Cybersecurity Set to Dominate Priorities for Businesses in a Post-COVID World
Cybersecurity spend is expected to jump $5.6 billion in one year and cloud security’s compound annual growth rate is expected to top 26%, are just a few of the forecasts from industry experts that have been published recently.
According to a report from Forbes writer Louis Columbus, “cybersecurity now dominates the priorities of every organisation as each adapts to a post-COVID 19 world.” Columbus’ underlying thesis comes after analysing year-on-year market spend on cybersecurity which has grown at an astonishing rate.
According to the Australian Cyber Security Growth Network, the cybersecurity industry is expected to top $173 billion this year, and estimated to be worth around $270 billion by 2026. According to Columbus, “by 2026, 77% of cybersecurity spending will be for externally managed security services. While money spent on in-house or internal cybersecurity functions is expected to grow 7.3% each year to 2026, global spending on external cybersecurity products and services is projected to increase by 8.4% annually over the same period.
Numbers from Statista indicate that the industry is expected to grow from $167 billion in 2019 to $248 billion by 2023, if it gains the anticipated 10.4% compound annual growth rate. The Forbes author states that “worldwide security spending on Identity Access Management reached $10.58 billion in 2019. The study also found that spending on security services, the largest segment of the information security market, reached $64.24 billion in 2019.”
This has resulted in massive growth for the cyber insurance industry which, according to Microsoft’s 2019 Global Cyber Risk Perception Survey is expected to grow from its forecasted $8 billion in 2020, considering the industry has a market value of around $124 billion. The industry, according to Global Market Insights is set to be worth $300 billion by 2024, with the Asia-Pacific region set to jump 20% in its cybersecurity spent between 2019 and 2025.
The rapid growth comes as more and more organisations report threats facing their operations and ability to run as a whole. 84% of respondents to Verizon’s Mobile Security Index of 2019 said they had seen the number of threats to their organisation grow, outpacing other threats to the business.
As we’ve reported previously, the cost of an individual data breach has also been climbing at a dramatic rate, with IBM’s 2019 Cost of Data Breach report stating that the average total cost to an organisation has risen from $3.54 million in 2006 to $8.19 million in 2019; a 130% in just over a decade.