The cybersecurity industry faces challenges that are different from business as usual. The potential for aggressive attacks using artificial intelligence (AI) is prompting increases in cybersecurity budgets as organizations seek to understand the impact of generative AI on security. AI is already being used to detect threats, and greater adoption of AI will undoubtedly help offset attacks. However, learning how to counter AI-driven attacks will take time, and cybersecurity vendors and users will face a difficult next two to three years, GlobalData said.
GlobalData’s latest report, “Cybersecurity – Thematic Intelligence,” reveals that cybersecurity budgets will grow in line with IT budgets in 2024 as organizations embrace the impact of AI on their operations.
GlobalData predicts that the global cybersecurity market will reach a value of $290 billion by 2027, growing at a compound annual growth rate (CAGR) of 13% from 2022 to 2027. Managed security services, application security, and identity and access management will see high growth. region.
David Bicknell, Principal Analyst for Thematic Intelligence at GlobalData, commented: “Organizations have learned how to deal with cyberattacks that intentionally target enterprise technologies such as networks, cloud storage, and endpoint devices. But AI is a game changer. We need to adapt, find weaknesses, and respond to AI attacks that can exploit them. This is uncharted territory.
“It is still too early to know where the balance will be in terms of how AI will impact an organization’s cybersecurity position. AI will help organizations improve the efficiency of threat detection, hunting, and incident response. But at the same time, adversaries will use AI in cyber attacks.A simple example is when cybercriminals use AI to generate fake messages, such as bad grammar or misspellings. They are strengthening their phishing attacks by eliminating the telltale signs.”
The major changes expected in the cybersecurity market will result in a focus on cybersecurity mergers and acquisitions (M&A) transaction activity throughout 2024. His $28 billion acquisition of Splunk by Cisco will be the catalyst for his AI-driven cybersecurity M&A deals in 2024.
Bicknell concludes: “Both startups and mature cybersecurity companies are expected to attract the attention of large vendors seeking products and talent. In addition, a large number of cybersecurity companies are being acquired, especially by a small number of private equity (PE) players. Cybersecurity M&A is expected to attract the attention of regulators.
“In October 2022, US PE firm Thoma Bravo acquired identity and access management provider ForgeRock in a $2.3 billion deal that was ultimately approved by US regulators. has announced plans to acquire Darktrace, one of the most well-known cybersecurity companies in the world, so regulators should be wary of anti-competitive behavior.”
