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India's cyber security market to hit USD 3 Bn by 2022

Dec 5, 2019 by The Passage Team
India's cyber security market to hit USD 3 Bn by 2022

The cyber security market in India is expected to grow from USD 1.97 billion in 2019 to USD 3.05 billion by 2022, at a compound annual growth rate (CAGR) of 15.6%—almost one and a half times the global rate, according to study by PwC India and Data Security Council of India (DSCI)

The study by PwC India and Data Security Council of India (DSCI)estimates that the market for cyber security products in India will grow at a higher rate than that for services. The existing portfolio of cyber spending will change with products becoming dominant, as organisations invest more in products powered by specialised technologies. Artificial intelligence (AI) and machine learning (ML) applications are being embedded into the cyber suite of offerings—especially in security intelligence, detection and response (IDR), endpoint security and security testing.

While many factors are contributing to this high growth rate, the study shows that three factors are significantly driving the cyber security demand market in India—digital growth, increase in cyberattacks and stringent regulatory mandates.

A favourable demographic dividend and an increasing literacy rate have resulted in an accelerated adoption of digital lifestyle and data consumption. Newer business models and delivery channels have gained wide audience and acceptance—propelled by both public and private sectors, the study said.

Over 12.3 billion mobile applications were downloaded in India in 2018. 47.5 billion national e-transactions have been recorded in 2019, until November.

The digital payments’ transaction value is estimated to grow at a CAGR of 20.2% from approximately USD 64.8 billion in 2019 to USD 135.2 billion in 2023. The number of social network users in the country is expected to grow from 326 million in 2018 to 422 million in 2022, second only to China.

As systems get more interconnected, another significant factor the industry is grappling with is the increasing number of breaches and sophisticated cyberattacks, driven by different motives. This is evident from the rise in cyberattack incidents reported by the Indian Computer Emergency Response Team (CERT-In)—from 53,081 in 2017 to 2,08,456 in 2018, an increase of about 292%. Network scanning, probing, and vulnerable services accounted for over 61% of these incidents. The survey also indicates that business executives acknowledged the increasing high stakes on account of these breaches, and hence the need for them to evaluate their digital risk, and focus on building resilience for the same

The study estimates that the market for cyber security products in India will grow at a higher rate than that for services. The existing portfolio of cyber spending will change with products becoming dominant, as organisations invest more in products powered by specialised technologies. Artificial intelligence (AI) and machine learning (ML) applications are being embedded into the cyber suite of offerings—especially in security intelligence, detection and response (IDR), endpoint security and security testing.

The Passage Team

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