North America Cybersecurity Market Share to exceed USD 70 billion in 2019 and is expected to register a lucrative growth from 2020 to 2026 at a CAGR of over 7%.
North America Market, By Product Type
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Market growth is attributed to the increasing demand for cybersecurity solutions among enterprises. High internet penetration and wide-scale digitization of business operations have increased the risk of cyber-threats and data breaches, pressurizing organizations in the region to adopt cybersecurity solutions. These solutions enable enterprises in securing digital assets and significantly reducing the risk of financial losses by incorporating security measures such as network intrusion detection and virus containment.
The security services held a market share of over 60% in 2019.Growth can be attributed to the rising importance of security solutions for periodic maintenance and updates of cybersecurity systems. Security services ensure the proper functioning of corporate security networks by offering the latest anti-malware & anti-virus protection and ensuring zero-system downtimes.
The large enterprise segment is projected to account for the major share of over 55% in the North America market by 2026 due to the large-scale financial impact of cyber-attacks, increasing budget allocations for cybersecurity systems, and sustained increase in employee negligence in organizations. According to the 2018 report on malicious cyber activity published by the U.S. Council of Economic Advisers, the cost of a cyber-attack for a large U.S. enterprise (market cap greater than USD 15 billion) was more than USD 21 million per event. The increasing pressure to mitigate financial losses and maintain investor trust will further drive large enterprises toward the adoption of cybersecurity solutions.
The U.S. held over 90% of the total market share in 2019 due to the large-scale adoption of security solutions in the country, especially by the BFSI sector. Many leading banks in the U.S. such as the Bank of America, JP Morgan Chase, and Citi Bank have deployed cybersecurity systems in their organizations to ensure 24/7 protection against cyber-attacks and cut down the risk of financial abuse by hackers. The adoption of cybersecurity solutions in the U.S. has also fueled stringent government regulations on data security such as the establishment of Small Business Advanced Cybersecurity Enhancements Act of 2018 and the Federal Acquisition Supply Chain Security Act of 2018.
The North America market has witnessed several partnerships and collaborations by prominent players to fortify their market presence. For instance, in February 2020, Microsoft Corporation partnered with Firedome to jointly develop an advanced security solution for IoT devices. This helped the company to serve diverse customers in the market with connectivity security solutions.
Some of the leading companies operating in the market include BAE Systems, Check Point Software, Cisco Systems, Inc., CyberArk Software Ltd., F-Secure Corporation, F5networks, Inc., FireEye, Inc., Fortinet, Inc., Hewlett-Packard, Ltd., IBM Corporation, Intel Corporation, McAfee LLC, Microsoft Corporation, Oracle Corporation, Palo Alto Networks, Inc., Proofpoint, Inc. Rapid7, RSA Security, LLC., Sophos Group Plc, Splunk, Inc., Symantec Corporation, and Trend Micro, Inc.