- 20 August 2019 20:14
3 Major Trends Defining Cybersecurity Marketplace in 2019 and Beyond
An inherent vertical of the technology cosmos, cybersecurity market, in recent times, has emerged to be a major business sphere in itself, revolutionizing the domain of network protection. Spurred by the tremendous increase in cyberattacks worldwide, in tandem with the proliferating trend of BYOD at workplaces, the demand for security protocols has been on a consistent rise, providing a major impetus for the expansion of cybersecurity market size. With the rising trend of smartphone and tablet usage alongside the proliferating fad of miniaturization, mobile malware has been on a consistent rise.
As per Symantec’s Internet Security Threat Report 2018, the number of new malware threats for mobile increased by 54% in 2017. Close to 20% malicious apps were discovered in the Music & Audio category, 27% in the Lifestyle category, while 10% malicious software were found in the Books & Reference category. With majority of mobile malware being hosted by third-party app stores, the demand for ensuring adequate security has increased tremendously, adding impetus to cybersecurity market size.
The scope of the security landscape across the business spectrum worldwide has been expanding at a consistent pace. A survey by the Ponemon Institute indicates that almost 90% organizations in general, experience data breaches.
The Oracle and KPMG Cloud Threat Report 2018 claims that almost 55% firms have experienced a major phishing attack, while close to 66% organizations claim cyberattacks to have interrupted vital operations since 2016.
Significance of cybersecurity solutions – Why are automated tools gaining traction in cybersecurity marketplace?
Cyber attackers have been using far more sophisticated methods than ever before, to penetrate vital organizational networks, wreck services, and steal pivotal data. More than human threats, automated threats – an automated program designed to run scripts that infiltrate IT systems, have become commonplace, giving enterprises little or no chance to combat.
This scenario however, presents a commendable growth opportunity for cybersecurity market players. Companies will now be able to move away from traditional perimeter defenses and come up with enhanced products to protect network infrastructure, eventually propelling cybersecurity market share.
Having recognized that automated attacks are becoming more powerful than their predecessors, cybersecurity market players are coming up with ways to design automated cybersecurity solutions that would help save critical IT infrastructure.
As per estimates, almost 50% of organizations are presently planning to deploy security automation solutions, while over 70% are adding machine learning capabilities to their current security tools, which would add impetus to cybersecurity market outlook.
Automated tools deliver new solutions that will help firms protect IT resources. Most large enterprises are adopting real-time, intelligent automated tools that efficiently detect cyberattacks and fix them even before they can cause harm to critical data. For instance, Oracle’s Oracle Identity SOC (Security Operations Center) is known to offer an identity-driven solution to secure content, users, applications, and workloads across the entire cloud landscape. As per reports, the solution has found a major consumer base and is being particularly adopted by large enterprises.
Speaking on similar lines, large enterprises held the largest cybersecurity market share in 2017. This can primarily be attributed to the rising expenditure on cybersecurity solutions to prevent hacker threats and avoid monetary losses.
As per a cybersecurity industry analysis report, large enterprises segment is anticipated to lead the industry share over 2018-2024 driven by the rising need by organizations to avoid a decrease in loyal customer base.
Identity, Authentication and Access Management – a vital product reshaping cybersecurity industry trends
A high profile security element, IAAM or identity management, helps to ensure if users have access to all the data they need, while simultaneously making sure that unauthorized users never obtain access to vital systems and IT data. IAM systems are suitably designed to track user activities throughout the system infrastructure, manage employee database, authenticate login information, and provide details on the history of logins and other access points. This has substantially increased the demand for these products, majorly augmenting IAM market growth.
As per a reliable cybersecurity market report, IAAM-based cybersecurity industry size will register a double-digit CAGR of over 17% between 2018-2024. This growth can essentially be attributed to the expansive demand for IAM and access management solutions to ensure security in enterprise environments where sharing huge amounts of data is the norm.
The necessity to keep on record, the information about the addition/deletion of users also commands the usage of IAM systems. Additionally, identity management provides a detailed report on all the user activities and enables well-structured access controls for every component of the organization’s systems. In the cybersecurity marketplace, IAM plays a prominent role in providing highly-controlled and scrutinized access and protecting sensitive data stored on local servers and on the cloud.
Systems and applications used by employees and other business personnel in numerous industrial setups often command the necessity of cybersecurity solutions for smartphones, tablets, desktops, and laptops. With most companies spanning myriad industry verticals requiring the installation of an IT environment product and service launches and operational efficiency and management, the need for secure identity has become more significant than ever, augmenting IAAM-based cybersecurity industry trends.
It has been observed that prominent cybersecurity industry players have been leveraging the best of IT security protocols and have been coming up with numerous IAM solutions to combat cyber threats. Say for instance, Ping Identity, one of the majors in Identity Defined Security, recently declared the launch of the PingCloud Private Tenant, a private cloud identity solution.
