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Cybersecurity is among the top priorities of many organizations, and rightfully so. Every year, global cybersecurity spending increases at an average rate of 15%.
The annual spending is predicted to reach almost $460 billion by the year 2025. This takes the cumulative spending to a shocking $1.5 trillion in the same year.
Global Cybersecurity Spending by Region and Countries
In the last couple of years, the world has seen a significant increase in cybersecurity spending. Looking back four years ago, annual global cybersecurity spending increased by 7.3% in 2018, reaching $106 billion globally.
The growth was primarily driven by increased spending in North America and the Asia-Pacific regions. Large enterprises in these regions were ready to spend money on cybersecurity, and they are reaping the fruits now.
North America accounted for 36% of the total spending in 2018, a rise of 9.5% from 2017, while the Asia Pacific accounted for 33%, a rise of 6.2%. Spending in Europe fell to 28%, down from 34%.
The US, Japan, and China are the top three countries that invested the most into cybersecurity, with total spending of $34 billion, $21 billion, and $20 billion, respectively.
Fast forward to 2021, annual cybersecurity spending has increased significantly. An estimated $262.4 billion were spent on cybersecurity in 2021. Here’s a list of countries with top cybersecurity budgets in that year.
- USA: The President of the United States, Joe Biden, has assigned $2.1 billion to CISA (Cybersecurity Infrastructure and Security Agency), which is $110 million more than what was authorized in 2021.
- Canada: The government of Canada has allotted $80 million to a brand-new federal cybersecurity network.
- France: The French government has allotted €1 billion, which is around $1.2 billion, to improve cybersecurity in France after recent hospital breaches that took place in 2021. €350 million ($400 million) are kept separate for hospitals.
- United Kingdom: The government of the UK has invested 1.5 billion pounds to create the National Cyber Force that will help them fight cyber attackers on a bigger scale.
An Overview of the Global Cybersecurity Market
The cybersecurity market operates based on the need to keep data safe from attackers. In 2021, the global cybersecurity market had a value of $150.37 billion. This booming market is expected to reach $202 billion by 2025 with a CAGR of 12.4%. These numbers should not be confused with global cybersecurity spending, as they are for the overall cybersecurity market.
A major key factor responsible for the global cybersecurity market growth is the increase in the number of cyberattacks over the past couple of years. For example, ransomware attacks resulted in local governments declaring emergencies due to major leaks consisting of valuable information.
One of the many reasons for the increase in cyberattacks is due to a shortage of professional cybersecurity personnel in various industries. This includes Europe, Latin America, Asia-Pacific, and the Middle East, where government organizations, financial institutes, and industrial businesses have low numbers of security professionals.
Also, the COVID-19 pandemic forced countries all across the world to implement several preventative measures. This resulted in people working from home. Hence, the use of video communication platforms also drastically increased, and so did the number of cyberattacks.
What Are The Top Cybersecurity Trends of the Future?
Businesses, regardless of their size, are going through a digital revolution. This also includes governments that heavily depend upon computerized systems to get things done. As technology gets more advanced, so do cyber attacks such as hacking, data breaching, and ransomware.
Therefore, it is important to know future cybersecurity trends in order to prepare your business for what’s coming. Trends tend to change as time goes on, hence it is always best to stay updated. Here are some of these major trends.
1. The Rise of Artificial Intelligence
AI technology, along with machine learning, is already making changes in cybersecurity. The main factor that contributes to creating automated security systems, face detection, automatic threat detection, and natural language processing has been the use of AI.
On the other hand, cyber attackers have used AI technology to create smart malware and other attacks that can pass through the newest security protocols. However, threat detection systems that use AI can predict attacks and alert the admin before any damage is done.
2. The Vulnerability of the Cloud System
Most organizations are using the cloud system to store crucial data. Therefore, a system like this needs regular monitoring to avoid leaks. Some of the popular cloud applications, like Microsoft or Google, offer a high level of security. However, mistakes can still happen, hence organizations need to take additional security measures to protect their valuable information.
3. Data Breaches
All around the world, organizations want their data to stay protected at all costs. Safeguarding one’s digital data is everyone’s main goal, whether it is an organization or an individual. Hackers can easily access personal information, even with a small bug in the system browser.
The GDPR (General Data Protection Regulation) was enforced in 2018 all across the European Union. It offers privacy and data protection for all individuals. Similarly, the CCPA (California Consumer Privacy Act) was enforced towards the start of 2020 and it protects consumer rights within California.
While we’re at it, it’s essential to note that human error is responsible for almost 95% of cybersecurity breaches. Therefore, it’s crucial for businesses of all sizes to develop cyber hygiene awareness among employees.
4. Risks of IoT with 5G Network
As technology moves into new avenues, 5G will soon replace its previous versions. IoT (Internet of Things) will offer more interconnectivity among different devices. However, this also increases the risk of outside attacks and unknown software bugs.
The architecture of 5G is still new, hence more research needs to be done to strengthen the system from outside attacks. This new technology could bring with it numerous network attacks that organizations might not be aware of. That is why manufacturers should be vigilant when creating 5G hardware and software.
5. The Danger of Ransomware
Targeted ransomware is another crucial cybersecurity trend that has been on the rise. The industries of developed nations greatly depend upon specific software for their daily tasks. Ransomware targets tend to be more focused.
Generally, ransomware threatens to publish private data or corrupt devices until a certain amount of ransom gets paid. This can heavily affect large organizations and even dismantle nations.
The Future Of Cybersecurity
The global cybersecurity landscape will continue to evolve. With the introduction of new technologies and the increase in internet usage, it has become more important than ever to take security measures to protect your businesses.
The number of cyber attacks is rising, with over 1 billion people being exposed to malware yearly. The most vulnerable countries are those with less developed economies, which lack resources and have a higher percentage of their population online.
Moreover, small businesses are at a higher risk of cyber attacks since they cannot invest large sums in cybersecurity. Hence, this is another challenge that needs to be taken care of when it comes to the safety of different-sized organizations.
Cybersecurity has a promising future as more money is being invested in its research and development. However, challenges will still be there as new threats come into play.
The cybersecurity market is experiencing ongoing growth due to the emergence of new data risks. Every organization needs to pay special attention to their cybersecurity, hence investing more money in how they can protect their business.
Cybersecurity has become a crucial part of strategic planning within organizations and is not just an issue for the IT department to take care of. It’s expected to see more growth as time goes on and it is not slowing down anytime soon.
About the author
Dr. Alexander Sterling, Esq, a distinguished legal scholar with a business law degree and a Doctor of Juridical Science, is a leading expert in business registration and diverse business departments. Renowned for his academic excellence and practical insights, Dr. Sterling guides businesses through legal complexities, offering invaluable expertise in compliance, corporate governance, and registration processes.
As an accomplished author, his forthcoming book is anticipated to be a comprehensive guide for navigating the dynamic intersection of law and business, providing clarity and practical wisdom for entrepreneurs and legal professionals alike. With a commitment to legal excellence, Dr. Alexander Sterling, Esq, is a trusted authority dedicated to empowering businesses within the ever-evolving legal landscape.