Analysis by digital identity specialists ID Crypt Global, estimates that by the end of this year, the cyber security industry is set to breach the £1bn mark in market size, driven by increased demand for protection in a world that is becoming increasingly more digitised by the day.
The analysis of the cyber security software development sector by ID Crypt Global shows that there has already been incredible growth within the space over the last decade.
10 years ago, the sector’s market size was an estimated £456.8m; today, it’s thought to have increased to £961.4m – a 110% increase.
Not only has the sector’s size increased yearly over the last decade, but the 10.7% jump seen over the last year was the third-highest annual increase since 2013.
This growth has been driven by demand within the sector, and today, there are currently 188 operational businesses servicing this demand, a 132% increase versus a decade ago.
Despite this increase in competition, it remains profitable, with the average revenue per business up 6% in the last year to £5.1m.
This growth is expected to continue in 2023, with the estimated size of the market expected to increase by a further 7.1%. This would push the sector’s total value beyond the £1bn mark, increasing the average revenue per business by 2.2%, even though the number of operational businesses is also expected to climb by 4.8%.
CEO and founder of ID Crypt Global, Lauren Wilson-Smith, commented: “The world is becoming increasingly more digitised and this means that the digital identity we hold within it is becoming a far more prominent aspect of our day-to-day lives.”
“Everything from how we shop, travel, communicate and even prove our identity is now done digitally and while it may provide a heap of benefits, it also increases our susceptibility to cyber criminality.”
“Therefore, it’s no surprise that the cyber security sector has seen such remarkable growth in recent years, but the sector must continue to innovate and evolve with the landscape.”
“Introducing and developing new security models remains an essential focus in this respect. For example, while PKI, or Public Key Infrastructure, has long secured the internet for us, it still presents significant security challenges. Cumbersome operational processes, operational security, a lack of resilience and high costs are all issues facing those who wish to utilise it.”
“Our Decentralised Public Key Infrastructure was developed to address these issues by utilising a consensus algorithm operated over many different machines, replicated by many different entities in a decentralised blockchain network.”