The information security consulting market is expected to grow at a CAGR of 13.4% during the forecast period (2021 - 2026). Rising network complexities due to mergers and acquisitions and third-party application deployment, increasing threat to the security of IoT devices, and growing trend of BYOD are some of the major factors driving the growth of the market.
- The increased deployment of web and cloud-based applications has led to the rapid adoption of cloud-based operations in 2019, poorly secured cloud databases continued to be a weak point for organizations, ranging from simple misconfiguration issues to vulnerabilities in hardware chips. Multiple tools are being widely available, enabling potential attackers to identify misconfigured cloud resources on the internet. Hence, for organizations, adopting an active security consulting service is of utmost importance. Moreover, the quick detection and response also play a vital role in addressing such threats.
- New threats, like Petya, Wannacry, Skype, Fireball, Delta Charlie, and others, are threatening to destroy data if a ransom, to recover the data, is not paid for the decryption key. The latest ransomware named Clop blocks over 600 Windows processes. It disables multiple Windows 10 applications, including Windows Defender and Microsoft Security Essential leaving the organizations with zero chance of protecting your data. Such sophisticated attacks make networks, databases, applications, and endpoint devices carrying critical very vulnerable. Thus a majority of organizations consider security as a part of their strategy to avoid risks associated with an attack and also save costs.
- For instance, in October 2019, numerous hospitals across the state of Arkansas were hit by a massive attack. The encrypted attack files and restricted access to computer systems at DCH Health Systems Regional Medical Center, Northport Medical Center, and Fayette Medical Center. The medical staff was forced to shift to manual mode and rely on paper copies instead of digital records while the IT system was being repaired. Incidents such as these have proved the importance of information security services continuously and hence create opportunities for the market.
- The pandemic has caused massive shutdowns of offices and other facilities. The information technology on which they have long depended i.e. their data centers, cloud systems, departmental servers, and the digital devices their now-remote employees used to stay connected to each other and to the company’s data - becomes even more vital. The demands placed on the digital infrastructure have skyrocketed. Also the involvement of third party applications has rapidly increased mostly to maintain business continuity but all these factors have made the network and other IT infrastructure vulnarable to cyber attacks. For instance, cybersecurity incidents involving Zoom - video conferencing application and IT services provider Cognizant has also forced companies to improve safeguards and thus the market for information security consulting is expected to grow in the short term as well as achieve sustainable growth in the future.
Key Market Trends
BFSI is Expected to Witness Significant Growth
- The BFSI industry faces three challenges that are distinct from any other end-users discussed in the study. These challenges are the major driving forces for the deployment of information security consulting services as the industry faces more attacks from cybercriminals than any other sector due to the high sensitivity of data. According to Verizon’s 2019 Data Breach Investigations Reports, 10% of breaches were of the Financial industry.
- The industry is frequently faced with sophisticated and persistent attacks, which include malware, ransomware, social engineering and phishing attacks, fileless malware, rootkits, and injection attacks. Accenture estimates an average loss of USD 18 million per year at financial services institutions.
- Some of the most common malware attacks faced by the banking industry include signature-less and fileless malware, which do not behave like other malicious programs but can instead exploit fundamental processes to hide their activities. Due to frequent attacks, it becomes critical to have adequate security in place to mitigate the risks related to a data breach or any sort of cyber-attack such as loss of data, inoperability, lost business, and recovery cost as well as time.
- Financial enterprises face considerably higher stakes compliance requirements. The failure of financial information security causes the business to faces fines, legal fees, and lost business. Both zero-day attacks and ransomware are on the rise. Ransomware especially can negatively affect financial workflows, inflicting costly downtime, and further damaging business reputations. All the above factors contribute to the growth of the information security consulting market across the globe.
Asia Pacific to Witness Significant Growth
- The rise in digitization across Asia in the BFSI sector is expected to drive the demand for information security consulting services over the forecast period. For instance, according to RBI, the shares of electronic transactions in the total volume of retail payments increased to 95.4 percent in 2018-19, up from 92.6 percent in the previous year. To cope up with this sudden colossal change, the banks are looking forward to adopting solutions and services for the security of the network, endpoint devices, applications, and databases.
