Market Size and Overview:

According to our research report, the global security incident management market is estimated to reach a total market valuation of USD2.84 billion by 2023 to USD 5.9 billion by 2030. The market is projected to grow with a CAGR of 11% per annum during the period of analysis (2024 - 2030).

Industry Overview

In the face of cyberattacks, commonly known as cyber incidents, security breaches, and information technology (IT) issues, incident response management entails a methodical and coordinated series of protocols and strategies to be employed. These various incident response alternatives integrate case management, orchestration, automation, and intelligence capabilities into a cohesive framework, enabling security teams to assess, quantify, and improve these alternatives. Enterprises utilize incident response tools to monitor sophisticated attacks and fraudulent activities across endpoints and networks.

The frequency of cyberattacks is on the rise, accompanied by stricter compliance standards for businesses, driving market expansion over the projected period. Businesses are entrusted by customers to safeguard the personal information they furnish in exchange for tailored services. Consequently, businesses allocate significant resources to secure customer data in alignment with regulatory compliance objectives. Other factors expected to propel the growth of the global incident response market throughout the forecasted period include mounting organizational concerns regarding customer data security and recovery. A well-defined incident response plan mitigates the potential impact of a security breach, facilitating uninterrupted enterprise operations. Furthermore, it implements a vital strategy for thwarting subsequent attacks. Swift action and seamless implementation of pre-established crisis response protocols can prove advantageous.

Enterprises handling sensitive data are particularly vulnerable to cyber threats. Examples of such data include personal information, financial records, and legal documents. Attackers may target both businesses and individual users whose data has been compromised, intending to pilfer and exploit sensitive information. Due to limited financial resources, Small and Medium-Sized Enterprises (SMEs) frequently neglect incident response planning. Typically, SMEs do not accord high priority to cybersecurity awareness due to their modest scale and resource constraints. Moreover, SMEs often lack robust disaster recovery and data backup mechanisms, underscoring the critical role of incident response systems in these enterprises.

Market Drivers

Rise in security breaches will propel market expansion

Effective identification and response to cybersecurity incidents such as data breaches are pivotal in incident response management. By minimizing damage, reducing recovery time, and curtailing costs, incident response facilitates cyberattack management. Through incident response services, businesses can fortify their defenses against evolving threats. Additionally, leveraging an incident response team, organizations can formulate tactical approaches for proactive incident response initiatives and bolster their existing threat detection mechanisms. Consequently, every organization aspiring for swifter and more effective response to diverse security challenges must devise an incident response strategy. The surge in security breaches is attributed to the proliferation of innovative technologies across various industries, driving revenue growth in the market.

Surge in social media platform usage will fuel market growth

The burgeoning usage of social media platforms, coupled with the advancement of digitalization, internet proliferation, and mobile adoption, primarily propels the incident response market. Moreover, social media platforms, in tandem with stringent government regulations, contribute significantly to the evolution of the incident response landscape.

Market Restraints

Inadequate incident management budget poses a challenge to market expansion

The incident management budget remains relatively modest compared to overall IT expenditure, exerting a dampening effect on the incident response market. Furthermore, findings from the IAPP-EY Annual Privacy Governance Report 2018 indicate a decrease in the average privacy budget from $2.1 million in 2017 to $1 million in 2018. This steep decline can be attributed to various factors, including substantial expenditure on the regulatory compliance cycle or surpassing budgetary allocations from the preceding year.

Segmentation Analysis

Global Security Incident Management Market- By Enterprise Size:

• Small and Medium-Sized Enterprises
• Large Enterprises

Small and Medium-Sized Enterprises (SMEs) often overlook incident response plans, typically due to their limited scale and resource constraints, resulting in a lower priority on cybersecurity awareness. However, with the rapid adoption of advanced technologies, SMEs become increasingly susceptible to cyberattacks. In the event of an unexpected attack, incident response solutions provide SMEs with the necessary guidance for response and recovery, aiding in the reduction of security breaches. Gradually, SMEs are turning to incident response services and solutions to enhance their cybersecurity posture.

The largest share of revenue in 2021 was attributed to the substantial cybersecurity budgets allocated by large enterprises, driving the implementation of incident response measures. Large enterprises are prime targets for cyberattacks due to their extensive customer base, which generates significant volumes of sensitive data.

Global Security Incident Management Market- By Security:

• Web Security
• Application Security
• Endpoint Security
• Network Security
• Cloud Security

In 2021, cloud security emerged as the segment with the highest revenue share. Cyberattacks in cloud environments are managed through a streamlined process known as cloud incident response, which differs significantly from non-cloud incident response systems in terms of governance, shared responsibility, and visibility.

The network security segment contributed a significant portion of revenue in 2020 and is expected to witness rapid growth during the forecast period. Incident response solutions play a crucial role in safeguarding networks against online threats. Vendors offering incident response solutions cater to the diverse needs of the vertical by providing a range of products and services for protecting valuable networking assets.

Global Security Incident Management Market- By Region:

• North America
• Europe
• Asia-Pacific
• Latin America
• The Middle East and Africa

According to regional analysis, North America is projected to dominate the incident response market in terms of revenue share in 2021. The market growth is fueled by rapid technological advancements, infrastructure expansion, and enhanced IT capabilities. Government-led initiatives such as the National Cyber Incident Response Plan further promote business expansion in the region. Europe follows as the second-largest revenue contributor, driven by the increasing prevalence of sophisticated cyberattacks and significant investments by major market players in cybersecurity solutions.

The Asia Pacific market is poised to witness the fastest growth rate over the forecast period, attributed to the growing adoption of incident response systems across various industries. Businesses in the region rely heavily on big data and cloud security to fortify their defenses against cyber threats. Increased investments in advanced incident response and compliance management solutions across different countries contribute to the market expansion in this region.

Global Security Incident Management Market- By Companies

Broadcom Inc.

McAfee LLC

Palo Alto Networks

International Business Machines Corporation (IBM)

Cisco Systems, Inc.

Check Point Software Technologies, Ltd.

BAE Systems Inc.

NTT, Inc.

RiskIQ

AT&T Cybersecurity

Impact of Covid-19 on the industry

The ongoing digitalization across enterprises underscores the growing necessity for enhanced incident response systems to mitigate cyberattacks. Furthermore, the COVID-19 pandemic has prompted hospitals to deploy advanced incident response systems. The establishment of COVID-19 Incident Response Teams enables rapid cybersecurity assessment and deployment of incident response tools in hospitals, driving market growth. The incident response market is expected to witness increased demand due to the rising occurrences of security breaches, encompassing cyberterrorism, hacking, money laundering, fraud, identity theft, and related challenges.

NOTABLE HAPPENINGS IN THE GLOBAL SECURITY INCIDENT MANAGEMENT MARKET IN THE RECENT PAST:

Merger & Acquisition: - In 2022, Broadcom announced the acquisition of VMware for $61 billion in cash and stock, enhancing business clients' options and flexibility in addressing complex IT infrastructure issues.

Merger & Acquisition: - In 2021, McAfee Corp. was acquired by an investor group led by Advent International Corporation and Permira Advisers LLC, Crosspoint Capital Partners, underscoring a strategic move in the online security market.

Product Launch: - Sangfor Technologies introduced its Incident Response (IR) Service in 2020, tailored to the diverse needs of small and medium enterprises in the APAC region. This service facilitates the identification of external threat attack surfaces, enhances security awareness, and improves security capabilities, addressing critical cybersecurity requirements in the market.