KBS - Cyber Security & I.T. Infrastructure - Market Insight

GROWING CYBER MARKET POTENTIAL: 1. MORE ATTACKS TARGETING SMALLER COMPANIES Fast-growing smaller organisations are exposed to proliferating digital touchpoints and ecosystem relationships. Moreover, the trust of customers can prove difficult to recover once a company has been breached. Mid-market entities are often targeted by criminals looking to exploit unsophisticated security tooling. 2. REGULATION Federal initiatives include the US National Defense Authorization Act, Executive Order 14028,5 and the extension of the False Claims Act to include the misrepresentation of an organisation’s cyber security programme and qualifications.

Rules around the world are equally stringent. The European Union’s General Data Protection Regulation, for example, may levy fines of up to 4% of global turnover against companies that fail to protect their customers.

Compliance to regulatory standards poses an increased challenge as new laws are put into place. Companies need to ensure they are equipped to meet the requirements and to protect their customers when it comes to cyber security concerns. 3. TALENT SHORTAGES A global cyber security talent shortage means companies have little choice but to do business with third-party service partners.

Across all segments, forecasted changes in allocated security spending are increasing as a percentage of services between internal and third-party services.

VC funding in infosec (information security) in North America and Europe is rebounding, driven by late-stage rounds. There was $8.8bn in VC funding through Q3 2024, putting the market well on course to surpass 2023’s total of $10.9 billion. The pre-seed stage is not prominent, lagging behind both the early and late stages. Moreover, the market is watching the recent listing of Rubrik, which went public in April 2024 and rose more than 45% by the end of the year. Therefore, the IPO pipeline is strong and has benefited from Rubrik’s performance.

Revenue in the cyber security market was projected to reach $185.70bn in 2024