Developments in the field of cybersecurity continue to gather pace as the number of cyberthreats and cyberattacks increase. 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 organizations and accelerated digitalization 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.
Security Services to Witness Substantial Demand
Security services accounted for more than 60 percent of the North American 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 digitalization 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 minimize the risk of financial losses.
Continuous Online Threat for Large Enterprises
Large enterprises are expected to contribute more than 55 percent revenue share of North America’s 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 U.S. enterprise was more than $21 million per incident, according to the 2018 report on malicious cyberactivity by the U.S. Council of Economic Advisers. Increased focus over mitigating financial losses among large enterprises will certainly encourage them towards adoption of cybersecurity solutions.
Growing Financial Cyberattacks in the US
The U.S. accounted for more than 85 percent 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 organizations 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.
BAE Systems, IBM Corporation, Hewlett-Packard, Ltd., Cisco Systems, Inc., Check Point Software, Microsoft Corporation, Intel Corporation, Oracle Corporation, McAfee LLC, Symantec Corporation and Palo Alto Networks, Inc. are some of the key cybersecurity service providers in the U.S. In September 2020, BAE Systems had launched a new offering build on Amazon Web Services (AWS) to develop and deliver a comprehensive anti-money laundering regulatory compliance solution, representing one of the numerous developments taking place in the industry continuously.