Cyber Security Market Size, Share and Trends Analysis Report by Type (Enterprise, Consumer), Product (Security Consulting, Managed Service Providers, Identity and Access Management), Vertical, Enterprise Size, Region, and Segment Forecasts, 2021-2026
Cyber Security Market Overview
The cyber security market size was valued at US$220.6 billion in 2021 and is expected to grow at a compound annual growth rate (CAGR) of 8.7% during 2021-2026. Evolving security threats together with a surge in threat of targeted cyberattacks are factors expected to favor cyber security market growth over the forecast years. Overwhelmed by the volume of threat information, there is a need for security services in the public and the private sector. Therefore, the global cyber security market share is vast and expanding rapidly, driven by different trends.
The newly minted work-from-home model has contributed considerably to the cyber security market growth over the last couple of years. For instance, securing hybrid working, coping with ransomware, and continuing supply chain threats become imperative amidst the remote working scenario creating demand for security solutions. Further to this, moving to a zero-trust security model as a long-term solution to data breaches also took prominence during the same period; a cyber security market trend expected to continue over the next three years.
According to GlobalData estimates, the global cyber security industry will grow from US$220.6 billion in 2021 to US$334.6 billion in 2026 at a CAGR of 8.7% from 2021 to 2026. Increasing regulatory & government focus on data localization for ensuring the security of consumer as well as enterprise IT data will be among the major cyber security market growth drivers. The cyber security market forecasts look promising with the proliferation of digital transformation, cloud, and IoT & connected devices.
Global Cyber Security Market Size by Type, 2019-2026 ($Bn)
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The cyber security market research report provides an executive-level overview of the current enterprise IT and consumer security market worldwide, with detailed forecasts of key indicators up to 2026. Published annually, the report provides a detailed analysis of the near-term opportunities, competitive dynamics, and evolution of demand by product types, verticals, enterprise-size band, across key regional and country markets. The study also captures a detailed overview of key dynamics including technology, and regulatory trends, among others with their current as well as the expected impact on the overall cyber security demand.
Cyber Security Type Insights
Enterprise cyber security market: It includes the process by which enterprises protect and secure their data and information stored on-premise servers and other assets such as storage, networking, workstations, and applications from cyber-attacks. An organization with well-established enterprise security management has policies and procedures outlined to prevent infringement of their integrity, confidentiality, and availability. At the core of enterprise security lies a risk management program enabling organizations to implement protection strategies by assessing their assets, threats, and vulnerabilities.
Consumer cyber security market: The proliferation of the internet has instigated ease of information access for working, banking, shopping, or even socializing. A large portion of consumers worldwide, now store their information on their personal devices including smartphones to home security systems.
Although the ubiquitous connectivity offers convenience, these connections open doors for potential malicious activities putting personal data at risk. As a result, the device security segment has witnessed tremendous growth within the consumer cyber security solutions market. The device security market demand reached US$6.8 in 2021, and the segment is expected to grow at a CAGR exceeding 15% from 2021 to 2026.
Cyber Security IT Infrastructure Insights
The cyber security IT Infrastructure components include hardware, software & services.
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Cyber Security Services Market – Deep Dive
There are two primary types of cyber security services – security consulting and managed services. In 2021, the security consulting services type closely followed by managed security services captured a sizeable market share exceeding 50% of the worldwide cyber security market. The growing adoption of cloud platforms such as SaaS, IaaS, and PaaS is forcing enterprise IT departments to focus on security consulting solutions.
Cyber Security Market Share by Services, 2021 (%)
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Managed Security Services (MSS) in the same year accounted for over 20% of the cyber security share. The dearth of skilled IT security professionals and limited capital resources for IT security has been especially driving the managed security services segment growth. According to the UK government’s 2022 Cyber Security Breaches Survey, 40% of businesses and almost a third of charities (32%) use at least one managed service provider. Key leaders in this space include SecureWorks, IBM, AT&T, Verizon, Accenture, and NTT data.
Cyber Security Software Market – Deep Dive
The software elements of the cyber security market report comprise identity management, network security, endpoint security, threat detection and response, cloud security, data security, email security, application security, unified threat management, and vulnerability management
The identity & access management (IAM) security segment contributed a significant revenue generating US$13.8 billion in 2021. The segment is projected to grow at a CAGR of 12% to reach US$24.1 billion by 2026. IAM is emerging as a key enabler of digital transformation.
Global Cyber Security Market Share by Software, 2021 (%)
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Endpoint security closely followed the identity and access management segment capturing close to 15% of the overall cyber security software market in 2021. Endpoint security refers to the method used to protect the network when it is accessed via an endpoint device, such as a laptop or smartphone. Endpoint security software protects these entry points from any risky activity carried out by employees or from malicious attacks. With the current trend of remote working and BYOD posing increased cyber threats, companies are making huge investments in the integration of endpoint security solutions.
