Bloomberg BNA - Daniel R. Stoller and Joyce E. Cutler – 4/25/17
Investors are bullish on the expanding cybersecurity market in an increasingly hostile online world, attorneys and data security industry leaders told Bloomberg BNA.
Mainstream data breaches, such as the ones that struck over a billion Yahoo! Inc. user accounts, have put the focus on cybersecurity companies that are developing innovative defensive solutions. Increasing investment means that companies awaiting the next generation of cybersecurity solutions, such as artificial intelligence-enhanced threat assessment software, may have products in hand sooner.
With more companies eager to stop a growing cybersecurity risk, the industry is rapidly growing, according to Framingham, Mass.-based IDC Research Inc. The cybersecurity industry is expected to grow about 7 percent a year through 2019 to reach $46 billion in valuation, IDC predicted.
Additionally, the growth of internet-connected cybersecurity solutions is expected to rise 16.5 percent per year to $20 billion by 2020, Bloomberg Intelligence data show. IBM Corp. and Intel Corp. are leading the charge but other companies, including Microsoft Corp., Amazon.com Inc. and Salesforce.com Inc., are also expected to be major players in the arena, according to Bloomberg Intelligence research.
“The cybersecurity market is dynamic and growing,” Mike Gregoire, CEO of infrastructure software company CA Technologies in New York, told Bloomberg BNA. The growth is “fueled by the never-ending barrage of cyberattacks; the expanding attack surface of the growing adoption of cloud and IT; and the advent of the application economy,” he said. CA Technologies is the 13th largest infrastructure software company in the world, with a $13.4 billion market capitalization, Bloomberg data show.