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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.
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:
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.
As systems get more interconnected, another significant factor the industry is grappling with is the increasing number of breaches and sophisticated cyberattacks.
Regulatory institutions are taking cognisance of evolving risks and technological advancements and integrating these into directives and guidelines.
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.
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 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%.
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, 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.
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, 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%.
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.
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
Partner and Leader, Cyber Security, PwC India