The cyber security industry is growing at a rapid pace. According to a study done by Gartner the global cyber security market was valued at $187 billion USD in 2021. The industry has more than doubled its spending from 2012 to 2020. Many analysts are forecasting that the industry will continue to grow at a pace of 10-15% per year. By 2026 estimates are that the sector could be worth more than $270 billion USD. What is even more incredible is that not only is the internal spending for companies continuing to rise but external spending is rising at an exponential rate! There are many reasons why the industry is experiencing such a boom and will continue to do so. Let’s dive in to see how the cyber security market has evolved and what the future holds in store.
2020 and the COVID-19 epidemic really put things into a new gear for cyber breaches. As companies and people worked from home the need to protect our data became that much more important. 2020 saw a recording breaking year when it came to cyber security breaches according to a report by Canalys. As hackers become more sophisticated the development of more advanced cyber security platforms will be that much more prevalent.
Our society is becoming more reliant on more automated systems, large confidential data storage, and E-commerce platforms, so the need for protecting these assets will also increase. I personally do not see any reason why this industry would see a slowdown as society, businesses, and governments will continue to protect their information and that of their clients. With the development of cloud technology services becoming a more sophisticated way to store data also comes the potential to steal more information. As more companies shift to more advanced data networks the need for more security-based software will be much more important.
Governments are also looking at ways to protect their information and that of their citizens. The telecommunications industry is probably one of the largest areas that governments will spend money on to make sure information is not leaked out. A great example of this would be the Huawei debacle with the U.S. government. U.S. officials within the federal government raised concerns that Huawei–made telecommunications systems may be designed to allow unauthorized access by the Chinese government. Another example is the Russian government launching a cyberattack against a commercial satellite operator on the eve of its invasion of Ukraine. Governments are now developing satellite networks to help defend against such cyber-threats.
We are seeing more and more private-based cyber security companies on the market. Even governments are resorting to private companies with large contracts being signed. This is an opportunity for investors to get into an industry with rapid growth.
If you wish to know more and start investing in this highly charged industry, let’s talk.