International. The size of the cybersecurity market exceeded US$150 billion in 2019 and analysts say it is poised to grow at more than 15% CAGR between 2020 and 2026. The growth of the industry is attributed to the increase in demand for robust and secure networks by enterprises for secure access to data.
As companies migrate their core businesses to digital platforms, the requirement for cybersecurity policies and initiatives to address growing incidents of data breaches is growing rapidly, driving market demand.
The cybersecurity industry landscape is characterized by a growing adoption of security software and solutions across various industry verticals to address the growing threat caused by cyberattacks. Different forms of cybercrime, such as hacking and phishing, have increased rapidly, especially after the increasing use of the internet during the COVID-19 quarantine phase. This has led to business disruptions and financial losses around the world.
In the Brazilian market, it is estimated that the banking sector will expand at a CAGR of 25% until 2026 driven by the increasing proliferation of cyberattacks on Brazilian banking institutions. The impact of these cyber breaches is not limited to financial losses, and such attacks also erode substantial market value and cause irreparable damage to an organization's reputation.
According to Symantec's ISTR 2018, Brazil ranked eighth on the list of countries rated by phishing rate, where 1 in 2117 emails was a phishing attack. Protection against these malicious threats is one of the biggest concerns of BFSI companies, driving the size of the market.
Launch of innovative solutions and strategic acquisitions to gain a competitive advantage
The cybersecurity industry is characterized by intensified rivalry between major players and is driven by strategic partnerships and new product launches. Large companies are making acquisitions of several start-ups to diversify their product portfolios.
The emergence of several SMBs in the market, such as Argus, Checkr, Cloudknox, and DarkTrace, has put enormous pressure on established players to continuously launch new products with added functionalities to maintain revenue share and profitability. Cybersecurity startups are adopting the freemium model to penetrate various business verticals and increase their presence in the market, offering stiff competition to major industry rivals.
