According to the latest report from Grand View Research, Inc., the global network security service market will grow to US$192.7 billion in the next 7 years.
According to the report, the size of the global cybersecurity service market in 2020 is USD 91.15 billion, and the compound annual growth rate (CAGR) from 2021 to 2028 will reach 10.2%.
Three driving forces of the network security service market
The three major driving forces driving the growth of the network security service market are as follows:
Infrastructure requirements. Artificial intelligence, machine learning, and the Internet of Things (IoT) have led to an increase in the adoption of web applications and mobile applications, resulting in more and more complex IT infrastructures that are vulnerable to cyber attacks.
Detect and respond to demand. In order to cope with potential security challenges, more and more companies choose to outsource security services to detect vulnerabilities and analyze security conditions, while effectively responding to cyber attacks.
Vulnerabilities and data risks. Companies need to fix vulnerabilities in web applications and mobile applications, and reduce the risk of data loss caused by cybercrime.
With the popularization of smart phones and the continuous introduction of high-speed Internet networks such as 5G, it is expected to further promote the popularization of mobile applications, from banking to health monitoring and social activities, which will promote the network security service market.
The researchers pointed out: “All these applications have also become potential targets for hackers, prompting companies to choose network security services to identify vulnerabilities in applications, repair vulnerabilities, and protect users from potential losses.”
Other market growth drivers include various regulatory compliance laws and standards, such as HIPAA, FISMA, and PCI DSS.
Industry market: the fastest growing medical care
Global cybersecurity service industry market share in 2020
The report predicts that since 2016, the medical industry, which has lost US$160 million due to ransomware attacks alone, has the highest compound annual growth rate during the forecast period, at 11.4%.
The researchers pointed out: “Recently, especially during the new coronavirus pandemic, cybercrime incidents have been increasing, which has prompted medical application developers to take application vulnerabilities seriously. With the continuous digitalization and the launch of IoT-based medical devices , Cyber crimes targeting the medical industry may intensify.”
It is expected that the Asia-Pacific region will become the fastest growing region during the forecast period, with a compound annual growth rate of over 16.3%.
In view of the continued digitalization of India, Malaysia, Thailand and Southeast Asian countries, the Asia-Pacific region is expected to be the growth engine of the cyber security service market.
Outbreak of hosting services, MDR stands out
The field of professional security services will occupy a leading position in the network security services market in 2020, with a market share of more than 72.0%. Professional security services mainly include business support, technical management services, consulting and training, and incident preparation and response services. The need for a single point of contact and reliable technical support during the deployment of security solutions is one of the factors driving the growth of this market segment. In addition, the demand for effective data management and prevention of data loss caused by data leakage is also increasing.
Among them, custodial services have the highest compound annual growth rate during the forecast period, about 11.0%. The escalating security threat landscape and the increasing internal threats are prompting companies to cooperate with managed security service providers (MSSP). Cooperating with MSSP can ensure that companies have access to advanced security solutions and threat hunting experts and security experts, and help companies monitor threats in real time. In addition, the growing need for enterprises to defend against and respond to advanced persistent threats is also driving the demand for managed security services.
It is expected that the MDR market will have the highest compound annual growth rate in the next few years, at 22.4%. MDR is a security managed service outsourced by companies for threat hunting and response to discovered vulnerabilities.
The MDR service can identify malicious software and track malicious activities. It also provides rapid incident response services to mitigate network attacks.
MDR engineers can help companies understand the weaknesses of the system, provide mitigation suggestions, provide cause analysis and toolkits to deal with cyber attacks. MDR services also include real-time protection in the early stages and in the event of cyber attacks.
By 2020, the compliance and vulnerability management parts of secure hosting services will contribute more than 16.9% of the share. Small and medium enterprises and large enterprises run and deploy multiple applications throughout the network, thereby increasing the risk of multiple unidentified vulnerabilities in the network.
Patching (all) vulnerabilities is an extremely complex task. Therefore, companies tend to consult and choose outsourced security vendors to help them develop vulnerability management strategies to ensure that they can address real-time risk vulnerabilities. In addition, vulnerability management is one of the main requirements in most mainstream network security regulations and standards. For example, ISO 27001 provides guidelines and standards including vulnerability management and security risk management and assessment.
Driven by the combined efforts of regulatory requirements and data security requirements, compliance and vulnerability management services are also growing rapidly.