CIO Insider

CIOInsider India Magazine

Separator

Cybersecurity Firms to Record Strong Growth on the Rear of Increasing Threat of Hacks

CIO Insider Team | Tuesday, 23 May, 2023
Separator

Top US cybersecurity companies are expected to report another quarter of strong growth as high-profile hacks and a shift in client preference for bigger players with better-integrated offerings help support their businesses in a turbulent economy.

Palo Alto Networks, the largest player in the space by market share and valuation, will kick off sector earnings with what analysts polled by Refinitiv estimate to be a near 24 percent increase in quarterly revenue.

That compares with growth of almost 26 percent in the prior quarter and 29 percent a year earlier, underscoring the resilience in demand for the services, seen as essential despite a wider tech spending slowdown.

Cybersecurity has become more crucial than ever due to the rapid digital transformation taking place across industries,” says Akshara Bassi, an analyst at Counterpoint Research.

More frequent cases of security threats have also boosted demand. In recent months, Western Digital and the US Transportation Department faced breaches that exposed the information of the memory chipmaker's customers and 237,000 US government employees.

Top cybersecurity providers Palo Alto Networks, CrowdStrike Holdings and Fortinet Inc, which offer a range of services including cloud and identity protection, are set to benefit from the consolidation trend

Worldwide spending on cybersecurity solutions is expected to raise 12.1 percent to hit $219 billion in 2023, according to data from market analytics firm International Data Corporation.

Analysts said enterprise customers were also consolidating their cybersecurity software vendors in a bid to reduce the complexity of their operations and safeguard themselves from attacks.

Top cybersecurity providers Palo Alto Networks, CrowdStrike Holdings and Fortinet Inc, which offer a range of services including cloud and identity protection, are set to benefit from the consolidation trend, according to reports.

Current Issue
ARETE: Pioneering Cyber Risk Solutions & Transforming The Future Of Cybersecurity