Cyber Security Market Slowdown Blamed On Coronavirus

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. Increasing focus on cyber security is a critical business priority is expected to drive the cyber security market with a higher proportion for security policies and infrastructure. 

The growing global economy provided the capital for organisations to invest in new digital processes and the security needed to improve resilience. However, the global cyber security 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.

Currently organisations are facing an increase in attacks on corporate emails, with attackers posing as legitimate agencies, trying to trick people into sharing their account access credentials or opening malicious email attachments. A major factor in the rise of these scams is fake Coronavirus websites, which may promise a cure or treatment in exchange for personal information. 

According to a new report 'The Global Cyber Security Market' from Research and Markets, COVID-19 will have impact on the global cybersecurity market, which is expected to grow from $183.2 billion in 2019 to $230.0 billion by 2021, at a Compound Annual Growth Rate (CAGR) of 12.0% during the forecast period. 

The high growth rates are supported by 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. 

The predicted market growth is attributed to increasing focus on securing remote infrastructure and IP of enterprises due to work from home and remote services programs. Increasing focus on cybersecurity as a key business imperative and not just as a support function is expected to drive the market with a higher wallet share for security policies and infrastructure. These interrelated trends, coupled with the low level of security market saturation, have sustained industry growth as enterprises invested in new tools and managed security services. 

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. 

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.

Aftet 2020 the cyber security growth trend will resume as infrastructure investment is predisted to recover.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.

The security company, RiskIQ, has tracked Coronaviris  keywords to determine that over 300,000 suspicious Coronavirus websites have been created between March 9th and March 23rd. These malicious websites can potentially infect endpoint devices with malware. This could be bad for businesses when such devices connect to enterprise networks, especially with employees working remotely from their homes. 

A robust combination of network firewalls, email security and best practices among the workforce is essential to avoid compromising the enterprise networks. 

As the Coronavirus crisis continues to expand, organisations face challenges on numerous fronts, not least the efforts many companies are making to take immediate measures to keep their work force safe and their businesses solvent.

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