Cyber Security Projected To Gulp $131.8bn In 2021.
About $131.8 billion is projected to be spent in 2021 on cyber security amid the growing fear that 40 per cent of companies globally feel threatened by cyber incidents which have now become one of the biggest risks to the business.
The projection according to the Statista survey is an increase of 10 per cent year on year over $120 billion spent in 2020 by consumers, businesses, and organizations worldwide on cybersecurity products and services. It was $8 billion more than before the pandemic struck.
With this projection, cybersecurity services, like data risk analysis, data masking, and vulnerability discovery, have thus become the fastest-growing sector of the entire market which is expected to reach a $61.4 billion value this year.
Similarly, Cybersecurity software and hardware is to follow with $44.3 billion and $26 billion in revenue, respectively. By 2025, the global cybersecurity revenues are forecast to touch $210 billion.
This projection follows the data from BuyShares.co.uk that 40 per cent of companies globally feel threatened by cyber incidents and find it the most concerning business risk in 2021 according to data by
Cyber-attacks and data breaches have over the years, become one of the biggest risks in the business sector, compromising sensitive data and causing a massive financial hit to companies and organizations worldwide.
Only last week, Nigeria’s Central Bank released a draft framework on Cyber Security for which it seeks the inputs of the National Association of microfinance banks, mortgage banks association of Nigeria, Finance Housing Association of Nigeria and the association of national development finance institutions for consideration in the final copy of the document.
In a letter referenced OFI/DOA/CON/CIR/003/061 by Nkiru Asiegbu, the Director, Other Financial Institutions Supervision Department, the apex bank noted that it has become necessary and mandatory for the sub-sector to strengthen its cyber resilience if it is to remain safe and sound.
The CBN gave until on or before September 17 to send their inputs either through hard or soft copies for consideration for the draft guidelines.
The global concern about cybercrime, IT failure, and data breaches has been on the rise for years. Before the pandemic, cyber incidents were the number one business risk globally, causing companies across the globe to spend billions on cybersecurity products and services.
Although cyber incidents are still one of the top three concerns for companies and organizations, the COVID-19 did affect the ranking of the biggest risks in the business sector.
According to the Allianz Risk Barometer survey, business interruption tops the charts as the leading business risk in 2021. Statistics show this risk has been in the number-one spot seven times over the last decade. However, the pandemic has made awareness of business interruption even stronger. That doesn’t surprise considering that 94 per cent of surveyed companies reported a COVID-19 related supply chain disruption last year.
The pandemic outbreak has climbed 15 spots to become the second-most significant business risk, with 40 per cent of companies worrying about this kind of uncertainty.
Cyber incidents ranked as the third-largest business risk globally, primarily due to the pandemic-fuelled rush towards digitalisation. According to the survey, businesses all over the world recognize cybercrime as a more significant problem than loss of reputation, macroeconomic developments and political risks.
Market developments, including market volatility or fluctuation, intensified competition, new entrants, and mergers and acquisitions, ranked as the fourth-largest risk in the business sector this year, with a 19 per cent share among respondents.
Changes in legislation and regulation, like trade wars and tariffs, economic sanctions, Brexit, and Euro-zone disintegration, close the top five list with also a 19 per cent share, respectively.
Companies and organizations worldwide are losing billions due to cybercrime each year. Although most of them significantly increased their cybersecurity budgets, data breaches, phishing, ransomware attacks, or cyber espionage are still a huge threat to their operations.
