Cybersecurity is the fastest growing tech sector, the major driver being cybercrime. Global spending on cybersecurity products and services is expected to touch $1 trillion from 2017 to 2021 as per the latest report by Cybersecurity Ventures.
According to Cybersecurity Ventures’ founder and Editor-In-Chief Steve Morgan it is increasingly becoming difficult for IT analyst forecasts to keep pace with the dramatic rise in cybercrime, the ransonware epidemic, the refocusing of malware from PCs and laptops to smartphones and mobile devices, the deployment of billions of under-protected Internet of Things (IoT) devices, the legions of hackers-for-hire, and the more sophisticated cyber-attacks launching at businesses, governments, educational institutions, and consumers globally.
“We anticipate 12-15% year-over-year growth through 2021, compared to the 8-10% projected over the next five years by several industry analysts,” added Morgan.
He further added that many corporations are hesitant to announce breaches they’ve suffered — and the amounts of their increased security budgets — for fears of reputational damage and of antagonizing cybercriminals.
“By 2020, we expect IT analysts covering cybersecurity will be predicting five-year spending forecasts (to 2025) at well over $1 trillion,” Morgan informed.
“Some public cybersecurity companies have seen their stocks take a hit in the first half of 2016” says Morgan. “We don’t think that has much to do with a slowdown in cybersecurity spending. Rather, we believe there’s substantially more competition going after cyber defense business at Fortune 500, Global 2000 and mid-sized corporations, plus governments globally.
IBM and Cisco have $2 billion and $1.75 billion cybersecurity businesses respectively, and both are growing steadily and making strategic acquisitions in the space. IBM Security grew by 20% in Q1 2016. For the larger pure-play cyber companies this had given them more competition in the market. Competition has further intensified with the coming up of many startups in this space recently: 2014 and 2015 saw record VC funding and corporate investments into cybersecurity companies.
In 2004, the global cybersecurity market was worth $3.5 billion — and by 2017 it will be worth $120 billion. This means the cybersecurity market grew by roughly 35x over 13 years.