STATISTA TECHNOLOGY MARKET OUTLOOK

Cybersecurity - Market data

analysis & forecasts

March 2023
 Agenda

Market Outlook
Overview 3
Market drivers 11
Market methodology 18
Key players 21
Trends 33

Segments
Cyber Solutions 50
Security Services 54

Appendix
Product overview 58
Author 62

2
MARKET OUTLOOK

Overview
 Cybersecurity, which has been a driving force for digital transformation for many
years, has boomed due to the COVID-19 pandemic
Overview: management summary

Cybersecurity is a topic practically all companies must tackle to ensure and a distinct approach to prevent damage to a company and its operations, revenues,
enhance the successful digital transformation of their operational activities (e.g., and employees. Driven by the increasing awareness of data risks and threats, the
automated processes, cloud-based tools, and software support). The adoption of global cybersecurity market has witnessed robust growth over the past few years
cybersecurity is also expected to grow with the increasing rates of internet and is expected to reach approximately US$257 billion in revenues by 2028.
penetration among developing and developed countries. Although it was once
The Statista Cybersecurity Market report divides the topic into two main segments:
common to dismiss cybersecurity as a task for the IT department, cybersecurity is
automated technologies against the risk of cyberattacks and services enhancing the
playing a more central role in top-level strategic planning.
organization’s protection and security strategy. The Security Services segment is the
The COVID-19 crisis led to many organizations facing more cyberattacks. biggest segment with revenues of US$85 billion in 2023.
Contributing factors included the security gaps in remote work as well as the shift
The cybersecurity industry is experiencing continuous expansion, with new trends
to virtualized IT environments, such as cloud computing infrastructures, data
emerging every year. And, as one of the most substantially growing markets in the
stores, and networks. Additionally, dramatic developments on a global scale, such
industry, the Cybersecurity Services market is evidently fueled by these different
as the Russia-Ukraine war, also continue to accelerate cybersecurity spending and
trends. The top four emerging trends mentioned in the report are cloud-based
the priorities of organizations.
security, the zero-trust model, the evolution of the Internet of Things, and the
Alongside the evolution of digital technologies, the development of digital business shortage of cybersecurity employees.
models also contributes to the promising growth of the Cybersecurity market.
Moreover, there are different types of cyberattacks, and each one requires

Sources: Statista Technology Market Outlook 2023

 The Cybersecurity market covers a wide scope of segments used in professional
environments
Overview: market definition and segments (1/2)

Definition of the Cybersecurity market In scope

Cybersecurity is the process that provides and maintains confidentiality, integrity, The Cybersecurity market includes:
availability, and privacy. This includes measures to prevent and respond to all
• Security Solutions
incidents of cybercrimes, such as digital attacks and disruptions, to protect
computer systems, networks, programs, and data (e.g., personal assets, important • Professional and Managed services

files, industrial and governmental information). The market for Cybersecurity • Support and deploy
includes revenues generated by the two key products, namely Cyber Solution and
Out of scope
Security Services.
The Cybersecurity market excludes:
Market values represent revenues paid to primary vendors at manufacturer price
level either directly or through distribution channels (excluding VAT). Reported • Company-internal cybersecurity measures
market revenues include spending by consumers (B2C), enterprises (B2B), and • Building security
governments (B2G). Revenues are allocated to the country where the money is
spent.

Sources: Statista Technology Market Outlook 2023

 Within the two Cybersecurity market segments, further subsegments can be
differentiated
Overview: market definition and segments (2/2)

Cyber Solutions Security Services

Cybersecurity solutions are automated technologies that help monitor, detect,
report, counter, and secure organizations against the risk of cyberattacks, which
can cause phishing, information extortion, data breaches, etc. These solutions
include application security, cloud security, data security, and network security.
Company examples: McAfee, Palo Alto Networks, CrowdStrike Holdings.
The Cyber Solutions market segment includes:
Cybersecurity services refer to an overarching processing or a wide range of
services that enhance the organization’s protection and security strategy against
common cybercrimes such as phishing, malware, or ransomware. These services
include design and integration, consulting, implementation, risk and threat
assessment, as well as professional training and education.
Company examples: Palo Alto, Capgemini, CrowdStrike Holdings.

• Application Security

• Cloud Security

• Data Security

• Network Security

• Other Solutions

Sources: Statista Technology Market Outlook 2023

 With US$85 billion, Security Services is the largest segment of the Cybersecurity
market in 2023
Overview: key takeaways

Worldwide revenue shares in 2023 Key takeaways about the Cybersecurity market

• In 2023, the Cybersecurity market had a total revenue of US$162 billion

worldwide.

• With US$85 billion (53%), Security Services represents the largest segment of the
global Cybersecurity market in 2023.

• The second largest segment is Cyber Solutions with a revenue of US$77billion

(47%).
47%
• In a global comparison, the United States produced the highest revenue in the
53% Cybersecurity market in 2023, generating US$69 billion; China came in second
US$162 place with about US$14 billion.
billion

Security services Cyber solutions

Sources: Statista Technology Market Outlook 2023

 The global Cybersecurity market is worth US$162 billion in 2023 and is
predicted to continue growing at a stable rate
Overview: sales figures

Worldwide Cybersecurity revenue in million US$

257
235
214
+10%(1) 195
178 149
162 131
147 115
138 100
115 122 88
77
103 60 67
83 90 51
47
40
30 34
95 99 104 108
78 81 85 90
63 69 71
54 56

2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028
Security Services Cyber Solutions

8 Notes: (1) CAGR: Compound Annual Growth Rate / average growth rate per year from 2016 to 2028

Sources: Statista Technology Market Outlook 2023

 In global comparison, the U.S. Cybersecurity market generates the most
revenue in 2023 with US$69 billion
Overview: worldwide comparison (1/2)

