Security Analytics Market, by Offering, Deployment Mode, Security Type (Network, Cloud, Endpoint), Platform, Organization Size, Application, End-use Industry (Healthcare, Logistics, Government, Retail), and Geography—Global Forecasts to 2029

The Security Analytics Market is expected to reach $43.9 billion by 2029, at a CAGR of 18.7% during the forecast period 2022–2029. The surge in incidences of cyber exploits, the proliferation of advanced technologies, including cloud computing, AI, and big data, the increasing complexity in the enterprise network, the increasing usage of endpoint IoT devices, and the rising need for real-time innovative security analytics platform are the major factors driving the growth of this market. In addition, the growing emphasis on cloud security analytics solutions among SMEs, the surge in telecomputing, and the integration of cutting-edge technologies, such as machine learning and blockchain are expected to offer significant opportunities for this market. However, the lack of a preventive firewall is hindering the implementation of security analytics solutions. Additionally, the lack of awareness regarding security analytics measures is a major challenge to the growth of this market.

Impact of COVID-19 on the Security Analytics Market  

The COVID-19 pandemic has adversely hit several economies around the globe. The combat measures against the pandemic, such as complete lockdown, social distancing, and quarantine, adversely impacted many industries across the globe. With many employees working from home and students learning virtually, enterprise virtual private network (EVPN) servers have become a lifeline to organizations and institutions. Thus, the rapid adoption of new approaches, including context-aware security, extended detection and response (XDR), and behavioral analytics are the various approaches that will grave the cyber risks and threats for organizations. One of the major factors responsible for the rise of corporate e-mail attacks is spurts of COVID-19 websites offering fake prepositions in exchange for personal information. For instance, spear-phishing e-mail attacks related to COVID-19 have increased by 667% from the end of February 2020 to March 2020.

As most IT companies adopted work-from-home policies in response to the COVID-19 pandemic, cybersecurity has become a grave issue for organizations across the globe. Attackers are also taking advantage of the fact that many people working from home have not applied the same security on their networks that would be in place in a corporate environment or that enterprises haven’t deployed the right technologies or corporate security policies. For instance, while working at home, 47% of individuals fall for a phishing scam in 2020, and the average cost of a data breach resulting from remote working was around $137,000. In addition, according to National Cyber Security Center, 350 cases were reported for cyberattacks in June 2020.

Additionally, the pandemic tested the strength of healthcare systems around the globe, turning healthcare providers to chats, phones, e-mails, and telemedicine portals for remote counseling and diagnoses. Organizations are using digital infrastructure to procure vital protective supplies for healthcare and hygiene workers and counsel them on rendering services safely. The surge in digital communications and the wholesale shift to operate online businesses have increased the risk of cyberattacks. All these factors accelerate the demand and are expected to provide some relief to the global security analytics market, which will help the market recover faster in the coming years. Many organizations have increased their investments in security solutions despite the disruption.

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The Surge in the Number of Cyber Exploits is Expected to Drive the Market Growth

The present hyper-connected business environment significantly drives the rapid development of digital solutions, infrastructure, and associated services. Currently, employees are connecting to the network from many places and multiple devices, enabling organizations to accelerate business outcomes and move toward digitization. These factors not only increased digitalization but also have increased the opportunities for threat across businesses. For instance, between February 2020 and May 2020, a cyberattack with the help of a tool named ‘OpenBullet’ affected more than half a million people across the globe by stealing and selling the personal data of video conferencing services’ users on the dark web. In addition, hackers use credential stuffing techniques to gain control of employees’ credentials and then sell them to other cybersecurity criminals. This surge in cyber exploits compels organizations to deploy security analytics solutions to safeguard businesses, driving the growth of the security analytics market.

Key Findings in the Security Analytics Market Study:

Based on Offering, in 2022, the Solutions Segment is Expected to Account for the Largest Share

Based on offering, the security analytics market is segmented into solutions and services. In 2022, the solutions segment is expected to account for the largest share of the security analytics market. The growing emphasis and investment in innovative security analytics solutions, rapid developments in malware and other cyber attacks, the growing demand for diagnosing and preventing complex cyber threats, and the increasing need to comply with government and industry regulations are expected to drive market growth. This segment is also expected to grow with the highest CAGR during the forecast period.

Based on Deployment Mode, in 2022, the On-premise Segment is Expected to Account for the Largest Share

Based on deployment mode, the security analytics market is segmented into on-premise and cloud. In 2022, the on-premise segment is expected to account for the largest share of the security analytics market. The growth of this segment is attributed to the high reliance of the government and defense sectors on the on-premise environment, particularly in developing countries, the increasing need for reliable analytics solutions for server hardware and its security, and the over-dependence on internal networks. However, the cloud segment is projected to register the highest CAGR during the forecast period.

Based on Security Type, in 2022, the Network Security Segment is Expected to Account for the Largest Share

Based on security type, the security analytics market is segmented into network security, endpoint security, application security, cloud security, and other security types. In 2022, the network security segment is expected to account for the largest share of the security analytics market. The growth of this segment is majorly attributed to the increasing malware in network traffic, the growing popularity of Network Traffic Analysis (NTA) to secure the digital enterprise, the rising need to protect connected network devices & infrastructure, and the growing demand for an advanced network security solution for complex threat detection. However, the cloud security segment is projected to register the highest CAGR during the forecast period.

