Market Size of Cyber Security as a Service Industry
|Study Period||2018 - 2028|
|Base Year For Estimation||2022|
|Fastest Growing Market||Asia Pacific|
|Largest Market||North America|
*Disclaimer: Major Players sorted in no particular order
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Cyber Security as a Service Market Analysis
The global cybersecurity as a service (CSaaS) market is expected to register a CAGR of 12.6% in the forecast period (2021 - 2026). The complexities that are associated with cybersecurity and the growing cyber threat are outstripping the abilities of most organizations. In current data compliance dominated economies, the legal complexities associated with protection and data security are far outside the remit and understanding of any IT expert.
- Over the forecast period, the demand for CSaaS is expected to gain traction as it provides expertise and experience across people, processes, and technology, even encompassing a legal team with the expertise required to manage a breach from a compliance perspective. Also, CSaaS can be tailored to each organization's requirements from a strategic perspective to complete deployment.
- In addition to this, the global cyber threats are on the rise, and the costs associated with each data breach are also on the rise. According to RiskBased Security, during the first half of 2019, nearly 4.1 billion records were exposed. According to Verizon Data Breach Investigation Report 2020, about 71% of the breaches were financially motivated, and 25% were motivated by espionage.
- With the growing number of threats and data breaches, a serious concern for businesses worldwide is the loss of customer trust, which led to serious financial consequences for the companies. According to IBM, the average cost of lost business for organizations in 2019 stood at USD 1.42 million, and the total average cost stood at USD 3.92 million. The average time to identify a breach in 2019 was 206 days, and the average time to contain a breach was 73 days. This further leads to financial losses for a business.
- Among all of the data breaches and attacks, malicious attacks caused the majority of the data breaches during 2019. Also, the number of malicious attacks have increased exponentially in the last five years. Enterprises are the target of malicious attacks, and especially smaller organizations were attacked frequently. According to Symantec, smaller organizations with less than 250 employees had the highest target of malicious attacks with a malicious email rate of 1 in 323.
- Moreover, with the outbreak of COVID-19, the demand for cybersecurity as a service in the industry is surging, attracting enterprises to invest in either offering such solutions or expanding their service offering in the market further.
- Data breaches continue to be the most significant cybersecurity concern and likely to continue during the forecast period; thus, cybersecurity is a primary concern for enterprises and businesses. Apart from this, the industry sees a shortage in the cybersecurity skill gap, with nearly two in three organizations reporting a shortage in IT security staff across the world. This is one of the factors augmenting the demand for cybersecurity as a service.