Companies Continue Increasing Cybersecurity Budgets, Entire Market to Hit $158.8B Value by 2023

Over the years, cyber attacks and data breaches became one of the biggest risks in the business sector, compromising sensitive data and causing a massive financial hit to companies and organizations worldwide.

According to data presented by Trading Platforms, the global cybersecurity market is expected to hit $131.8bn in revenue this year, and the United States, China, and the United Kingdom, as the top three markets, will generate 55% of that value. Moreover, the strong growth is set to continue in the following years, with cybersecurity revenues growing by 20% to $158.8bn by 2023.

Cybersecurity Services the Largest and the Fastest-Growing Segment

Companies and organizations worldwide are losing billions due to cybercrime each year. Although most of them significantly increased their cybersecurity budgets over the years, cyber attacks like data breaches, phishing, ransomware attacks, or cyber espionage still represent one of the biggest risks in the business sector.

In 2016, the global cybersecurity market was worth $76.3bn, revealed the Statista data. Three years later, this figure jumped by almost 50% to $112.2bn. The revenues continued growing in 2020 and jumped to $120.2bn, as COVID-19 forced companies and organizations worldwide to speed up the digitalization of their business.

Between 2021 and 2023, global cybersecurity revenues are projected to grow by another $27bn. In the next five years, the entire market is forecast to reach nearly $210bn value.

Statista data also showed the cybersecurity services, like data risk analysis, data masking, and vulnerability discovery, represent the largest and the fastest-growing sector of the entire market set to reach a $61.4bn value in 2021. This figure is expected to increase by 25% to $77.2bn in the next two years.

The revenues in the software segment are forecast to grow by 13% in this period, rising from $44.3bn in 2021 to $50.6bn in 2023. Hardware ranked as the third-largest segment of the cybersecurity market, with $26bn in revenue this year.

US the Largest Cybersecurity Market, China to Witness the Biggest Revenue Growth

Analyzed by geography, the United States ranked as the largest cybersecurity market globally, with $54.4bn in revenue in 2021, five times more than China as the second-largest market. That doesn’t surprise considering the US had the highest average data breach cost in 2020 of $8.64 million, 5.5% more than in 2019. Statistics show the US cybersecurity market is expected to grow by 17% in the next two years and hit a $63.8bn value.

However, according to the 2020 Trustwave Global Security Report, Asian companies are hit by the highest number of cyber attacks, or 37% of all reported attacks last year. That is why the Chinese cybersecurity market is forecast to witness the most significant growth in the following years.

In 2021, Chinese cybersecurity revenues are set to reach $10.1bn, considerably less than the leading US. Still, this figure is projected to grow by an impressive 41% and hit a $14.3bn value by 2023.

The United Kingdom, as the third-largest cybersecurity market globally, is expected to hit $9.8bn in revenue by 2023, an 18% increase in two years.