India is one of the most vulnerable nations in the world when it comes to cyber attacks. This unfortunate situation makes the cyber security market a growing market with opportunities for security product and service companies.
Over the last few years with the advancement of technology, the growth of cyber-attacks has escalated multiple folds. Be it the attack on Sony Pictures, Target Corporation or eBay, both companies and customers were at the receiving end. While the customers lost their personal information to the outer world, the companies had to compromise on their reputation.
Cyber crime in India
This scene is no different in the Indian context. You could rightly argue that cyber-crime in India is far higher than the global average. A research conducted by University of Maryland points out, India along with China, Russia, Saudi Arabia and South Korea is among the most vulnerable to cyber-attacks.
This could easily be validated from the fact that several Indian companies and the Government entities were under the constant threat of cyber miscreants with financial motives. The website of Indira Gandhi International Airport, New Delhi, was hacked and resulted in check-in counters being non-operational for several hours. In addition to this, websites of ONGC Corporation, BSNL and TRAI were also attacked a few years back.
A growing market
Currently, standing at USD 717.18 million, the cyber security market in India is expected to value at USD 1333.65 million by the end of 2020. Managed Security Services (MSS) would expect CAGR 18 % + till 2020 while Network and End-point Security would hover around CAGR 11%. This offers enough scope of growth for Security product and service companies to better align their revenue streams.
The overall Indian cyber security space is being dominated by the foreign players, the Indian companies partner as System Integrators (SIs), Managed Security Service Providers or Distributors.
From the demand perspective, certainly the awareness has been high, especially among CISOs. According to Ernst & Young’s “Global Information Security Survey 2018-2019”, 70% of Indian organisations plan to increase their cybersecurity budgets. Security Analytics and Identity & Access Management (IAM) is currently the most popular cloud based tool. Customers tend to understand that continuous monitoring and assessment of threats is of large importance, thereby pushing for the need of MSS.
State initiatives and incentives
The cyber security community in India remains highly optimistic and expects high growth. Start-ups along with the enterprise companies have started to make a mark in the security space boosted by the Government’s “Start-up India” initiative. The Government has been trying hard to improve on the “Ease of Doing Business” in the country through constructive reforms. This as a whole would certainly improve on positioning India as Cyber Security Destination.
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Senior Market Advisor
Innovation Norway, India