Based on Platform, in 2022, the Web-based Platform Segment is Expected to Account for the Largest Share

Based on platform, the security analytics market is segmented into web-based platform and mobile-based platform. In 2022, the web-based platform segment is expected to account for the largest share of the security analytics market. The growth of this segment is attributed to the rising implementation of innovative technologies for web applications, the increasing usage of the internet, and the growing demand for filtering and monitoring HTTP traffic between web applications. However, the mobile-based platform segment is projected to register the highest CAGR during the forecast period.

Based on Organization Size, in 2022, the Large Enterprises Segment is Expected to Account for the Largest Share

Based on organization size, the security analytics market is segmented into large enterprises and small & medium-sized enterprises. In 2022, the large enterprises segment is expected to account for the largest share of the security analytics market. The growth of this segment is attributed to the rising incidence of cyber threats across large network infrastructures and database servers, early adopters of advanced technologies, larger budget capability, and a strong focus on developing strategic IT initiatives. However, the small & medium-sized enterprises segment is projected to register the highest CAGR during the forecast period.

Based on Application, in 2022, the Network Traffic Analysis Segment is Expected to Account for the Largest Share

Based on application, the security analytics market is segmented into cloud security monitoring, network traffic analysis, data exfiltration detection, insider threat detection, threat hunting, incident investigation, behavior analysis, and other applications. In 2022, the network traffic analysis segment is expected to account for the largest share of the security analytics market. The growth of this segment is attributed to the proliferation of web & smartphone applications, the lack of development of long-term complex networks against threats, unlawful messages, and attacks from malicious sources, the growing demand for real-time branch threat detection solutions, and rapid advancements in web security. However, the cloud security monitoring segment is projected to register the highest CAGR during the forecast period.

Based on End-use Industry, in 2022, the BFSI Segment is Expected to Account for the Largest Share

Based on end-use industry, the security analytics market is segmented into BFSI, manufacturing, retail, government, smart consumer electronics, healthcare, automotive, energy & utilities, transportation, supply chain logistics, IT & Telecom, and other end-use industries. In 2022, the BFSI segment is expected to account for the largest share of the security analytics market. The growth of this segment is attributed to the rising adoption of mobile banking applications, the rapidly increasing transaction through cloud-based QR/UPI, the increasing investment in advanced payment security solutions, and the surge in transition from in-house shared banking services to third-party networks . However, the IT & telecom segment is projected to register the highest CAGR during the forecast period.

Based on Geography, in 2022, North America is Expected to Dominate the Security Analytics Market

Based on geography, the market is segmented into North America, Europe, Asia-Pacific, Latin America, and the Middle East & Africa. In 2022, North America is expected to account for the largest share of the security analytics market. The growth of this region is attributed to the presence of several leading security analytics solution providers and the easy availability of their services, the high penetration of IoT & IIoT devices, the growing acceptance of cloud computing and smartphones, the developed internet & mobile infrastructure, and the growing emphasis towards web security & privacy concerns. However, the Asia-Pacific region is slated to register the highest CAGR during the forecast period.

Key Players

The report includes a competitive landscape based on an extensive assessment of the key growth strategies adopted by the leading market participants in the industrial analytics market. The key players profiled in the security analytics market report are IBM Corporation (U.S.), Hewlett Packard Enterprise Company (U.S.), Cisco Systems, Inc. (U.S.), Juniper Networks, Inc. (U.S.), Broadcom Inc. (U.S.), Splunk Inc. (U.S.), McAfee Corp. (U.S.), FireEye, Inc. (U.S.), LogRhythm, Inc. (U.S.), Fortinet, Inc. (U.S.), Huntsman Security (Australia), Gurucul (U.S.), Securonix (U.S.), Hillstone Networks (U.S.), Exabeam (U.S.), Rapid7, Inc. (U.S.), Forcepoint (U.S.), Uptycs (U.S.), Snowflake Inc. (U.S.), Checkpoint Software Technologies, Ltd. (Israel), and Sumo Logic, Inc. (U.S.).

Scope of the Report:

Security Analytics Market, by Offering

• Solutions
  • Next-generation Firewall
  • Unified Threat Management           
  • Encryption
  • Fraud Detection & Prevention         
  • Tokenization
  •  Identity And Access Management 
  • Other Solutions
• Services
  • Professional Services
  • Managed Services

Security Analytics Market, by Deployment Mode

• On-premise
• Cloud

Security Analytics Market, by Security Type

• Network Security
• Endpoint Security
• Application Security
• Cloud Security
• Other Security Types

Security Analytics Market, by Platform

• Web-based Platform
• Mobile-based Platform

Security Analytics Market, by Organization Size

• Large Enterprises
• Small & Medium-sized Enterprises

Security Analytics Market, by Application

• Cloud Security Monitoring
• Network Traffic Analysis
• Data Exfiltration Detection
• Insider Threat Detection
• Threat Hunting
• Incident Investigation
• Behavior Analysis
• Other Applications

Security Analytics Market, by End-use Industry

• BFSI
• Manufacturing
• Retail
• Government
• Smart Consumer Electronics
• Healthcare
• Automotive
• Energy & Utilities
• Transportation
• Supply Chain & Logistics
• IT & Telecom
• Other End-use Industries

Security Analytics Market, by Geography

• North America              
  • U.S.
  • Canada
• Asia-Pacific                 
  • China
  • Japan
  • India
  • South Korea
  • Australia & New Zealand
  • Singapore
  • Rest of Asia-Pacific
• Europe            
  • Germany
  • U.K.
  • France
  • Italy
  • Spain
  • Sweden
  • Rest of Europe
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• Middle East & Africa
  • UAE
  • Saudi Arabia
  • Israel
  • Rest of Middle East & Africa

Key questions answered in the report: