The India cyber security market is forecasted to grow to $4.8 billion by 2027, with a compound annual growth rate (CAGR) of 14.9 percent during the forecast period, according to IDC’s India Security Spending Forecast Update, 2023-2027.
This marks a notable shift, as the cyber security products segment is now expected to outpace the services segment in terms of CAGR for the first time.
India has consistently been a high-growth market for cybersecurity, with hardware spending historically on the rise. The services segment, especially managed services, has seen exponential growth. The software spending growth rate is also increasing, signaling a transformative development in the market. Significant investments in AI-based solutions and proactive security measures are driving this trend, especially in response to escalating AI-based threat vectors.
As businesses in India navigate digital transformation, adopt innovative technologies, and face a changing workforce model, they are also dealing with an increasingly complex threat landscape. Ransomware incidents are on the rise, and threats are projected to become more sophisticated in 2024. However, with a greater emphasis on cyber-resilience, proactive detection, and cyber-recovery, the success rate of ransomware attacks is expected to decline as more organizations opt to invest in data recovery rather than paying ransoms.
The security services market in India is anticipated to grow significantly, with a CAGR of 12.8 percent. Managed security services, the largest segment, will grow at a CAGR of 12 percent, followed by project-oriented and support services.
The security software market is projected to experience a robust CAGR of 18.5 percent from 2022 to 2027, driven by segments such as data security software, endpoint security software, governance, risk management, compliance (GRC) and forensics, identity and access management (IAM) software, network security software, and security analytics software.
Among these, the IAM software segment is expected to witness the highest growth. Network security software and security analytics software are also projected to grow at significantly higher CAGRs, indicating a shift towards greater adoption of AI investments.
India’s regulatory landscape, including the Digital Personal Data Protection (DPDP) Act and forthcoming AI regulations, presents both challenges and opportunities for businesses to establish robust data governance practices.
According to Sakshi Grover, Senior Research Manager at IDC Asia Pacific, staying ahead involves adopting the latest security innovations such as Attack Surface Management (ASM), AI in Security Operations (SecOps), Managed Extended Detection and Response (MxDR), Secure Access Service Edge (SASE), and Zero Trust Network Access (ZTNA). Implementing these advanced solutions can enhance cyber-resilience through comprehensive threat detection, proactive threat hunting, continuous monitoring, and strong cyber-recovery mechanisms.
Sakshi Grover emphasizes the importance of thorough budget planning for security investments, which should extend beyond traditional IT security to include Operational Technology (OT) and Internet of Things (IoT) environments. Addressing hidden vulnerabilities and shadow IT is crucial for comprehensive security, and investing in advanced threat detection and response solutions, including GenAI, can provide robust protection against sophisticated cyber threats.
InfotechLead.com News Desk
