The Cybersecurity Market
The cybersecurity market is predicted to expand at a Compound Annual Growth Rate of 10.6% from 2016 to 2021 [1], or from $122.45B to $202.36B over the next 5 years.
As technology experts try to keep pace with the frequency and complexity of worldwide cyber threats, corporations are pushed to increase cybersecurity budgets [2] while end-users express growing fears over online data-protection.
While new government regulations [3] are constantly put into place to promote better safeguarding practices, we believe Cyberfort Software can position itself as a leader in the field.
We will tap into this growing market, helping companies and end-users increase cybersecurity while focusing on practices such as Content Filtering and Ad Blocking.
- Cybersecurity market expanding at a Compound Annual Growth Rate of 10.6% from 2016 to 2021 [1].
- According to the Global Web Index, 60% of internet consumers are now concerned about their online security and privacy [4].
- Growing concerns over data protection saw companies such as JP Morgan spend $500M on cybersecurity in 2016 [5], twice the amount of the previous year.
- The web content filtering market is expected to cross US$ 3.8 Bn by 2022 [7], expanding at a CAGR of 13.9% from 2015 to 2022.
- In 2016, cybercrimes were estimated to cost between $2 to $3 trillion [8].
Content Filtering
Content filtering is achieved via software designed to control access to online information. It prevents malicious digital activities such as spam, malware, ransomware, breach of data and data theft.
As companies and individuals increasingly rely on information exchanged via interconnected devices (smartphones, tablets, desktops or laptops), protecting data becomes an imperative. Malicious digital activities, such as the CryptoWall ransomware which cost users $325M in 2015 [6], are getting harder to filter and prevent.
Favorable government regulations for tightened web security, a desire to better manage network bandwidth consumption and financial incentives to defy cyber threats are all factors contributing to an upward momentum in the content filtering market.
Ad Blocking
As of March 2016, an estimated 408 million people were actively using mobile ad blocking browsers [9] and 22% of the world’s 1.9bn smartphone users were blocking ads on the mobile web. This showed a tremendous global 90% growth from Jan 2015 to Jan 2016, one that is predicted to continue for the years to come.
However, it should be noted that the ad-blocking growth is mostly driven by desktop users. 93% of mobile ad-blocking is enabled via browser extensions (40% for Firefox, 53% for Chrome). We believe this is the perfect opportunity to position ourselves in this growing, yet unexploited market by delivering powerful multi-platform mobile ad-blocking software.
In 2015, ad-blocking is estimated to have cost $21.8 in loss of revenue to advertisers. While the increase in ad-blocking software mirrors that of online marketing budgets (expected to hit $77.4 billion – a 38.4% share of total ad spending in the US), it also reflects growing security concerns over the widespread use of advertising for malicious purposes [10], also known as malvertising.
- Malicious advertising on mobile apps has increased 260% on a prorated basis in the first half of 2015 (450,000) compared to all of 2014 (250,000).
- Ad blocking browser usage nearly doubled during 2015. While mobile browsing accounted for 38% of all web browsing, only 1.6% of mobile users enabled ad blocking.
- This forecast highlights room for growth in the mobile ad-bocking business. At present, 93% of mobile ad blocking comes from Internet browser extensions (Firefox or Chrome).
- At least 419 million people (22% of the world’s 1.9bn smartphone users) are blocking ads on the mobile web [11].
- Both mobile web and in-app ads can now be blocked.
- During 2015, the estimated loss of revenue due to blocked advertising was of $21.8.
References:
- 1. http://www.marketsandmarkets.com/PressReleases/cyber-security.asp
- 2. http://www.forbes.com/forbes/welcome/?toURL=http://www.forbes.com/sites/stevemorgan/2016/01/30/why-j-p-morgan-chase-co-is-spending-a-half-billion-dollars-on-cybersecurity/&refURL=&referrer=#1315e3eb2a7f
- 3. http://ec.europa.eu/justice/data-protection/
- 4. http://www.globalwebindex.net/blog/16-24-most-likely-to-block-ads
- 5. http://www.forbes.com/sites/stevemorgan/2016/01/30/why-j-p-morgan-chase-co-is-spending-a-half-billion-dollars-on-cybersecurity/#7b60fd382a7f
- 6. http://www.lavasoft.com/mylavasoft/company/blog/cryptowall-ransomware-cost-users-325-million-in-2015
- 7. http://www.credenceresearch.com/report/web-content-filtering-market
- 8. http://cybersecurityventures.com/cybersecurity-market-report/
- 9. https://pagefair.com/blog/2016/mobile-adblocking-report/
- 10. https://www.riskiq.com/press-release/260-percent-spike-in-malicious-advertisements-2015/
- 11. https://pagefair.com/blog/2016/mobile-adblocking-report/