Hack attacks and compliance concerns are expected to push the cybersecurity sector to grow at a compound annual rate of 9.5% by 2027.
That is according to new research from Absolute Markets Insights. It attributed the rise of the market for companies providing cybersecurity for the financial industry to the evolution of technology.
Essentially, the Fourth Industrial Revolution has made bigger parts of the financial industry run by machines, which has in turned motivated lawmakers around the world to become even stricter when it comes to cyber threats.
With new laws popping up across the world that regulate digital defences, financial services firms have been forced to respond, resulting in the growth of the cybersecurity market.
The growing cyber threat is also a reason for the growth of the industry. Absolute Markets Insights noted that there were approximately 1,579 data breach incidents in 2017, out of which 8.5% was experienced by financial sector.
This is in line with RegTech Analyst’s own research. Cybersecurity has grown its part of the RegTech investment space since 2014. That year it was as 14%, according to RegTech Analyst’s data. That number grew to 20.9% in 2018 and to 36.9% in the first six months of 2019.
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