Revenue comparison in billion US$ in 2023 Revenue shares in 2023

Australia & Oceania Africa

United States 68.7
3%
China 14.3 1%

United Kingdom 9.8 Asia

23%
Japan 8.8 Americas

Germany 6.2
49%
France 4.7

Australia 3.7

Russia 3.6

Canada 3.5 24%

South Korea 3.1 Europe

Sources: Statista Technology Market Outlook 2023

 In China, the Cybersecurity market revenue is predicted to grow by 12.8%
between 2023 and 2028
Overview: worldwide comparison (2/2)

Revenue numbers of the top countries in billion US$(1)

+8.5%(1)

103

69

+12.8%(1)
+8.8%(1) +10.6%(1)
26 +9.4%(1)
14 13 16
9 10 10
6

24
2023 2028 2023 2028 2023 2028 2023 2028 2023 2028

United States China Japan United Kingdom Germany

10 Notes: (1) CAGR: Compound Annual Growth Rate / average growth rate per year from 2023 to 2028

Sources: Statista Technology Market Outlook 2023

10
MARKET OUTLOOK

Market drivers
 The development of internet penetration, general increase of cyberattacks and
long-term impacts of COVID-19 are driving the Cybersecurity market
Market drivers: summary

Key market indicators Short explanation

Percentage of total population using the internet on a monthly basis. In recent
INTERNET PENETRATION RATE years, all sorts of connected devices have gained popularity and produce data that
needs to be stored.
During a pandemic, companies faced increasing cyberattacks due to their reliance
on IT systems. Especially vulnerabilities related to working from home will see
COVID-19 PANDEMIC
cybercriminals continue to ramp up their activities and develop more advanced and
sophisticated tricks.
Online shopping trend has been boosting the development of digital business
EVOLVING OF DIGITAL BUSINESS MODELS models. Online firms and customers are always the targets of cybercriminals
stealing their information. Therefore, online platforms need to invest to secure
their websites and networks.
INCREASE OF CYBERATTACKS The number of cyber attacks and the cost of cybercrime worldwide have been
rapidly increasing. Therefore, companies need to boost their cyber defense
capabilities to secure their businesses.

CYBER WARFARE Following Russia - Ukraine war, modern warfare is moving from land, sea, and air
into a new potential large-scale spread of cyberspace arena - cyber warfare.

12

Sources: Statista Technology Market Outlook 2023; Statista, based on ITU and national statistical offices; Equinix GXI Report 2020; IDC
 The Cybersecurity market is predicted to grow with the increasing internet
penetration among developing and developed countries
Market drivers: internet penetration rate

Internet penetration rate worldwide in July 2022, by region

Northern Europe 98%

Western Europe 94%
Northern America 93%
Southern Europe 88%
Eastern Europe 87%
Sothern America 78%
Oceania 72%
Western Asia 75%
South-Eastern Asia 73%
Eastern Asia 74%
Central America 72%
Southern Africa 68%
Caribbean 69%
Central Asia 67%
Northern Africa 64%

10 Notes: Worldwide; July 2022

Sources: DataReportal; Hootsuite; We Are Social

 Next to the digitization, cybersecurity is prioritized IT initiatives within
organizations by the long-time impact of Covid-19 pandemic
Market drivers: impact of COVID-19

Top IT initiatives within companies year-over-year

Digital transformation 74% 56%

Cybersecurity 73% 50%

Cloud / Cloud migration 65% 48%

Customer experience 57% 29%

Business value / growth 47% 28%

Cost savings 39% 27%

Business continuity 43% 15%

2022 2021

14 Notes: Respondents: n=411

Sources: Flexera 2022 State of Tech Spend Report

 Despite turbulent developments on a global scale in 2022, eCommerce still
accounts by far for the largest chunk of the digital economy
Market drivers: the development of digital business models

Users of selected markets of the digital economy in million

4,500
4.115
4,000 3.799
eCommerce
3.450
3,500
3.150
3,000
2.612
2.421 Video Games 2.462
2,500
2.050
2,000 1.807
1.659
Food Delivery
1,500 1.386

998 Streaming
1,000 682
565 Learning
651
670
500 468 513 543
429 Dating
405 176 Events 242 697

2019 2020 2021 2022

15

Sources: Statista
 The losses to cybercrime increased significantly, a development which can be
connected to the great financial losses in 2021
Market drivers: increase of cyber attacks

Global cyber threat risk index map(1) Global financial cybercrime losses in million US$ in 2021

Business Email Compromise(2) 2.396

Investment 1.456

Confidence/Romance Fraud 956

Personal Data Breach 517

Real Estate/Rental 350

Tech Support 348

Non-Payment/Non-Delivery 337

Credit Card Fraud 173

Corporate Data Breach 152

Darker = Higher risk

Government Impersonation 143
Insufficient data

16 Notes: (1) The Cyber Risk Index (CRI) predicts the risk of becoming a victim of cybercrime depending on the country of residence. The higher the index, the higher the risk. (2) Includes individual email account compromise
Worldwide figures (59% of victims located in U.S.)
Sources: Statista Technology Market Outlook 2023, IBM, NordVPN , FBI Internet Crime Report 2021
 The threat of cyberwar and its purported effects are a source of great concern
for governments and militaries around the world
Market drivers: cyber warfare

Selected cyber warfare events since 2010

2010 • Stuxnet: the first genuine cyberweapon was designed to inflict physical damage

2014 • Russian DDoS attack against Ukraine

• Russian-based hacking group took down Ukraine‘s election commission
2015 • Russian hackers infiltrated computer network of German Bundestag
• Chinese hackers stole 21.5 million records from the U.S. Office of Personnel Management
2016 • The second Russian-induced power outage in Ukraine

2017 • WannaCry: Ransomware Cryptowarm

• NotPetya: the frist major instance of weaponized ransomware

2018 • The heist of $3.4 billion worth of secrets and data proved to be connected to Iranian-based Mabna Institute

