The cybersecurity market is expected to grow considerably in the years to come, with e-commerce driving the growth.
The sector could be worth $281.74bn by 2027, having grown at a compound annual rate of 12.6% between 2020, according to a new report from Fortune Business Insights, the research firm. That would more than double the current market value of $112.01bn. The researchers believed that e-commerce would be the key driver behind this growth.
Cybersecurity is the biggest RegTech sector out there when it comes to investment. The cybersecurity sector has attracted 22.2% of the total RegTech investment between 2015 and 2019, according to RegTech Analyst’s data.
Comparatively, the compliance sector only picked up 17.7% of the investment, and identification and background checking companies netted 16.2% of the total investment.
In total, RegTech companies raised over $17bn between 2015 and 2019 across 947 transactions.
The need for businesses to strengthen their digital defences is ever-growing. Hackers have provided plenty of examples for why cybersecurity is dangerous to neglect.
The massive Capital One hack that compromised data of 106 million customers’ data last summer, foreign exchange company Travelex being forced to shut down its online services for almost a month in January 2020 because of a ransomware attack and 30 million payment cards could have been compromised when US retailer Wawa was hacked in late 2019 are just some examples of big hacks.
Nevertheless, financial services executives have said that cybersecurity risks are the hardest risks to deal with.
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