The unprecedented growth of cybercrime has lent an increased importance to IT security market, as these crimes have made it rather imperative to surge spending on IT security solutions to accurately track, tackle, and eradicate cyber risks. Precisely speaking, the rise in the number of growth avenues for IT security market can be attributed to several malevolent trends that malign the integrity and safety of people and organizations. Cybercrimes along the likes of phishing, eavesdropping, password breach, malware, and several others have risen tremendously in the last half a decade, thereby pushing the expansion of IT security market worldwide.
U.S. Cybersecurity Market Revenue, By Product, 2017 & 2024
A major challenge that the IT security industry is facing is the rise in mobile malware. Reliable estimates claim that the number of newfangled malware variants for mobile devices increased by over 50 percent in the year 2017. The year also witnessed over 25% of malicious apps in Lifestyle segment, followed by Music & Audio, with more than 18% and the Books & Reference segment with over 10%. With mobile malware on the rise, IT security industry contenders have been striving to bring forth advanced, compatible security solutions to the market.
As the world transitions into a digital cosmos, organizations worldwide are integrating IT security solutions to ensure data safety & peak efficiency. Some of the key players operating in the IT security market space include Check Point Software, CyberArk Software Ltd., BAE Systems, Cisco Systems, Inc., F-Secure Corporation, FireEye, Inc., F5networks, Inc., Trend Micro, Inc, Hewlett-Packard, Symantec Corporation, IBM Corporation, McAfee LLC, Microsoft Corporation, Intel Corporation, Oracle Corporation, Proofpoint Inc., Rapid7, Palo Alto Networks, Inc., Sophos Group plc, RSA Security, LLC., and Splunk, Inc.
The vast expanse of the IT security industry is quite vivid from the massive expenditure anticipated for IT security solutions. Say for example, the Ponemon Institute’s Cost of a Data Breach 2018 research claims that the average data breach cost to a United Nations firm was USD 7.91 million while the average data breach cost to organizations across the globe was USD 3.86 million. A recent research report released by the International Data Corporation also claims that businesses are predicted to spend about $101.6 Bn on IT security services, software, and hardware, in the year 2020. This marks a massive upsurge from the expenditure of the year 2016.
The robust cases of cyberattacks serve to validate the proliferating adoption of IT security solutions. A couple of such instances that gained mainstream popularity and brought forth a renewed spate of revenue streams for IT security industry players are mentioned below,
Cyber-attacks that grabbed global attention in 2018
The manhandling of confidential user information by a large company
In 2018, cyber hackers breached MyFitnessPal application of Under Armour and gained access to email addresses, usernames, and passwords of approximately 150 million users. Later, the organization discovered the intrusion and divulged it within a week. Driven by fear of losing valuable customers, the company has set up its data protection system and has even protected user passwords which it was earlier storing as hashtags or as unintelligible character strings.
Over 5 Lac routers from top manufacturers hacked
Russian hackers attacked over 500,000 routers across the globe by spreading a malware, dubbed as VPNFilter, in May 2018. The malware can be used to coordinate maligned devices to produce a giant botnet. Moreover, it can directly spy on and manipulate internet activity on the infected routers. VPNFilter hacked dozens of routers from leading companies like D-Link, Netgear, Linksys, TP-Link, ASUS, and Huawei.
Researchers cite fear as the key motivator behind the escalation in IT security expenditure in view of hacks that have intoxicated behemoths like Sony Pictures Entertainment, Yahoo, and Anthem. In a recent incidence, handbag firm Vera Bradley publicized that hackers might have stolen client data, including credit card details and cardholder names from in-store payment equipments.
Powered by the rising threat of major cybercrimes, organizations have started to invest heavily on IT security solutions which has naturally translated to an instrumental revenue influx for IT security industry contenders. According to Global Market Insights, Inc., IT security market is poised to evolve as a highly remunerative vertical, with an estimated target valuation of USD 300 billion by 2024.