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The global cyber security industry saw growth of almost 16 per cent year on year during Q3 2022, according to new findings by tech analysis firm Canalys.
The analysis revealed that despite a looming wave of economic uncertainty, the worldwide cyber security market grew 15.9 per cent in the quarter, reaching US$17.8 billion (roughly AU$26.6 billion).
According to Canalys chief analyst Matthew Ball, this growth is only set to continue as vendors increasingly move to subscription-based models, despite uncertainty surrounding cyber spending thanks to a global economic downturn.
“Many cyber security vendors have shifted toward subscription-led business models, which also helped to shield them from the immediate impact of the economic slowdown,” he said.
“The move to subscription-based platforms and increased focus on upselling existing accounts will sustain revenue growth for cyber security vendors over the next 12 months.”
Canalys surveyed 393 respondents in the cyber industry from 21 November and 9 December 2022, revealing that the outlook surrounding cyber security growth is enthusiastic.
Twenty-seven per cent expected to see their cyber security revenue grow by over 20 per cent in 2023, while another 27 per cent expected revenue to grow between 11 per cent to 20 per cent.
Only 10 per cent of respondents expected to see a decline.
The top vendor of the quarter was Palo Alto Networks, which saw market share increase from 7.8 per cent to 8.4 per cent and saw overall growth year on year hit 24.9 per cent.
The US remains the largest market in the industry, with sales reaching US$9.6 billion (roughly AU$14.3 billion), making up 53.8 per cent of all spending worldwide. It was also the fastest growing, with an increase of 17.1 per cent.
The Europe, Middle East and Africa (EMEA) region followed in second at US$5.2 billion (roughly AU$7.8 billion) with an increase of 15 per cent.
The Asia-Pacific (APAC) hit US$2.4 billion (roughly AU$3.6 billion) with growth of 13.8 per cent, while Latin America was the lowest at US$600 million (roughly AU$896 million) and growth of 13.1 per cent.
Australia is currently considered the fifth most powerful cyber nation according to the National Cyber Power Index Report 2022, but recent cyber attacks have suggested that the nation needs to further increase its cyber defence.
The government has passed a bill that has increased the penalty for organisations who suffer repeated or serious data breaches from $2.2 million to whatever is the most of:
A 100-strong task force of experts has also been established to “hack the hackers” and make Australia a hostile environment for cyber criminals.
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