2019 • Trump administration retaliated against Iran’s downing of a U.S. drone with a cyberattack on a Revolutionary Guard (IRGC) database used to plan
attacks on tankers
2020 • A group backed by the Russian government penetrated thousands of organizations globally including multiple parts of the United States federal
government, leading to a series of data breaches
2021 • According to Microsoft, suspected Russian cyber engineers gained access to the networks of several different Ukrainian energy and IT providers
in late 2021
2022 • Russia’s invasion of Ukraine

17

Sources: GRA Quantum, Bloomberg, Reuters

MARKET OUTLOOK

Market methodology
 We size the market segments by using top-down and bottom-up approaches
Market methodology: modeling approach (1/2)

Detailed analysis for selected countries Underlying data:

We obtain data for the world’s largest economies (e.g., the United States, China,
and Germany) through an in-depth analysis of each market segment. To evaluate
the markets, we use the latest financial data from annual financial reports of the
markets’ leading companies and industry associations, macroeconomic indicators
from international institutions and statistical bureaus, third-party studies, and
expert opinions. Due to the considerable amount of information that is
incorporated in the Statista IT Services market segments and all the interpretation
and analysis involved in the process, a detailed representation of the data sources
for each data point is not possible.
Key player analysis & monitoring
• Company profiles and key performance indicators (KPIs)
• Quarterly earning calls and further investor information
Market research
• Digital consumer profiling: the Statista Global Consumer Survey
• Exclusive representative ad hoc surveys in selected countries and territories on
specific current topics

Modeling is carried out by implementing of a combination of top-down and Macroeconomic indicators

bottom-up approaches for each segment. To calculate the global market size of • Indicators from statistical offices and census data
every market segment, we analyze company financial reports and check
• International organizations and associations
macroeconomic developments that drive the global market. In instances where
revenues are not reported for certain countries and territories (as is the case for Studies & third-party data
major multinational tech players), annual reports serve as an indication for a first • Market analyses and analyst opinions
regional split of the company revenue. Additionally, the key market indicators that
• Industry analyses
influence the market help us estimate the market size for each country and
territory individually. • Academic studies

19

Sources: Statista Technology Market Outlook 2023

 Our market growth forecasting is based on three different techniques
Market methodology: modeling approach (2/2)

To create forecasts for up to five years, we combine economic developments and
trend scouting with statistical and mathematical forecasting techniques. Every
market is modeled differently as it is tailored to the respective industry, which also
affects the forecasting method for each market.
In the Technology Market Outlook, we use three different forecasting techniques:
the S-curve function, exponential trend smoothing, and seasonal forecast
algorithms.
Certain technology products and services, such as the cloud, are not adopted by all
economies and individuals at the same time, but rather in a time sequence. The
market maturity can be evaluated using the Bass diffusion model, which describes
how new products penetrate the market. Countries and territories can be classified
into different clusters based on the time it takes to adopt a new product. This, in
turn, depends on a country's macroeconomic factors, its technologization, culture,
and attitudes. This lifecycle of technology penetration can be represented as a
graph:
A market growth forecast is generated with the help of our tool, which combines
historical market data with predictions regarding the development of key market
drivers by creating the most suitable curve for the market. The S-curve represents a
special case of the logistic function and is well-suited to make forecasts regarding
electronic and digital hardware devices due to the non-linear growth of technology
adoption. For markets with a projected steady growth, such as Devices and IT
Services, we use exponential trend smoothing to illustrate the continuous
development of the market. Parameters are adjusted individually depending on the
market-country / market-territory combination.
Moreover, in certain industries, replacement cycles or seasonal effects occur
frequently and are taken into consideration in our forecasts. Where applicable, we
use seasonal forecast algorithms to outline this kind of market behavior. Once the
status quo has been established, we assess the most recent market growth and the
macroeconomic environment of the country or territory in question and its region.
We then move on to trend scouting, reviewing business-critical developments in the
industries that provide a basis for the future growth of the markets. The result is an
algorithm-backed forecast that is based on relevant market drivers and
macroeconomic indicators. To validate our data, we collaborate with other Statista

Innovators Early Early Late Laggards

teams, use third-party forecasts and regional comparisons, and analyze
adopters majority majority development cycles in different markets.
20

Sources: Statista Technology Market Outlook 2023

 MARKET OUTLOOK

Key players

21
 Examples of key players in the Cybersecurity market that cover a broad range of
products
Key players: Cybersecurity market

Company

Global revenue 2022(1) US$61bn US$52bn US$6bn US$4bn US$2bn(2)

Cyber Solutions Security services

22 Notes: (1) The revenues refer to the company’s fiscal years, as reported in official financial statements

Sources: IBM, Cisco, Palo alto, Fortinet, Crowdstrike

 IBM’s business segment Software accounted for 41% of its total revenue in 2022
Key players: International Business Machines Corporation (1/2)

IBM is an information technology company, which provides integrated solutions IBM’s revenue shares in 2022
that leverage information technology and knowledge of business processes. The
1%
Software segment offers hybrid cloud platform and software solutions, software for
1%
business automation, AIOps and management, integration, security software and
services for threat, data, and identity. The Consulting segment offers business 25%
transformation services, including strategy for technology consulting services. The
Infrastructure segment provides on-premises and cloud-based server and storage 41%
solutions, as well as remanufacturing and remarketing services for used
equipment. The Financing segment offers lease, installment payment, loan
financing, and short-term working capital financing services.

