The global cybersecurity market size is projected to more than triple in size to $657 billion by 2030 from the $197 billion the segment rung up in 2021, according to a new report by Next Move Strategy Consulting.
The market is expected to clip along at a compound annual growth rate (CAGR) of 12.8% from 2022 to 2030, the analyst said. Three major drivers will prod the market forward:
- The rise in phishing and malware hitting businesses
- An increase in adoption of the Internet of things, artificial intelligence, and employees using their own devices in remote settings
- Overall growing number of cyberattacks worldwide
North America accounted for the highest cybersecurity market share in 2021 and is expected to dominate the market throughout the forecast period, Next Move said.
Where's the Cybersecurity Market Headed?
Research and Markets is more conservative about the growth of the cybersecurity market than is Next Move. The global cybersecurity market is projected to reach $300 billion by 2027, clipping along at a compound annual growth rate (CAGR). That's slightly more than 11% throughout the forecast period of 2019-2027, a new report by Research and Markets said.
According to the analyst, the market’s strong growth owes to:
- An increasing demand for network security and privacy
- Growing adoption of cloud computing
- Rising need for digital transformation in the telecom industry
- Frequency of cyberattacks
- Increasing regulations for information security
Malware Moves the Market
Sophisticated malware has significantly increased the capacity of cybercrimes to infiltrate, take over, and damage entire IT networks, which have driven growth in the cybersecurity insurance market, Next Move said. On the other hand, the high cost of cybersecurity insurance constrains the market’s growth. Still, as the cybersecurity market grows so will the cybersecurity insurance market, according to researchers.
A recent study projected the segment to reach $32.6 billion by 2028, rising at a market growth of 18.8% compound annual growth rate (CAGR) through 2028, according to Research and Markets.
Of that figure, by 2028 roughly two-thirds will be generated by solutions and the remainder by services. Overall, since 2019, the demand for cybersecurity insurance by services organizations has grown faster than that of solutions. In 2019, the market totaled $6 billion.