Cybersecurity market in India was valued at USD 4.5 billion in 2018 and is expected to grow at the CAGR of 19% during the time period of 2019-2024. It is expected to reach USD 15.2 billion by 2024 because of the increasing number of internet users and cyber-attacks.

• Definition / Scope
• Market Overview
• Market Risks
• Top Market Opportunities
• Market Drivers
• Market Restraints
• Technology Trends
• Pricing Trends
• Regulatory Trends
• Market Size and Forecast
• Market Outlook
• Competitive Landscape
• Key Market Players
• Strategic Conclusion
• References
• Appendix

Definition / Scope

Cybersecurity is the integration of technologies, services, solutions, and risk management approaches to protect organizational, personal, and professional data from cybercrimes and cyber-attacks in government, public utilities, and enterprises. Some of the technological approaches are the firewall, anti-virus, anti-malware, web filtering, risk, and compilation encryption, etc.

 The cybersecurity market is concerned with the design and integration of these technological products, which have the capacity to detect and manage the risk, recover lost data, and mitigate the further impacts. It is applied in the sector of government, media and entertainment, healthcare, BFSI, Oil and gas, etc. On the basis of the type of securities, the cybersecurity market consists of:

• Network Security
• End-point Security
• Application Security
• Content Security
• Wireless Security
• Cloud Security

Market Overview

India is ranked as third in the context of the number of cyber threats worldwide. The market size of cybersecurity was valued at USD 4.5 billion in 2018, increased from USD 1.02 billion in 2013. It is expected to grow at the CAGR of 19% within the forecasted time period of 2019-2027 and will reach USD 15.2 billion by 2024.

On the basis of the type of cybersecurity approaches, risk management software(26.6%) and data security market(12.4%) is expected to grow at the highest rate in comparison to other technologies. Cybersecurity management techniques are mostly applied in Banking, financial services and insurance(69%) and Government and defense(50%).

Advancement in technologies and the rising incidence of cyber-attacks are posing significant opportunities for the growth of its market. The key market players engaged in this market are Cisco Systems private limited, Symantec Solutions, Checkpoint software technologies, and IBM India Private Limited.

Market Risks

Low awareness level about cyber threats

In India, people aren’t aware of the potential threats of cyber crimes and the availability of schemes to tackle it out. A questionnaire-based survey conducted by Narahari A. and Shah V. conducted in the Gujarat State of India has found that almost 11% of the participants weren’t familiar with the term cybercrime, only 15% of them understood the technical meaning of cybercrime and 68% of them even hadn’t heard about cyber cells. 

Along with this, another study conducted by Sreehari et al among college students has also revealed that 31.3% of participants even haven’t heard about anti-cybercrime schemes. Low level of awareness about cybercrime and anti-cybercrimes approaches might be the risk for the growth of the cybersecurity market.

Top Market Opportunities

• Increasing number of internet users

In the context of India, the number of internet users has been increased from 259 million in 2015 to 483 million in 2018 and is expected to reach 666.4 million by 2023. It is growing at a rate of 18% annually. Out of this, almost 87% of them were regular users and 66% of active users are accessing the internet for entertainment purpose. 

Along with this, on average, Indians spend 17 hours per week on social media and almost 12.3 billion population downloads more application from the internet.

This increasing numbers and frequency of internet users are creating a higher risk of the cyber attacks, which in turn will create a significant opportunity for cybersecurity market growth.

• Digitalization initiatives

Digital India is the government-driven initiative to ensure all the services are provided electronically to people by improving online infrastructure and internet connectivity.

Almost 1.2 billion population has enrolled in the digital identity program and 870 million bank accounts are linked to this Aadhaar program. India is the second-fastest digital adopter in comparison to other major digital economies countries.

• Rising digital financial account

The share of the digital financial accounts has doubled from 2011 to 2018 and constitutes almost 80% of total financial accounts. About 354 million people use smartphone devices and less than 1% of mobile users have access to mobile phone with high-security norms. 

As a result, their android based digital financial accounts might be at the risk of cyber threats and thefts. It will drive the growth of the cybersecurity market.

