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Cyber security refers to safeguarding computers, programs, networks, and data from unauthorized access or damage. It involves protecting systems, networks, and programs from digital attacks. With rising digitization and increasing use of digital technologies, cybercrimes have become rampant across various industries and sectors. Vital systems and critical infrastructures involving utilities, transportation, healthcare etc. have become highly vulnerable to cyber threats. Disruptions due to cyber-attacks can cause financial and reputational losses, threaten national security, and undermine public trust. Hence, it has become imperative for organizations across industries to protect themselves from cyber risks and build robust security systems.
The global Cyber Security Market is estimated to be valued at US$ 257 billion in 2023 and is expected to exhibit a CAGR of 8.1% over the forecast period 2024 to 2031, as highlighted in a new report published by Coherent Market Insights.
Market key trends:
One of the major trends driving the cyber security market growth is the increasing adoption of cloud-based security solutions. Cloud computing has emerged as an effective option for organizations to curb IT infrastructure costs while benefiting from the agility, scalability and flexibility offered by cloud platforms. However, migrating critical applications and data to public cloud environments also increases the attack surface for cyber criminals. Hence, enterprises are increasingly adopting cloud-based security services like web application firewall, cloud access security brokers, cloud encryption etc. to protect their cloud infrastructure and applications from sophisticated cyber threats. This growing reliance on cloud-based cyber security solutions is anticipated to provide lucrative opportunities for vendors over the forecast period.\
Porter’s Analysis
Threat of new entrants: The threat of new entrants entering the cyber security market is moderate. It requires heavy capital investments and expertise needed to develop sophisticated cyber security solutions. However, the highly lucrative nature of the market is attracting new start-ups.
Bargaining power of buyers: The bargaining power of buyers is high due to availability of multiple solution providers offering differentiated solutions. Buyers can negotiate on price and select best offerings as per their requirements.
Bargaining power of suppliers: The bargaining power of suppliers is moderate as major players have in-house capabilities to develop security solutions. However, third party vendors providing complimentary solutions hold certain bargaining power.
Threat of new substitutes: The threat of substitutes is low as cyber security solutions aim to protect critical digital infrastructures and networks from constantly evolving cyber threats for which there are limited alternatives.
Competitive rivalry: The competitive rivalry in the market is high due to presence of well-established technology giants and start-ups competing on basis of innovation, pricing and customer service.
Key Takeaways
The global cyber security market is expected to witness high growth over the forecast period driven by increasing spending on cyber security solutions by enterprises and governments amid rising cyber threats. The global Cyber Security Market is estimated to be valued at US$ 257 billion in 2023 and is expected to exhibit a CAGR of 8.1% over the forecast period 2024 to 2031.
Regionally, North America is expected to continue its dominance in the cyber security market during the forecast period. The region is witnessing heavy investments by companies and governments to strengthen cyber defenses. growth. The Asia Pacific cyber security market is witnessing fastest growth supported by growing digitalization, emergence of SMEs and implementation of data privacy laws in major countries.
Key players operating in the cyber security market are Check Point Software Technologies Ltd, Cisco Systems, IBM Corporation, Symantec Corporation, Trend Micro and Palo Alto Networks. The industry is witnessing consolidation with major technology providers focusing on acquisitions to complement their security portfolios and expand into new markets. Start-ups are also introducing niche solutions to tap market opportunities.
*Note:
- Source: Coherent Market Insights, Public sources, Desk research
- We have leveraged AI tools to mine information and compile it