Main industry: Technology & Telecommunications

US$61bn(1) Armonk, US
Revenue in 2022 Headquarters 32%

297,900 US$0.20m
Software Infrastructure Other
employees Revenue by employee
in 2022 in 2022 Consulting Financing

23 Notes: (1) The revenues refer to the company’s fiscal years, as reported in official financial statements

Sources: Statista Company DB 2023; IBM annual report

 In 2022, IBM's global revenue exceeded $61 billion, with a CAGR increasing by
1.6% from 2019 to 2022
Key players: International Business Machines Corporation (2/2)

IBM’s global revenue in billion US$(1)

+1.6%(2)
61
58 57 1 0
55
1 1 1 0
1 0
15
14
16 15

18 19
17 16

22 23 24 25

2019 2020 2021 2022

Software Consulting Infrastructure Financing Other

24 Notes: (1) The revenues refer to the company’s fiscal years, as reported in official financial statements (2) CAGR: Compound Annual Growth Rate / average growth rate per year from 2019 to 2022

Sources: IBM annual report

 Cisco’s business segment Products accounted for 74% of its total revenue in
2022
Key players: Cisco Systems, Inc. (1/2)

Cisco Systems Inc (Cisco) is an integrator of intent-based technologies across Cisco’s revenue shares in 2022
networking, security, collaboration, applications, and cloud. The Products segment
offers a range of products for network segmentation, including switches, routers,
firewalls, and software-defined networking (SDN) solutions. These products can be
used to create virtual LANs (VLANs), secure zones, access control lists (ACLs), and 26%
other segmentation techniques. The Services segment provides services to help
organizations with network segmentation. These services include consulting,
design, implementation, and management of network segmentation solutions.
Cisco's services can help organizations identify and prioritize their segmentation
needs, select the right products, and deploy them effectively.

Main industry: Computers, Peripheral Equipment & Software

74%
US$52bn(1) San Jose, US
Revenue in 2022 Headquarters

83,300 US$0.62m
employees Revenue by employee
in 2022 in 2022 Products Services

25 Notes: (1) The revenues refer to the company’s fiscal years, as reported in official financial statements

Sources: Statista Company DB 2023; Cisco Systems, Inc. annual report

 In 2022, Cisco's global revenue exceeded $52 billion, with a CAGR decreasing by
0.2% from 2019 to 2022
Key players: Cisco Systems, Inc. (2/2)

Cisco’s global revenue in billion US$(1)

-0.2%(2)
52 52
49 50

13 14
13 14

39 38
36 36

2019 2020 2021 2022

Products Services

26 Notes: (1) The revenues refer to the company’s fiscal years, as reported in official financial statements (2) CAGR: Compound Annual Growth Rate / average growth rate per year from 2019 to 2022

Sources: Cisco Systems, Inc. annual report

 Palo Alto Network’s business segment Subscription and support accounted for
75% of its total revenue in 2022
Key players: Palo Alto Network , Inc. (1/2)

Palo Alto Networks Inc (Palo Alto) provides cybersecurity services to enterprises, Palo Alto Network’s revenue shares in 2022
government, and service providers. The company’s products and services portfolio
include firewall appliances and software, panorama, support and maintenance
services, security management solutions, and virtual system upgrades. Its
25%
subscription offerings comprise threat prevention subscription, URL Filtering, IoT
Security, DNS Security, WildFire, GlobalProtect, Data Loss Prevention, and SD-WAN.
Palo Alto empowers service providers, government entities, and enterprises to
secure applications, users, data, networks, clouds, and devices.

Main industry: Computer Programming

75%
US$6bn(1) Santa Clara, US
Revenue in 2022 Headquarters

12,561 US$0.43m
employees Revenue by employee
in 2022 in 2022 Subscription and support Product

27 Notes: (1) The revenues refer to the company’s fiscal years, as reported in official financial statements

Sources: Statista Company DB 2023; Palo Alto Network, Inc. annual report
 In 2022, Palo Alto Network’s global revenue exceeded $6 billion, with a CAGR
increasing by 23.8% from 2019 to 2022
Key players: Palo Alto Network , Inc. (2/2)

Palo Alto Network’s global revenue in billion US$(1)

+23.8%(2) 1
4

3 1
3
1
1
4
3
2
2

2019 2020 2021 2022

Subscription and Support Product

28 Notes: (1) The revenues refer to the company’s fiscal years, as reported in official financial statements (2) CAGR: Compound Annual Growth Rate / average growth rate per year from 2019 to 2022

Sources: Palo Alto Network, Inc. annual report

 Fortinet’s business segment Product accounted for 60% of its total revenue in
2022
Key players: Fortinet, Inc. (1/2)

Fortinet, Inc. is a cybersecurity vendor that sells products, support, and services to Fortinet’s revenue shares in 2022
small and midsize businesses, enterprises, and government entities. The Company
offers network security appliances, software, and subscription services. Fortinet
systems integrate the industry's broadest suite of security technologies, including
firewall, VPN, antivirus, intrusion prevention (IPS), web filtering, antispam, and
traffic shaping. Its products include unified threat management appliances,
firewalls, network security, and its security platform, Security Fabric. Services 40%
revenue is primarily from FortiGuard security subscriptions and FortiCare technical
support.

Main industry: Computers & Peripheral Equipment 60%

US$4bn(1) Sunnyvale, US
Revenue in 2022 Headquarters

12,595 US$0.35m
employees Revenue by employee
in 2022 in 2022 Services Product

29 Notes: (1) The revenues refer to the company’s fiscal years, as reported in official financial statements

Sources: Statista Company DB 2023; Fortinet, Inc. annual report

 In 2022, Fortinet's global revenue exceeded $4 billion, with a CAGR increasing by
26.9 from 2019 to 2022
Key players: Fortinet, Inc. (2/2)

Fortinet’s global revenue in billion US$(1)

+26.9%(2)
3 2

3 1
2
1
1
3
2
2
1

2019 2020 2021 2022

Services Product

30 Notes: (1) The revenues refer to the company’s fiscal years, as reported in official financial statements (2) CAGR: Compound Annual Growth Rate / average growth rate per year from 2019 to 2022

Sources: Fortinet, Inc. annual report

 CrowdStrike’s business segment Subscription accounted for 94% of its total
revenue in 2022
Key players: CrowdStrike, Inc. (1/2)

CrowdStrike Holdings, Inc. provides cloud-delivered protection across endpoints CrowdStrike’s revenue shares in 2022
and cloud workloads, identity, and data. It offers threat intelligence, managed
security services, IT operations management, threat hunting, Zero Trust identity 6%

protection, and log management. The company primarily sells subscriptions to its
Falcon platform and cloud modules through its direct sales team that leverages its
network of channel partners. It serves customers worldwide. The company was
incorporated in 2011 and is based in Austin, Texas.

