International. According to GlobalData estimates, the global cybersecurity industry will grow from US$220.6 billion in 2021 to US$334.6 billion in 2026 at a CAGR of 8.7% from 2021 to 2026.
Increasing regulatory and government focus on data localization to ensure consumer security as well as enterprise IT data will be among the major drivers of the cybersecurity market growth. Market forecasts look promising with the proliferation of digital transformation, cloud and IoT and connected devices.
Although ubiquitous connectivity offers convenience, these connections open doors for potential malicious activities that put personal data at risk. As a result, the device security segment has witnessed tremendous growth within the consumer cybersecurity solutions market. Device security market demand reached USD 6.8 in 2021, and the segment is expected to grow at a CAGR above 15% between 2021 and 2026.
In 2021, the type of security consulting services, closely followed by managed security services, captured a considerable market share that exceeded 50% of the global cybersecurity market. The growing adoption of cloud platforms such as SaaS, IaaS, and PaaS is forcing enterprise IT departments to focus on security consulting solutions.
Managed security services (MSS) in the same year accounted for more than 20% of the cybersecurity share. The shortage of trained IT security professionals and limited capital resources for IT security have especially driven the growth of the managed security services segment. According to the UK government's 2022 Cyber Security Breach Survey, 40% of businesses and almost a third of charities (32%) use at least one managed service provider. Key leaders in this space include data from SecureWorks, IBM, AT&T, Verizon, Accenture and NTT.
Cybersecurity Software Market
The identity and access management (IAM) security segment contributed significant revenue generating $13.8 billion in 2021. The segment is projected to grow at a CAGR of 12% to reach USD 24.1 billion by 2026. IAM is emerging as a key enabler of digital transformation.
Cybersecurity Hardware
Network monitoring and access control is the fastest growing segment of the cybersecurity hardware market. Estimated at over US$2 billion in 2021, the segment is poised to grow at a CAGR during the forecast period.
Network monitoring and access control solutions, once considered to show a conservative growth trajectory, are now undergoing accelerated development, driven by the implementation of policies across devices to improve the security of enterprises' internal infrastructure. The proliferation of BYOD, IoT, and mobile culture, the increasing number of endpoint devices, and the need to manage the security of cloud instances require dedicated security systems to effectively fight cyber threats, putting pressure on enterprises to invest in monitoring and access control solutions.
Regional growth
The Asia-Pacific cybersecurity market led by China, India, and Japan captured a sizable share of the revenue from the overall demand in 2021. The Indian cybersecurity market experienced CAGR growth of over 10%, higher than China and Japan. The evolution of the BYOD trend in the country is expected to support growth during the forecast period.
Europe emerged as the second highest market in terms of cybersecurity demand in 2021. Government investments to protect networks and the proliferation of small and medium-sized enterprises contributed to regional demand in 2021. The regional market is expected to grow at a CAGR above 5% from 2021 to 2026.
