This post is part of our 2023 cybersecurity prediction series.
Alberto Yépez, Co-Founder & Managing Director, Forgepoint Capital
Proactive preparation will propel the cybersecurity market forward.
In 2021, organizations around the world spent around $150 billion on cybersecurity, indicating more than 12 percent annual growth, while revenue in the cybersecurity market was also expected to surpass $156 billion this year. This trend will continue in 2023 as the threat landscape grows increasingly more active and complex. More specifically, as ransomware continues to skyrocket, organizations will seek support modernizing their defenses, revamping threat detection, and response capabilities with the understanding that attacks are now inevitable. In order to proactively prepare, companies will consider new functions like breach simulations, refined training programs, cyber insurance and more.
Beyond attacks themselves, the cybersecurity market will be further fueled by regulatory compliance standards, cloud migration and global digital transformation across business and government, especially as the hybrid workforce model evolves from a pandemic response to a regular way of doing business. All of these components help organizations meet business needs, but also simultaneously complicate their cybersecurity posture and create the need for design to scale approaches. As a result, cybersecurity will continue to cement itself as a key enabler across business functions and organizations will prioritize proactive investment in 2023.
Third party services will become the new ‘911’ for exasperated organizations.
In 2022, the cybersecurity landscape grew increasingly more complex, resulting in frequent and harmful activity from threat actors. Yet, market conditions limited ways to combat these threats as CISOs and other security decision-makers have been traditionally pressured to do more with less. Out of these challenges emerged a serious need for organizations to shore up their defenses in a holistic yet affordable way. Cue: Managed Service Providers (MSPs) and Modern Managed Security Services Providers (MSSPs).
With the opportunity to fill specific pain points within small and medium businesses (SMBs), MSPs and MSSPs have delivered unparalleled strength for organizations — providing both the financial ease of working with one vendor as well as the security strength to sharpen defenses. With the current market penetration being around 30 percent, the shift to a broader uptake of MSPs and MSSPs will only increase in the new year as organizations look to solve the issues created by large security stacks. Providers that offer both preventative and reactionary security tools, along with partnerships with cyber insurance and remediation experts, will have the edge.