Cyber security industry set to soar past £1bn this year

High-profile ransomware attacks, including the recent Royal Mail breach, are pushing up the value of the cyber security industry, which is set to top the £1bn mark in market size, driven by increased demand for protection.

An analysis by digital identity specialists ID Crypt Global shows there has already been major growth within the space over the past decade, doubling in size from £456.8m in 2012 to £961.4m but the past year alone has seen a 10.7% jump; the third highest annual increase since 2013.

This growth has been driven by demand within the sector and, today, there are currently 188 operational businesses servicing this demand, a 132% increase versus a decade ago.

Despite this increase in competition, it remains a profitable space to be in, with the average revenue per business up 6% in the last year to £5.1m.

This growth is expected to continue in 2023, with the estimated size of the market expected to increase by a further 7.1%. In doing so, this would push the total value of the sector beyond the £1bn mark, increasing the average revenue per a business by 2.2%, despite the fact that the number of operational businesses is also expected to climb by 4.8%.

ID Crypt Global founder and CEO Lauren Wilson-Smith commented: “The world is becoming increasingly more digitised and this means that the digital identity we hold within it is becoming a far more prominent aspect of our day to day lives.

“Everything from the way we shop, travel, communicate and even prove our identity is now done digitally and while it may provide a heap of benefits, it also increases our susceptibility to cyber criminality.

“It is perhaps no surprise that the cyber security sector has seen such remarkable growth in recent years, but it’s important that the sector continues to innovate and evolve with the landscape.”