistent in recent times due to the effects of digitization on industries such as finance, healthcare, and Small and Medium-Sized Enterprises (SMEs). Although data breaches have occurred for many years, the rise of digital platforms has brought new challenges as the significance, scale, and financial cost of these breaches have increased significantly. In 2023, around 48% of organizations in the U.S. were compromised by more than six successful cyber-attacks within the year. Due to the increase in cyber-attacks, organizations in the U.S. are investing more in security, and as per the CDR, organizations in the country have increased their security budget by 4.6% in 2023 from 3.8% in 2021.

The U.S. accounted for 46% of the attacks globally between July 2020 and June 2021. In 2021, citizens lost around USD 6.9 billion due to cybercrimes, including investment scams for around USD 1.4 billion, business email compromises for USD 2.39 billion, and romance scams for around USD 956 million, and in the first quarter of 2022, around 53 million citizens in the U.S. were affected by cybercrime.

KEY INDUSTRY PLAYERS

Major Players to Focus on Adopting Advanced Technologies to Strengthen Market Positions and Enhance their Presence

Key players in the market offer cyber services to manage their customer communications across various touchpoints effectively. They provide a wide range of services covering various aspects of cybersecurity, including threat detection and response, prevention, incident response, compliance, and risk management. Furthermore, the enhancement and expansion of the current product portfolio enhance the position of vendors in the market. Also, players focus on concentrating their efforts on growing their consumer base in new countries. To improve their market share and profitability, these companies rely on strategic collaborative initiatives. Moreover, through this partnership, key companies are offering advanced and efficient cybersecurity solutions through gaining expertise on the market and industrial requirements. The companies are collaborating with leading players in the region to expand their international business prospects.

LIST OF TOP CYBER SECURITY COMPANIES IN U.S./ LIST OF TOP CYBER SECURITY COMPANIES:

• Cisco System (U.S.)


• Cloudflare, Inc., (U.S.)


• T-mobile USA, Inc., (U.S.)


• Fortinet (U.S.)


• Palo Alto Networks, Inc., (U.S.)


• F5 Networks, Inc., (U.S.)


• CrowdStrike Holdings, Inc., (U.S.)


• Broadcom, Inc. (U.S.)


• Check Point Software Technologies Ltd. (Israel)


• Juniper Networks, Inc. (U.S.)

KEY INDUSTRY DEVELOPMENTS:

• March 2024: Cloudflare, Inc. partnered with Kyndryl to enable businesses to manage and migrate networks for multi-cloud connectivity and complete network safety. The alliance offers end-to-end consulting services and skills across enterprise security, networking, and resiliency with robust connectivity that offers security, performance, and all-in-one cloud flexibility.


• March 2024: Fortinet partnered with Brennan by signing its first agreement with the Australian Managed Security Service. The collaboration provides a greater level of flexibility to support clients in adapting to evolving security and network requirements.


• January 2024: Juniper Networks, Inc. announced its acquisition of Hewlett Packard Enterprise to hasten AI-driven innovation. The combination of Juniper and HPE generates an innovative networking leader through a comprehensive portfolio that presents consumers and partners with a compelling new choice to drive corporate value.


• January 2024: T-Mobile USA, Inc. delivered industry growth in customer profitability, service revenues, and cash flow by enabling the Un-carrier to execute its capital return program, providing USD 14.0 billion to investors in 2023. The growth of T-Mobile offers the largest postpaid phone gross accompaniments and the lowest annual churn rate in business history.


• March 2023: Check Point Software Technologies launched Infinity Global Services to offer end-to-end cyber resiliency. The new service of Check Point helps improve cybersecurity performance and management, prevent advanced cyber-attacks, and address the cybersecurity abilities gap.

REPORT COVERAGE

The report provides a detailed analysis of the market and focuses on key aspects, such as leading companies, product types, and top applications of the product. Besides, it offers insights into the latest market trends and highlights the competitive landscape. In addition to the factors above, the report encompasses several factors that have contributed to the growth of the market in recent years.

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Report Scope & Segmentation