Main industry: Computer Programming

US$2bn(1) Austin, US
Revenue in 2022 Headquarters 94%

7,273 US$0.31m
employees Revenue by employee
in 2022 in 2022 Subscription Professional services

31 Notes: (1) The revenues refer to the company’s fiscal years, as reported in official financial statements

Sources: Statista Company DB 2023; CrowdStrike, Inc. annual report

 In 2022, CrowdStrike’s global revenue exceeded $2 billion, with a CAGR
increasing by 67% from 2019 to 2022
Key players: CrowdStrike, Inc. (2/2)

CrowdStrike’s global revenue in billion US$(1)

2.2
0.1

+67.0%(2)
1.5
0.1

2.1
0.9
0.1
1.4
0.5
0.0 0.8
0.4

2019 2020 2021 2022

Subscription Professional services

32 Notes: (1) The revenues refer to the company’s fiscal years, as reported in official financial statements (2) CAGR: Compound Annual Growth Rate / average growth rate per year from 2019 to 2022

Sources: CrowdStrike, Inc. annual report

 MARKET OUTLOOK

Trends

33
 Strongly developed new digital technologies are driving the future evolution of
the Cybersecurity market
Trends: overview

Trending topics in the context of the Cybersecurity market

The rapid and widespread adoption of remote working during the pandemic
drastically increased the necessity for cloud-based services and infrastructure. This
CLOUD-BASED SECURITY
development has accelerated concerns about cloud-based security solutions for
organizations.

The growing demand for tighter security strategies to reduce the increasing
number of cyberattacks has been a contributing factor to the thriving zero-trust
ZERO-TRUST MODEL security market for years. In particular, when the COVID-19 pandemic was declared
in early 2020, many businesses needed to switch to remote work and put their data
into the cloud.

It is estimated that by 2030, there will be more than 25 billion IoT-connected

EVOLUTION OF INTERNET OF THINGS (IOT) devices installed around the world. The trend towards remote working is helping to
drive this increase. The expanding Internet of Things (IoT) creates more
opportunities for cybercrime.

The global IT industry sees the greatest growth in the cybersecurity workforce but
CYBERSECURITY LABOR SHORTAGE still struggles to fill a gap of more than 3.4 million workers in this field, according to
the ISC2 Cybersecurity Workforce Study.

34

Sources: Statista Technology Market Outlook 2023

 Investment in cloud security helps to maximize the benefits of cloud adoption
and make a secure landscape
Trends: cloud-based security (1/3)

Driven by the COVID-19 pandemic to empower the remote workforce, companies Challenges of cloud adoption among companies
and IT leaders had to find resilient and agile tech solutions. To sustain business
85% 83%
continuity plans, organizations shifted workloads and migrated their data to the 81%
cloud. It has been predicted that spending on public cloud services will grow and hit 77% 76% 76%
a record of US$414.89 billion by the end of 2022 and account for 33% of total IT
budgets in 2022.

Although a lot of companies recognize the advantages of cloud computing, they

are, at the same time, deterred by security concerns. In RightScale’s State of the
Cloud Report, 26% of respondents named security a significant challenge in cloud
adoption. The massive increase in cloud adoption will motivate cybercriminals to
target organizations in the cloud environment. Though cloud environments are
secured with various security measures, they still are vulnerable if not configured
correctly.

With more and more organizations now established in the cloud, security measures
need to be continuously monitored and updated to safeguard the data from leaks.
Security Lack of Managing Governance Managing Compliance
expertise cloud soft. licenses
spending

35 Notes: n =753 respondents using cloud

Sources: Statista Technology Market Outlook 2023, Flexera 2022 State of the Cloud Report from Flexera
 In the future, companies intend to make more investments in cybersecurity in all
business areas
Trends: cloud-based security (2/3)

Main cyber security investment priorities for companies worldwide in 2022(1)

Cloud
Cloud security
security 16% 35% 45%
Security awareness training and cross training security operations 16% 36% 46%
Endpoint security 16% 35% 46%
Managed security services (e.g., managed security services, managed…) 15% 33% 46%
Real-time threat intelligence capabilities 15% 33% 49%
Business continuity/disaster recovery planning 15% 34% 47%
Enterprise identity and access management (e.g. Federation, SSO) 14% 32% 48%
Consumer identity and access management 14% 33% 48%
Enterprise-wide information governance framework 14% 32% 50%
Software-defined access 14% 33% 48%
Third-party risk management processes 12% 32% 51%
Zero Trust 11% 28% 52%

Realising benefits from implementation Implementing at scale Started implementing / Planning to do in the future

31 Notes: (1) The survey was conducted from July to August 2021 from 3,602 respondents Business, Technology and Security Executives.

Sources: PwC
 Better scalability, faster deployment timing, and cost savings are more of a
cybersecurity investment priority for more companies
Trends: cloud-based security (3/3)

Main cyber security investment priorities for companies worldwide in 2022(1)

0% 20% 40% 60%
Better scalability 55%
Faster time for deployment 50%
Cost savings 43%
Better visibility into user activity and system behavior 40%
Reduced effort around patches and upgrades of software 39%
Meet cloud compliance expectations 37%
Easier policy management 36%
Need for secure app access from any location 35%
Better uptime 34%
Better performance 32%
Our data/ workloads reside in the cloud (or are moving to the cloud) 31%
Reduction of appliance footprint in branch offices 29%
Other 3%

31 Notes: (1) The survey was conducted from July to August 2021 from 3,602 respondents Business, Technology and Security Executives.

