Threat intelligence presents a massive growth opportunity for the channel as the global market is expected to more than double, reaching nearly $13 billion by 2023.

That’s according to a new report by MarketsandMarkets, which expects a compound annual growth rate of almost 20 percent. The market’s value is $5.3 billion today.

Major threat-intelligence providers include such companies as Symantec, IBM, FireEye, Check Point Software Technologies, Trend Micro, Dell Technologies, McAfee, LogRhythm, LookingGlass Cyber Solutions and Proofpoint.

The key factors driving the market include the rise in interconnectivity due to IoT and bring your own device (BYOD), an increasing number of targeted attacks and pervasive advanced persistent threats (APTs), the need for organizations to deploy next-generation cybersecurity, and stringent directives for data protection.

With the increasing instances of cyberattacks, IoT and connected device vulnerabilities, and growing pressure from cybersecurity regulations, the security information and event management (SIEM) segment is expected to garner the most revenue during the forecast period.

Cloud-based threat intelligence is gaining traction among small and medium enterprises, as they are cost-efficient and don’t require purchasing, installing and maintaining hardware or software. Scalability, easier operations and attractive pricing are boosting the adoption of cloud-based services.

The banking, financial services and insurance (BFSI) vertical is expected to maintain the leading position in terms of revenue generation through 2023. The industry is a major target for cybercriminals, as it holds sensitive information of employees, customers, assets, offices, branches and operations. Also, with stricter regulations, and increasing instances of fraud and cyberattacks, the need for real-time detection and protection from advanced threats is driving growth in this segment.

North America is expected to maintain the largest share of the overall market through 2023. The presence of many threat-intelligence vendors, as well as widespread awareness about the services they offer, will continue to account for the region’s dominance.