A report by Bank of America Merrill Lynch examined investment opportunities for firms in the cybersecurity space.
The market itself is large and growing. Citing data from technology research firm Gartner, BofA estimated the cybersecurity solutions market is currently between $75 billion and $77 billion. It’s expected to grow to $170 million by 2020, according to market research firm Markets and Markets.
A big reason for that growth is corporate spending on cybersecurity, especially in the financial services industry, as well as telecoms, technology and manufacturing. “Cyberspend,” as BofA put it, budgets have grown nearly twice as fast as IT budgets over the past two years, and firms are spending an average 6% of their overall IT budget on cybersecurity initiatives, compared with 2% in 2010.