Global cybersecurity market expected to grow 8.7% annually to reach $334 billion in 2026, report says

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Even as business digitalization increases, cybersecurity has become the top priority for organizations and consumers, and their spending on cybersecurity is also increasing. According to a report, global cybersecurity revenue is expected to register a compound annual growth rate (CAGR) of 8.7% to reach $334 billion in 2026, from $220 billion in 2021.

“Cybersecurity has become a top priority for organizations and consumers, especially following the spread of the COVID-19 pandemic, which has led to new ways of living and working with a huge reliance on digital infrastructure. which remains vulnerable to cyberattacks,” data and analytics firm GlobalData said in its report.

He added that the growing focus of regulatory and governmental authorities on data localization to ensure the security of consumer and enterprise IT data will be one of the major growth drivers for the cybersecurity market. The cybersecurity market forecast looks promising with the proliferation of digital transformation, cloud, IoT and connected devices.

The report states that the Asia-Pacific cybersecurity market, led by China, India, and Japan, captured a major share of overall demand revenue in 2021. “The Indian cybersecurity market has witnessed a growing at a double-digit CAGR, higher than China and Japan. The development of the BYOD trend in the country is expected to support growth over the forecast period.

The report states that Europe has become the second largest market in terms of cybersecurity demand in 2021. Government investments to secure networks and the proliferation of small and medium enterprises have contributed to regional demand in 2021. The regional market is expected to grow at a CAGR exceeding 5% from 2021 to 2026.

Rising volume and sophistication of cyberattacks in organizations is expected to drive the enterprise cybersecurity market revenue growth over the forecast period.

The report states, “The BFSI sector is the largest enterprise cybersecurity end-use market with revenues estimated at $20.5 billion for 2021 and expected to grow over $30 billion by 2026. during the forecast period. The major driver of growth in the IT security market for the BFSI sector is the shift to digital operations and the widespread adoption of online banking services.

He also said that towards the end of 2021, the number of M&A deals involving cybersecurity companies reached 40 per month. Additionally, with the increasing number of ransomware and supply chain attacks, it is highly likely that the number of cybersecurity M&A deals will continue to increase. “The consumer cybersecurity market share is consolidated with vendors such as NortonLifeLock Inc., ESET spol. s ro, McAfee LLC, AVAST Software sro, Trend Micro Incorporated, Kaspersky, BlackBerry (Cylance), among others.

Madhumita Chaudhary, Practice Leader at GlobalData, said, “Despite continued investment and growth in cybersecurity, the frequency of attacks and breaches has shown no signs of slowing down. More than billions of records containing critical information have been compromised since the pandemic. As such, enterprise cybersecurity will continue to dominate the overall cybersecurity demand in terms of market share, capturing a significant revenue share exceeding 90% in 2021.”

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