Cybercrime is a growing threat to corporations and their customers, who are increasingly using online web services and mobile apps. Several regulatory mandates, including GDPR (General Data Protection Regulation) to PSD2 (Payment Services Directive 2), all require high standards of cybersecurity.
From a compliance perspective, secure IT systems and data storage is now a 'must-have' requirement. In the event of a data breach, there are significant fines for non-compliance with the appropriate data protection guidelines.
Due to ongoing regulation enforcement, some companies are already facing fines for not disclosing data breaches. Furthermore, the lingering damage to their commercial reputation may be difficult to quantify.
Cybersecurity Market Development
According to the latest worldwide market study by Juniper Research, over 33 billion records will be stolen by cybercriminals in 2023 alone -- that's an increase of 175 percent over the 12 billion records expected to be compromised in 2018, resulting in a cumulative global loss of over 146 billion records.
The new research found that regardless of regulations like GDPR and PSD2 mandating strong cybersecurity and authentication measures to protect personal and financial data, average levels of cybersecurity spending will remain relatively static.
Moreover, data protection investments by small businesses in 2018 will only make up 13 percent of the overall cybersecurity market, despite over 95 percent of all companies being classified as small businesses. In addition, the cost of breaches can exceed millions of dollars, dwarfing the revenue and profit of such businesses.
Many of these smaller companies use consumer-grade software protection products, spending on average under $500 per year on cybersecurity. With many such businesses digitizing, this will leave them vulnerable to newer forms of malware which require more advanced cybersecurity, beyond simple endpoint protection.
"Juniper’s strategic analysis of 48 leading cybersecurity companies shows that AI and predictive analytics are now table stakes for this market," said James Moar, analyst at Juniper Research. "These technologies need to be made available to all businesses, regardless of size."
Outlook for New Cyber Crime Disclosure
Additionally, the market study uncovered that the U.S. market will likely become a more prominent target for cybercriminal activity over the next 5 years. Juniper analysts expect over half of all data breaches globally to occur in the U.S. marketplace by 2023.
This is because the country has much national and international consumer and corporate data in a disparate range of institutions and regulations; making it easier to find and exploit systemic weaknesses.
In contrast, the lowest report of new breaches will be within Asia-Pacific, which has little in the way of mandatory reporting requirements, and Japan, where cultural predilections will overrule the disclosure requirements, helped by relatively low regulatory fines.
From a compliance perspective, secure IT systems and data storage is now a 'must-have' requirement. In the event of a data breach, there are significant fines for non-compliance with the appropriate data protection guidelines.
Due to ongoing regulation enforcement, some companies are already facing fines for not disclosing data breaches. Furthermore, the lingering damage to their commercial reputation may be difficult to quantify.
Cybersecurity Market Development
According to the latest worldwide market study by Juniper Research, over 33 billion records will be stolen by cybercriminals in 2023 alone -- that's an increase of 175 percent over the 12 billion records expected to be compromised in 2018, resulting in a cumulative global loss of over 146 billion records.
The new research found that regardless of regulations like GDPR and PSD2 mandating strong cybersecurity and authentication measures to protect personal and financial data, average levels of cybersecurity spending will remain relatively static.
Moreover, data protection investments by small businesses in 2018 will only make up 13 percent of the overall cybersecurity market, despite over 95 percent of all companies being classified as small businesses. In addition, the cost of breaches can exceed millions of dollars, dwarfing the revenue and profit of such businesses.
Many of these smaller companies use consumer-grade software protection products, spending on average under $500 per year on cybersecurity. With many such businesses digitizing, this will leave them vulnerable to newer forms of malware which require more advanced cybersecurity, beyond simple endpoint protection.
"Juniper’s strategic analysis of 48 leading cybersecurity companies shows that AI and predictive analytics are now table stakes for this market," said James Moar, analyst at Juniper Research. "These technologies need to be made available to all businesses, regardless of size."
Outlook for New Cyber Crime Disclosure
Additionally, the market study uncovered that the U.S. market will likely become a more prominent target for cybercriminal activity over the next 5 years. Juniper analysts expect over half of all data breaches globally to occur in the U.S. marketplace by 2023.
This is because the country has much national and international consumer and corporate data in a disparate range of institutions and regulations; making it easier to find and exploit systemic weaknesses.
In contrast, the lowest report of new breaches will be within Asia-Pacific, which has little in the way of mandatory reporting requirements, and Japan, where cultural predilections will overrule the disclosure requirements, helped by relatively low regulatory fines.