Sources: PwC
 Organizations have begun to embrace zero trust as a starting point for
information security to reduce cybersecurity risk
Trends: zero trust model (1/4)

A significant departure from traditional network security, zero trust follows the core Global zero trust security market value in US$ billion
principle “never trust, always verify.” This term is a security framework requiring all
users, whether within or outside the organization’s network, to be authenticated,
authorized, and continuously validated for security configuration and posture
59,890
before being granted and maintaining access to applications and data. The
adoption of zero trust is an effective way to reduce data loss and prevent data +17%(1)
breaches, thus enabling business users to interact with any application from any
device in any environment securely.

This model has been growing dramatically since the outbreak of the COVID-19
pandemic with the cloud migration of business transformation initiatives and the
acceleration of a distributed work environment.
22,990

2021 2027

38 Notes: (1) CAGR: Compound Annual Growth Rate / average growth rate per year from 2021 to 2027

Sources: Statista
 In 2021, the zero trust implementation rate was 68% in network security areas
and 63% in security infrastructure
Trends: zero trust model (2/4)

Zero trust implementation worldwide in 2021, by security risk area and deployment state
120%

100%
Zero trust implementation rate

80%

60%
32% 29% 30% 28% 28%
32% 30%
40%

20% 36% 38% 38% 38%

32% 33% 35%

0%
Automation and Infrastructure Apps Endpoints Network Data Identities
Orchestration
Currently implamented In the process of implementing

14

Sources: Microsoft
 Over the years, the initiative to implement Zero Trust has increased and more
than 97% of companies have implemented it or plan to implement it
Trends: zero trust model (3/4)

Zero Trust security initiatives among companies worldwide(1)

120%

100% 97%
90%
Share of respondents

80%

60%

41%
40%

20% 16%

0%
2019 2020 2021 2022

9 Notes: (1) The survey was conducted in 2022 among 700 respondents of VPs, directors or C-level executives from APAC, EMEA and North America
Question: Does your organization have a defined Zero Trust security initiative today or that you’re planning to start on in the coming months?
Sources: Okta
 More than 30% of respondents consider the implementation of Zero Trust in
the area of data and devices to be a critical priority
Trends: zero trust model (4/4)

Core Zero Trust requirements in terms of priority for companies worldwide in 2022, by deployment status(1)

60%
52%
50%
44% 43% 42% 43%
40%
Share of respondents

40%
34%
31% 31% 32% 32%
30% 27%
24%
22%
20% 19%

11%
10% 7%
4% 4% 3% 4%
2% 2% 2%
0%
Critical priority High priority Moderate priority Already completed
Data Devices Network People Workloads Analytics + Orchestration

32 Notes: (1) The survey was conducted in 2022 among 700 respondents of VPs, directors or C-level executives from APAC, EMEA and North America

Sources: Okta
 The expansion of Internet of Things (IoT) is driving the boom of cyberattacks for
organizations and fostering the development of the IoT security market
Trends: evolution of IoT (1/4)

The IoT sector has been consistently evolving over the past decade, will continue to IoT annual revenue worldwide in billion US$
do so in the next few years, and is predicted to reach US$ 621.6 billion in 2027. This
growth of the IoT is driving the level/degree of cyberattacks within organizations. 622
Businesses should focus on improving practices for connected devices by
571
establishing or updating related information security policies and procedures.
521
Furthermore, companies will need to monitor and patch devices more closely to
+13%(1) 472
secure endpoints, manage vulnerabilities, and respond to incidents.
425
IoT security refers to the security of IoT devices and the networks they are 380
connected to. In an enterprise environment, IoT devices include industrial 336
machinery, smart energy networks, building automation, and employee-owned IoT 293
devices in the workplace. All these devices can pose security risks. 252
213
Cybersecurity risks and threats have increased and identifying security issues of its
182
smart assets and data centers is becoming increasingly important.

By 2025, the IoT security market revenue is expected to reach nearly US$31 billion
globally.

2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030

42 Notes: (1) CAGR: Compound Annual Growth Rate / average growth rate per year from 2020 to 2030.

Sources: Statista Technology Market Outlook 2023, SumatoSoft, Transforma Insights

 The number of IoT attacks worldwide reached more than 10.8 million in October
2020, compared to 5 million fewer in the same month in 2021
Trends: evolution of IoT (2/4)

Worldwide number of cyber attacks on IoT in 2020-2021, by month(1)

14,0

12,0
Number of IoT attack (in millions)

10,83

10,0

7,47
8,0
6,82 6,82
6,29 6,24
5,68 5,93
6,0 5,41
4,52 4,81 4,04
3,84 4,03 3,80 3,76 5,85
3,74
4,0 3,22
3,47 2,53
2,07 3,03
2,88
2,0

0,0
January February March April May June July August September October November December
2020 2021

43 Notes: (1) Data is based on SonicWall Capture Labs, wider industry metrics may vary

Sources: SonicWall
 By 2030, the consumer sector will dominate the Internet of Things (IoT) with 17
billion connected devices worldwide
Trends: evolution of IoT (3/4)

Number of IoT connected devices worldwide 2019-2030, by vertical(1)

30,000
25,572
23,781
Connected devices in millions

25,000
21,987
20,199
20,000 18,437
16,692
14,960
15,000 13,296
11,586
9,991
10,000 8,703
7,727

5,000

0
2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030
Cross-vertical Health & Social Care Finance & Insurance Retail & Wholesale Manufacturing
Consumer Government Information & Communication Construction Mining & Quarrying
Other Services Administrative Accommodation & Food Service Water Supply & Waste Management
Arts & Entertainment Professional, Scientific & Technical Transportation & Storage Electricity, Gas, Steam & A/C

7 Notes: (1) The time period of the survey is from 2019 to 2021. The forecast includes projections from 2022 to 2030

Sources: Transforma Insights

 The IoT market is constantly growing and gaining greater importance in the
context of digital services
Trends: evolution of IoT (4/4)

Worldwide Internet of Things security market size in billion US$

31

26

+17%(1) 22

19
16
13
12
10
8
7

2016 2017 2018 2019 2020 2021 2022 2023 2024 2025

45 Notes: (1) CAGR: Compound Annual Growth Rate / average growth rate per year from 2016 to 2025

Sources: Statista Technology Market Outlook 2023

 More than half of employees at organizations with workforce shortages feel that
staff deficits put their organizations at a “moderate” risk for cyberattacks
Trends: cybersecurity labor shortage (1/4)

The shortage of skilled techs became evident in the most recent decade and is likely In your opinion, to what degree does this shortage of cybersecurity staff put
to become more severe due to the rapid growth of the Cybersecurity market with a you organization at risk of experiencing a cybersecurity attack?(1)
projected revenue of approximately US$262 billion in 2027.

