'Tis the season to be merry -- and cybersecurity vendors and service providers have a lot to be merry about. The cybersecurity industry reached $75 billion in 2015, and it is expected to reach $170 billion by 2020. Of course the merriness needs to be tempered when you consider that a cyber crime epidemic is fueling the market growth for cybersecurity products and services. But still, the cyber companies are at least partly in it for the money.
[ ALSO ON CSO: Top security stories of 2015 ]
Let's go to the highlight reel for a look at some important cybersecurity market sizing and forecasts from 2015:
- Big banks and financial services firms are spending big budgets on cybersecurity... to the tune of $9.5 billion in 2015. In a recent interview on Bloomberg’s Market Makers, Bank of America Corp. CEO Brian Moynihan said the nation’s second largest lender will spend $400 million on cybersecurity this year… and it is the first time in 20 years of corporate budgeting he has overseen a business unit with no budget. Moynihan said the only place in the company that doesn’t have a budget constraint is cybersecurity.
- Demand for vendor-furnished information security products and services by the U.S. federal government will increase from $8.6 billion in FY 2015 to $11 billion in 2020 at a compound annual growth rate (CAGR) of 5.2 percent, according to “Deltek’s Federal Information Security Market Report” – which examines the trends and drivers shaping the federal information security marketplace and provides a forecast for the next five years.
- IT security salaries rise with the market in 2015. The top five salaries according to job board DICE: Lead software security engineer – $233,333; Chief security officer – $225,000; Global information security director -$200,000; Chief information security officer – $192,500; Director of security – $178,333
- "Pure-Play Cybersecurity Firms" emerge with specialty businesses around cyber consulting, advisory, and professional services in 2015. These firms are an inch wide and a mile deep in defending enterprises against hacks and breaches.
- The IoT (Internet of Things) security market saw nearly $7 billion in 2015. Gartner states that IoT is a key enabling technology for digital businesses and there will be 25 billion connected things by 2020.
- The automotive cybersecurity market revs up in 2015. The Alliance of Automobile Manufacturers states that as cars increasingly incorporate in-vehicle computer systems to help with everything from safety to navigation, cybersecurity is among the industry’s top priorities and the auto industry is working continuously to enhance vehicle security features.
- Israeli cybersecurity companies exported some $6 billion in cyber-related products and services last year, making it the no. 2 cyber security nation behind the U.S. Globes Online, an Israeli business news media property, reported that figures collected by the Israel Export and International Cooperation Institute show that over 200 cybersecurity companies are operating in Israel in a field that is growing at 8 percent a year. Its main market is the U.S., and most of the technologies exported there are designed to protect government, military, and financial infrastructure, in addition to protection of strategic facilities.
- Asia-Pac and Latin America are multi-billion dollar markets in 2015, and growing strong. The Asia Pacific cybersecurity market contributes 17.21 percent of the global market and will grow to 21.16 percent by 2019, according to MicroMarketMonitor. The Latin American market contributes 5.18 percent of the global market and will slightly grow to 7.65 percent by 2019.
- Rapid7 and Sophos were the two big cyber IPOs in 2015. Dell filed confidentially for an IPO of its cybersecurity unit SecureWorks in 2015. SecureWorks should
be trading in early 2016 and may be worth up to $2 billion, according to numerous media sources.
- Venture capital firms have invested billions into cybersecurity startups and emerging players in 2015. A hot funding climate suggests another banner year for cybersecurity investments in 2016.
- Corporate investors were big in to cybersecurity in 2015. The most active include: Intel Capital; Google Ventures; Qualcomm Ventures; Juniper Networks; Salesforce Ventures; In-Q-Tel; Samsung Ventures; NTT DOCOMO Ventures; Citi Ventures; T-Venture.
- Security awareness training is a billion dollar market in 2015. Market growth is driving many new local, national and global entrants with a variety of programs and approaches to security awareness training. A rising tide of cyber crime should lift security awareness training again in 2016.
2016 is upon us, and the year will most certainly provide even more exciting highlights. Stay tuned!