The cyber security market in India is expected to rise from $1.97 billion in 2019 to $3.05 billion by 2022, a CAGR of 15.6 percent, almost 1.5 times the global rate, says a joint report by PwC and Data Security Council of India (DSCI).
The report coincides with the announcement of the data protection bill by the Government of India.
The three main factors driving India’s cybersecurity market are digital growth, rising cyber-attacks, and stringent regulatory mandates, according to the report.
With digital payments gaining popularity across mobile users, digital payments transaction value is estimated to grow at 20.2 percent (CAGR) from about $64.8 billion in 2019 to $135.2 billion in 2023.
The report reveals that more than 12.3 billion mobile applications were downloaded in India in 2018, and until November 2019, 47.5 billion annual national e-transactions have been recorded.
Social network user numbers in India expected to grow from 326 million in 2018 to 422 million in 2022 (second only to China)
The study also reveals that India’s cybersecurity market will be defined by three key sectors – banking and financial services industry (BFSI), information technology (IT) and information technology-enabled services (ITeS), and government. Altogether, these sectors will account for 68 percent of the cyber market share.
The Indian Computer Emergency Response Team (CERT-In) reported a rise in cyber-attacks from 53,081 in 2017 to 208,456 in 2018 – a 292 percent jump. More than 61 percent of the incidents were due to network scanning, probing, and vulnerable services, the report said.
A survey conducted against this drop reveals that cyber attacks will increase in their sector by 2022 (91 percent). Securing the cloud will be a top priority for 57 percent of the respondents by 2022. However, 76 percent believe they lack adequate budgets to resist cyber threats and need higher cybersecurity investments.
Regulatory norms are also driving security market needs. RBI’s controls for Cloud, multi-factor authentication (MFA) for secure card payments (card-not-present transactions) and SEBI’s cyber resilience framework directives are some of the measures adopted by the government to ensure cyber security. .
In the wake of these developments, cyber security products market in India is estimated to grow at 16.9 percent CAGR in three years, reaching $1.64 billion by 2022, while the cybersecurity services market will reach $1.41 billion, growing 14.2 percent (CAGR) during this time.
In products, data protection and endpoint security tools will grow 22.2 percent and 19.1 percent (CAGR), respectively over three years vis-à-vis the 16.9 percent overall category growth rate. Compliance needs, risk of reputation loss in case of data breaches, loss of competitive advantage due to data loss and soaring data volumes are some key factors driving investments in data security and privacy, PwC said.
The IT/ITeS sector is likely to witness growth in security spends from $434 million in 2019 to $713 million by 2022 at a CAGR of 18 percent. Meanwhile, the market for cybersecurity demand from the government sector is expected to reach $581 million by 2022, at 13.8 percent CAGR.