Cyber security comprises of security solutions and services that are implemented to protect computers, communication networks, computer applications and data from unauthorized access, alteration or destruction. With the exponential growth and severity of cyber-attacks within the last few years, security services and solutions are in demand in order to protect the huge confidential data of the military, government, BFSI (banking, financial service and insurance), public data, hospitals and other business.
The global cyber security market has been anticipated to account for $175 billion by 2022 at a significant CAGR of 10.2% during the forecasted year of 2016-2022. The importance of cyber security has evolved with the growing threat to the data in transit through various communication networks. The growing number and sophistication of cyber-attacks have led the need for highly advanced security systems with features such as data encryption & identity and access management among others. Security attacks on JP Morgan Chase and Sony Pictures Entertainment were the two major breaches in 2014.
Apart of these major attacks that made news, security breaches have led to a theft of approximately 1 billion records of personal identifiable information (PII) in the year 2014. As per data released by various insurance companies, security service providers and government organizations, companies has gone through a loss of around $400 billion per year, as a result of such severe cyber-attacks. The key factors that are driving the cyber security market are stringent government regulations and increase in scope of BYOD at work place. Moreover, lack of security awareness and growing usage of pirated software is anticipated to hinder the growth of cyber security market.
The cyber security market can be segregated on the basis of securing type including application security, endpoint security, cloud security, network security, wireless security and content security. Cyber security can further be bifurcated on the basis of services including managed security services (MSS), risk & threat assessment, design and integration, consulting and training & education. Among these services, managed security services has gained rapid attraction by accounting for 40% of the market share in cyber security market in 2015.
Managed security services help the clients to get prepared for the cyber-attacks by managing and understanding cyber exposure. It enables the clients to take accurate investment decision and to apply cost effective & necessary protection in the required place. On the basis of end users, cyber security market is segmented into banking, financial services and insurance; manufacturing; telecom and IT; manufacturing, aerospace, defense and intelligence; healthcare; government (excluding defense) and public utilities; retail and others. The aerospace, defense and intelligence requires the most advanced cyber security solutions owing to the increasing security needs of the nation. E-governance, growing concerns regarding territorial security like navy, military and economy has led the government to focus on cyber threats seriously.
Along with it, rising demand for cyber security has led the government to make stringent IT and cyber laws as well as legal and regulatory compliances. This market can also be segregated on the basis of solution including encryption, antivirus and antimalware, distributed denial of service mitigation, unified threat management (UTM), data loss protection (DLP), intrusion detection system/intrusion prevention system (Ids/Ips), web filtering, identity and access management (IAM), security and vulnerability management, risk and compliance management, firewall, disaster recovery and others.
The geographic analysis of cyber security market includes North America, Asia Pacific, Europe and RoW. North America dominates the cyber security market owing to stringent government regulations, growing severity of cyber-attacks and pervasiveness of digital & online data. In the U.S., there are about 80-90 million plus cyber security events per year, with around 400 new threats in every minute and out of them 70% of attacks remain undetected. Due to increasing rate of cyber-attacks within the region, it has been expected to strengthen the North America cyber security market. Moreover, Europe and North America are moving towards maturity stage, thus, the developing economies of Asia Pacific region are significantly witnessing an increase in the adoption of cyber security services and solutions.
The key players of cyber security market include Cisco Systems Inc., IBM, Sophos, Lockheed Martin, Intel Corporation, Booz Allen Hamilton, Dell Secure Works, Northrop Grumman and Symantec Corporation. Mergers, acquisitions and partnership agreements are the key strategies adopted by the key market players. In first quarter of 2016, IBM acquired Resilient Systems. Resilient Systems is a well-known company in the cyber security space and is best known for its incident response platform. This acquisition will enhance the capabilities of IBM Security in terms of providing integrated end-to-end security operation as well as Incident Response Platform Solutions with the help of Resilient Systems.