Despite the training and hiring of hundreds of thousands of new workers, demand 20%
Extreme risk
within the cybersecurity industry continues to accelerate rapidly. Given the 4%
significant security staff shortages in their teams, 20% of cybersecurity
54%
professionals believe that the risk of experiencing cybercrime within the Moderate risk
41%
organization is extreme.

A key challenge for organizations seeking cybersecurity talent is that they need to 15%
Slight risk
hire people for a broad range of security and IT network-related roles and 36%
specializations.
7%
Low risk
16%

Companies that have been in denial for decades about their security needs are now 3%
saying, ‘Oh, we have to do something'. Unfortunately, there’s not enough workers in No risk
1%
the pipeline.
Kevin McDonald, Co-chair of the CompTIA Cybersecurity Advisory Council Organization with Organization with
significant staff shortage slight staff shortage

46 Notes: (1) Base: 4,967 global cybersecurity professionals whose teams have staff shortages

Sources: Statista Technology Market Outlook 2023, Flexera 2022 State of the Cloud Report from Flexera, ISC
 As cybersecurity awareness grows, there is a growing shortage of cybersecurity
workers
Trends: cybersecurity labor shortage (2/4)
Cybersecurity affects every
organization
• 80% of organizations
experienced one or more
breaches during the last 12
months.
• 19% confirm five or more
breaches.
• Almost 40% suffered breaches
that cost more than a million
dollars USD to remediate.
47
Sources: Statista, Fortinet
Recruitment and retention of
talent is a problem
• 67% of respondents agree that
the skills shortage creates
additional cyber risk for their
organization. As such, 76% of
organizations now have a
board of directors who
explicitly recommend
increases in IT and
cybersecurity headcount.
• However, 60% of organizations
struggle to recruit
cybersecurity talent and 52%
struggle to retain it.
Organizations are looking for
individuals with certified skills
• 95% of decisions-makers
believe technology focused
certifications positively impact
both their role and their team.
As such, 81% of leaders prefer
to hire people with
certifications.
• However, 78% indicate it's
hard to find certified people,
which is why 91% of
organizations are willing to pay
for the training and
certification of their employees
Organizations are looking for
more diversity
• 7 out of 10 leaders worldwide
say hiring woman and new
graduates are among their top
three challenges.
• 61% say hiring minorities is
also a top three challenge.
• Despite the challenges, or
perhaps because of it, 3 out of
4 organizations implemented
formal processes to hire more
woman, and 9 out of 10
actively engaged women and
new graduates during the last
three years.
Raising cybersecurity
awareness remains a key
challenge
• 87% of organizations
implemented a training
program to increase cyber
awareness. However, 52% of
leaders continue to believe
their employees still lack the
necessary knowledge. This
raises the question of the
effectiveness of these
programs.
• 66% of organizations that don’t
have a program intend to set
one up.
 The most difficult areas for recruitment globally are Cloud Security and Security
Operations
Trends: cybersecurity labor shortage (3/4)

Most difficult cybersecurity roles to fill worldwide in 2022

57%
60%
50% 49%
50%
42%
Share of respondents

38%
40% 34%

30%
22%
19%
20%

10% 5%

Cloud Security Security Network Security Software Risk Management Security Access Compliance None of
(cloud and Operations (SOC (firewall, WAN Development Assessment Management the above
data center, platform, advance edge, etc.) Security and Testing
application threat protection,
security, etc) endpoint security,
etc)

48 Notes: (1) The survey was conducted in 2022 among 1,223 respondents among IT and cybersecurity decision makers

Sources: Fortinet
 In 2022, the most important qualifications for employment in cybersecurity are
Strong problem-solving abilities and relevant cybersecurity work experience
Trends: cybersecurity labor shortage (4/4)

The most important qualifications of cybersecurity professionals for employees(1)

44%

38%
35% 35%
33%
31% 31%
29% 28% 27%
25%
23%

Relevant IT work experience Strong problem- Knowledge of Knowledge of Relevant cybersecrutiy Strong strategic
solving abilities advanced cybersecurit basic cybersecurity work experience thinking skills

2021 2022

49 Notes: (1) Base: 11,779 global cybersecurity professionals

Question: What are the most important qualifications for cybersecurity professionals seeking employment?
Sources: Statista, ISC
SEGMENTS

Security Services
 The Security Services provide a layer of security systems to ensure that
organizations are adequately secured
Overview: market definition

Definition of the Security Services market In scope

Cybersecurity services refer to an overarching processing or a wide range of The Security Services market includes:
services that enhance the organization’s protection and security strategy
• Managed security services
against common cybercrimes such as phishing, malware, or ransomware. These
services include design and integration, consulting, implementation, risk and • Security outsourcing

threat assessment, as well as professional training and education. • Consulting

• Security planning and training

Out of scope

The Security Services market excludes:

• Hardware

• Support or maintenance of company-owned software products

51

Sources: Statista Technology Market Outlook 2023

 In 2023, worldwide Security Services sales generated a total of US$85 billion in
revenues and is expected to grow at a CAGR of 5% until 2028
Overview: sales figures

