Entersoft Security Blog

29 Stats, Quotes, Factlets - Cybersecurity Market in India

Posted by Angad Gill on May 5, 2017 11:19:45 PM
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A push towards digital economy (otherwise known as demonetization) by the Indian government is changing the way businesses and governments are run in the country. Source

 
The problem is a lack of understanding among most Indians on how dangerous hacking can be to the reputation of an enterprise. According to various sources, between 2011 and 2015, there has been around 300% increase in reported cyber crimes among enterprises; the actual numbers though could be higher. Source
 
The Data Security Council of India (DSCI), an industry body on data protection, has incubated 80 cyber security startups in the past two years. Source
 
“It’s not a matter of whether your company will be hacked, but when and what can be done to prevent the inevitable. Startups in this space will provide the much needed support to Indian firms in terms of enterprise security. We’re already late in the journey, but nevertheless we have made a beginning,” says Vedashree, CEO, Data Security Council of India (DSCI). Source
 
From 2015 to 2016, Gartner, an American technology research firm, saw a 10.6% jump in India’s enterprise security spending (hardware, software and services). Source
 
“The government is advocating digital services which are becoming the hotspots for hackers” Source
 
“The year 2016 saw 3.2 million debit cards getting hacked in India as the banking system relies on obsolete software and security solutions.” Source
 
Enterprises in India are now prioritizing cyber security, which now occupies 30-40% of most overall IT budgets. Source
 
Although India in recent times has launched a series of cyber security initiatives, cyber-attacks have also doubled year over year. Source
 
According to a study done by IBM titled The 2016 Cost of Data Breach Study: India, the average total cost of a data breach paid by Indian companies increased by 9.5%, while the per capita cost increased by 8.7%. Source
 
The problem is not all this information is publicized, and as a result many companies aren’t aware of potential cyber security breaches. Source
 
Nasscom envisages the Indian IT industry to achieve a size of $350-400 billion by 2025. Given the existing status and the possibility of rapid growth, India should aspire to build a cybersecurity product and services industry of $35 billion by 2025, and generate a skilled workforce of one million in the security sector, to cater to the rise in global demand. Source
 
The global cybersecurity market is expected to reach approximately $190 billion by 2025 from $85 billion, and will be driven primarily by the increasing digitization wave and smartphone penetration, leading to newer attack surfaces & ever increasing number & sophistication of cyber threats. Source
 
With cybersecurity products constituting a $38 billion market in 2015, network security will emerge as the most attractive product segment by size, while security and vulnerability management has the highest growth prospects across various geographic regions. India being a primary hub for growing smartphone penetration and digitization it is imperative to build robust cybersecurity products and services industry in the country. Source
 
Gartner Says India Security Market is on Pace to Grow 10.6 Percent in 2016. Source
 
Enterprise security spending (hardware, software and services) in India is on pace to reach $1.12 billion in 2016, up 10.6 percent from $1.01 billion in 2015, according to Gartner, Inc. Source
 
Security spending will continue to grow in 2017 when revenue is projected to reach $1.24 billion. Security services (that includes consulting, implementation, support and managed security services) revenue accounted for 61 percent of this total revenue in 2015, and this proportion will increase to 66 percent by 2020. Source
 
India has faced attacks from nonstate actors, cybercriminals, and hacktivists. Nonstate actors, backed by the usual suspects, have largely engaged in cyber espionage by hacking into government networks while cybercriminals have been feeding off the ever-expanding landscape of Digital India. Source
 
Companies are reluctant to publicize breaches, it is difficult to get an accurate measure of the problem. Smaller and medum-sized companies have also been hit by ransomware attacks, and by all accounts have paid up in the absence of any other recourse. So far, cyber has been a weapon of mass disruption, but if one can disrupt, one can destruct, and there’s no saying when that line will be crossed, and by whom. Source
 
Various security breaches and countless records lost during India’s ongoing digital transformation. The majority of these attacks happened in the e-commerce and banking sectors due to the high value of personally identifiable information (PII). Source
 
Cybercriminals breached the Indian Railway Catering and Tourism Corporation (IRCTC) website, the country’s largest government site, and stole around 10 million customer records from the server of the e-ticketing portal. Source
 
Fraudsters spoofed the email account of Binny Bansal, chief executive officer (CEO) of Flipkart, and sent two emails to the chief financial officer (CFO) demanding a transfer of $80,000. Source
 
A Pakistani cybercriminal known as Faisal allegedly breached the website of Canara Bank. The attacker defaced the site by inserting a malicious page and blocked some of its payment services. Source
 
The Indian government has started to invest time and money to recruit cybersecurity experts and partnerships with top international cybersecurity firms. These efforts will help check the number of security incidents. Source
 
The cyber security market is estimated to grow from USD 122.45 Billion in 2016 to USD 202.36 Billion by 2021, at a Compound Annual Growth Rate (CAGR) of 10.6%. The market in APAC is expected to grow at the highest CAGR between 2016 and 2021. The primary driving forces for this growth are increasing technological adoption and huge opportunities across industry verticals in APAC countries, especially India and China. Source
 
J.P. Morgan Chase & Co. doubled its annual cybersecurity budget from $250 million to $500 million. Bank of America has gone on the record stating it has an unlimited budget when it comes to combating cybercrime. Source
 
Microsoft Corp. will continue to invest over $1 billion annually on cybersecurity research and development in the coming years, according to a senior executive at the tech giant. Source
 
Cybercrime will continue rising and cost businesses globally more than $6 trillion annually by 2021Source
 
VC activity in this space
 
Year
Number of Companies Founded
Number of Companies Funded
Number of Funding Rounds
Total Funding ($M)
2010
13
3
3
$14.42
2011
10
3
3
$2.60
2012
15
3
3
$0.58
2013
16
9
9
$12.86
2014
13
7
7
$15.38
2015
26
4
4
$2.50
2016
12
7
8
$13.74
2017
0
3
3
$0.52
Source: Tracxn