From: RegTech Analyst
Cybersecurity companies may have benefited from the shift to remote working caused by Covid-19, but the growth of the market could be about to slow down as businesses tighten their IT budgets.
According to a new study from research company Canalys, the global cybersecurity market increased by 9.7% in the first three months of 2020 compared with the same period in 2019. Businesses spent $10.4bn to boost their digital defences as they had to send their employees to work remotely because of the pandemic.
It’s easy to see why these businesses have been willing to invest in their digital defences. Since the pandemic started, cyber criminals have tried to leverage the pandemic to launch different types hack attacks.
“The unprecedented shift to remote working from March resulted in strong demand for endpoint security to protect new company-deployed notebooks, as well as consumer-owned devices used as part of business continuity measures,” said Matthew Ball, chief analyst at Canalys. “Endpoint security shipments increased 16.9% to represent 15.4% of the total cybersecurity market. This strong growth continued into Q2, as more countries implemented lockdown measures.”
However, Canalys warned that the this jump in investment is not going to last as the economic downturn is going to cause many businesses to be more hesitant in their investments.
The cybersecurity segment of the RegTech industry has been one of the biggest beneficiaries of investment in recent years. In 2018 it attracted 20.7% of all the investment and in 2019 that figure jumped to 37.2%, according to RegTech Analyst’s research. The compliance management and the identity verification sector respectively attracted 18% and 13.6% of the total RegTech funding.