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April 15, 2021
With breaking news of cyberattacks on a near daily basis, it’s no wonder the global cybersecurity market presents an increasingly lucrative opportunity for the channel.
This market generated nearly $150 billion in 2019 and is expected to reach $305 billion by 2027. That’s according to a new report by Allied Market Research, which projects a compound annual growth rate (CAGR) of 9.4%.
Market drivers include increasing malware and phishing threats among enterprises; the rise in IoT and BYOD; and demand for cloud-based cybersecurity solutions. However, budget constraints and complexities associated with security devices hinder market growth.
On the other hand, new opportunities are arising from the surge in adoption of mobile device applications and platforms, the requirement for strong authentication methods, and the transformation of the traditional antivirus software industry.
The COVID-19 pandemic has had a significant impact on the cybersecurity market:
The number of cyberattacks has increased as many organizations adopted work-from-home strategies. Therefore, the need to implement cybersecurity for addressing security issues and facilitating secured access increased considerably.
Attacks on hospital data, health care apps and wearables have increased as the volume of patient data has increased. The need to secure and authenticate data in health care organizations surged.
There has been a rise in pandemic-related phishing and ransomware attacks. Cybercriminals have used the pandemic as bait to lead brands astray, and attack their websites and apps.
The solution segment has accounted for the largest share of the market. It contributed more than two-thirds of total market share in 2019 and will maintain its lead through 2027, says Allied. But services should register the highest CAGR due to the surge in cyberattacks on organizations’ IT infrastructures.
On-premises deployments still maintain more share than cloud, a trend Allied expects to continue through 2027. But, as you might expect, cloud should register the highest CAGR. This is due to the lack of capex and low cost to maintain.
Based on region, North America will continue to lead in market share for the next six years. This is due to the presence of major key players, high information and communications technology (ICT) spending, and the large number of cyberattacks on various enterprises. However, Allied says security spending in Asia Pacific will grow the fastest over that time period. This is due to the adoption of wireless and mobile devices, the rise in cybercrime, increasing awareness of data security, and strict security standards and government policies.
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