Cyber Security Hardware Market – Deep Dive
The hardware segment includes content-filtering and anti-spam appliances, firewalls and VPN appliances, intrusion prevention systems, multi-factor authentication, network access control, and unified threat management appliances. Hardware/resource is the fastest growing revenue segment of the cyber security market. Estimated at US$29 billion in 2021, the segment is poised to grow at a CAGR exceeding 8% from 2021 to 2026.
Global Cyber Security Market Share by Hardware, 2021 (%)
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Network monitoring and access control is the fastest growing segment of the cyber security hardware market. Estimated at over US$2 billion in 2021, the segment is poised to grow at a CAGR over the forecast period. Network monitoring and access control solutions, which were once considered to show a conservative growth trajectory are now observing a fast-paced development, driven by the implementation of policies across all devices to enhance the security of enterprises’ internal infrastructure. The proliferation of BYOD culture, IoT and mobile devices, the increasing number of end-point devices, and the need to manage the security of cloud instances require dedicated security systems to effectively fight against cyber threats, therefore pressing enterprises to invest in network monitoring and access control solutions.
Enterprise Cyber Security Vertical Insights
The BFSI sector is the largest end-use market for enterprise cybersecurity with revenue from it estimated at $20.5 billion for 2021 and set to grow over $30 billion by 2026 over the forecast period. The major factor in the growth in the IT security market for the BFSI sector is the shift towards digital operations and extensive adoption of online banking.
Global Cyber Security Market Share by Vertical, 2021 (%)
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Banks and financial institutions across the world are focusing on moving their core applications to the cloud owing to the rise in the need for real-time analysis of huge volumes of gathered data, delivering personalized customer satisfaction, attaining operational control over platforms, and reducing costs. All these factors increase the probability of data breaches.
The information technology sector is the second largest end-use market for enterprise IT security with revenue from it estimated to reach to approximately US$18 billion by 2026 registering a CAGR of 8% over the forecast period.
Cyber Security Regional Insights
The Asia-Pacific cyber security market led by China, India, and Japan captured a sizeable revenue share of the overall demand in 2021. The Indian cybersecurity market witnessed growth at CAGR exceeding 10%, higher than China and Japan. The evolving BYOD trend in the country is expected to favor growth over the forecast period.
Europe emerged as the second highest market in terms of cyber security demand in 2021. Government investments to secure networks and proliferation of small-medium business contributed to the regional demand in 2021. The regional market is expected to grow at a CAGR exceeding 5% from 2021 to 2026.
Cyber Security Market Share Insights
The global cyber security key players include Accenture, Cisco, VMware, Kaspersky, Norton, and McAfee, among others. The last few years, since the start of the COVID pandemic in early 2020, have seen many mergers and acquisitions (M&A) spurred by the widespread move to remote work.
Towards the end of 2021, the number of M&A deals involving cybersecurity companies reached 40 a month. Moreover, with increasing numbers of ransomware and supply chain attacks, there is every likelihood that the number of cybersecurity M&A deals will continue to rise. The consumer cyber security market share is consolidated with vendors including NortonLifeLock Inc., ESET spol. s r.o., McAfee LLC, AVAST Software s.r.o., Trend Micro Incorporated, Kaspersky, BlackBerry (Cylance), among others.
Leading Players in the Cyber Security Market
- Microsoft Corp.
- IBM Corp.
- CISCO
- Accenture PLC
- BAE Systems Plc
- Thales SA
- Palo Alto Networks, Inc.
- Akamai Technologies
- Fortinet Inc.
- NortonLifeLock Inc.
- Splunk Inc.
- F5 Networks Inc.
- Trend Micro Inc.
- Palantir Technologies Inc.
- CrowdStrike Inc.
Other Cyber Security Market Vendors Mentioned
BlackBerry Ltd, Check Point Software Technologies Ltd, SecureWorks Corp, Sophos Ltd, CyberArk Software Ltd, Mandiant Inc., Qualys Inc., Barracuda Networks Inc. Darktrace Holdings Ltd., SonicWALL Inc. RSA Security LLC, Imperva Inc., Forcepoint LLC.
