Increasing investments by enterprises in cybersecurity owing to employees working remotely during the pandemic sparked an M&A boom in the tech sector
LONDON, July 20, 2022 (GLOBE NEWSWIRE) -- The Cybersecurity – Thematic Research report offered by GlobalData Plc provides an overview of the cybersecurity theme and identifies the key trends impacting the growth of the theme over the next 12 to 24 months. The report also includes a comprehensive industry analysis, including market size forecasts for cybersecurity and analysis of patents, company filings, hiring, and social media trends. Moreover, it contains details of M&A deals driven by the cybersecurity theme and a timeline highlighting milestones in the development of cybersecurity.
According to the thematic intelligence report published by GlobalData, the global cybersecurity market size was valued at $125.5 billion in 2020 and is expected to grow at a CAGR of more than 9% by 2025. Factors such as the need for securing hybrid working, coping with ransomware, continuing supply chain threats, and moving to a zero-trust security model as a long-term solution to data breaches will drive strong cybersecurity market growth over the next three years. Most cybersecurity M&A deals in 2021 were related to managed security services, network security, endpoint security, identity management, and cloud security. Microsoft, which bought cloud infrastructure company CloudKnox, threat intelligence and attack service management firm RiskIQ, and Internet of Things (IoT) security company ReFirm Labs, was one of the leading acquirers in 2021.
Cybersecurity Mergers and Acquisitions
Since the start of the COVID pandemic in early 2020, the cybersecurity market has seen many mergers and acquisitions (M&A) spurred by the widespread move to remote work. Towards the end of 2021, the number of M&A deals involving cybersecurity companies reached 40 a month. Data security, IoT, cloud security, and AI are some of the strongest drivers of cybersecurity deals. With increasing numbers of ransomware and supply chain attacks, there is a high likelihood that the number of cybersecurity M&A deals will continue to rise. Companies such as Google and Microsoft have increased their influence in cybersecurity and have been at the heart of M&A deals over the last three years.
Key Trends Impacting the Cybersecurity Theme
Technology Trend: Ransomware is no longer just about encryption. It is a multi-faceted offensive campaign that also involves an attack on the brand reputation of the victim. Attackers are now operating secondary monetization channels and auctioning exfiltrated data on the dark web. Ransom demands have also been increasing. Many Asian organizations have been badly impacted by ransomware. Organizations have reported that a ransomware attack had forced them to close operations for some time.
Macroeconomic Trend: The Russia-Ukraine war is the first large-scale conflict in which cyber warfare was expected to play a significant role. However, so far, that has not happened. The war has not been fought in cyberspace after all, but on land, a move which may ultimately require a rethink of governments’ cyber warfare strategies. Despite being one of the world’s foremost offensive cyber powers, the Russian invasion of Ukraine has, in the words of former UK National Cyber Security Center head Ciaran Martin, been “conventional in its brutality.” That has implications for investment in defense by Western governments. According to Martin, even those skeptical about the mischaracterization of cyber operations and cyber risk as catastrophic weapons of destruction had been surprised by how few cyber operations featured in the early part of the invasion. One minor exception is the hacktivist group Anonymous hacking Russian TV news channels to show footage of the assault on Ukraine.
Regulatory Trend: The impact of new cybersecurity incident reporting rules on US banks will be significant. The rules mean US banks must notify federal regulators of any cybersecurity incidents within 36 hours of discovering them. That may turn out to be a tough target to meet. Security staff will have to ensure proper technical, administrative, and physical safeguards are in place to discover computer-security incidents and have policies and procedures to determine whether they rise to the level of a notification incident. They will also have to maintain appropriate regulatory points of contact so that the agency can be contacted quickly if required.
Cybersecurity Value Chains
The cybersecurity value chain consists of three main areas: hardware, software, and services.
CybersecurityHardware: With chips now being used in mission-critical servers and safety-critical applications, protecting chips from cyberattacks is becoming more critical and more expensive. Systems vendors such as Apple and Amazon are increasingly designing their chips rather than buying commercially developed devices and intellectual property (IP) created by third-party developers.
CybersecuritySoftware: The software element of the cybersecurity value chain comprises the following areas: identity management, network security, endpoint security, threat detection and response, cloud security, data security, email security, application security, unified threat management, and vulnerability management.
Cybersecurity Services: The services element of the cybersecurity value chain comprises the following areas: managed security services, post-breach response services, and risk and compliance services. Services are typically outsourced because of the complexity of addressing cybersecurity-related issues, such as staying on top of vulnerabilities, identifying, and responding to threats, and meeting compliance requirements.
Leading Public Companies Associated withthe Cybersecurity Theme
- Check Point Software
- Dell Technologies
- Palantir Technologies
- Palo Alto Networks
Leading PrivateCompanies Associated with the Cybersecurity Theme
Cybersecurity Sector Scorecards
At GlobalData, we use a scorecard approach to predict tomorrow’s leading companies within each sector. Our sector scorecards have three screens: a thematic screen, a valuation screen, and a risk screen.
Cybersecurity is a theme that impacts many of the sectors we cover. This thematic report specifically focuses on the enterprise security and IT services sectors.