Worldwide revenue in billion US$ Segment overview

The Security Services segment accounted for 53% of the Cybersecurity revenue in
+5%(1) 2023.
108
104
99 Security Services sales are estimated to increase at a CAGR(1) of 5% from 2023 to
95
90 25 2028. In 2023, they amounted to US$85 billion.
85 25
81 24
78 24 In the Security Services segment, the United States and the United Kingdom
71 23
69 23 accounted for the highest revenues in 2023, with US$38billion and US$6 billion
63 22
21 respectively.
54 56 19 20
17
13 14
79 83
71 75
63 67
57 59
46 49 51
41 42

2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028

Professional Services Managed Services

52 Notes: (1) CAGR: Compound Annual Growth Rate / average growth rate per year from 2023 to 2028

Sources: Statista Technology Market Outlook 2023

 In a global comparison, the U.S. Security Services segment accounted for a
revenue of US$38 billion in 2023
Worldwide comparison

Security Services revenue comparison in billion US$ in 2023 Revenue shares in 2023

Australia & Oceania Africa

United States 38.0
3%
United Kingdom 5.8 1%
Asia
Japan 5.0 20%
Americas
China 4.5

Germany 3.4

France 2.7 51%

Australia 2.2

Russia 2.0
Europe 25%
Canada 2.0

South Korea 1.7

53

Sources: Statista Technology Market Outlook 2023

SEGMENTS

Cyber Solutions
 Cyber Solutions includes a wide range of technologies designed to combat the
risk of cyber attacks
Overview: market definition

Definition of the Cyber Solutions market In scope

Cybersecurity solutions are automated technologies that help monitor, detect, The Cyber Solutions market includes:
report, counter, and secure organizations against the risk of cyberattacks, which
• Application security
can cause phishing, information extortion, data breaches, etc. These solutions
include application security, cloud security, data security, and network security. • Cloud security

• Data security

• Network security

• Consumer and enterprise spend

Out of scope

The Cyber Solutions market excludes:

• Professional solution services

• Free-of-charge security products

55

Sources: Statista Technology Market Outlook 2023

 In 2023, worldwide Cyber Solutions sales generated a total of US$77 billion in
revenues and is expected to grow at a CAGR of 14% until 2028
Overview: sales figures

Worldwide revenue in billion US$ Segment overview

The Cyber Solutions segment accounted for 47% of the Cybersecurity revenue in
2023.
+14%(1) 131
6 149 Cyber Solutions sales are estimated to increase at a CAGR(1) of 14% from 2023 to
10 8 2028. In 2023, they amounted to US$77 billion.
11
115 11 In the Cyber Solutions segment, the United States and China accounted for the
4
100 10
3 highest revenues in 2023, with US$31billion and US$10 billion respectively.
88 9 9 39
2
77 2 8 8 35
67 7 7 31
60 1 6 6 28
0 51 1 5 25
47 1 5 5 22
0 40 0 4 4
0 19
30 2 34 3
4
15
4 18 71 80
3 12 14 4 62
2 10 3 47 54
3 33 36 41
21 25 27
15 9 18
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028

Other Solutions Application Security Cloud Security

Network Security Data Security

56 Notes: (1) CAGR: Compound Annual Growth Rate / average growth rate per year from 2023 to 2028

Sources: Statista Technology Market Outlook 2023

 In a global comparison, the U.S. Cyber Solutions segment accounted for a
revenue of US$31 billion in 2023
Worldwide comparison

Cyber Solutions revenue comparison billion US$ in 2023 Revenue shares in 2023

Australia & Oceania Africa

United States 30.7
3%
China 9.8 1%

United Kingdom 4.0 Europe

Americas
23%
Japan 3.8

Germany 2.8
46%
France 2.1

Canada 1.6

Russia 1.5

Australia 1.5
Asia 27%
South Korea 1.3

57

Sources: Statista Technology Market Outlook 2023

 APPENDIX

Product overview & author

58
 TECHNOLOGY MARKET OUTLOOK

Insights into the world's most

important technology markets
The Technology Market Outlook is an intuitive tool with valid and
comparable information about different technology markets that
can be processed immediately.

• 150+ countries and territories as well as 37 regions

• 55+ of the most relevant technology markets
• The most important KPIs
• Market developments and forecasts up to 2028

Find out more at:

Go to Outlook statista.com/outlook/technology-outlook

59
 GLOBAL CONSUMER SURVEY 2022

Understand what drives

consumers
The Statista Global Consumer Survey offers a global perspective on
consumption and media usage, covering the offline and online
worlds of the consumer. Our survey is designed to help marketers,
planners, and product managers understand consumer behavior
and consumer interactions with brands.

• Cross-tabulation
• Customized target groups
+
• Trend and country comparisons
• Export in Excel (CSV) or PowerPoint format

Find out more at:

statista.com/global-consumer-survey 1,500,000+ 56 3.4bn+ 11,500+ 50+
interviews countries & represented international topics &
territories consumers brands industries

60
 COMPANY DB

Gain insights into over

15 million companies
The Company Database provides information on more than 15
million listed and privately held companies and contains the most
important company key figures as well as in-depth analyses.
Additionally, we offer a wide range of extra KPIs for listed
companies.

• Company information and key company metrics for 15+

million companies worldwide
• Tailored rankings in 200+ countries and territories as well
as 80+ industries
• In-depth information for 40,000+ stock-listed companies

Find out more at:

statista.com/companydb/about

61
 Author

Phuong-Ha Nguyen
Analyst

support@statista.com

Phuong-Ha Nguyen received her Bachelor’s degree in Business Administration at

Saxion University of Applied Science in The Netherlands and holds a Master’s in
Science with a focus on Operation Research and Business Analysis from the Otto
von Guericke University Magdeburg in Germany. She worked as a business analyst
at an F&B company before joining Statista. Now, she works for the Statista Market
Outlook team and is responsible for the IT Services market and Cybersecurity
market.

62
www.statista.com