Cyber Security Market Size To Surpass USD 878.48 Bn By 2034 (2024)

Cyber Security Market Size and Companies

The global cyber security market size was USD 238.13 billion in 2023, calculated at USD 268.13 billion in 2024, and is expected to reach around USD 878.48 billion by 2034. The market is expanding at a solid CAGR of 12.6% over the forecast period 2024 to 2034.

Cyber Security Market Key Takeaways

• North America contributed more than 36.13% of revenue share in 2023.
• By Component, the services segment is expected to hold the largest market share over the forecast period.
• By Security Type, the infrastructure protection segment is expected to dominate the market during the forecast period.
• By Solution, the IAM segment is expected to capture the largest market share over the forecast period.
• By Services, the professional services are expected to dominate the market during the projected period.
• By Deployment, the on-premises segment captured more than 62% of revenue share in 2023.
• By Organization size, the large enterprises segment generated more than 70% of market share in 2023.
• By Application, the Defense/Government segment is expected to capture a significant market share over the forecast period.

U.S. Cyber Security Market Size and Growth 2024 to 2034

The U.S. cyber security market size was estimated at USD 60.22 billion in 2023 and is predicted to be worth around USD 236.04 billion by 2034, at a CAGR of 13.2% from 2024 to 2034.

North America is expected to dominate the market during the forecast period.The region experiences a wide range of cyber threats, including ransomware attacks, data breaches, nation-state-sponsored cyber espionage, and various forms of cybercrime. The region is a prime target due to its economic significance and technological advancements. For instance, the second-highest number of data intrusions in the United States in a single year occurred in 2022, according to The Identity Theft Research Center's (ITRC) Annual Data Breach Report.

A minimum of 422 million people were affected. Moreover, the favorable regulatory environment is another important factor that propels market penetration over the projection period. Both the United States and Canada have stringent data protection and privacy regulations, such as the General Data Protection Regulation (GDPR) equivalent in Canada (PIPEDA) and various state-level data breach notification laws in the U.S. Compliance with these regulations drives cybersecurity investments. Thereby, driving the market growth in the region.

Market Overview

Cyber security is a critical and rapidly evolving field that focuses on protecting computer systems, networks, and data from various forms of cyber threats, including cyberattacks, data breaches, and unauthorized access. It encompasses a range of technologies, processes, and practices designed to safeguard digital information and the infrastructure that processes, stores, and transmits it. Cyber security measures and practices include a wide range of strategies and technologies, such as firewalls, antivirus software, intrusion detection systems, encryption, access control, vulnerability assessments, and incident response plans. As technology becomes increasingly deployed into daily lives, businesses, and governments, the importance of cyber security cannot be overlooked. The cyber security market plays a pivotal role in addressing these evolving threats and safeguarding digital assets.

• According to new statistics from the Australian Bureau of Statistics (ABS), more than two in ten enterprises (22%) experienced a cyber security attack during the 2021–22 fiscal year, compared to roughly one in ten (8%) in 2019–20.
• The Australian Cyber Security Centre reported an unprecedented 76,000 cybercrime incidents, a 13% rise from the prior fiscal year, according to the most recent Annual Cyber Threat Report 2021–2022.
• The FBI received 800,944 complaints of cybercrime in 2022, a 5% decline from 2021, according to the FBI's Internet Crime Report. However, the total possible loss rose from $6.9 billion in 2021 to $10.2 billion in 2022. The states with the most victims of cybercrime were California, Florida, and Texas.
• In 2022, the Consumer Sentinel Network of the Federal Trade Commission (FTC) received over 5.1 million reports, in which 46% involved fraud and 21% involved identity theft. A total of 43.7 percent of identity thefts involved credit card fraud, followed by miscellaneous identity theft.

Cyber Security Market Growth Factors

The cyber security market is driven by numerous factors such as rising cyber threats, data privacy regulations, digital transformation, technological advancements, data breaches and privacy concerns and many others. The global cyber security market is expected to grow at a robust pace with the rising rate of digitization across the globe. The market aims on offering multiple solutions for tackling with cyber-attacks and crime. The rising demand from banking and other financial sector for controlling cyber-attacks create a significant growth factor for the market to grow. Moreover, multiple governments are focused on protecting confidential data and sites with advanced cyber security services and solutions, the element is observed to act as a major growth factor for the market.

