Thanks to technological advancements, people, organizations, and businesses in India have connected and grown closer, creating economic progress. However, this growth comes with significant vulnerabilities which hackers and other cybercriminals can exploit.
Market analysis
India’s cybersecurity market is expected to grow from $1.97 billion in 2019 to $3.05 billion in 2022 at 15.6% CAGR (compound annual growth rate), which is close to one and half times the global growth rate. While many factors can contribute to this growth rate, factors like digital growth, which calls for security investments, growing attacks on cybersecurity systems, and regulatory norms that drive security market needs can significantly drive the market demand for Indian cybersecurity.
Cybersecurity products
Cybersecurity products are expected to grow at a higher rate than services because organizations seek to invest more in specialized technology-powered products. India’s cybersecurity products market growth is expected to impact endpoint security and data protection. Impact on the endpoint segment is expected to increase due to the booming popularity of IoT, bring your own device (BYOD), and connected devices technologies.
The network security products market is expected to rise from $257 million in 2019 to $394 million in 2022 at a 15.3% CAGR. This is because more companies are expected to adopt digital technologies.
Cybersecurity services
In the Indian cybersecurity services market, security testing and incident response services are the core services expected to fuel demand. The security implementation services market, consulting services, and testing services market are expected to experience immense growth by 2022.
The Indian gambling market
The Indian gambling market accounts for more than 15% of the globe’s online gambling traffic. The Indian gambling market is expected to be valued at $3.91 billion in four years. A large portion of this wealth is traced back to a few Indian games such as Andar Bahar. This growth is associated with digital infrastructure growth, high adoption rates of smartphones, a young population, and improved adoption of digital payment methods.
With gambling expected to go mobile, players are also likely to adopt online payment methods. However, online gambling is a victim of cyber fraud, calling for more stringent data protection measures by casinos and players.
Sectoral analysis
India’s cybersecurity market will be defined by information technology and information technology-enabled services (ITeS), banking and financial service industry (BFSI), and government.
The BFSI sector
The BFSI’s sector cybersecurity attacks are no longer about cybercrime but crippling the economy. With the most significant cybersecurity expenditure of 26%, the BFSI’s expenditure is expected to rise to $810 million from $518 million by 2022, with a 16.1% CAGR.
The IT and ITeS sector
Cybersecurity attacks highly target service organizations holding valuable client data. The IT and ITes sector is expected to grow from $434 million in 2019 to $713 million by 2022, with an 18% CAGR.
Government sector
A significant amount of security spending in the government sector will mainly involve defensive measures investments. The government sector’s cybersecurity market demand is expected to grow to $581 million by 2022, with a 13.8% CAGR.
Additionally, cybersecurity spending in the automotive, healthcare, and energy sectors is expected to reach $949 million from $630 million by 2022, with a 14.6%CAGR.