Market Trends of US Cybersecurity Industry
Need For Identity Access Management is One of the Factor Driving the Market
- With the rapid digitalization across the country, digital identity has become crucial to enforcing access controls. As a result, identity and access management (IAM) has become a significant priority for modern enterprises.
- The United States has one of the highest digital penetration rates globally, with many users and organizations depending upon IoT devices and computing solutions. Organizations all over the US increasingly depend on computer networks, smart devices, and electronic data to conduct their daily operations, which has led to growing pools of personal and financial information transferred and stored online. Hence, the need for identity and access management solutions increased over time.
- IAM, viewed as an operational back-office issue, is now gaining board-level visibility following several high-level breaches that have occurred due to the failure of organizations to manage and control user access effectively. The prominence of IAM has been further elevated by an evolving regulatory landscape and trends, such as Bring your Device (BYOD) and cloud adoption. The risks related to accessing information and data have also increased significantly.
- According to the Federal Trade Commission, the prevalence of identity thefts in the banking and payment industries in the United States would encourage more people to use biometric solutions. Financial institutions like TD Bank that operate in the United States are reportedly focusing on digital identity verification solutions to strengthen the customer onboarding processes, with a significant contribution to verifying the CIP and KYC procedures, according to Pymnts' release of the Digital Identity Tracker Report in March 2022. The software solutions are expected to gain more traction as financial institutions nationwide examine implementing various identity verification tools.
- The impact of an identity management cybersecurity breach by organized crime, state-sponsored militaries, and others is packed with implications that can impact staff productivity and morale, apart from substantial financial and potential life losses and further damage to the IT network and company reputation. These risks demand a new level of identity and access management solutions.
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BFSI Segment Is Boosting The Cybersecurity Market Growth
- The BFSI industry is one of the critical infrastructure segments that face multiple data breaches and cyber-attacks, owing to the massive customer base that the sector serves and the financial information that is at stake. Being a highly lucrative operation model with phenomenal returns and the added upside of relatively low risk and detectability, cybercriminals are optimizing a plethora of diabolical cyberattacks to immobilize the financial sector. These attacks' threat landscape ranges from Trojans, malware, ATM malware, ransomware, mobile banking malware, data breaches, institutional invasion, data thefts, fiscal breaches, etc.
- With a strategy to secure their IT processes and systems, secure customer critical data, and comply with government regulations, public and private banking institutes focus on implementing the latest technology to prevent cyber attacks. Besides, with greater customer expectations, rising technological capabilities, and regulatory requirements, banking institutions are pushed to adopt a proactive security approach. With the growing technological penetration and digital channels, such as Internet banking, mobile banking, etc., online banking has become customers' preferred choice for banking services. There is a significant need for banks to leverage advanced authentication and access control processes.
- The country also marked the increase of ransomware and phishing attacks targeted at organizations that involved less manual effort and were highly automated in 2022. In 2022, financial firms worldwide were impacted by innovative new ransomware tactics that maximized ROI for the threat actors. While financial firms represent a small percentage of victims directly targeted by ransomware attacks, they can and have been impacted by attacks on third parties, who are prime targets. Such threats are poised to increase the usage of cybersecurity solutions in the BFSI sector.
- Moreover, in light of Russia - Ukraine conflict and a virtually endless cycle of threat campaigns and vulnerability disclosures towards the country, the US State Department, on April 2022, launched a new agency, the Bureau of Cyberspace and Digital Policy (CDP), responsible for developing online defense and privacy-protection policies and direction as the Biden administration seeks to integrate cybersecurity into America's foreign relations.
