Rising Cyber Threats Propel Global Network Security Market to New Heights

• 08 Dec 2023
• TM Team
• 0 Comments

According to a recent report published by Allied Market Research, titled, Network Security Market by Component, Solution, Service, Deployment, Organization Size, and Industry Vertical: Global Opportunity Analysis and Industry Forecast, 2020-2027,” the global network security market size was valued at $18.48 billion in 2019, and is projected to reach $63.40 billion by 2027, registering a CAGR of 16.7 % from 2020 to 2027.

The network security market refers to the industry involved in providing solutions, technologies, and services aimed at safeguarding computer networks from unauthorized access, cyber threats, and data breaches. This market is characterized by a range of products and services designed to ensure the confidentiality, integrity, and availability of information in digital networks. As businesses and individuals increasingly rely on interconnected systems and the internet, the demand for robust network security measures has grown, making this market a crucial component of the broader cybersecurity landscape.

Key elements within the network security market include firewalls, antivirus software, intrusion detection and prevention systems, virtual private networks (VPNs), and other technologies and practices designed to protect the integrity and privacy of digital communications and data. The market is dynamic, evolving in response to emerging cyber threats, technological advancements, and the changing landscape of digital connectivity.

Rise in level of cybercrimes, higher economic losses, and increase in data safety and privacy concerns drive the growth of the global network security market. However, high setup costs hinder the market growth. On the contrary, increase cyber-attacks during the Covid-19 pandemic and growth in digitalization trends across the globe are expected to open lucrative opportunities for the market players in the future.

In Asia-Pacific, the financial sector has witnessed a rapid adoption of technology in user/data interaction and learning types of AI software technologies. User/data interaction software technologies include natural language processing, question and answer (Q&A) processing, facial recognition, natural language generation, video and image analytics, and speech recognition. In terms of deployment, public cloud model for AI software continues to accelerate at a CAGR of 40.5%, and is estimated to overtake on-premise deployments by 2024. However, with such colossal deployment of cloud, risk of cyber threats also increase, which create a wide scope for network security systems.

Impact of Covid-19 on Network Security Market:

• Due to strict regulations of lockdown, the majority of companies adopted work from home culture, which has increased the risk of cyber threats and cybercrime. This increased the demand for network security.

• During the pandemic, more and more companies have been investing in cybersecurity and network security to offer remote workforce support.

• The demand for network security from the healthcare sector increased due to Covid-19 pandemic as the network traffic from hospitals increased exponentially.

Digital technologies have become integral to daily life, encompassing everything from basic communication on mobile devices to sophisticated software and electronics utilized in high-security applications. A noteworthy technological advancement, "Edge computing," is gaining significant traction in commercial sectors due to its ability to reduce data acquisition latency from servers. This trend is expected to drive the demand for parallel technologies like Internet of Things (IoT) and cloud computing. The global edge computing market is projected to reach USD 16.5 billion by 2022, highlighting the pervasive influence of digital technologies.

This increasing reliance on online mobile devices and technology, however, has amplified the vulnerability to cyber-attacks, necessitating robust network security measures. The escalating frequency of cyber incidents poses a high risk to consumer data security, prompting the growth of network security solutions. Regulatory frameworks such as the General Data Protection Regulation (GDPR), enforced by the European Union, emphasize principles like fairness, transparency, lawfulness, and accountability in personal data processing. In response to such regulations, businesses are compelled to integrate network security solutions into their infrastructure to ensure compliant and secure data processing.

The dominance of the solution segment characterized the global network security market in 2019, and this trend is expected to persist in the coming years. Various solution types target different aspects of systems, including network security, device management, network packet analysis, and embedded security, fostering a highly lucrative environment for market growth. The surge in cyber-attacks on enterprises has led to substantial losses, both socially and economically, further emphasizing the critical importance of effective network security measures.

By component, the solution segment dominated the market in 2019, accounting for more than three-fifths of the global network security market, as network security solution monitors user activity, creates access limitation, trains and educates users, provides detailed information of log activities, creates plans for data breach response, compliance management, data encryption, and web application management. However, the service segment is estimated to register the highest CAGR of 17.4% from 2020 to 2027. This is owing to rise in need for security in any network as network security issues grow.

By solution type, the unified threat management segment is projected to portray the highest CAGR of 24.3% during the forecast period, due to surge in the importance of cybersecurity and the increase in cyber-attacks. However, the firewall segment held the lion's share in 2019, contributing to around one-fourth of the global network security market, owing to emergence of cloud-based technology.

By region, the market across North America held the largest share in 2019, accounted for nearly two-fifths of the market, due to increase in the number of cyberattacks in the U.S. and rapid increase in number of connected devices in the region. However, the global network security market across Asia-Pacific is projected to register the highest CAGR of 18.3% during the forecast period, owing to rise in the number of cyber-attacks.