Growing Threat of Attacks Fuels Rapid Growth In IT Security Markets

Thanks to increasingly sophisticated cyberattacks, big growth rates are anticipated in the global markets for cybersecurity.

That’s according to BCC Research’s new report, “Cyber Security: Technologies and Global Markets.” For purposes of the report, the cybersecurity market includes companies that provide products and services to improve security measures for IT assets, data and privacy across different domains such as the IT, telecom and industrial sectors.

“IT security is a priority in the prevailing highly competitive environment,” said Basudeo Singh, BCC Research analyst. “About $100 billion will be spent globally on information security in 2018, as compared with $76.7 billion in 2015.”

The global cybersecurity market should reach $85.3 billion and $187.1 billion in 2016 and 2021, respectively, reflecting a five-year compound annual growth rate (CAGR) of 17 percent. The American market, the largest segment, should grow from $39.5 billion in 2016 to $78 billion by 2021, a projected five-year CAGR of 14.6 percent.

The Asia-Pacific region is expected to grow the fastest among all major regions at 21.4 percent, due to stringent government policies to mitigate cyber threats and a booming IT industry, according to BCC Research.{ad}

Factors driving the market include the growing complexity and frequency of threats, increasing severity of cybersecurity, stringent government regulations and compliance requirements, ubiquity of online communication, digital data and social media.

Rising adoption of technologies such as the Internet of things (IoT), evolution of big data and cloud computing, increasing smartphone penetration and the developing market for mobile and web platforms should provide ample opportunities for vendors, according to the report.

By industry, the banking and financial segment generated the most revenue in 2015 at $22.2 billion. However, the defense and intelligence segment should generate revenues of $50.7 billion in 2021 to lead all segments. The health-care sector should experience substantial growth with an anticipated 16.2 percent five-year CAGR.

Network security, which had the highest market revenue in 2015 based on offering type, should remain dominant through the analysis period. Substantial growth is anticipated in the cloud security market, as the segment is expected to have a 27.2 percent five-year CAGR, attributed to increasing adoption of cloud-based services across different applications.

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