Market Drivers

• Increasing incidents of cyber-crimes

In India, along with the increasing use of technologies and digitalization, the incidents of cybercrimes such as data breaches, ransomware, are also increasing. India was ranked as one of the most attacked nations from cybercrime worldwide. Cyberattacks on the Internet of Things were increased by 22%.

Almost 33,450 high-grade attacks were registered and 50 of them were very highly sophisticated. Along with this, more than 2,550 unique malware samples were identified. Almost 89 crores Indian rupees were withdrawn by frauds from 4,500 cards and 148 ATMs were used in an incident of the cyber fraud in Cosmos Bank.

In 2018, 445 million of the data records were exposed due to a misconfiguration of the MongoDB on Amazon Web Services and 76% of the businesses were threatened by cyber-attacks. This rising number of cybercrimes are driving the market for cybersecurity system market.

• Rising government initiatives for cybersecurity

Government of India has initiated the varieties of the initiatives to tackle the issues of the cybercrimes. For instance, the Grand Challenge initiative was developed to promote innovation for the cybersecurity by providing incentives for the products designed and developed under the grand problem statement in 2018.

Along with this, the Technology Development Board of India has launched a proposal calls for Indian Companies to financially support the development and commercialization of its market. Almost 10% of the annual IT budget has been allocated for the implementation of cybersecurity by all central ministries.

Ministry of Electronics and Information Technology has proposed the 50% reduction in the testing fee for any startups in cybersecurity technology. This initiative is creating the significant opportunity for the growth of the cybersecurity industry in India.

Market Restraints

Limited cybersecurity skilled resources

The increasing numbers of cyber-attacks are requiring more skilled human resources to tackle this issue through different technologies and approaches. In India, there are about 500,000 job vacancies for cybersecurity at present.

However, the country is facing a shortage of 230,000 skilled personnel and estimated to reach 780,000 professionals by 2021. It is quite challenging for the market players to recruit adequate human resources for cybersecurity system, which might restrain the growth of its market.

Technology Trends

In order to address the rising trend of cyber-attacks and the increasing number of unique malware, technological advancement for the introduction of innovative tools is taking place in India. Most important technological innovative tools are discussed as below:

• Machine learning and artificial intelligence: It is an integral component of security operation centers to secure the networks against the cyber attacks.
• IoT Security: It is the technology used to gain the automation and efficiency for the smart cities and stakeholders in IoT infrastructure.
• Cloud Access Security Broker: It is the technology being used to limit access to the data stored in the cloud through the assessment and management of vulnerabilities.
• Integrated data leakage prevention suite: It applies the integration of the more than two technologies such as User and Entity Behavior Analytics and Cloud Access Security blocker with a view to increasing the efficiency of the cyber attacks management system. Along with the introduction of new ways of cybercrimes, new malware, this technology will work effectively.
• Blockchain: In order to prevent fraud and theft of the valuable information, it will works as a silver lining through the management of the identities.

Pricing Trends

Globally, it is estimated that the cybercrime costs USD 5.2 trillion every year. while its average cost is USD 10.4 million for the organization in the context of India. The price of the cybersecurity services and product depends upon the type of services or technologies, their application, intensity of defense, type of companies and level of security against the malware, theft, and loss.

For example, the penetration test would cause the cost of USD 1093.75 per IP. while AVG antivirus costs USD 6.98 per 1 PC per 1 year, AVG Internet Security costs USD 15.37 per 3 PC per 1 year in 2018.

Regulatory Trends

In order to respond to the cybersecurity-related incidents and mitigate it, the Indian Computer Emergency Response Team is the authorized national agency. Some of the regulations enacted to address the cybersecurity challenges are as follows:

• Information Technology Act

It is the law dealing with cybercrime and e-commerce which aims to provide the legal structure for all electronic transitions through compensation for the victims of cybercrimes. It is based on the United Nations Model Law on Electronic Commerce and sets the offenses and penalties on the basis of the type of cybercrime.

• National Cyber Security Policy

This policy was launched to tackle all the issues of the cybercrimes and combine all the initiatives of cybersecurity in 2013. It ensures protection to the information in cyberspace and minimization of damage from cybercrimes.

