The cybersecurity market is expected to continue to experienced strong growth as organizations increase their IT security spending to tackle the growing number of cybersecurity threats. As cyberattacks become increasingly sophisticated and more varied, organizations need to purchase new security products and commit more resources to keeping their networks and data secure.
According to a new report from BCC Research, IT security spending is expected to increase by 9% by 2018 as companies purchase new products and services to repel attacks. The sheer volume of attacks taking place and the increasing cost of data breaches has led companies to divert more of their resources to IT security. This is fueling massive growth rates in the cybersecurity market.
BCC Research expects the global cybersecurity market to increase to $85.3 billion in 2016, rising to $187.1 billion by 2021 with a five-year compound annual growth rate (CAGR) of 17%. The market in the United States is expected to reach $39.5 billion in 2016, rising to $78 billion by 2021 with a CAGR of 14%. By 2018, global cybersecurity spending is expected to top $100 billion, having grown from $76.7 billion in 2015.
BCC Research says network security will continue to dominate over the next five years, although major growth is expected in the cloud security market as more organizations transition to the cloud. Growth at a 27.2% CAGR over the next five years has been predicted in the cloud security market.
Providers of cybersecurity solutions are expected to enjoy continued strong growth as organizations continue to purchase solutions to improve their cybersecurity defenses. In particular, the report predicts increased spending on encryption, firewalls, antivirus and antimalware solutions, identity and access management, data loss prevention technologies, disaster recovery, and risk and compliance management solutions.
In 2015, organizations in the finance and banking sector spent the most on cybersecurity solutions ($22.2 billion). However, BCC Research predicts major increases in spending in the defense and intelligence segment and by healthcare organizations. The healthcare sector is expected to experience growth at a five-year CAGR of 16.2%, while the defense and intelligence sector is expected to lead all segments by 201 when the sector will be generating revenues of $50.7 billion.
BCC says “Factors such as the growing complexity and frequency of threats, increasing severity of cyber security, stringent government regulations and compliance requirements, ubiquity of online communication, digital data and social media cumulatively should drive the market.”