3. The Cybersecurity Sector Remains In Secular Growth Mode
The global cybersecurity market was valued at $222 billion in 2022. By 2030, the market is forecast to exceed $657 billion, a CAGR of around 13%.3
In an era marked by both intensifying regional divides and burgeoning digital connections, cyber-risk stands as the paramount threat to businesses and governments alike. However, within this challenge lies a monumental opportunity for the cybersecurity industry. The responsibility of shielding ordinary citizens, multinational entities, and sovereign nations from malicious cyber activities now squarely rests with this essential sector.
4. The Catalytic Role of Artificial Intelligence in 2023
The revolution in cybersecurity is underscored by recent reports from industry leaders like Palo Alto Networks and Cloudflare in their latest earnings calls. Palo Alto Networks has achieved a 97% decrease in false positives and a 60% enhancement in threat interception, crediting AI for these advances.4 Their CEO stated, “In the last 5 years, our Total Addressable Market (TAM) in cybersecurity has grown by approximately 14%, surpassing the IT market’s growth. With AI now a core tool, we’re capitalising on this by intensifying our technology investments.”5 Cloudflare reported an increase in the use of their R2 product, particularly among AI startups, signifying their growing preference for Cloudflare’s cost-efficient GPU usage for model training.6
These insights underline the pivotal role AI is playing in the evolution of cybersecurity offerings. We foresee that such technological advancements will allow cybersecurity firms to lower costs, make their products more affordable for the mass market, and consequently expand their total addressable market even beyond the current scope, as many cybersecurity firms embrace these innovative solutions.