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Cyber Security India Market - What lies beneath

The advancements in technology and its usage have connected people, businesses and organisations in India and brought them closer, leading to economic progress. However, these advancements come with critical vulnerabilities which can be exploited by those who are experts in misusing technology for economic gains.

Market Analysis

According to estimates, the cyber security market in India is expected to grow from USD 1.97 billion in 2019 to USD 3.05 billion by 2022, at a compound annual growth rate (CAGR) of 15.6%—almost one and a half times the global rate.

While many factors are contributing to this high growth rate, the study shows that three factors are significantly driving the Indian cyber security demand market:

Digital growth necessitating security investments

A favourable demographic dividend and an increasing literacy rate have resulted in an accelerated adoption of digital lifestyle and data consumption. This, in turn, has resulted in an expansion of cyberattack surface and the need for introducing defence mechanisms at multiple touchpoints.

Increasing attacks on cyber security systems

As systems get more interconnected, another significant factor the industry is grappling with is the increasing number of breaches and sophisticated cyberattacks.

Regulatory norms driving security market needs

Regulatory institutions are taking cognisance of evolving risks and technological advancements and integrating these into directives and guidelines.

Cyber security products and services - How is it expected to pan out

The study estimates that the market in India for cyber security products will grow at a higher rate than that for services, as organisations invest more in products powered by specialized technologies.

Cyber Security Products

Indian cyber security products market

With regard to the growth expected in the Indian cyber security products market, data protection and endpoint security will see relatively higher growth. The growing popularity of connected devices, bring your own device (BYOD), and IoT technologies is projected to increase impact in the endpoint segment.

Network security products

Network security products are in focus as more organisations adopt digital technologies. It is estimated that the market for network security products in India will increase from USD 257 million in 2019 to USD 394 million in 2022, at a CAGR of 15.3%.

Cyber Security Services

Security Testing Services

With regard to the growth expected in the Indian cyber security services market, incident response and security testing services are slated to be the core services fuelling demand.

Security Consulting Services

Security consulting services, which include planning of cyber security strategies, policy development, building security architecture, etc., are expected to grow at a CAGR of 12.2% over 3 years to become a market worth USD 157 million by 2022.

Security Implementation

The security implementation services market in India is estimated to increase from USD 221 million in 2019 to USD 320 million by 2022, at a CAGR of 13.2%, given that drawing up effective cyber security strategies depend on successful security implementation.

The market for security testing services

The market for security testing services, which is one of the fastest growing services, in India would increase from USD 201 million in 2019 to USD 325 The market for security testing servicesmillion by 2022, at a CAGR of 17.4%.

Sectoral analysis

The study estimates that the cyber security market in India will be defined by three key sectors—banking and financial services industry (BFSI), information technology (IT) and information technology enabled services (ITeS), and government. These sectors will constitute 68% of the cyber market share.

Read how PwC can help protect your organization against cybersecurity challenges.

Cyber security attacks in the BFSI sector have evolved from merely being about cyber crime to efforts in crippling the economy. BFSI, with 26% share, has the largest cyber security expenditure. The sector is expected to increase its expenditure to USD 810 million from the existing USD 518 million by 2022, at a CAGR of 16.1%.

Service organisations that hold valuable client information have become a target of recent cyber security attacks. The IT/ITeS sector is likely to witness growth in its security spend from USD 434 million in 2019 to USD 713 million by 2022, at a CAGR of 18%.

Significant security spending in the government sector to thwart cyber security attacks from state actors will revolve around investments in defensive measures. The market for cyber security demand from the government sector is expected to reach USD 581 million by 2022, at a growth rate of 13.8% CAGR.

The cyber security spend in other sectors is expected to grow from USD 630 million in 2019 to USD 949 million by 2022, at a CAGR of 14.6%. The major sectors under this ambit include energy, healthcare and automotive

Read more: Seven cyber security trends India will witness in 2020

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Siddharth Vishwanath

Siddharth Vishwanath

Partner and Leader, Cyber Security, PwC India

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