United States Cybersecurity Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

United States Cybersecurity Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

The United States Cybersecurity Market is anticipated to grow with a CAGR of 7.12 % during the forecast period (2022 - 2027). The difficulty of protecting against a persistent information security breach is one that businesses in all industries in the United States are currently confronting. To fight against incoming threats and safeguard sensitive data, security experts are expected to keep ahead of dangers and use technologies, policies, and processes. Additionally, enterprises need to be able to swiftly and securely modify their core business applications across on-premise, SDN, and cloud environments as they speed up their digital transformation activities. This means that to manage these operations, IT and security teams need to have a complete awareness of fine-grained control over their whole network architecture.

Key Highlights

• The market's expansion might be ascribed to the sophistication of cyberattacks, which is rising. Over the past ten years, the number and severity of cybercrimes and scams have escalated, causing enormous losses for enterprises. As cybercrimes have dramatically escalated, businesses have focused their expenditure on information security solutions to bolster their internal security infrastructures. The use of targeted assaults, which penetrate targets' network infrastructure while remaining anonymous, has increased recently. Endpoints, networks, on-premises devices, cloud-based apps, data, and numerous other IT infrastructures are frequently targeted by attackers who have a specific target.
• For instance, in March 2021, Hackers targeted four security flaws in Microsoft Exchange Server email software; they used the bugs on the Exchange servers to access email accounts of at least 30,000 organizations across the United States, which included small businesses, towns, cities, and local governments. The attack allowed the hackers to remotely control the affected systems, allowing them access to potential data theft and further compromise.
• Following a public call asking government agencies in the region to join forces with the private sector and academia to ensure that medical facilities are protected from cyber threats. Various collaborations have been taking place in the industry. For instance, in March 2022, Senators of the United States Parliament introduced Healthcare Cybersecurity Act. The Act aims to promote collaboration between Cybersecurity and Infrastructure Security Agency (CISA) and HHS to enhance cybersecurity efforts across the healthcare and public health sector.
• In January 2022, the federal banking regulators of the United States issued a cybersecurity rule requiring prompt notification of a breach. The proposed rule is poised to provide the agencies with an early warning of considerable computer security incidents. It would need notification as soon as possible and no later than 36 hours after a banking enterprise determines that an incident has occurred. Such regulations could control the cyber attacks in the banking sector of the United States.
• According to the US Department of Homeland Security (DHS) Cybersecurity, there has been a sharp increase in phishing and malware distribution using COVID-19-themed lures, the registration of new domain names containing words related to coronavirus or COVID-19, and attacks against recently and swiftly deployed remote access and teleworking infrastructure. As businesses prepare to implement months-long business continuity plans (BCP), including information security monitoring and response while working under quarantine circumstances, focusing on increasing cybersecurity, the pandemic has further expedited the need for cybersecurity.

Key Market TrendsNeed For Identity Access Management is One of the Factor Driving the Market

• With the rapid digitalization across the country, digital identity has become crucial to enforcing access controls. As a result, identity and access management (IAM) has become a significant priority for modern enterprises.
• The United States has one of the highest digital penetration rates globally, with many users and organizations depending upon IoT devices and computing solutions. Organizations all over the US are increasingly dependent on computer networks, smart devices, and electronic data to conduct their daily operations, which has led to growing pools of personal and financial information transferred and stored online. Hence, the need for identity and access management solutions increased over time.
• IAM, viewed as an operational back-office issue, is now gaining board-level visibility following several high-level breaches that have occurred due to the failure of organizations to manage and control user access effectively. The prominence of IAM has been further elevated by an evolving regulatory landscape and trends, such as Bring your Device (BYOD) and cloud adoption. The risks related to accessing information and data have also increased significantly.
• According to the Federal Trade Commission, the prevalence of identity thefts in the banking and payment industries in the United States would encourage more people to use biometric solutions. Financial institutions like TD Bank that operate in the United States are reportedly focusing on digital identity verification solutions to strengthen the customer onboarding processes, with a major contribution to verifying the CIP and KYC procedures, according to Pymnts' release of the Digital Identity Tracker Report in March 2021. The software solutions are expected to gain more traction as financial institutions nationwide examine implementing various identity verification tools. ​
• The impact of an identity management cybersecurity breach by organized crime, state-sponsored militaries, and others is packed with implications that can impact staff productivity and morale, apart from huge financial and potential life losses and further damage to the IT network and company reputation. These risks demand a new level of identity and access management solutions.

BFSI Segment Is Boosting The Cybersecurity Market Growth

• Regulators in the United States have taken steps to promote faster incident reporting and proactive cyber resiliency measures amongst banks and other financial services industries. for instanceIn November 2021, the United States banking regulators finalized a rule that directs banks to report any major cybersecurity incidents to the government within 36 hours of discovery.
• In June 2021,New laws governing the precautions financial institutions must take to guard against ransomware attacks were released by the New York State Department of Financial Services. based on the regulator. Between January 2020 and May 2021, more than 70 ransomware assaults were notified to the regulator. The banks with the high market captilization will create a opportunity for cybersecurity vendors to provide their solutions in safeguarding theie assets.
• All such factors are collectively expected to fuel the demand for advanced cybersecurity solutions for banking & financial industry. Banks in North America, especially in the United States, are ahead of other regions in deploying advanced cyber defense practices, such as red team testing or scanning for vulnerabilities to detect flaws in their systems.
• The unique cybersecurity challenges faced by the insurance industry are interrelated and come from the vast amount and different types of sensitive data this sector deals with. The machine-readable structured data used by insurers include name, address, vehicle information, medical history, dates, and claim history. However, unstructured data, which has no predefined format and is more difficult to use, is information insurers collect in a human-readable format. It can be used to modify what an insurer can cover in insurance, spot indicators of fraud, and offer a customized customer experience.
• Advancement in cybersecurity solutions for protecting Big Data and the insurance industry specifically is evolving rapidly. Big data sets, including financial and private data, are an appealing target for cyberattacks, and thus, the protection of these assets is the center of many new protection solutions. Utilizing artificial intelligence (AI) and machine learning (ML) can greatly help insurance companies protect against ransomware, advanced persistent threats (APT), and malware. It can be used to monitor data workflows and respond to attacks instantly. Such integration of modern technologies in cybersecurity solutions to curate industry-specific offerings is expected to gain traction in the coming years for this sector.

Competitive Landscape

The united states cybersecurity market is moderately consolidated, with the presence of a large number of SME vendors and dominant major companies in the market. The companies are continuously investing in making strategic partnerships and product developments to gain more market share. Some of the recent developments in the market are:

• May 2022 - Google plans to acquire Mandiant, a United States-based cybersecurity firm. Post-acquisition the company will most likely join Google's cloud computing division. The move to acquire Mandiant stems from Google's plan to strengthen its cybersecurity footprint and create a robust portfolio compared to its competitors in the market.
• January 2022 - A Memorandum on Improving the Cybersecurity of National Security, Department of Defense, and Intelligence Community Systems was issued by the parliament in the United States. As per the memorandum, the Federal Government would be improving its efforts to identify, deter, protect against, detect, and respond to malicious cyber campaigns and their actors through bold changes and significant investments in cybersecurity.

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• The market estimate (ME) sheet in Excel format
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