The Global Market of Cybersecurity Products and Services has Reached 26 Billion DollarsOctober 30, 2020
J’son & Partners Consulting analyzed the global market for network security products and services. The study estimates the consumption of cloud security services (Security as a Service, SECaaS).
The global market for cybersecurity solutions is expected to reach 40 billion by 2023, at an 11% CAGR.
The major forces driving the cybersecurity market growth will be the cloud model providing cybersecurity functions – SECaaS consumption will grow at a CAGR of 24%, which is twice as fast as the market as a whole.
According to the traditional model, the main contributions will be subscriptions to advanced cybersecurity software solutions rather than physical hardware sales. This brings the traditional model closer to the cloud in terms of monetization principles.
The need for cybersecurity tools, hardware devices, software applications:
1. The growth in the volume of data processed and stored on all types of computing devices combined with the rapid growth in the variety of applications that generate, store, and process this data.
2. The integration of operational technological (OT) and business applications (IT), including the trend towards the formation of cyber-physical products – a combination of the cyber and physical world – radically increases the criticality of data integrity alongside the applications processing them and their availability.
3. The predominantly distributed nature of new types of applications (cyber-physical systems): the client and server parts of applications are geographically distributed and go beyond the boundaries of the local demilitarized zone (DMZ).
The factors driving the increase of cloud-based cybersecurity applications are:
1. The rapid growth in the number of cloud platforms and users, including the transfer of the server part of business-critical applications to public and hybrid cloud-based networks.
2. Complications caused by the rapid growth of encrypted WAN traffic. Very few security devices can inspect encrypted data without severely impacting network performance.
3. The adaptability of cyber-attacks and a large number of events generated by various cybersecurity applications. To develop an adequate response to these attacks, the need to implement deep real-time analytics of such events is a high priority. However, this is only possible using public cloud networks.
Overall, the development of a market that protects against cyber threats is interconnected to the cyber risk insurance market since the emergence of developed analytical cloud platforms (SECaaS) allows insurers to assess the risks associated with data and cyber-physical systems correctly.
On the one hand, the cyber risk insurance market, coupled with the development of a fully-fledged cloud model that provides network and data protection, leads to increased access to small and micro-enterprises that provide advanced security tools against modern cyber threats.
On the other hand, the economic feasibility and improved accessibility of cybersecurity applications reduce the risk of cyber-attacks and cyber insurance costs – a popular type of insurance due to an increase in cyber threats.