Economic Impact of COVID-19 on Global Cyber Security Market
The global cybersecurity market is forecast to grow at a slower average rate of 6.2% per year to 2023 due to the economic consequences of the coronavirus pandemic in 2020. This is according to the “Global Cyber Security Market Analysis”
The cybersecurity market grew strongly to 2019 due to strong underlying factors including the continued cyber threat and changing attitudes to risk driven by a combination of regulation and improved awareness. Additionally, the growing global economy provided the capital for organisations to invest in new digital processes and the security needed to improve resilience. These interrelated trends, coupled with the low level of security market saturation, sustained industry growth as enterprises invested in new tools and managed security services. The high growth rates are supported by the analysis of 46 cybersecurity technologies and disciplines, 39 of which are still at an early stage in their product lifecycle, characterised by high growth, low customer saturation and large supplier ecosystems. This has led to high levels of private investment in start-ups and delisting of large public cybersecurity suppliers as private equity targets returns from emerging, high growth technology segments.
The impact of COVID-19 on the global economy will be profound though the depth and length of the resulting recession remains uncertain.
However, there will be consequences on cybersecurity budgets and reduced expenditure in 2020 even though cybersecurity has evolved significantly since the last recession in 2009. Today, regulation mandates tighter controls on data and privacy, approaches to risk have evolved in digital enterprises, and business models are transitioning to cloud-based or managed services. As a result, security has become an increasingly strategic issue and enterprises are less able to dispense with it when cost-cutting. Nevertheless, enterprises will struggle with cash flow and budget freezes in 2020 and project postponements are likely to be widespread, delaying investment in new cybersecurity projects.
Post 2020 the cybersecurity growth trend will resume as infrastructure investment recovers.
The overriding market forces stimulating investment up to 2019 will remain largely unchanged, whilst industry innovation to create new customer value, including increased automation, better visualisation, and faster detection and response, is likely to create new revenue opportunities.
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