A report from Research Dive has revealed that the international application security market is expected to grow by $9.77 billion during 2020-2027, with a compound annual growth rate of 16.1%.
The rise in cyber attacks is the main factor that will drive the growth of the cybersecurity market.
Another factor is the increased dependency on secure data transfer due to the situation created by the COVID-19 crisis. The report also pointed out that the North American region will dominate the market for the years to come.
This must also be noted that the size of the cybersecurity market in 2019 was $2.99 billion. It means, the projected growth, if realized, will be one of the fastest growths by any industry.
There are a number of factors at play that are making this possible. Let’s have a look at some of them.
The Impact of the Coronavirus Lockdown
The international cybersecurity market is expected to show considerable growth due to the COVID-19 crisis. This is because the lockdown that’s imposed in many countries has made it a must for companies and healthcare providers to stay connected via online sources.
Application security practices are of paramount importance in activities like secure information transfer, online transactions, and conversational data handling.
All this and many other things resulting from the COVID-19 situation are driving an increased need for application security.
Market Dynamics
The exponential surge in the application security market over the forecast period is mainly driven by the increase in the cyber-attacks like phishing and ransomware which have caused severe data and financial losses over the past years.
It is necessary, now more than ever, to stop such attacks and ensure the protection of the sensitive data of the billions of people depending on web-based applications for everything from private and personal data transfer to financial transactions.
And this can only be made possible by better application security practices which, in turn, will need more experts in the field.
The severity of the security situation can be assessed from a fact reported by Cybint, a leading international cybersecurity educator, stating that as much as 62% of businesses faced phishing and social engineering attacks in the year 2018.
Now that’s a huge number and is certainly one of the key factors driving the growth of the cybersecurity market over the years to come.
However, there are some factors that will hinder the growth of the market. The major impedance in the growth of this industry will be the high cost associated with cybersecurity tools and practices.
On the other hand, the application of artificial intelligence and machine learning in web and mobile-based applications is expected to give the market an opportunity to grow in the years to come.
Now, let’s see what the forecast tells us about the market segments of the cybersecurity industry.
Mobile Segment Will be the Most Profitable
As evident from the increased use of mobile devices by the end-users, the most profitable segment of the cybersecurity industry will be mobile applications. It is estimated that over the forecast period (2020-2027), the mobile segment will reach a whopping $5.37 billion.
The main focus areas of mobile application security will be securing the users from risks like password and pin leakage, geo-location data security and privacy compromise, configuration data threats, and unauthorized tethering.
The need for effective shielding against such attacks is what will drive the staggering growth in this market segment.
Services Segment Will be the Most Lucrative
The services sub-segment is expected to grow to $4.12 billion by the end of 2027. Considering that the sub-segment had a market cap of $1.11 billion in 2019, this is phenomenal growth.
The growth in this sub-segment will be driven by the shift of many of the leaders of the online business industry to services instead of products. They will, obviously, need impeccable security and that will be a lucrative opportunity for the cybersecurity industry.
Cloud Computing Will be the Segment Generating the Most Revenue
If we look at the deployment segments of the industry, the cloud sub-segment will be the one generating the most revenue. This sub-segment was worth $1.14 billion in 2019 and is expected to cross $4.41 billion by the end of 2027.
The growth of this sub-segment will be caused by the need for integrated safety by all industries and the cost-effective and scalable nature of cloud computing.
Small and Medium Enterprise Sub-Segment will Show the Fastest Growth
If we look from a perspective of organization size, the small and medium enterprises sub-segment is expected to generate as much as $4.40 billion in revenue by the end of 2027.
Data breaches and security compromises cost companies a lot of money and SMEs are the ones that are affected the most. The increased security concern among these will be what will help this sub-segment grow the fastest.
Regional Analysis
Looking at the regional analysis of the application security market, you can see that the North American segment is going to grow beyond $2.98 billion by 2027. This market was worth a mere $959 million in 2019.
This expected growth is due to the increased penetration of mobile devices and cloud-based services in the area.
Other factors causing this growth will be the increase in the number of people using the internet, strict regulations imposed by the industry and the government, and the increased adoption of the Internet of Things (IoT) over the years to come.
The expected increase in the revenue generated by the cybersecurity and application security industry only means one thing, this is the time for entering the market. It is true that the industry leaders like the ones stated above will take the lion’s share but there still is a substantial opportunity for new entrants.