Cyber Security Market Research Scope
| Market size in 2021 | US$ 220.6 billion |
| CAGR | 8.7% from 2021 to 2026 |
| Forecast period | 2021-2026 |
| Historic data | 2019-2021 |
| Report scope & coverage | Revenue Forecast, Competitive Index, Company Market Share, Growth Trends |
| IT Infrastructure Segment | Hardware, Software, and Services |
| Product Segments | Security Consulting, Managed Security Services, Identity & Access Management, Endpoint Security Platforms, Device Security, Multi-Factor Authentication (MFA), Security Intelligence and Management, Firewalls and VPN Appliances, Data Protection, Network Security, Unified Threat Management (UTM) Appliances, Application Security, Intrusion Prevention Systems, Messaging Security, Internet Security, Fraud Prevention and Transactional Security, Identity Protection, Web Security, Server Security, Content-Filtering and Anti-Spam Appliances, and Network Monitoring & Access Control |
| Vertical Segments | Communications, Information Technology, Education, Energy, Financial Markets, Government, Healthcare, Insurance, Manufacturing, Media, Construction, Consumer Goods, Foodservice, Medical Devices, Mining, Transport and Logistics, Travel and Leisure, Pharmaceutical, Foodservice |
| Enterprise Size Band | Micro (Less than 50), Small (51-250), Medium (251-1000), Large (1001-4999), Very Large (5000+) |
| Key Companies | Microsoft Corp., IBM Corp., CISCO, Accenture PLC, BAE Systems Plc, Thales SA, Palo Alto Networks, Inc., among others |
Cyber Security Market Segments and Scope
GlobalData Plc has segmented the cyber security market report by type, product, vertical, enterprise size-band, and region:
Global Cyber Security Type Product Outlook (Revenue, USD Million, 2019-2026)
- Consumer Cyber Security
- Enterprise Cyber Security
Enterprise Cyber Security IT Infrastructure Outlook (Revenue, USD Million, 2019-2026)
- Hardware
- Content-Filtering and Anti-Spam Appliances
- Firewalls and VPN Appliances
- Intrusion Prevention Systems
- Multi-Factor Authentication (MFA)
- Network Monitoring & Access Control
- Unified Threat Management (UTM) Appliances
- Software
- Application Security
- Endpoint Security Platforms
- Fraud Prevention and Transactional Security
- Identity & Access Management
- Messaging Security
- Data Protection
- Security Intelligence and Management
- Network Security
- Server Security
- Web Security
- Services
- Managed Security Services (MSSP)
- Security Consulting
Enterprise Cyber Security Vertical Outlook (Revenue, USD Million, 2019-2026)
- BFSI
- Information Technology
- Retail
- Government
- Healthcare
- Others
Consumer Cyber Security Product Outlook (Revenue, USD Million, 2019-2026)
- Device Security
- Internet Security
- Identity Protection
Cyber Security Regional Outlook (Revenue, USD Million, 2019-2026)
- North America
- U.S.
- Canada
- Europe
- Germany
- UK.
- Italy
- France
- Spain
- The Netherlands
- Rest of Europe
- Asia Pacific
- China
- Japan
- India
- Australia
- Singapore
- Rest of Asia Pacific
- South & Central America
- Brazil
- Mexico
- Argentina
- Chile
- Rest of South & Central America
- Middle East & Africa
- United Arab Emirates (UAE)
- Kingdom of Saudi Arabia (KSA)
- South Africa
- Rest of Middle East & Africa
The market intelligence report provides an in-depth analysis of the following –
- Cyber security market outlook: analysis as well as historical figures and forecasts of revenue opportunities from the security hardware, security software, and security services markets.
- Cyber security market outlook: analysis as well as historical figures and forecasts of revenue opportunities from the key vertical industry segments.
- Cyber security market outlook: analysis as well as historical figures and forecasts of revenue opportunities from the enterprise size band perspective.
- The competitive landscape: an examination of the positioning of leading players in the cybersecurity market.
- Company snapshots: analysis of the market position of leading service providers in the cybersecurity market.
- Underlying assumptions behind our published base-case forecasts, as well as potential market developments that would alter, either positively or negatively, our base-case outlook.
Reasons to Buy
- This market intelligence report offers a thorough, forward-looking analysis of the global cybersecurity market, security solution providers, and key opportunities in a concise format to help executives build proactive and profitable growth strategies.
- Accompanying GlobalData’s Forecast products, the report examines the assumptions and drivers behind ongoing and upcoming trends in cybersecurity markets.
- The report also highlights key infrastructure segments (Hardware/resource, software/applications, and services), vertical industries (BFSI, Manufacturing, IT, Construction, etc.), and enterprise size bands (Micro, small, medium, large, and very large).
- With more than 20 charts and tables, the report is designed for an executive-level audience, boasting presentation quality.
- The report provides an easily digestible market assessment for decision-makers built around in-depth information gathered from local market players, which enables executives to quickly get up to speed with the current and emerging trends in cybersecurity markets.
- The broad perspective of the report coupled with comprehensive, actionable detail will help security hardware & software vendors, service providers, and other Cybersecurity players succeed in the growing cybersecurity market globally.
Key Players
Table of Contents
List of Tables
List of Figures
Frequently Asked Questions
The cybersecurity market size was valued at US$220.6 billion in 2021.
The cyber security market is expected to grow at a CAGR of 8.7% during the forecast period (2021-2026).
A significant increase in security incidents due to remote working during COVID-19, proactive government actions to augment the cybersecurity capabilities, as well as regulatory requirements to ensure consumer data security are stimulating the growth of the cybersecurity market worldwide.
Infrastructure segments: Hardware/resources, software/application, services; Vertical segments: – BFSI, Manufacturing, IT, Construction, & Retail Enterprise Size Bands: Micro, Small & Medium Enterprises (MSME) and large & very large enterprises.
The leading cyber security companies are IBM, Accenture Plc, Palo Alto Networks Inc., McAfee, NortonLifeLock Inc., Synopsys, etc.
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