Apparently, PingCloud Private Tenant works by combining configurable capabilities within an environment to deliver identity and access management. PingCloud Private Tenant also enables organizations to automate the operation of their IAM solutions, in a bid to help the IT staff focus on innovation.
Analyzing cybersecurity market segments from a regional perspective, the U.S. has been touted as a majorly lucrative ground for the industry. Identity theft in the U.S. is becoming more commonplace than ever before. As per an analysis by The Harris Poll in 2018, almost 60 million Americans are affected by identity theft. The U.S. government recently declared that the country plans to earmark approximately USD 15 billion on cybersecurity. As the demand to tackle identity theft becomes more and more urgent, IAAM solutions will gain substantial momentum, majorly augmenting cybersecurity market growth.
Will the BFSI sector – the susceptibility avenue for cyberthreats, emerge as a prominent growth avenue augmenting cybersecurity market size?
Judging by the frenzied pace at which the globe is going cashless, the fact that cybersecurity solutions are crucial for the banking industry does not come as much of surprise. Of late, digitization has majorly taken over the payments sector, as cashless options like mobile wallets, credit cards, and debit cards have become mainstream, propelling cybersecurity market size.
The robustly evolving ecommerce domain and the proliferating trend of online shopping has further increased the frequency of online banking transactions, providing an open platform for cyber attackers to hack vital data. In this context, it has become more significant than ever, that banks come to adopt cybersecurity solutions. A report from Forbes claims that cyberattacks cost financial service firms more to address as opposed to any other firm worldwide – an estimated USD 18 million per firm. Financial service enterprises are also known to fall prey to cybersecurity attacks more frequently – about 300 times more than the average business firm.
Consistent data breaches consequently make it rather difficult for the masses to trust financial institutions – specifically banks, that lost around USD 16.8 billion to cybercriminals in the year 2017. Not to mention, banks have lately gone digital and store all the pivotal information of the customer online. The demand for the most efficient network security infrastructure complete with flawless security services have made banks a potential growth avenue likely to impel cybersecurity industry size.
According to a cybersecurity industry report, the expansive penetration of the internet in tandem with the surging availability of smart devices have made banks more susceptible than ever to cyberattacks. As the demand for online payment platforms and internet banking increases, cybersecurity industry size from banking sector is estimated to depict the highest CAGR over 2018-2024, claims a cybersecurity market analysis.
The advent of cryptocurrency in the payments cosmos has stirred up a revolution in recent times, a storm that has helped catapult cybersecurity market share. Indeed, the year 2018 reportedly witnessed cryptocurrencies such as Ethereum and Bitcoin becoming vital investments. Estimates claim that the value of a bitcoin surged to USD 18,000 from USD 1,000 in fewer than 12 months.
As banks take steps forward to become a part of the proliferating cryptocurrency fad, it is important that they undertake security protocols to ensure the protection of capital, especially in the light of bitcoin thefts in recent times. One of Japan’s largest cryptocurrency exchanges Coincheck for example, had been the victim of a huge cyberattack that led to a loss of 523 million NEM coins (worth a staggering USD 534 million).
Experts claim that banks need to rethink their cybersecurity strategies, given that today, they are responsible for a lot more than merely safeguarding customers’ money. Banks liberally lend money (not surprising, given it’s their bread and butter), invest in huge projects, and are involved in safeguarding the information of retail units and users. Deploying cybersecurity products such as IAM, network security, cloud security, endpoint protection, web gateway, security information & event management, vulnerability assessment, virtual private network (VPN), unified threat management (UTM), and firewalls, in the most diplomatic manner will give banks the leverage they need to counter cyberattacks.
The entire financial and industrial ecosystem, as on today, is highly vulnerable to cyberattacks, mainly attributed to the hefty propagation of IoT-enabled devices and rising penetration of the internet. According to a 2015 report by Symantec, multiple vulnerabilities were detected in 50 commercially available devices surveyed – indicating that many opportunities for cybercriminals to hack connected components.
Ponemon Institute’s 2018 ‘Cost of a Data Breach 2018’ study for IBM claims that a U.S. company is faced with costs of USD 7.91 million for an average data breach. The cost of an average data breach to companies globally goes beyond USD 3.86 million. These statistics vividly spell alarm, indicating the urgent need for efficient cybersecurity solutions for industries worldwide.
As the number of automated things continue to rise and cybercriminals continue to deploy sophisticated hacking methodologies, global cybersecurity market forecast is likely to remain positive. The war between cybersecurity industry contenders and cybercriminals is expected to intensify in the times to come, creating a favorable scenario for the growth of cybersecurity market share. The proliferating demand for state-of-the-art cybersecurity products will majorly augment cybersecurity market size, projected to register a valuation of USD 300 billion by 2024.