After the COVID-19 pandemic rendered large portions of a business’s operations online, the emphasis on cybersecurity has dramatically increased. A report by Bloomberg Intelligence ably forecasted that spending on cybersecurity is expected to increase by $200 billion a year until 2024. A reason for this growth is stated to have been due to a switch to a cloud-based approach to cybersecurity.
The increase in the demand for online work is the primary reason for increased cybersecurity investments. $132 billion was the estimated market value last year. However, the significant investment made during the pandemic has caused a further rise in market value as companies continue to equip themselves in the fight against cyberattacks.
According to the report, approximately 37% of the total cybersecurity market was spent on software over the past year, with a forecast for further growth.
Cloud investments can further be implemented in the appliances market, with cloud-based solutions currently comprising just 4% of total expenditure in this market.
Cloud-based solutions are most prominent in identity management, where they make up 43% of sales. Endpoint analytics, detection, and response (EDR) is another prominent environment where cloud-based solutions represent 41% of the total market.
Room for improvement
There is still a long way to go for the cloud, according to the authors of the report, as cloud penetration in network and endpoint security trails in key areas like customer relationship management and enterprise resource planning (ERP).
However, if the shift towards more cloud-based solutions continues, there is likely going to be a disruption in the market with providers like Check Point and Symantec being under threat from pure-play cloud providers, such as CrowdStrike, which is estimated to be earning revenue in excess of $1 billion per year.
A changing market
The sheer frequency of cyberattacks witnessed during the pandemic has led businesses to realize just how vital cybersecurity is for their welfare. Due to this, it is likely that in the future, cybersecurity is expected to comprise a greater part of the IT budget of an organization.
The market which is most in danger of being disturbed by cloud-based solutions is the endpoint security market. This market is valued at over $13 billion and is serviced mainly by on-premise software, which is around 90% of the entire market currently.
The cloud-based identity management market also has great potential for growth and is estimated to be worth around $4.6 billion in the coming years. It is said that it could even be the fastest-growing portion of the cloud security market as businesses adopt more secure and ironclad cybersecurity services as compared to the traditional passwords of previous years.
With many trends looking like they are likely to result in an increase in the growth of cloud-based cybersecurity solutions, it is almost certain that the future of cybersecurity lies in the cloud.