By 2019, the cyber security market size is expected to be above $150 billion. There are two primary factors that will drive up the value of this market over the next several years.
- An increase in the value of stealing someone’s identity for fraudulent purposes.
- The continuing adoption of cloud-based services and online payment tools.
Personal and professional needs in the cyber security market are going to fuel sales. As products like Apple Pay are more readily utilized and banking apps begin to inspire more confidence, there will be more personal information floating over the internet and on computers than ever before. It will need to be protected. Cyber security is the best way to solve that problem.
What Will Make Up the Cyber Security Market?
There are several specific segments that make up the cyber security market.
The focus of this segment will be to identify threats to personal and professional networks and then nullify them before they cause damage. Items like malware software, antivirus software, and various firewall solutions will play a big role in this niche.
9 out of 10 businesses are using content to market their goods and services. Personal content is also being shared more than ever before through blogging, social platforms, and even instant messaging. Protecting this information so that it stays original or isn’t used for profit by others will become an essential part of online life.
As payment platforms move to the online world, they will join the current need of protecting photographs, documents, and other items that are routinely traded between the cloud and mobile devices or PCs. This will be especially true if laptops and other home platforms focus on smaller storage drives and more cloud transfers instead.
The focus of this segment is going to be a unified threat management. By making sure threats stay at an arm’s length away, the entire system will be protected. This will be especially beneficial for public utilities, proprietary information, and personal data that is stored in home offices.
The pace of business and communication is increasing exponentially with every year. It isn’t uncommon for sole proprietors to be running a global business from the chair of their home office. The exposure of a global brand creates global risks that must be managed. The demand for cyber security is going to increase as the world grows smaller and that means the market share will continue to increase at the same time.
Why Is the Cyber Security Market Expanding So Rapidly?
It wasn’t that long ago that a small handful of providers was dominating the cyber security market and bringing in just a little over $3 billion per year. In 2014, the market exceeded $70 billion. By 2019, that figure is going to more than double. Why is it going to be so strong?
The answer lies in competition. In 2013, there were more than 230 start-ups that had the backing of venture capitalists in this industry. $1.4 billion in investments were made to get these companies going. The fact that people are on more devices than ever before, from smartphones to console gaming systems, means that people are more exposed than ever before. Most of these systems can’t run the same traditional cyber security systems. This is why the market is going to expand so much over the next few years.
There’s also the fact that almost everyone has been affected by a data breach over the last couple of years. Instead of it being a Wall Street issue, it has become a Main Street issue. It isn’t uncommon to see a story about a cyber security problem in the news every day. This is driving up demand and when combined with the need for innovation to fuel a response, there are numerous chances for profits to be had.
The cyber security market is super strong. Some companies are trading at 35 times their revenue value right now. Market caps are 10 figures strong. There is a lot of love for start-ups that have fresh ideas and a proven concept. Companies like Symantec might be struggling, but that’s because they are still stuck in 2004 with what they offer. Fresh ideas are bringing big results for this industry.
Even though the modern cyber security market has been around since 2002, now is a time of transition. Innovation is fueling the market. This means the expansion that has been seen recently is only going to be a taste of things to come.