Cybersecurity Market Projected to Hit US$311.4 Billion by 2031

The global cybersecurity market is projected to reach a value of US$311.4 billion by 2031, growing at a compound annual growth rate (CAGR) of 12.8% between 2024 and 2031, according to a recent report from Meticulous Research. 

The report, titled ‘Cybersecurity market: global opportunities analysis and industry forecasts (2024-2031)’, identifies several factors driving this market growth. These include the growing need for sophisticated cybersecurity solutions across various economic sectors, particularly within banking and finance, as well as an increase in data breaches, cyberattacks, and the widespread implementation of the Internet of Things (IoT). 

Additionally, the report highlights the rising demand for cloud-based security solutions among small and medium-sized enterprises (SMEs) and the increasing use of artificial intelligence (AI), machine learning, and blockchain technologies for cyber defense as key growth opportunities for cybersecurity companies. 

The report also notes that benefits such as high performance, reliability, comprehensive vulnerability coverage, and real-time application security efficiency are contributing to the segment’s current growth.

The cybersecurity market is segmented into multiple categories: offering, security type, organization size, deployment mode, industry, and geography. This segmentation allows companies to tailor their solutions and services to the specific needs of different sectors, organization sizes and regions, optimizing resources, improving marketing strategies, ensuring regulatory compliance, strengthening resilience to cyber-attacks, and fostering technological innovation.

By Offering (solutions and services):

By 2024, the solutions segment is expected to account for over 57% of the market. This large share is attributed to the increasing adoption of cybersecurity solutions to monitor network activity for suspicious behavior, prevent cyber-attacks, protect data in transit, and prevent unauthorized access. 

By Security Type (network security, application security, endpoint security, cloud security, and others):

By 2024, network security is expected to account for over 34% of the market, while cloud security will grow at the highest CAGR during the period 2024-2031. The increasing need to secure workloads in the cloud, the growing demand for advanced threat detection solutions across various industries, and the adoption of cloud security solutions among SMEs are key factors driving this segment. 

By Deployment Mode (on-premise and cloud-based deployments):

By 2024, on-premises deployments are expected to account for over 58% of the market, while cloud deployments will register the highest CAGR during the period 2024-2031. The rapid evolution of new avenues for cloud deployments, the superior flexibility offered by them, and increasing uptake of cloud solutions by SMBs are factors driving this segment.

By Organization Size (large enterprises and SMEs): 

By 2024, large enterprises are expected to account for over 72% of the cybersecurity market, although SMEs are projected to grow at the highest CAGR during the period 2024-2031. The increasing adoption of cybersecurity solutions and services among SMEs to track, monitor, and manage assets, coupled with digital transformation and increasing cyber-attacks, drive this segment.

By Sector (BFSI, retail & e-commerce, government, IT & telecom, manufacturing, healthcare, education, energy, and utilities, among others):

By 2024, the BFSI sector is expected to account for over 22% of the market, while the healthcare sector will register the highest growth rate during the period 2024-2031. The increasing adoption of telemedicine devices, rising cyber-attacks, and the need to protect connected medical devices and implement effective cloud security measures drive the growth in the healthcare sector.

By Geography (North America, Europe, Asia-Pacific, Latin America, and Middle East & Africa): 

By 2024, North America is expected to account for over 38% of the market, while the Asia-Pacific market will register the highest CAGR of 16% during the period 2024-2031. The growth in Asia-Pacific is driven by the increasing demand for cybersecurity solutions due to the rise in connected devices, the need to implement advanced solutions to secure data and networks, and government initiatives to ensure cybersecurity in the industrial sector. Additionally, the increase in ransomware attacks and efforts by market players to launch advanced solutions support the growth of this regional market.

However, the report highlights that a shortage of skilled professionals could restrain market growth. “Lack of awareness and misconceptions about cybersecurity solutions are a major challenge affecting the growth of the cybersecurity market,” the report states.

“Companies must be prepared to adopt advanced technologies and form strategic alliances to mitigate cyber risks and stay competitive in an increasingly complex digital environment,” the report concludes.