Navigating Cybersecurity: Market Size and Predictive Insights

So as I mentioned before, my name is Marina Iantorno. I am a research Analyst here at Kuppinger Coal Analyst and I am in charge of the market size forecasting and calculations in in our company. The presentation that now we will discuss is named Navigating Cybersecurity market size and Predictive Insights of some key markets. In our agenda, what we we see today is the essence of market sizing in cybersecurity. Why this is important, why is it relevant, sun projected market growth, what are we expecting in some of the key markets within cybersecurity?

And what do we actually take away from this presentation? And then I will show you how to sign up for our KC Open Select where you can get all this information and more. So let's get started with market sizing and why this is relevant in terms of cybersecurity.

Well, the first thing is we need to understand that knowing the market is always an advantage and from different perspectives. On the one side we can see that if we know what is happening in the market and how big this is, we can actually have a macro level picture on what is going on and whether the possible op or the possibilities, the opportunities that we could have as a company, as a vendor, even as an investor, if you want to actually invest in certain industries.

If you think about making different choices, for example, in one that you want to invest or doing I merchant acquisition as we were talking earlier. So knowing the market and knowing the size that we are dealing with is actually helping us to have a better idea on the price that we will pay for that. And understanding also the market sizing will allow companies to know what is their market share as well. So what is the share that they have in this big pool, let's say? Because of course the market gets more competitive know every year.

And it is important to understand as well that cybersecurity is very broad. So there is not a one size fits all. So different industries would have different requirements and this is why at Kuppinger Coal, we granulate this analysis. We don't do just okay, cybersecurity. This is a market size and this is a expected growth. We see different segments within cybersecurity and within identity access management as well. And we try to analyze what is happening in each of these segments.

Now, the correct granulation of the market segments will actually help managers, businesses, organizations to know whether they have an opportunity to break in. Because sometimes companies want to expand their market, wants to expand their product, and not just that. Also end users, if there is some technology that is on the trend and you as a cybersecurity professional need to actually buy and say, okay, so we want to have this technology, it is important that we can explain to our managers why, why this is important, why is it relevant?

And if we know that the market is growing in the sense it means that it is a trend and other companies that are are also having this. So then as you see, knowing the market size would help from different perspectives. Now let's see what happens in general in a big overview in the market.

Well, so if we check different reports, we can see that there are different threats that are happening nowadays. And these present a clear opportunity to offer new technologies, new solutions, new products. For example, according to CrowdStrike, there was 50% increase in interactive intrusion campaigns in 2022 in comparison to 2021, also check the next number from Deloitte. Deloitte said that 54% of the companies with a revenue above $5 billion are spending more than $250 million annually on cybersecurity, cybersecurity solutions. So what does it mean?

It means that there is a high demand and if there is a high demand, there are opportunities for vendors, for investors, for companies that actually want to offer their products in the market. So it means that there is still space even for new vendors that want to appear or want to arise. And we recently performed a survey. We created a study actually that will be available on our website and on our LinkedIn page that you can download as well.

So it, it will be free and we will show different figures. One of those figures is here and it shows that most of organizations think that cybersecurity budget should allocate more investment in identity access management and security analytic solutions. And it's not surprising, it is not a surprising result because if we think about that at this point, we have a lot of data through them. So then understanding what is happening and doing the correct analytics will also help in cybersecurity. Now let's talk about some key cybersecurity segments.

Unfortunately we don't have a lot of time to discuss all of them, but there is a selection that we will discuss about today. The first market segment that that we will talk about is managed detection and response. So why this market is key? Because this is one of the solutions that focus on real time threat identification. So if you identify a threat on time, you will have faster solution. You can actually fight against this faster. And the main goal of these kind of solutions is to help organizations to identify, evaluate, and respond to the cyber trust in a real time.

So then there is a minimization of the risk of, for example, data loss or major disruptions. So the idea here is to help cybersecurity professionals to have a better strategy against threat. And the impact would be not only in terms of the cybersecurity perspective, let's think about the business relevance, let's think about the monitoring. If you are proactively monitoring, you will have more chances of actually knowing what is happening and what are the threats that you are facing.

Operational efficiency, as I mentioned before, major disruptions could actually be a big problem because if you have a measure disruption, then of course it will actually affect as well your income because you cannot keep working. Right? And what are the predictions that we see here in our analysis?

Well, so the compound annual growth rate is actually pretty high for this market. So we expect 20% component annual growth rate and we expect as well that this market will reach to $3.88 billion by 2025.

Now, network detection and response, this one is another key market. And let's think a little bit about this particular market.

Well, so the idea of network detection and response is pretty similar than managed detection and response because idea is to detect the threats on time. The difference is that the threats that this solution is trying to spot are related to the network and the cloud. And of course everybody is actually digitalizing the products nowadays. And with the access management and the people working from anywhere, I think the services on the cloud as are actually, you know, growing. So then these solution will grow accordingly.

And of course, if we are applying these kind of solutions, we need to understand that we will have companies working with solutions that can spot the threats on time if companies are growing in terms of cloud environments or hybrid environments. So then these kind of solutions will grow as well and they will be an indicator of a grow in this market segment too. Now what is happening with the numbers? What is happening with the predictions? What do we see for these market in the coming years?

