Research Note: The Global Cybersecurity Market
The global cybersecurity market, currently valued at approximately $191.65 billion in 2024, demonstrates robust growth across all major segments, with IoT security (33.53% CAGR), mobile security (20.50% CAGR), and data security (18.78% CAGR) emerging as the fastest-growing sectors through 2029. Market consolidation continues as larger vendors seek to build comprehensive security platforms, with significant M&A activity expected in cloud security and identity management spaces where point solutions are being integrated into broader offerings. The shift to cloud-native security solutions is accelerating, evidenced by the cloud security market reaching $40.7 billion in 2024, representing the largest individual segment and indicating a fundamental transformation in how security services are delivered and consumed. Managed security services, projected to reach $52.9 billion by 2028, reflect organizations' growing preference for outsourced security operations, driven by talent shortages and increasing complexity, presenting a significant opportunity for service providers with strong recurring revenue models. The market's overall growth trajectory, supported by increasing cyber threats, regulatory requirements, and digital transformation initiatives, suggests sustained double-digit growth potential for well-positioned vendors who can effectively integrate AI capabilities, address cloud-native security requirements, and provide comprehensive security platforms that simplify customer operations.
Title: Security Markets
Network Security
The global network security market is projected to grow from $24.96 billion in 2024 to $40.75 billion by 2029, at a CAGR of 10.30%. The growth is being driven by increasing cyber threats, cloud adoption, and the need to secure expanding enterprise networks. Network security remains the largest segment of the cybersecurity market, encompassing firewalls, intrusion prevention systems, network access control and network segmentation technologies. Major vendors like Cisco, Palo Alto Networks, and Fortinet continue to dominate this space through innovation in areas like SD-WAN security and zero trust network access. The rise of hybrid work environments and IoT devices is creating new challenges and opportunities for network security vendors to secure increasingly complex enterprise networks.
Cloud Security
The cloud security market is expected to grow from $40.7 billion in 2023 to $62.9 billion by 2028, exhibiting a CAGR of 9.1%. Growth is being fueled by accelerating cloud adoption, multi-cloud environments, and the need to protect cloud-native applications and infrastructure. Key trends driving the market include the shift to cloud-native security platforms, integrated DevSecOps practices, and enhanced data protection capabilities. Major cloud providers like AWS, Microsoft, and Google are expanding their native security offerings while security vendors focus on multi-cloud protection. The increasing sophistication of cloud-based threats and compliance requirements continue to drive organizations to invest in comprehensive cloud security solutions.
Identity and Access Management
The global identity and access management market is projected to grow from $19.80 billion in 2024 to $61.74 billion by 2032, at a CAGR of 15.3%. The market expansion is driven by the growing need for robust authentication, authorization and identity governance across hybrid IT environments. Key growth factors include zero trust adoption, increasing compliance requirements, and the need to secure remote workforce access. The market is seeing innovation in areas like passwordless authentication, identity analytics, and cloud-native identity platforms. Leading vendors like Okta, Microsoft, and Ping Identity continue to expand their platforms while new entrants focus on specialized identity use cases.
Data Security
The data security market is expected to grow from $28.88 billion in 2024 to $68.29 billion by 2029, at a CAGR of 18.78%. Growth is being driven by increasing data privacy regulations, cloud data protection requirements, and the need to secure sensitive information across hybrid environments. Key trends include the adoption of data-centric security models, encryption everywhere, and integrated data governance capabilities. The market is seeing consolidation as vendors aim to provide comprehensive data protection across structured and unstructured data. Organizations are increasingly investing in data security platforms that combine discovery, classification, access controls and encryption.
Endpoint Security
The endpoint security market is projected to grow from $16.3 billion in 2023 to $26.30 billion by 2029, at a CAGR of 12.93%. The growth is driven by the proliferation of remote work, increasing endpoint attacks, and the need for advanced threat protection. Key trends include the integration of EDR/XDR capabilities, AI-powered protection, and cloud-native endpoint security platforms. The market leaders Microsoft, CrowdStrike, and SentinelOne continue to innovate while traditional antivirus vendors adapt to new requirements. The rise of sophisticated endpoint attacks and ransomware is pushing organizations to adopt modern endpoint security platforms with advanced detection and response capabilities.
Application Security
The application security market is forecasted to grow from $11.62 billion in 2024 to $25.92 billion by 2029, at a CAGR of 17.39%. The rapid growth is driven by increasing application vulnerabilities, cloud-native development, and the need to secure modern application architectures. Key trends include the shift left movement in security, integrated DevSecOps tools, and automated security testing capabilities. The market is seeing innovation in areas like API security, container security, and serverless application protection. Organizations are increasingly adopting comprehensive application security platforms that cover the entire application lifecycle from development to production.
Email Security
The email security market is projected to grow from $3.82 billion in 2024 to $7.40 billion by 2029, at a CAGR of 14.16%. Growth is primarily driven by increasing email-based threats, phishing attacks, and business email compromise incidents. The market is seeing innovation in areas like AI-powered threat detection, integrated cloud email security, and advanced anti-phishing capabilities. Major vendors are expanding their platforms to provide comprehensive protection against sophisticated email threats while integrating with broader security ecosystems. Organizations continue to prioritize email security investments as email remains the primary attack vector for cyber threats.
Mobile Security
The mobile security market valued at $8.37 billion in 2023 is expected to grow at a CAGR of 20.5% through 2030, driven by the increasing adoption of mobile devices in enterprises and rising mobile threats. Key trends include the integration of mobile threat defense with UEM platforms, zero trust access for mobile devices, and protection for mobile applications and data. The market is seeing innovation in areas like mobile phishing protection, app vetting, and mobile risk analytics. Organizations are increasingly adopting comprehensive mobile security platforms to protect both corporate-owned and BYOD devices while ensuring compliance with security policies.
IoT Security
The IoT security market is projected to grow from $6.60 billion in 2024 to $28.01 billion by 2029, at a remarkable CAGR of 33.53%. This explosive growth is driven by the rapid proliferation of IoT devices across industries and the need to secure increasingly connected environments. Key trends include integrated device security, network segmentation for IoT, and automated threat detection for IoT environments. The market is seeing innovation from both traditional security vendors and IoT platform providers focusing on securing industrial IoT deployments. Organizations are prioritizing IoT security investments as they recognize the significant risks posed by unsecured IoT devices.
Managed Security
The managed security services market is expected to grow from $30.6 billion in 2023 to $52.9 billion by 2028, at a CAGR of 11.5%. Growth is driven by the increasing complexity of security operations, skill shortages, and the need for 24/7 threat monitoring and response. Key trends include integrated XDR services, cloud security services, and automated security operations capabilities. The market is seeing consolidation as providers aim to offer comprehensive security services while expanding their global delivery capabilities. Organizations are increasingly turning to managed security services to augment their internal security teams and improve their security posture.