- Asia-Pacific occupies the majority of share in this segment. According to the Data Security Council of India (DSCI), BFSI is one of the top three sectors with the largest market share in cybersecurity expenditure in India. This is due to factors such as tightened norms from regulators, data localization, utility payments, e-commerce, and online insurance marketplaces. Such initiatives will lead to an increase in the adoption of endpoint security solutions in the country.
- The increasing cyber-attacks in the region have propelled the players to strengthen its defensive capabilities. International vendors do not have sufficient number of regional resources in countries like India which causes difficulty in implementation and technical support. As a result of this, organizations in the region are also adapting services offered by startups who offer complete support and flexible pricing as compared to established player and this is expected to develop a ecosystem for the growth of startups in the information security arena.
- On the other hand, the increasing adoption of public cloud computing is leading to more enterprises re-allocating their business systems to cloud platforms. Issues concerning data security, tenant isolation, access control, etc., are expected to propel the market for information security consulting.
The information security consulting market is moderately fragmented as amongst all the players present in the market, leading players hold most of the market share, and therefore, the competitive rivalry is high. The well-established companies are making an effort to acquire small-scale vendors to enhance their portfolio.
- March 2020 : Accenture acquired Context Information Security, a cyber defense consultancy, previously owned by parent company Babcock International Group. The acquisition of Context is expected to strengthen Accenture Security’s existing portfolio and become part of Accenture’s cyber defense offerings.
- November 2019 : KPMG, a consulting firm, announced an international strategic partnership with nsKnox, a cybersecurity provider of corporate payment protection technology. KPMG Israel is expected to be the global distributor and service provider of the joint offering, as stated by the company, KPMG Secure Payments. The joint offering will also provide organizations with an end-to-end, holistic defense against fraud in supplier payments, whether caused by cyber-attacks, internal fraud, social engineering, or data manipulation attempts.
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Table of Contents
1.2 Scope of the Study
4.2 Industry Value Chain Analysis
4.3 Industry Attractiveness - Porter's Five Forces Analysis
4.3.1 Bargaining Power of Suppliers
4.3.2 Bargaining Power of Consumers
4.3.3 Threat of New Entrants
4.3.4 Threat of Substitutes
4.3.5 Intensity of Competitive Rivalry
4.4 Market Drivers
4.4.1 Rising Network Complexities
4.4.2 Increased Sophistication in Attacking
4.5 Market Restraints
4.6 Assessment of Impact of Covid-19 on the Industry
5.1.1 Network Security
5.1.2 Application Security
5.1.3 Database Security
5.1.4 Endpoint Security
5.2 By Deployment Mode
5.2.1 On Premise
5.3 By Organization Size
5.3.1 Small and Medium Enterprises
5.3.2 Large Enterprises
5.4 By End user Vertical
5.4.1 Banking, Financial Services, and Insurance
5.4.2 IT and Telecom
5.4.3 Aerospace and Defense
5.4.6 Others (Manufacturing, Retail)
5.5.1 North America
5.5.3 Asia Pacific
5.5.4 Latin America
5.5.5 Middle East and Africa
6.1.1 Ernst & Young Global Limited
6.1.2 International Business Machines Corporation
6.1.3 Accenture PLC
6.1.4 Atos SE
6.1.5 Deloitte Touche Tohmatsu Limited (DTTL)
6.1.6 KPMG International Cooperative
6.1.8 BAE Systems PLC
6.1.9 Hewlett Packard Enterprise
6.1.10 Wipro Limited
6.1.11 Optiv Security Inc.
6.1.12 Dell SecureWorks, Inc.
A selection of companies mentioned in this report includes:
- Ernst & Young Global Limited
- International Business Machines Corporation
- Accenture PLC
- Atos SE
- Deloitte Touche Tohmatsu Limited (DTTL)
- KPMG International Cooperative
- BAE Systems PLC
- Hewlett Packard Enterprise
- Wipro Limited
- Optiv Security Inc.
- Dell SecureWorks, Inc.