The news: Network security sales are expected to exceed $150 billion by 2026, with software-as-a-service (SaaS) revenue surpassing $60 billion, per Dell’Oro Group’s Market Research Report on Network Security. In 2021, the global network security market size was valued at $60.3 billion, per Canalys.
More on this: Cloud security is headed for major growth as the increase in enterprise network applications and continued hybrid work increase the need to scale various network security services.
- Enterprises and small and midsize businesses (SMBs) will be investing heavily on email security, firewall, security service edge (SSE), secure web gateway (SWG), and web application firewall (WAF) technologies.
- This is a direct result of continued remote and hybrid work and its reliance on cloud network infrastructure, as well as the proliferation of ransomware attacks.
The overall cybersecurity market is expected to grow $100 billion in the next four years.
Rising tide of cyber threats: One in 40 organizations is targeted by a ransomware attack weekly, with government, military, education, research, and healthcare industries the most targeted, per Check Point Research (CPR), a 32% YoY increase.
- Government and military sectors saw a 135% rise in ransomware attacks between late 2021 and Q2 2022. Businesses, which might not report ransomware incidents, are likely affected at a similar rate.
- As a result, more than 25% of organizations expect double-digit growth in cybersecurity budgets in 2022, per PwC’s 2022 Global Digital Trust Insights report.
What’s next? The Dell’Oro Group’s report is “geared toward providing an ‘action plan’ for small and mid-sized businesses (SMBs) to address ransomware threats. SMBs are a popular target for ransomware attacks because of their ‘relative lack of resources.’”
- Businesses with fewer than 500 employees are most at-risk and were hit by 70% of ransomware attacks in 2021, per the Ransomware Task Force.
- Accenture's Cost of Cybercrime Study, showed that while 43% of cyberattacks target small businesses, only 14% are prepared to defend themselves.
- These businesses are also the most likely to cut down on network security expenses in the short term as they face economic uncertainty.
- The threat is not diminished as hackers attempt millions of cyberattacks daily.
The key takeaway: As cloud infrastructure technology and adoption increase, so will the vulnerabilities.
- Various studies and reports are revealing a surge in cybersecurity threats and ransomware attacks as businesses pivot to the cloud. These are expected to intensify even as spending rises to meet the threats.
- Economic uncertainty will result in short-term risks, especially for smaller businesses that don’t shore up their network security.
Dive deeper: Read more about how businesses and brands are developing security strategies in The Cyber Security Risk report.