Well, the component annual growth rate for this market is estimated in 12.2% and it is also a steady growth if we consider as well as we mentioned, all the companies that are, that are actually switching to a multi-cloud environment. And our prediction is that this market segment will reach $3.41 billion by 2025 data leakage prevention. And I would say this one is a, a major topic nowadays with all the compliance regulations becoming more strict.

We had a presenter earlier who was saying that it is important to know where your data is, to actually understand where this is located and how to actually face the threats. And this kind of solution is I would say one of the key in in the market, especially when companies are dealing with a lot of sensitive, private or personable and identifiable information. So now what is the idea of these particular solutions?

Well, so the first thing is content classification. So classify the data that you have, label it, knowing where to find it, policy enforcement, and of course incident response because it is not surprising that ransomware is still on the top of the treatment attacks. And why is that? Because they actually hold the data. And this is actually a big deal in the market. Now what do we see when we think about this solution?

Well, the first thing is the compliance. Okay? So the need to actually comply with the regulations will drive the growth of this market segment. And it is undeniable because these regulations are having, you know, like a presence globally, not only in Europe. In Europe we have the GDPR, but then we also have regulations in the US in Singapore. And I am sure that eventually it will be an extension in Latin America too. The idea as well is that if we have people working from anywhere, we need to know what is the data that they can actually access to and what do we see for this particular market?

Well, the component where growth rate is 20.2% for this market, again, this is not a surprising number because it is important to actually safeguard the data of organizations of customers. And the market size is expected to reach $3.01 billion by 2025. And the last market that we will discuss in this presentation is fraud reduction intelligence platforms. I would say that frauds are on the rise, and especially since the pandemic, because I think that all of us eventually receive a phishing email or an SMS, you know, with a link like, oh, your package is on the way or this kind of a stuff.

And the idea with these kind of solutions is that when you use free technologies, you actually reduce the chances to fall into this. So then you can actually detect, prevent, and reduce the fraud effectively. And this is why these kind of solution is key in cybersecurity. We need to understand that these solutions are, you know, a help for enterprises to detect, to mitigate the fraud risk and work in real time as well.

Because of course, if we work with solutions that detect the threats in real time that are higher chances to prevent ourself, you know, for major consequences, what do we see about the market impact? Well, the first thing is we know that most of the company moved to digital commerce after the pandemic. Many organizations they must do that. So there was no chance it was that or they had to close. So eventually that, and it changed the customer behavior forever because I think that it is actually easier for us to buy something in e, eBay or on Amazon than going to the store.

So then in that sense, the digital transactions are actually creating a demand in the market to prevent frauds because again, all of us receive eventually a phishing email that, oh, your package is on the way and maybe it's not from the company, right? And also innovation. So if we know what are the threats that we are receiving, we can actually innovate with the platform to fight against that. And this is why this market becomes also significant or critical in cybersecurity. And if we can fight actually against the threats, you win the customer trust.

And this is actually very important because it is your reputation, right? And this is one of the main consequences when you face a cyber attack. What is happening with your reputation? How do you face this damage? And this market is actually kind of big in comparison to others. So we can see that the analysis of Kuppinger coal expects that this market reaches $44.8 billion by 2025, and the component annual growth rate of this market is 21.2%.

Again, these numbers are not a surprise because as I mentioned, so the customer behavior actually change, the user behavior change and these kind of solutions will be in high demand. And there is a scope in the market for this. What is happening with the distribution globally?

Well, so we can see that the biggest market is North America. It is leading all of these market segments and it is followed by emea.

Now, there are other two regions that are lower in terms of their place or how they are actually playing in the in the market. But at the same time, there is a scope, maybe there is a Nitish that it is not really attended. So then it is a possibility to expand as well. We can see that Asia is actually growing technologically and Latin America is going to be the slower, but still it is a market that could actually show potential. So what are the conclusions that we can actually see after discussing these figures, discussing these numbers?

Well, the first thing is that all the cybersecurity segments show steady growth until 2025. And this is an opportunity for different kind of businesses. Let's say if a company wants to break into the market, if a company wants to offer a new technology, or even for investors merchant acquisitions, as we were talking earlier, before North America remains being the private market, but EMEA is also increasing in terms of the demand.

Asia also is offering potential, as I mentioned before, technologically speaking, they're really growing and it shows an opportunity to actually keep expanding the markets there. The patterns of our analysis shows that it is likely to see good returns in future. So if there are investment nows we expect to see, we expect to see returns in future. And lastly, what I would like to say is that investing on these sectors is actually offering a wide range in the portfolio. So we expect that all the segments in cybersecurity are growing.

Now the last thing that they would like to mention is that we have a section in our website called KC Open Select. If you're interested in receiving this information, the market size from different segments from different industries that we are analyzing, please scan the qr or you can actually look for that in our website and you can sign up and you can find this information and more analysis, eBooks that we are writing every while, periodically. So then we really would like to see you there. Thanks a lot for your attention and I really hope that you enjoy this presentation. Thank you so much.