Data compiled from Cybersecurity Ventures, project the cybersecurity market to be worth up to $120 billion by the end of 2017. The market is expected to grow up to $231.94 Billion by 2022, at a Compound Annual Growth Rate (CAGR) of 11.0 percent.
According to reports, the primary driver for the market growth is due to the increasing number of mobile devices that have internet access, such as phones or laptops, demand cybersecurity services.
Another key component is the increasing popularity Internet-of-Things (IoT) that allows connections between multiple devices and allows users to exchange large amounts of data stored into clouds. IoT enables better connectivity and resolves all critical situations.
Gartner, Inc. Worldwide projects spending on cybersecurity services is to increase to $90 billion in 2017, an increase of 7.6 percent from 2016, and to reach nearly up to $113 billion by 2020 annually. Some analysts project up $1 trillion spent cumulative in the next five year.
Cybersecurity is a combination of many technologies to be able to defend against cyber attacks such as unauthorized access and breaches. Many companies have faced some sort of cyber attack that has taken hits to the company’s finances. Cybersecurity is important to be able to defend from malicious attacks that data and integrity.
Attacks come in ten major categories namely risk and compliance management, identity and access management, data loss protection, firewall, IDS, Unified threat management, encryption, antimalware and antivirus, web filtering and others, according to Future Market Insights.
The cybersecurity market is composed of major companies such as IBM (NYSE: IBM), Cisco Systems Inc. (NASDAQ: CSCO), Cyberark Software Ltd. (NASDAQ: CYBR), Palo Alto Networks Inc. (NYSE: PANW), FireEye Inc. (NASDAQ: FEYE), Symantec Corp. (NASDAQ: SYMC), Hewlett Packard Enterprise Co. (NYSE: HPE), Fortinet Inc. (NASDAQ: FTNT), Rapid7 Inc (NASDAQ: RPD) and others provide cybersecurity defenses. Although these are major companies, privately owned companies dominate the cybersecurity market such as Ernst & Young, KnowBe4, Sera-Brynn, Kaspersky Lab Inc, McAfee Inc., and Herjavec Group.
Many CEOs say that the cybersecurity workforce is the least populated. The demand workers in this field is in high demand, as many applicants do not meet the expected standards. The demand for chief information security officers (CISOs) are also in high demand as reported only 65 percent of large companies have a CISO. Cybersecurity Ventures expects 100 percent of companies to have a CISO by 2021.
Robert Herjavec, CEO of Herjavec Group, says, “There is a zero percent unemployment rate in cybersecurity and opportunities in this field are endless.”
“The demand for the (cybersecurity) workforce is expected to rise to 6 million (globally) by 2019, with a projected shortfall of 1.5 million,” stated Michael Brown, CEO at Symantec.
The recent hack of Equifax Inc. (NYSE: EFX), a credit reporting agency, could impact nearly 143 million consumers. The attack exposed social security numbers and other valuable information. These attacks are devastating to the companies and more importantly to consumers.
Attacks like these are why companies require CSOs and CISOs. The attacks are very costly and companies brace themselves and load up on cybersecurity services to prevent these. Cybersecurity Ventures is projecting that cyber attacks will cost globally upwards of $6 trillion annually by 2021. This will be a huge increase from the previous $3 trillion in 2015.
With increasing number of cyber attacks and costliness of damages, it is highly expected for cyber hacking groups to increase in size as well as updating their methods and programming.
"The shift to detection and response approaches spans people, process and technology elements and will drive a majority of security market growth over the next five years," said Sid Deshpande, principal research analyst at Gartner.
The need for better security services have been responded by companies to create new products such as endpoint detection and response (EDR), software-defined segmentation, cloud access security brokers (CASBS), and user and entity behavior analytics (UEBA). The new products will take away from previous ones to increase security. These will be very costly, but prevention is very vital.
Last year, Ginni Rometty, IBM's chairman, president and CEO, said, "Cyber crime is the greatest threat to every company in the world."