After the notable dip in the first quarter of 2023, cybersecurity investments have picked up pace in April.
Deals finalized in April include Maltego ($100 million), Coro ($75 million), Safe Security ($50 million), Halcyon ($20 million), Push Security ($15 million), Votiro ($11.5 million), and CYFIRMA ($5.5 million).
Mergers and acquisitions also registered an uptick in April, with 38 cybersecurity-related mergers and acquisition (M&A) deals announced in the month, reported SecurityWeek.
Market estimates have also predicted a bright future for the industry.
According to a study by Global Market Insights Inc, the valuation of the cyber security market is projected to exceed $900 billion by 2032.
Another report by ResearchAndMarkets.com predicts that the market will grow from $201.3 billion in 2022 to $360.4 billion in 2027, at a rate of 12.4%, and is expected to continue growing at a CAGR of 14.2% from 2027 to reach $699.4 billion in 2032.
Cybersecurity investments: The M&A numbers
Apart from the sectoral growth, cybersecurity has become a crucial factor in almost all mergers and acquisitions, according to the 2023 Asia Pacific regional M&A report by Mergermarket.
“Increasing numbers of M&A participants worldwide are growing more anxious about the cybersecurity threat. In the APAC region alone, 23 percent of dealmakers think cybersecurity technologies will be a priority over the year ahead,” the report said.
Here are some of the notable deals reported in April:
|Acquirer||Target||Country||Deal Type||Deal Value|
|Charlesbank Capital Partners||Maltego||USA||Acquisition||$100M+|
|Drumz||Acuity Risk Management||UK||Acquisition||£3.6M ($4.5M)|
|F-Secure||Lookout’s consumer mobile security business||USA||Acquisition||N/A|
|MajorKey Technologies||Legion Star||USA||Acquisition||N/A|
|Parsons||IPKeys Power Partners||USA||Acquisition||$43M|
|Yubico||N/A||N/A||Merger with SPAC||$800M valuation|
“Against the broader economic picture, cybersecurity remains comparatively strong,” DataTribe noted in its 2022 Q4 Insights.
“Security is no less vital a function than in years past, but startups and established security vendors alike must now contend with a more discerning buyer.
“Without a clear and demonstrable value proposition, and sufficient capital to weather the storm, many startups, security included, will succumb to the change in market dynamics.”
Given the increasing significance of cybersecurity and the demand to guard against more advanced and frequent cyber threats, it’s expected that dealmakers will be busy this quarter.
Cybersecurity investments: What lies ahead
According to a recent research study conducted by Global Market Insights, the global cybersecurity market is expected to surpass $900 billion by 2032.
The report attributes the predictions to a surge in cyber-attacks and an increased awareness of the need for cybersecurity measures across various industries
“The growing need for the protection of sensitive personal data in the IT & telecommunications sector has led to an increase in the demand for cybersecurity solutions,” the report said.
“Customer data is another traditional high-impact target associated with the industry. Moreover, government authorities are enforcing an increasing number of cybersecurity compliance regulations.”
The report also highlights the need for businesses to adopt a proactive approach to cybersecurity, rather than relying solely on reactive measures.
The adoption of proactive measures, such as regular security assessments, employee training programs, and the implementation of robust security protocols, can help businesses mitigate the risk of cyber-attacks and minimize the impact of any security breaches.
Meanwhile, a ResearchAndMarkets.com report predicted cybersecurity market to grow from $201.3 billion in 2022 to $360.4 billion in 2027, at a rate of 12.4%.
According to the report, the market will grow at a CAGR of 14.2% from 2027 to reach $699.4 billion in 2032.
“The infrastructure protection market was the largest segment of the cybersecurity market segmented by solution accounting for 28.0% of the total in 2022,” the report said.
“Going forward, the cloud security market is expected to be the fastest growing segment in the cybersecurity market segmented by solution, at a CAGR of 15.0% during 2022-2027,” it added.