Cybersecurity software revenue to hit $27B by 2023

The cyberthreat landscape might be worrisome to the business world, but there’s a growing batch of organizations profiting from it — the cybersecurity solutions firms. 

According to data gathered by PreciseSecurity.com, the overall cybersecurity software revenue is expected to reach US$25.1 billion in revenue this year, growing 4.8 percent year-on-year. 

The rising trend is set to continue in the following years, with the entire market reaching US$27 billion worth in the next three years.

A global concern

Cybersecurity has become one of the biggest concerns for both citizens and businesses all around the world. 

The growing demand for e-commerce platforms, technology developments including AI and IoT, and the rising number of connected devices have led to the massive adoption of cybersecurity solutions.

The cybersecurity software market refers to all software solutions aiming to protect individual computing devices, networks, or any other computing-enabled device. It includes antivirus software, management of access, data protection and security against intrusions, and any other system-level security risks, both in local installation and cloud service.

In 2012, the global cybersecurity software market reached US$17.5 billion worth. In the next seven years, the market revenue grew by nearly 40 percent and reached a US$23.9 billion value in 2019. 

In global comparison, the United States is the leading cybersecurity software market in the world. The statistics indicate the entire US market is set to reach US$10.1 billion value this year.

With a US$1.5 billion value, or 6.5 times less than the US market, the United Kingdom ranked as the second-biggest market globally. The 2020 data show Germany is expected to reach $1.1 billion market value this year, followed by France and Canada as other leading markets.

Spending in the right place?

A study last year by Ovum found that most enterprises have up to 50 cybersecurity tools in use at one time. However, the same study found that two-thirds of organizations suffered a significant security breach.

While cybersecurity tools may seem like a good investment, ROI is based on ‘no breach’, making it difficult to calculate, while a complex stack of tools can also lead to vulnerabilities in the long run.

Rather than shelling out on new solutions, organizations should consider allotting a good portion of that budget on company-wide cybersecurity awareness, helping to ensure staff doesn’t fall for phishing scams — the most common cause of breaches day-to-day.