A MarketsandMarkets study reports that the cybersecurity market will reach a value of $170.2 billion by 2020 due to the continued evolution of cyber threats and the corresponding increase in strictness of government cyber regulations.
The company said Wednesday the market will grow from $106.3 billion in 2015 at a five-year compound annual growth rate of 9.8 percent, with North America having the largest market share.
The report also pointed to the widespread use of cloud, mobile, digitization and bring-your-own-device practices as well as the emergence of the Internet of Things as factors that drive demand for cybersecurity solutions and services.
According to the report, the cybersecurity market will see growth in demand for managed security services, which will have a 40-percent share of the market this year.
While organizations seek to combat threats through integrated cybersecurity solutions, MarketsandMarkets said governments respond with stricter laws and compliance requirements.
The company indicated that the shortage of cybersecurity professionals is a current market challenge.
MarketsandMarkets named the following key vendors in the cybersecurity market:
- Booz Allen Hamilton
- Lockheed Martin
- Northrop Grumman
- Trend Micro