Market Scope

Market Dynamics

Driver:

The rise of automotive hacking

Autonomous software that provides seamless communication for drivers in engine timing, door locks, and airbags along with a cutting-edge driver support system. These cars' communication methods, Bluetooth and WiFi, expose them to several security flaws and hacking risks. In 2023, as autonomous cars become more prevalent, there may be an increase in attempts to take control of them or listen in on conversations via microphones. Self-driving or autonomous cars employ a process that is significantly more complicated and calls for stringent cybersecurity precautions. Thus, driving the market growth during the forecast period.

Restraint:

Lack of skilled professionals

There is a shortage of qualified cybersecurity professionals with the skills and expertise needed to protect organizations from evolving threats. This skills gap hampers organizations' ability to implement and manage effective cybersecurity measures. Thus, the shortage of skilled professionals is expected to be a major restraining factor to the market growth over the forecast period.

Opportunity:

Emergence of remote working culture

Many businesses have been compelled to transition to remote working because of the pandemic, which has created additional cybersecurity issues. Due to the frequently less secure networks and devices they use, remote employees may be more susceptible to cyberattacks. To safeguard their remote workers, firms must implement proper security measures, such as multi-factor authentication, secure VPNs, and automatic patching. Thus, the emergence of a remote working culture is expected to offer a lucrative opportunity for market growth during the forecast period.

Component Insights:

Based on the components, the global cybersecurity market is segmented into software, hardware and services. The services segment is expected to hold the largest market share over the forecast period. The cyber security market encompasses a wide range of services designed to help organizations protect their digital assets and defend against cyber threats. These services are offered by cybersecurity firms, consulting companies, managed security service providers and others. The widespread adoption of cyber security in numerous sectors is being driven by enterprise's strong desire to implement appropriate solutions according to organizational structures. For instance, according to secondary sources, around 493 million ransomware attacks were experienced by organizations globally in 2022. Thus, these facts support the segment growth during the analysis period.

Security Type Insights:

Based on the security type, the global cyber security market is segmented into endpoint security, cloud security, network security, application security, infrastructure protection, data security and others. The infrastructure protection segment is expected to dominate the market during the forecast period. Infrastructure protection includes the protection of essential systems and assets, such as power grids, water treatment facilities, nuclear plants, and transportation networks, from cyber threats. Ensuring the continuous and reliable operation of this critical system is paramount.

On the other hand, cloud security is expected to grow at a significant rate over the forecast period. The need for cloud security is anticipated to be driven by the rising demand for managed security solutions and expanding cloud usage. To attract new business consumers, organizations in the cloud security sector are concentrating on expanding their product lines. To help security and DevOps teams improve the security of cloud-native applications, Datadog, Inc., a provider of IT security solutions, introduced a cloud security management solution in October 2022. This solution combines features from cloud workload security and cloud security posture management. Thus, driving the market growth during the forecast period.

Solution Insights:

Based on the solution, the global cyber security market is segmented into Unified Threat Management (UTM), IDS/IPS, DLP, IAM, SIEM, DDoS, Risk and compliance Management and Others. The IAM segment is expected to capture the largest market share over the forecast period. Identity and Access Management (IAM) is a critical component of the cyber security market that focuses on managing and controlling user identities, access privileges, and authentication to secure digital resources and systems. IAM solutions play a pivotal role in ensuring that the right individuals or entities have appropriate access to systems, data, and applications, while also enhancing security and compliance.

Services Insights:

Based on the services, the global cyber security market is segmented into professional services and managed services. Professional services are expected to dominate the market during the projected period. The sizeable market share may be attributable to the growing demand for professional services like penetration testing, business risk analysis, and physical security testing. Another important reason fueling the segment's expansion is the shortage of qualified cybersecurity personnel. Additionally, end-user businesses favor the advice and experience of professional service providers to reduce business security risks through the installation of affordable security solutions.

