The switch to cloud security will increase global cyber security spending to $200 billion a year by 2024, according to a new report by Bloomberg Intelligence (BI)

BI forecasts an increase in IT expenditure as cloud-based software solutions are sought, pushing spending on cybersecurity up from the extimated $132 billion a year estimated currently.

BI’s report, Cybersecurity Primer: Accelerating Cloud Shift, predicts network and endpoint security sectors will see the fastest growth, and new market leaders will emerge to challenge the current market dominators.

Cloud security company CrowdStrike is predicted by BI to be the strongest contender to challenge the likes of Palo Alto Networks, Check Point and Fortinet.

Additionally, Zscaler and Okta are estimated to expand 3-4 times faster than the market as a whole in the coming years, whilst larger network security firms such as Palo Alto Networks could instead focus on mergers and acquisitions due strong balance sheets and reliance on cloud products, according to BI.

“The biggest upside to expectations of high single digit growth for the cyber security market may come from faster-than-expected adoption of cloud-based security in areas such as network and endpoints,” said Mandeep Singh, senior industry analyst at BI.

“These two segments with about $31 billion in combined annual revenue depend heavily on sales of appliances and on-premises software and may benefit most from a migration to the cloud.”

The market began to emerge prior to COVID-19 but has accelerated with the shift to remote working.

BI believes security spending will take a larger share of IT budgets as companies try to fend off more sophisticated cyberattacks and avoid the reputational and business risks.

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