Cybersecurity Software Market Expands as Cost of Cybercrime Grows

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There has always been a pressing need for cybersecurity as the frequency and cost of cyberattacks have been perpetually increasing, especially at the height of COVID-19. Now, the demand for cybersecurity persists as the globe reels from a collective economic downturn and stock market meltdown. In fact, a report by Statista, which compiled statistics from various sources, shows the cybersecurity software market size increasing from $159.84 billion in 2022 to $298.7 billion by 2027 at an annual growth rate of over 13%.

This underlines the importance of safeguarding sensitive data such as financial credentials, personal information, and company strategies. After all, the average cost of a data breach has increased from $4.24 million in 2021 to $4.35 million this year. It gets even worse for Americans, with a data breach typically costing enterprises $9.44 million. As such, the cybersecurity software market’s two major sectors—cyber solutions and security services—work hand-in-hand to prevent breaches.

These have their work cut out for them, however, as the latest cybercrime trends show a significant increase in the incidence and complexity of cyberattacks. The ongoing digital transformations across industries, which began at the onset of COVID-19, and the current popularity of remote hybrid working models have afforded hackers more opportunities to steal private information and hijack business systems. The numbers show a 37% jump in cybersecurity attacks at the height of COVID-19, and this trend has continued for many cyber threats to this day.

A Leap in Cyberattacks and Costs in 2022

The large volume of cyberattacks this year comes as the primary driver of the cybersecurity software market, with the Russian invasion of Ukraine partially fueling the growth. According to a report from Check Point Research, the third quarter of 2022 recorded a 21% year-over-year increase in the number of global cyberattacks. The report also shows the weekly attacks per organization reaching 1,130 on average.

In addition, ICON Corporate Finance’s Q3 2022 Cybersecurity Report indicates that 48% of companies worldwide reported a cyber attack in the last 12 months. If unreported attacks are accounted for, the share of organizations that experienced one would go higher. What’s more, 108.9 million personal and business accounts were breached in the third quarter of this year, with Russia accounting for a fifth of all breaches. These represent a 70% increase in breached accounts globally.

To illustrate the staggering volume of malicious programs on the internet, there are 3.4 newly discovered malware per second, 12,230 per hour, 293,530 per day, and 8,928,205 per month as of November 2022, based on AV Atlas’s online diagnostic tool.

Equally alarming to the high frequency of cyberattacks is the rising cost of dealing with online crimes. Recent cybercrime statistics show the projected expenses from dealing with attacks vastly increasing from $8.44 trillion in 2022 to $23.84 trillion by 2027. Organizations that do not leverage cybersecurity software solutions or fail to tighten network security could face massive losses after an attack, especially those that host subscriptions or carry the financial information of numerous users.

Most Common Cyberthreats and Solutions

When dealing with cybercrime, it is important to know what types of cyberattacks will most likely occur. According to the Federal Bureau of Investigation’s Internet Crime Report, the most common US attacks in 2021 are phishing (323,972), non-payment (82,478), personal data breaches (51,829), identity theft (51,629), and extortion (39,360). Cybercriminals execute these crimes through malicious emails, spoof websites, instant messages with malware-infested links, and banner and pop-up ads with malware, among others.

Users are advised to keep a watchful eye on network vulnerabilities and avoid clicking on suspicious links, ads, and websites to prevent or reduce the likelihood of attacks. After all, new cybersecurity statistics from Verizon’s 2022 Data Breaches Investigations Report reveal that human error is the main cause of 82% of data breaches. However, vigilance is not enough for businesses to arm themselves against cybercrime, which has grown in sophistication over the years.

Cybersecurity software solutions help in this regard since these platforms are equipped with tools for detecting, removing, and preventing cyberattacks like phishing schemes, viruses, ransomware, and other types of malware. Given their varying competencies, the best solutions are relative to the cases at hand and the mode of protection needed by an organization. But several platforms have emerged as market leaders.

Trend Micro owns the biggest cybersecurity software market share for endpoint solutions with a commanding 33.62%, followed by Symantec Endpoint Protection (12.12%) and McAfee (8.44%). Meanwhile, for network security software, the top three are RSA (13.26%), Check Point (11.29%), and Qualys (8.93%).

High Detection Rates

While no cybersecurity or IT security system yields a 100% detection rate, many of the leading products have recorded impressive results. A test by AV-Comparatives shows that the online malware detection rates of many providers are above 90%, the highest being McAfee (99.6%), NortonLifeLock (99.4%), Avast (98.8%), AVG (98.8%), and Microsoft Defender (98.1%).

Offline detection posts lower rates since the lack of a connection limits the capabilities of these platforms. Nevertheless, systems like G DATA (96%), Bitdefender (94.9%), Total Defense (94.9%), VIPRE (94.9%), Avast (93.9%), and AVG (93.9%) still performed well.

Interestingly, the test gave a 100% protection rate to Avast, AVG, G DATA, and McAfee, and a 99% to a host of other popular brands. This affirms the high level of protection today’s cybersecurity software systems afford users. However, the high ratings do not mean that all forms of cyberattacks will be prevented at all times. Many of these attacks evolve over time, with their development not fully accounted for by security systems. Furthermore, new types of malware and fraudulent schemes regularly appear on the internet, some of which are designed to bypass cybersecurity.

As such, the IT teams of organizations should keep abreast with the latest developments surrounding cyber threats, regularly apply security patches, and deploy security solutions in all potential entry points of hackers and malware. They should also conduct cyber awareness training to prevent employees from unknowingly spreading malware or falling prey to phishing schemes. These steps may be tedious but they keep businesses from losing millions of dollars to fraudulent parties.