- Thematic screen: Our thematic screen ranks companies based on overall leadership in the 10 themes that matter most to their industry, generating a leading indicator of future performance.
- Valuation screen: Our valuation screen ranks our universe of companies within a sector based on selected valuation metrics.
- Risk screen: Our risk screen ranks companies within a particular sector based on overall investment risk.
Reasons to Buy
- In a little over a decade, according to the World Economic Forum (WEF) Global Risks Report, cybercrime has moved from being a specialist crime to one of the most significant strategic risks facing the world today. This report provides an invaluable guide to this extremely disruptive theme. It includes comprehensive lists of the leading players across all aspects of the cybersecurity value chain, helping companies identify the right partners.
- The report also includes a guide to the major threat actors and looks at the main types of cyberattacks, from un-targeted attacks like phishing to targeted attacks like distributed denial of service (DDoS).
- Cybersecurity in Banking - Thematic Research – Click here
- Cybersecurity in Insurance - Thematic Research – Click here
- Cybersecurity in Defense - Thematic Research – Click here
- Cybersecurity in Travel and Tourism - Thematic Research – Click here
- Cybersecurity in Sport - Thematic Research – Click here
Cybersecurity Market Overview
|Market Size 2020||$125.5 billion|
|Forecast Period||2020 to 2025|
|Key Technology Trends||Ransomware, Cloud Security, Chip-Based Security, Supply Chain Threats, Critical National Infrastructure Threats, IoT Threats, AI Threats, Insider Threats, The Growing Use of Managed Security Services, New Vulnerabilities, Zero Trust Adoption, Password-Less Security, and Extended Detection and Response (XDR)|
|Key Macroeconomic Trends||The Ukraine Conflict, COVID-19, Cyber Budgets, State-Sponsored Attacks, The Cyber Skills Shortage, Cybersecurity & Elections, Overworked Chief Information Security Officers (CISOs), and An Increase in Financial Sector Cyberattacks|
|Key Regulatory Trends||US Banks’ Breach Reporting, Cooperation on Supply Chain Security, Mandatory Disclosure of Cyberattacks, EU Cybersecurity Legislation, and Consumer Software Security Standards|
|Value Chains||Hardware, Software, and Services|
|Leading Public Companies||Accenture, Alphabet, Check Point Software, Cisco, Cloudflare, CrowdStrike, Darktrace, Dell Technologies, Fortinet, IBM, Microsoft, and Palantir Technologies|
|Leading Private Companies||Cybereason, Code42, ForgeRock, Illumio, Lookout, Netskope, OneTrust, Socure, Snyk, and Tanium|
What was the cybersecurity market size in 2020?
The cybersecurity market size was valued at $125.5 billion in 2020.
What is the cybersecurity market growth rate?
The cybersecurity market is expected to grow at a CAGR of more than 9% from 2020 to 2025.
What are the key technology trends impacting the cybersecuritytheme?
The key technology trends impacting the cybersecurity theme are ransomware, cloud security, chip-based security, supply chain threats, critical national infrastructure threats, IoT threats, AI threats, insider threats, the growing use of managed security services, new vulnerabilities, zero trust adoption, password-less security, and Extended Detection and Response (XDR).
What are the key macroeconomic trends impacting the cybersecurity theme?
The key macroeconomic trends impacting the cybersecurity theme are the Ukraine conflict, COVID-19, cyber budgets, state-sponsored attacks, the cyber skills shortage, cybersecurity & elections, overworked Chief Information Security Officers (CISOs), and an increase in financial sector cyberattacks.
What are the key regulatory trends impacting the cybersecurity theme?
The key regulatory trends impacting the cybersecurity theme are US banks’ breach reporting, cooperation on supply chain security, mandatory disclosure of cyberattacks, EU cybersecurity legislation, and consumer software security standards.
What are the key value chains in the cybersecurity market?
The key value chains in the cybersecurity market can be divided into three segments: hardware, software, and services.
Which are the leading public companies associated with the cybersecuritytheme?
Some of the public companies associated with the cybersecurity theme are Accenture, Alphabet, Check Point Software, Cisco, Cloudflare, CrowdStrike, Darktrace, Dell Technologies, Fortinet, IBM, Microsoft, and Palantir Technologies.
Which are the leading private companies associated with the cybersecurity theme?
The leading private companies associated with the cybersecurity theme are Cybereason, Code42, ForgeRock, Illumio, Lookout, Netskope, OneTrust, Socure, Snyk, and Tanium.
GlobalData is a leading provider of data, analytics, and insights on the world's largest industries. In an increasingly fast-moving, complex, and uncertain world, it has never been harder for organizations and decision makers to predict and navigate the future. This is why GlobalData's mission is to help our clients to decode the future and profit from faster, more informed decisions. As a leading information services company, thousands of clients rely on GlobalData for trusted, timely, and actionable intelligence. Our solutions are designed to provide a daily edge to professionals within corporations, financial institutions, professional services, and government agencies.
Head of PR EMEA
+44 (0)207 936 6400