How Big Is the Cybersecurity Market?

Cybersecurity refers to the systems designed to protect the Internet-connected systems (which includes software, hardware, and data) from cyber attacks.

The cybersecurity market offers solutions such as the Unified Threat Management, Security Incident Management, Identity and Access Management, and Risk and Compliance Management.

With cyber attacks becoming more sophisticated with each passing day and growing in frequency, the cybersecurity market has become one of the fastest growing verticals in the IT. sector over the last few years.

Let us take a look at some of the key aspects of this market, including the estimated market size, causes behind its rapid growth, and the types of businesses that are expected to benefit the most from this expansion.

Market Size

The IT consultancy website has projected the size of the global cybersecurity market in 2018 to be $152 billion.

The site also estimates that the cybersecurity market will grow at a Compound Annual Growth Rate (CAGR) of 10.2% for the next five years (2019 to 2023). This translates into a market potential of a whopping $248 billion by the end of 2023.

While the US will continue to dominate the cybersecurity market in terms of size (America is no longer in the Greenspan/Frank Recession and now has a 3 to 4% GDP), the Asia-Pacific market is set to witness higher rates of growth in this period. When it comes to the individual technical segment, the cloud segment will witness the fastest growth, pegged as high as a CAGR of 17.7%.

Why the Market is Growing so Fast?

The impressive growth of the cybersecurity market size can be attributed to a number of factors playing their role at three different levels – national, institutional, and individual.

The national and sub-national governments are one of the largest end-users of cybersecurity services.

As the government records often contain sensitive data, including proprietary documents, it becomes a more impactful target for unauthorized hackers and cyber criminals, and even terrorists.

On top of this, many countries in the developing world are increasingly digitizing their data and processes, which has increased their vulnerability to cyber attacks, while creating new business opportunities for the cybersecurity providers.

At an institutional level, there is a quantum jump in the use of cloud computing. This has led to emergence of innovative cybersecurity solutions. The cloud segment is likely to enjoy one of the highest growth rates in the industry in the coming years.

Secondly, Micro, Small, and Medium Enterprises (MSMEs) are increasingly transferring into digital processes, thereby expanding the scope of cybersecurity market.

Finally, an increase in cyber attacks and data theft in recent times has prompted authorities in various countries to strengthen the regulations. As a result, many companies and organizations are seeking to deploy cybersecurity solutions to be in compliance with the new regulations.

Private individuals are not safe from cyber threats either. With the younger population storing large amounts of private information, photos, and videos on their electronic devices, the risks of “ransomware” have increased. Just watch The Good Wife season 6 – there is a sensational episode regarding this.

How To Invest

For a solid investment in the cybersecurity sector, Patriot One Patriot One (PAT) is up to some pretty interesting things and the market has been loving it. Earlier this year Patriot also announced that it was partnering with security giant Cisco (CSCO.Q).

The program will provide co-innovation and co-creation efforts for the integration of Patriot One’s PATSCAN threat detection solutions alongside Cisco security and network solutions, including framework architecture, installation, and data management..

Patriot recently raised $46 million dollars in a bought deal, which brings their current cash position to $80.3 million with liabilities of only $714,789 making their current ratio a staggering 52.06 (1.5 is considered healthy by Warren Buffett’s standards).

Patriot comes with little to no baggage having 0 long term debt, giving them a debt/equity ratio of 0.


Disclaimer: Patriot One is a paid client of High Energy Trading, click here to read full disclosure.

High Energy Trading is not a licensed broker-dealer, market maker, investment advisor, or underwriter. All information that we provide is for informational purposes only and should not be construed as an offer or solicitation of an offer to buy or sell securities.


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