Friday, 12 May 2017

Cyber Security Industry

     Global cyber security industry market size reached 94 USD Billion in 2016. It is growing at CAGR of 8.2% and expected to reach 187 USD Billion by 2025. Cyber security market is primarily driven by digitization, smartphone penetration, increasing IT spend, Internat Of Things (IoT).
Government and big MNCs constitute more than 50% market share. ex- In  UK govt. and big  enterprises contribute approximate 80% of the market. SMEs have smaller market share but expected to demonstrate highest growth rates due to increased awareness ,vulnerability to cyber attacks and adoption of newer devices. Some of the key players in the Cyber Security Market are IBM International, Booz Allen Hamilton, Cisco, Lockheed Martin, McAfee, CA Technologies, Northrop Grumman, Trend Micro, Symantec and SOPHOS among others.
     The cyber security market in the North American region is estimated to account for 57% of the global expenditure on the sector. Asia-Pacific and Europe are also expected to account for a significant portion of the total cyber security market during the forecast period, with shares of 20% and 12% respectively. Asia-Pacific is rapidly emerging as a potential market for cyber security solution providers, driven by emerging economies such as China, India and South-East Asian countries, wherein, rising cyber espionage by foreign countries is inducing the need for safeguarding cyber space. The Asia Pacific market for cyber security is expected to grow at CAGR 12% between 2015-2025 which is highest compare to any other region int the world.
     The market is classified into 3 segments viz, research and development , products and services. Market for network Security among products and MSS segment among services are expected to grow at higher rate. Cyber security products contributed 42 USD Billion market in 2016 and will reach  42 USD 80 Billion by 2025,will grow at CAGR 7.42%, while services will grow at CAGR 8.77% and research segment is expected to grow at CAGR 5.84%.Network security will emerge as most attractive product segment by size while security and vulnerability has highest growth prospects across various regions.  Network Security, IdAM, SVM are expected to contribute 75% of overall product market by 2025.  Services contributed 42 USD Billion market in 2016. MSS segment among serivces is expected to grow at CAGR 12% and also expected to hold 55% share in cyber security service market by 2025.  Increasing complexity of security solutions, lack of in house expertise, budget constraints are key demand drivers of MSS.
    Cyber security has applications in various industries. It is widely used in industries such as retail, Manufacturing, ICT, government ,BFSI. Market size of govt. is expected to grow at CAGR of 6% till 2025 to reach 54 USD Billion. Government sector has largest 36% share in this segment.However, The share of government will decline from 36% in 2016 to 30 % in 2025 due to increased use of cyber security by other industries. Use of cyber security in Information and communication technology (ICT) was worth 8 USD Billion. It is expected to grow further at the highest rate of 10.09% to reach 19 USD Billion by 2025. Share of ICT, retail and healthcare is expected to increase while share of other industries will decline by 2025. The key drivers for growth of this market include Government regulation on data privacy, increasing cyber threats and increasing number of data centers, which are the biggest revenue generators for Cyber Security Market. The key restraints to this market are lack of awareness and availability of pirated security software.
      Clusters of cyber security has been spread across the world. Top 7 among them (based on 4 parameters viz, ecosystem, infrastructure, market enablers and mechanisms) are USA followed by , Netherlands,Canada, Israel, UK ,Germany,Australia. India ranks 10th  in terms of country capabilities . Some leading clusters are Greater Baltimore cluster(USA), Hague Security Delta (Netherlands), Berlin Brandenburg Cluster (Germany),Beer Sheva (Israel), Ottawa (Canada), clusters in UK and Australia. US leads the industry being home to both heavy weights and niche start ups. Tax breaks for start ups, cyber security companies in regional clusters and large defense expenditure have contributed to its growth. Specialized cyber security course in universities and industry -academia collaboration give edge to USA,Netherlands,Canada over other nations. Some countries have constituted program to to identify talent at an early age Israel's 'Magshimim Leumit' program is a leading example.

(See Below for detail power point presentation)


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