Deployment Insights:

Based on the deployment, the global cyber security market is segmented into cloud-based and on-premises. The cloud-based segment is expected to grow at the fastest rate over the forecast period. Cloud-based cybersecurity solutions can easily scale to accommodate the growing needs of organizations. Whether it's protecting a small business or a large enterprise, cloud-based solutions can adapt to the changing threat landscape.

Moreover, cloud-based solutions often follow a subscription or pay-as-you-go model, reducing the upfront costs associated with traditional on-premises security solutions. This cost-effectiveness appeals to organizations looking to manage their budgets efficiently. Furthermore, cloud-based security providers typically handle updates, patches, and maintenance, ensuring that organizations are protected with the latest security features without the need for manual intervention. Thus, these benefits are expected to drive segment expansion.

Organization Size Insights:

Based on the organization size, the global cybersecurity market is segmented into SMEs and Large Enterprises. The large enterprises segment is expected to dominate the market during the forecast period. Large enterprises often have extensive and complex IT infrastructures, including data centers, multiple offices or locations, and a wide range of devices and applications. This complexity requires comprehensive security solutions.

Application Insights:

Based on the application, the defense/government segment is expected to capture a significant market share over the forecast period. The cybersecurity market for defense and government is a specialized and critical segment within the broader cybersecurity industry. Defense and government organizations face unique cybersecurity challenges due to their role in national security, the sensitivity of the data they handle, and the constant threat of cyberattacks from nation-states and others. Thus, driving the market revenue growth.

Cyber Security Market Companies

• BAE Systems Plc
• Broadcom, Inc.
• Centrify Corporation
• Check Point Software Technology Ltd.
• Cisco Systems, Inc.
• FireEye, Inc.
• Fortinet, Inc.
• International Business Machines Corporation
• Lockheed Martin Corporation
• LogRhythm, Inc.
• McAfee, LLC.
• Palo Alto Networks, Inc.

Recent Developments

• In April 2023, the cybersecurity partner ecosystems of Google Cloud and Mandiant are being combined to provide the most open, complete, and intelligent platform in the market for clients' end-to-end cybersecurity requirements. Mandiant, Google Cloud, and more than 100 other top cybersecurity suppliers are integrated into the united ecosystem, which combines their knowledge and technology. To keep ahead of security threats and close typical gaps that afflict older networks, infrastructure, and tools, Google Cloud offers enterprises the variety and breadth they need for incident response through the proactive defense. With new partner integrations, Google Cloud is enhancing these capabilities even further, enabling users to defend against intrusions across cloud environments and react to cybersecurity incidents more swiftly.
• In August 2023,World Wide Technological (WWT), a global provider of technological solutions, and Akamai Technologies, Inc., the cloud business that drives and protects life online, recently announced a strategic agreement to deliver Akamai's security solutions to WWT's international clients. Worldwide, WWT provides Akamai's security solutions to its business, service provider, and public sector clients. The presence of Akamai at WWT's Advanced Technology Center (ATC) is crucial to the collaboration. The ATC, which has a global presence, includes a variety of technologies that give consumers access to an innovation, research and thought leadership environment. Since Guardicore Segmentation and Akamai API Security are operating in WWT's ATC, Akamai proof-of-concept, lab, demo, and testing are quick and easy.

Segments Covered in the Report:

By Component

• Software
• Hardware
• Services

By Security Type

• Endpoint Security
• Cloud Security
• Network Security
• Application Security
• Infrastructure Protection
• Data Security
• Others

By Solution

• Unified Threat Management (UTM)
• IDS/IPS
• DLP
• IAM
• SIEM
• DDoS
• Risk & Compliance Management
• Others

By Services

• Professional Services
  • Risk and Threat Assessment
  • Design, Consulting, and Implementation
  • Training & Education
  • Support & Maintenance
• Managed Services

By Deployment

• Cloud-based
• On-premises

By Organization Size

• SMEs
• Large Enterprises

By Application

• IT & Telecom
• Retail
• BFSI
• Healthcare
• Defense/Government
• Manufacturing
• Energy
• Others

By Geography

• North America
• Europe
• Asia-Pacific
• Latin America
• Middle East and Africa