The global cybersecurity market was valued at $172.24 billion in 2023. It is projected to grow from $193.73 billion in 2024 (already several billion more than the previous year) to $562.72 billion by 2032, exhibiting a CAGR of 14.3% during the forecast period.
Additionally, the US cyber security market alone is expected to grow significantly, reaching an estimated value of $166.73 billion in 2032, driven by the rising number of E-commerce platforms in the market.
What Is Cybersecurity?
Cybersecurity protects systems, networks, and programs from malware, hackers, or digital attacks. As the processes of businesses and industries have gradually migrated more and more to online spaces over the last several decades, cybersecurity has become an increasingly vital component of the economy.
To this end, cybersecurity has become an industry unto itself, with a litany of companies offering extensive cybersecurity efforts and measures, all of which have led to the market becoming an invaluable pillar of the global economy in 2024.
Cyberattacks usually modify, access, or destroy sensitive information, extort users’ money, or disrupt normal business processes. The increasing adoption of enterprise security solutions in manufacturing, Banking, Financial Services, Insurance (BFSI), and healthcare is expected to drive market growth during the forecast period.
How COVID Accelerated the Cybersecurity Timeline
The COVID-19 pandemic severely affected consumers’ and providers’ behavior. The short-term closure of manufacturing units, job crunches, lack of resources, data breaches, and weakened supply chains have negatively affected business growth globally.
Numerous small and medium businesses worldwide have encountered permanent and temporary shutdowns. According to a 2020 survey conducted by NBER, 43% of respondents in the US reported temporary shutdowns of small and medium businesses.
The pandemic impacted small companies and start-ups globally, significantly impacting the demand for internet security solutions and services. During this time, key players implement core technologies, such as machine learning, the Internet of Things (IoT), cloud technologies, and big data, in their business security units. This adoption would help them understand uncertain activities and trials and identify and detect uncertain threats.
Another trend aiding the cybersecurity market’s growth is the increased adoption of cloud computing. Players in the market, including Cisco Systems, IBM Corporation, and others, focus on developing advanced cloud-based solutions. These services are designed on the Analytics as a Service (AaaS) platform and assist users in rapidly identifying and mitigating threats.
The rising number of e-commerce platforms and technological advancements, such as artificial intelligence, cloud, and blockchain, have augmented internet security solutions in a connected network infrastructure.
Additionally, e-commerce companies are focused on adopting network security solutions in their IT and electronic security systems. For instance, in September 2020, Askul Corp. adopted the advanced network security solution Shadankun, developed by Cybersecurity Cloud, Inc., in their business unit to secure their assets from cyber threats. The growing adoption of these technologies to eliminate cyber threats drives the demand for network security solutions.
Worldwide Expansion
The governments of India, Germany, France, Israel, Brazil, and other countries are investing in internet security solutions to secure their massive volume of confidential data and information.
For instance, according to the European Cybersecurity Organization report, in 2020, the UK government financed around USD 2.30 billion to execute various network and internet security projects in defense and research. This investment would assist in driving the overall adoption rate for IT security solutions across multiple industries, favoring the market’s growth during the forecast period.
In 2024, the cybersecurity industry expects a paradigm shift in a more coherent and business-involved approach that reflects a better understanding and management of cyber threats. This shift concerns the latest technology adoption and revolution, associated liability, maturity, integration, regulatory, quantification, communication, and behavioral shifts.
According to the report published by the ISC2 (International Information System Security Certification Consortium), approximately 92% of surveyed organizations have cybersecurity skill gaps in more than one business area. These gaps are observed in cloud computing, AI/ML, and security, among other places. This significant gap is expected to create a lucrative opportunity for the global cybersecurity market in the forecast period.
