Global Cyber Security spending is expected to reach $60 billion in 2011 and is forecast to grow at 10 percent every year during the next three to five years. The U.S. accounts for more than half of all deals globally triggered by growing cyber threats and increasing awareness among both organizations and consumers of accelerating breaches and attacks, from our report. Total deal activity since 2008 has exceeded $22 billion globally. In the first half of 2011, there were 37 deals accounting for over $10 billion in deal value, representing a 70 percent increase compared to full year 2010. Since 2008, the total investment in global Cyber Security deals has exceeded $22 billion, an average of over $6 billion in each year.
In most regions, the private sector accounts for the majority of Cyber Security spending, while the U.S. is the notable exception where government spending is almost equal to the private sector. The strong U.S. technology industry combined with the fact that the U.S. defense and intelligence budgets are significantly larger than in any other country are key market drivers.
Other key drivers underpinning growth in Cyber Security spending include:
Here we provide a breakdown and analysis of deal activity in the Cyber Security market and examine some of the underlying forces and trends that are driving this rapidly evolving industry.