CybersecurityInternet security market to reach $42.8 billion globally by 2020

According to a new report by Allied Market Research, the global Internet security market is expected to reach $42.8 billion by 2020, registering a CAGR of 8.1 percent during 2014-2020. The market, driven by demand for software solutions, would experience a shift toward the adoption of cloud-based systems. About 80 percent of the top companies today identify with cloud-based security services which have become a prominent market trend.

The report notes that the rapid uptake of Internet-based applications ranging from education to government, retail to IT & telecommunications, BFSI to manufacturing, and others are threatened by the explosive growth of virus and spam attacks. Cybercrime practices like unethical-hacking, botnets, distributed denial of services (DDoS), malware, spyware, spams, viruses, and other such threats, are estimated to reach a figure of $1 trillion globally. The burden of security threats is providing growth platform for Internet security market to grow at a consistent rate.

Recently, at an international security conference held at Europe, serious concerns were raised about “malvertising,” that is, malware attack through advertisement links to Web sites. These attacks are continuously evolving, highlighting the need for efficient Internet security solutions. The Internet security market would flourish in future mainly due to rising online financial transactions and Internet usage.

Software security solutions contribute to about 80 percent of the overall Internet security market revenue, owing to widespread adoption of individual and corporate users. Industry leaders such as Intel, HP, and Symantec are investing in developing cloud-based security solutions. The result of these efforts would be that managed services would grow at the highest CAGR of 28 percent over the forecast period, surpassing the revenue contribution by hardware solutions.

Key findings of the study:

• Global market for Internet security is moving forward with BFSI, retail, government, and education to provide major growth thrust during the forecast period (2014-2020)
• Security adoption in education application segment will grow at a CAGR of 13.9 percent during the forecast period, fastest among all applications
• Asia-Pacific would prove to be one of the most lucrative markets, both in terms of size and growth. It should reach $12.2 billion by the year 2020, at a CAGR of 10.9 percent
• The adoption of internet security in education applications should grow rapidly, especially in the Asia-Pacific region at a CAGR of 19.2 percent

The reports notes further that market growth is strengthened due to factors such as favorable regulations and policies along with e-commerce and e-governance initiatives. As this industry is in its near maturity stage, companies are strategically focusing on dynamic and innovative product development.

The selective focus is on product enhancement in order to gain a competitive advantage. Prominent companies profiled in the report include Symantec, Intel, HP, Cisco, IBM, Microsoft, Kasperkay, and Dell.

— Read more in Global Internet Security Market (Products & Services, Technology, Application and Geography) — Size, Share, Global Trends, Company Profiles, Demand, Insights, Analysis, Research, Report, Opportunities, Segmentation and Forecast, 2013-2020 (Allied Market Research, November 2014)