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How Cyber security is shaping the new world
As companies accelerate the move of their operations, applications and digital services into the cloud, security challenges have intensified. Tools that were once effective at diagnosing and monitoring the performance of IT infrastructure are now falling short, requiring a more modern approach.
To mitigate new threats, two previously distinct markets, Security Analytics and Observability, are poised to converge into a combined discipline, enabling more effective threat prevention, detection and response.
This trend towards convergence and next-generation cyber analytics could result in significant M&A activity and market share shifts. This means key beneficiary in both the Security and Observability ecosystems could be poised to grow at least twice the rate of the current market.
Together, Security Analytics and Observability represent a large addressable market forecast to grow from about $18 billion today to $28 billion by 2024—an 11% compound annual growth rate.
Investments continue to pour into cyber security. Sixty-nine percent of organisations predict a rise in cyber spending in 2022 compared to 55% last year. More than a quarter (26%) predict cyber spending hikes of 10% or more; only 8% percent said that last year.
Organisations know that risks are increasing. More than 50% expect a surge in reportable incidents next year above 2021 levels.
Already, 2021 is shaping up to be one of the worst on record for cyber security. Ever more sophisticated attackers are plumbing the dark corners of our systems and networks, seeking – and finding — vulnerabilities. Whatever the nature of an organisation’s digital Achilles’ heel – an unprotected server containing 50 million records, for example, or a flaw in the code controlling access to crypto wallets — attackers will use every means at their disposal, traditional as well as ultra-sophisticated, to exploit it.
The consequences for an attack rise as our systems’ inter-dependencies grow more and more complex. Critical infrastructures are especially vulnerable. And yet, many of the breaches we’re seeing are still preventable with sound cyber practices and strong controls.
Going forward, the hyper connected smart society will likely face increased cyber risks on multiple global fronts via numerous evolving threat vectors. Clearly, the technological advances powering business, communications and entertainment bring with them new perils.
As the Industrial Internet of Things (IIoT) continues to expand, millions, if not billions, of cloud-based sensors, machines, and other connected devices may potentially become vulnerable entry points for cyber attackers. The urgency from a cyber-perspective is that, in the rush to innovate, the software used in these hyper connected systems often doesn’t include the appropriate risk management controls.
Clearly, IIoT is creating a new set of attack surfaces. Although manufacturers’ priorities are changing, to this point, the architectural design of sensors in connection with, for example, air quality, traffic, waste management and the overall energy grid, may not have fully addressed security. There can be major operational constraints on individual devices regarding power and weight limitations that can get in the way of embedding controls, but infrastructure security simply cannot be an afterthought.
Today society lives and does business in a digital world of data, devices and dependency. Trust is placed — knowingly or unknowingly — in technology in a way that would be unthinkable a decade ago, which raises questions of security, safety, privacy and even ethics. Security professionals should navigate this new reality, helping business leaders understand the implications of placing trust in technology and its resilience, while simultaneously anticipating how that technology might be exploited by others. This can bring a different and valuable perspective, but there is also a duty to offer advice that is pragmatic and practical. (David Ferbrache) Global Head of Cyber Futures KPMG International
The prospective connectivity capabilities made possible by emerging applications sitting on 5G networks is exciting. But these software-based connected ecosystems should prioritize not only technical innovation, but also the security of the devices that can facilitate these connections. A 5G network is fundamentally different from 4G in terms of speed, bandwidth, latency and overall sophistication. Of course, 5G is going to enable massive connectivity advances, but it also brings a different set of security challenges and requires highly sophisticated security architecture, monitoring and controls. Some of those concerns play into the geopolitical supply chain tensions that exist today regarding the sourcing of key technology components and infrastructure.
Clearly, securing learning AI applications is a very different challenge to securing conventional systems. There are so many questions: Is the software operating within its trained parameters? How much unconscious bias is present? Is the application being manipulated by a bad actor or adversarial AI in an effort to compromise sensitive information? Looking ahead, cyber professionals may also have to think about the integrity, predictability and acceptability of the AI application within the context of the operating environment for which it’s been trained and designed.
Global Market Insights
Cyber security Market size is set to surpass USD 400 billion by 2027, according to a new research report by Global Market Insights Inc.
The market revenue growth is attributed to the rapidly increasing demand for network security solutions to secure IoT-enabled devices. The increasing penetration of endpoint devices and rising trend of Bring-Your-Own-Device (BYOD) in business enterprises have profoundly surged the need for cyber security solutions across the globe.
Growing demand of cyber security solutions across organizations to minimize security risk
The cyber security market has witnessed growing demand for hybrid cloud security solutions for protecting multi-cloud environments and business transactions. Cyber security solutions provide enhanced security to digital business operations and protect the infrastructure from advanced cyber threats. Enterprises are investing hefty resources for advanced security solutions. The demand for advanced threat detection systems across enterprises will fuel the market expansion.
Growing cyberattacks on government institutions to propel the growth of managed cybersecurity services
The adoption of cyber security solutions across government organizations is anticipated to register 15% CAGR from 2021 to 2027. Increasing cyber attacks on public sector enterprises are resulting in large amount of monetary loss. To prevent these incidents and develop a robust infrastructure, the demand for network security solutions across the government sector has increased drastically, positively impacting the overall cyber security market. Government institutions are collaborating with security service providers in the regional markets to deploy security devices across their infrastructure for efficient network functioning.
My conclusions and considerations
- Well, is clear how cyber security is changing our lifestyle in the digital era, and in this article we have seen how is growing over the years and how could impact inside the firm’s expenditures, but more interesting in my view how could impact the government’s expenditures.
- I think that nowadays and more in the future no one could avoid to sustain costs for cyber security. Shortly, I personally see valuable strengths.
- Today society lives and does business in a digital world of data, devices and dependency.
- Cyber security Market size is set to surpass USD 400 billion by 2027, according to a new research report by Global Market Insights Inc.
Join the conversation with your own take on these topics in the comments below.
About the Author
Alessandro is a Financial Markets enthusiastic and he loves learning from articles/papers on many financial topics and in doing so he shares with you the most interesting charts and comments.
This material is not intended as an offer or solicitation for the purchase or sale of any financial instrument. This material has been prepared for informational purposes only. Any forecasts contained herein are for illustrative purposes only and are not to be relied upon as advice or interpreted as a recommendation.