It also aims to create 500,000 professional skilled in cyber technology through training. Along with this, it has prepared the plan to increase national awareness about cybercrime. On the basis of this policy, National Cyber Coordination Center, National Critical Information Infrastructure Protection Center and Computer Emergency Response Team are developed.

• Cyber Swachhta Kendra

It is an initiative developed by the Indian government, which detects botnet infections and cleans it to prevent further threats. It is operated in coordination with internet service providers and assists them to clean their system.

• National Crisis Management Plan

This plan is formulated to tackle cyber-attacks, cyber threats, and cyber-terrorism.

Market Size and Forecast

Globally, the Cybersecurity market was valued with a revenue of USD 55 billion in 2018  It is expected to grow at the CAGR of 10.7% during the forecasted time period of 2019-2024 and will reach USD 251 billion in 2023. While Indian Cybersecurity Market was valued at USD 4.5 billion in 2018 and India is holding the third position in the global market in comparison to the other countries.

It is expected to grow at the CAGR of 19% within the forecasted time period of 2019-2027 it is estimated to reach USD 15.2 billion by 2024.

On the basis of product application

• BFSI is holding the largest market share of 69% and was valued at USD million in 2018.
• Cybersecurity market Government and defense was valued at USD million in 2018.

Market Outlook

The Indian cybersecurity market is expected to grow at the higher CAGR i.e. 19% within the time horizon of 2019-2024 in comparison to the global cybersecurity market because of the increasing incidents of the cybercrimes and rising use of mobile phone, streaming devices, and internet. It is expected to reach USD 15.2 billion by 2023.

On the basis of the type of cybersecurity approaches

• Risk management software is expected to grow at the highest rate of 26.6%.
• Data security market is estimated to grow at a rate of 12.4%

Competitive Landscape

There are more than 175 companies offering the services and products of the cybersecurity in which 55-60% are the domestic Indian companies and the rest of them are an export segment. Network security is provided by almost 40 cybersecurity companies, threat intelligence and security Analytics provided by 41 companies, Device security by 5 companies,

Data security by 37 companies, IAM by 40 companies, Mobile security by 18 companies, application security by 26 companies, endpoint security by 26 companies, cloud security by 4 companies, and governance, risk and compliance provided by 19 companies in the context of India. Here almost 64% of companies offer both products and services.

Key Market Players

• Cisco Systems private limited: It is a worldwide company in IT, networking and cybersecurity solutions with its seven sales offices in this region. It especially offers the services of network security and IT protocol-based networking technologies.
• Symantec Solutions: It is a leader in the cybersecurity market, offering the services of endpoint security, data loss prevention, secure web gateway, cloud access security broker, Email security, and manage other security services.
• Checkpoint software technologies: It is the multinational company, which offers the services for IT security, network security, cloud security, data security, and security management.
• IBM India Private Limited: It is computer hardware and consulting IT services company with its headquarter in Bangalore.
• McAfee Software Private Limited: It is one of the world’s largest dedicated computer security software production company with its headquarter in California founded in 1987.
• Sophos Technology Solutions India: It is security software and hardware global company with its headquarter in the UK. It develops the products for the endpoint, email, network, and mobile security including threat management.
• Fortinet Innovation Center India: It provides the high-performance cybersecurity solutions globally, with the expected revenue of USD 20.8 billion by 2020.
• Kaspersky Labs India Private Limited: It is a leader in developing security software to protect against crimeware, malware, hacker attacks, spam, etc. It is providing innovative technological solutions through threat intelligence and security expertise.
• Juniper Networks India Pvt Ltd: It is a multinational corporation which develops the products for networking, network security, and software-defined networking technology.
• Palo Alto Networks Private Limited: It is a multinational cybersecurity company which provides the products for advanced firewalls and cloud-based offerings.

Strategic Conclusion

The Indian cybersecurity market is growing at the rate of 19% because of the increasing use of the internet, social media, digital financial accounts and rising incidents of cybercrimes.

However, the existing shortage of skilled human resources and limited consumer awareness on anti-cyber schemes might risk the growth of this market. So, the available human resources should be trained about the cybersecurity approaches and human resources development plans must be developed to fulfill the vacant posts.

References

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Appendix

• BFSI= Banking, financial services, and insurance
• USD = United States Dollars