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Global network security industry development trend

Global network security industry development trend

2019-03-25 15:47:21
In response to cybersecurity threats, countries around the world continue to increase investment in network security and promote the development of the network security industry. Through the study of the competitiveness of network security enterprises, we can further understand the characteristics and trends of the network security industry while observing the advantages and disadvantages of individual network security enterprises.




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(1) Multinational technology giants fully penetrate the network security industry

Global large-scale multinational ICT companies such as Microsoft, IBM, Cisco, Oracle, Intel, Huawei, etc., while continuously improving the security performance of their products, have built a strong network security product line and service system, with a large customer base, in the global network. The security market has a significant share. At the same time, through the acquisition, investment and other channels to continuously absorb the world's most advanced network security technology, these large multinational technology giants have inherent advantages in terms of innovation resource integration and product integration.

(2) Large consulting companies have entered the network security market


With the increasing demand for global network security in recent years, large-scale consulting services companies such as Deloitte, Ernst & Young, PricewaterhouseCoopers, KPMG, Accenture and Capgemini have discovered potential market opportunities and started to deploy networks around 2014. In the security field, the network security business is seen as an important engine for business growth. The methods for traditional consulting companies to get involved in the network security map include mergers and acquisitions, partners, self-operated security SOC, and development of security product supplement services.

Accenture's M&A in the field of cyber security in recent years

In three years or so, these large consulting firms have built strong cybersecurity capabilities through active deployment and a large user base. For example, from the revenue data of security consulting services (as shown below), these large consulting companies have become the world's top cyber security consulting services, including Deloitte, Ernst & Young, PricewaterhouseCoopers and KPMG. Accenture is ranked sixth.

(3) Traditional industrial enterprises actively embrace network security technology

In the process of digital transformation, traditional industries are also actively embracing network security technologies. In the automotive sector, automotive manufacturers place great emphasis on the safety of their vehicles. In November 2017, Continental, the world's leading supplier of automotive accessory products, acquired the Israeli auto network security startup Argus for $400 million and merged with Elektrobit Software, a subsidiary of Continental. In the field of industrial Internet, many industrial software vendors are rapidly cutting into the security field by adopting mergers and acquisitions in order to improve the overall security of their industrial Internet platform. In May 2014, General Electric acquired Wurldtech, an industrial security vendor. Industrial enterprises will integrate security into the system, which will become the general trend of the digital age in the future. Independent security vendors face market shrinkage risks.




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(4) The situation of military and civilian integration in the global network security industry

Large-scale defense contractors or military industrial companies in the United States and Europe began to enter the network security business market around 2012, trying to provide network security solutions for enterprise customers based on the experience accumulated in the service process of government departments, such as Raytheon and Lockheed in the United States. Martin, Northrop Grumman, Boeing, General Dynamics, BAE Systems in the UK, AirBus and Thales in France, and Elbit in Israel.

However, due to the large differences in service models between the military, government customers and corporate customers, these defense contractors generally lack effective marketing methods, which makes them unable to adapt to the highly competitive commercial market and generally perform poorly. Therefore, some defense contractors have gradually withdrawn from the network security commercial market in recent years and returned to their original businesses.

(5) Edge innovation provides continuous kinetic energy for the network security industry

The network security industry is constantly emerging in emerging security segments. In the emerging field, start-up network security companies are becoming the forerunners and leaders of technological innovation. If traditional security vendors cannot adapt to the rapid changes in market demand, they will lose the ability to compete in the future security market. At present, artificial intelligence technology has become a hot application in the field of network security. For example, IBM, Cisco, Microsoft, Symantec, Palo Alto Networks and other network security leaders have launched artificial intelligence-based security products through independent research and development or acquisition of start-ups. and service.

(6) Industrial Internet has become the new blue ocean of network security industry

As the threats to industrial control systems and OTs increase exponentially, the government's regulatory requirements for industrial safety will continue to increase the demand for industrial safety. It is expected that by 2022, the industrial security market will reach $13.88 billion.
In recent years, many start-ups focused on industrial control and industrial Internet security have emerged at home and abroad. At the same time, the original security vendors are also working hard to develop the industrial security market, which is characterized by active investment and financing and M&A activities in the industrial security field.

(7) Data Protection Legislation Promotes Data Security Market Outbreak

According to the Gartner 2017 User Security Spending Behavior Survey, 51% of companies stated that data security risk is the main driver of overall security spending, with more than 70% of companies/organizations increasing their data security budgets by 2018. With the official implementation of the GDRP in May 2018, the provision of GDPR compliance products and services has become an important business for major cybersecurity companies worldwide, including Microsoft, IBM, Accenture, Ernst & Young, PricewaterhouseCoopers, BAE Systems, Imperva, Symantec and Forcepoint. And other manufacturers have released their own products and services. In China, it is expected that as the application scenarios of big data continue to mature and the laws and regulations are gradually improved, the market demand in the field of data privacy and security will also explode.

(8) The network security market calls for "one-stop" service mode

At present, there are many network security vendors, products and technologies are becoming more and more detailed, and it is difficult for users to accurately select products to achieve comprehensive network security defense. Therefore, manufacturers who can provide one-stop network security products and services are urgently needed. Vendors are also actively responding to the establishment of a comprehensive network security product and service system through self-study or cooperation with professional vendors in the security segment. For example, companies such as Fortinet and Capgemini Group have built end-to-end network security services. This trend is expected to bring greater concentration to the industry. Correspondingly, the development of security products also has integrated requirements, and large and comprehensive network security platform products are still favored by customers.




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(9) Network security awareness and training market potential began to release


Network security awareness and training has become one of the important contents of security services provided by many security vendors, including Symantec, Kaspersky, Rapid7, ESET, etc., and has established security awareness training services such as course training, online training, and phishing simulation tests. In addition, some companies that focus on cybersecurity awareness training are also growing rapidly. In the future, more companies and organizations will realize the importance of cybersecurity training and will drive the growth of the market in this field.

(10) Geopolitical factors strengthen network security market barriers

From the perspective of policies implemented by countries, security-related matters usually require the commitment of domestic enterprises, or at least the ability of multinational corporations to have localized services, and the supervision of the host government. Between countries with severe geopolitical influences, the business of cybersecurity companies will be seriously affected by conflicts with national security interests, and even be completely resisted by the government of the other country. Therefore, this global market barrier caused by geopolitical factors has led to the fragmentation of the network security enterprise's operating space, which will bring challenges to the company's market development and future growth.