Developments in the field of cybersecurity continue to gather pace as the number of cyber threats and cyberattacks increases. With a higher number of smart and connected devices in private households, the number of opportunities for cybercriminals has also jumped considerably.
In upcoming years, responding to the COVID-19 pandemic is likely to be one of the biggest challenges for cybersecurity companies. The pandemic has resulted in the widespread adoption of cloud computing among organisations and accelerated digitalisation of business processes. Rapid migration to cloud computing and the shortage of technical security staff are likely to be other major challenges for the industry.
North America’s cybersecurity market size is expected to record substantial gains in the near future, with increased risk of data breaches and cyberattacks among enterprises, according to Graphical Research.
- Security services to witness substantial demand
Security services accounted for more than 60% of North America’s cybersecurity industry in 2018. These solutions play a critical role in periodic maintenance and updates of cyber systems. Security solutions ensure the proper functioning of enterprise cybersecurity networks by delivering the latest antivirus and antimalware protection, ensuring zero system downtime.
The past few years have witnessed an exponential rise in the adoption of cloud technologies among businesses. However, wide-scale digitalisation of business operations and high internet penetration has consequently increased the risk of data breaches and other cybercrimes, encouraging enterprises to adopt cybersecurity solutions. These solutions enable enterprises to incorporate measures such as network intrusion detection and virus containment, which help them secure digital assets and minimise the risk of financial losses.
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- Continuous online threat for large enterprises
Large enterprises are expected to contribute more than 55% revenue share of the North America cybersecurity market by 2025. Many large enterprises have been increasing budget allocation for cybersecurity solutions to help prevent the large-scale financial impact of attacks. These enterprises are constantly targeted by cybercriminals for data thefts and financial abuse, resulting in huge financial losses.
The financial impact of cyberattacks for a large US enterprise was more than $21 million per incident, according to the 2018 report on malicious cyberactivity by the US Council of Economic Advisers. The increased focus over mitigating financial losses among large enterprises will certainly encourage them towards the adoption of cybersecurity solutions.
- Growing financial cyberattacks in the U.S.
The US accounted for more than 85% share of the cybersecurity sector in North America during 2018 and is likely to witness notable growth in the future. The country has observed a significant adoption of cybersecurity platforms across BFSI companies. Many leading financial institutions in the country such as Citi Bank, JP Morgan Chase, and the Bank of America have implemented advanced cybersecurity systems in their organisations to offer 24/7 protection against cybercriminals.
The deployment of cybersecurity networks in the U.S. has also been influenced by strict government regulations regarding data security. The federal civilian agencies had reported more than 35,277 cybersecurity incidents, including phishing attacks and web-based attacks, in 2017.
These factors have led to the introduction of several cybersecurity regulations including the Federal Acquisition Supply Chain Security Act of 2018 and the Small Business Advanced Cybersecurity Enhancements Act of 2018.
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