Cyber security industry as a very good market for founders and startups
In the course of several surveys on damage and cyber security technologies at companies, we also dealt with the question of how high the expenses for cyber security in companies are. The results of the surveys show that companies invest an average of 0.1% of their total sales in cyber security solutions, excluding services. With a gross domestic product of 3.44 trillion euros, that would be 3.4 billion for 2019 only in Germany. Global gross domestic product was $ 86.6 trillion in 2019. According to that, $ 86.6 billion would be spent on cyber security products in 2019, excluding services. But the number of employees in your own company who deal with cyber security should not be underestimated either. At the DAX companies, that is an average of 131 employees, also here approx. 0.1% of the total employees.
However, according to Credit Suisse forecasts, global spending on cyber security in 2017 was $ 135 billion and will be $ 202.4 billion in 2021. This means that the forecast growth is an average of 10% per year. This growth value is higher than the forecast for IT spending as a whole.
This means that spending on cyber security solutions will grow faster than total IT spending, which once again highlights the importance of cyber security. This makes the cyber security industry / IT security industry an ideal industry for startups to successfully establish and grow.
Europe as an engine for cyber security
Europe has invested a great deal of energy in IT security and data protection legislation in recent years. The General Data Protection Regulation (GDPR), the Regulation on Electronic Identification and Trust Services (eIDAS), the Cybersecurity Act and the Payment Services Directive (PSD2). Further regulations and guidelines are being planned. Even if the cyber security industry does not like regulations well, it will establish standards in Europe that will significantly strengthen the cyber security market in Europe and open up opportunities for the global cyber security industry.
The cyber security industry is an important economic factor with very high forecast growth rates and margins. For this reason, the cyber security industry is also ideal for founders and startups.
At p-venture we help you to found and build a successful cyber security company.