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Cybersecurity market ‘grows 16% despite deteriorating economy’

Matthew Ball Canalys.jpg

The worldwide cybersecurity market grew 15.9% year on year in the third quarter of 2022, despite deteriorating economic conditions, according to the latest survey from Canalys.

The market reached US$17.8 billion in the quarter, though the figures show it is highly fragmented, with 12 vendors holding around 48% and the rest having 52%.

Matthew Ball (pictured), chief analyst at Canalys, noted a change in the market.

“Many cybersecurity vendors have shifted toward subscription-led business models, which also helped to shield them from the immediate impact of the economic slowdown,” he said.

“The move to subscription-based platforms and increased focus on upselling existing accounts will sustain revenue growth for cybersecurity vendors over the next 12 months.” 

Palo Alto Networks was the biggest vendor in the quarter, though with only an 8.4% market share. It grew 24.9% year on year.

Cisco was the second-largest vendor, with growth of 16.7% and a flat market share of 6.9%. Canalys placed Fortinet in third position, with growth of 29.9% to reach a 6.7% market share, up from 6.0% a year ago. 

The technology sector faces deteriorating economic conditions, said Canalys, increasing uncertainty and greater scrutiny of IT spending, factors that most vendors considered in their forecasts.

Falls in new business, reductions in spending commitments and delays to subscription start dates were worse than expected, which will filter into future results.

North America remained by far the largest cybersecurity market, with $9.6 billion of sales, representing 53.8% of global spending. It was also the fastest-growing market at 17.1% year on year. EMEA sales reached $5.2 billion, Asia-Pacific $2.4 billion and Latin America $0.6 billion.