Reasons for the Boom of India’s Cyber Security Industry despite Pandemic

Posted on: Jun 8, 2022 | 3 mins | Written by: HDFC ERGO Team

Reasons for the Boom of India’s Cyber Security Industry despite Pandemic

During the outbreak of the Covid-19 pandemic, a number of industries closed down, and industrial development experienced a tremendous downfall on the global scale. However, amidst such circumstances, the cyber security industry of India experienced an unexpected boom and reached new heights, touching new milestones and creating new highs. The cyber insurance industry has also grown along with it.

Growth Statistics

The Data Security Council of India has reported that the total revenue of the cyber security services and products reached $9.85 billion in 2021, from 5.04 billion, back in 2019. The growth has happened at an approximate CAGR of -40% in these past couple of years. The service industry boomed from $4.3 billion back in 2019 to reach $8.48 billion in 2021, the CAGR being 40.33%. The CAGR of the product industry is 36.49%, recording a growth from $740 million in 2019 to a new $1.37 billion, in the year 2021.

Such unbelievable growth has boosted the fast digitalisation and enhanced the standard regulatory focus on privacy and data. Moreover, it has also improved the normal standard awareness of cyber threats, among several other important factors. Such boom has also impacted the country’s cyber security workforce, from 11,00,000 employees strength in 2019 to 2,18,000 in 2021, despite the presence of talent deficiency.

India—Risk of getting attacked, especially by ransomware

The principal driving force of the growth of the Indian cyber security industry during the last couple of years is because of the exhausting digital transformation. Other responsible factors include the implementation of stricter regularity principles and practice with enhanced attention to privacy and data, and improved board-level consciousness of probable and potential cyber threats. This stands especially true as India was especially attacked by ransomware during these pandemic times.

A combined survey by Crowdstrike and VansonBourne, reveals that nearly 76% of the Indian organisations, experienced a ransomware attack at least once, during this two-year time frame, especially in 2021. This statistic is comparatively much higher than the global average. Nearly 49% of the Indian firms, possessing a digital credential, have experienced ransomware attacks more than once.

Pre-eminent consulting firms

India maintains a share of 55% in the IT outsourcing genre, across every domain, on a global scale. This logically implies that multiple cyber security firms dominate the Indian market like Infosys, Wipro, TCS, etc. Their multi-faceted expertise allies them to dominate the industry on several levels, ranging from designing security frameworks, management controlling, implementation and consulting services, etc.

These giant corporations have expanded their business domain beyond the geographical boundaries of India and have established several cyber-related defence centres, R & D centres, across the world, for offering enhanced service to their customers.

According to DSCI, most of the service companies have succeeded in generating nearly 80-85% of their international revenue in 2021, whereas, the cyber security product benefactors, have successfully derived nearly 60-65% of their total revenue earnings from the context of the Indian market.

Startups in trap

Apart from the service and consulting giants, the firm support of the relevant authorities of the country along with the cyber security startup environment has experienced a significant boost in these last one or two years. Apart from the launch of several accelerations and incubation programs, there have been ample funding opportunities along with the toning of a competent talent pool. Despite the existence of a talent shortage, the Indian cyber security workforce has experienced a significant boost during the pandemic period.

Therefore, we can see that India is fast emerging as an able and competent cyber security service provider globally and the startups are also gradually expanding their wings on the international level. Some of the most promising startup foundations include WiJungle, offering a unified system of network security entrees; safe Security was formerly known as Lucidus, whose reliable SAFE platform offers exclusive real-time monitoring and assessment to multiple enterprises.

Improving the Franco-Indian co-operation

France has eventually established firm connections with India in the cyber security arena through their national Agency for Information Systems Security (ANSSI). This connection has led to the launch of the special Indo-French Roadmap on cyber security and Digital Technology, which was signed in 2019. This has highlighted the importance of strengthening and further pursuing the strategic defence dialogue against probable cyber threats. Not only that, this has even established and affirmed their commitment to stable, open, secure, peaceful, and reliable cyberspace.

Such conglomeration implies that from now onwards, both France and India target strengthening information sharing for responding effectively to cutting-edge cyber threats. They even strive to improve their coordination towards supporting several discussions in multilateral installations. This implies the successful implementation of the different norms for effective responsible behaviour of the cyberspace states and effective application of various international laws, as was adopted in all the major reports generated by the United Nations Groups of Governmental Experts.

International market

According to the reports of DSCI, worldwide consumers account for a total of 80-85% of the total amount of security services revenues, with countries like the US and Europe, being the two most lucrative markets. This happens because of the strict regulations, enhanced awareness of security and improved budgets for cyber security.

Reports claim and reveal that there has been a substantial upsurge in the services industry in respect of technology, people, and process. The service delivering models are expanding their reaches as per the increased demand to keep pace with the new surging wave in the industry.

Important statistics reveal that the entire Asia-Pacific region, including India, has accounted for 58% of the entire revenue generated through the designs of multiple cyber security products. However, North American demands were essentially robust during the tough pandemic times back in 2020.

Conclusion

With the advent, emergence, and implementation of multiple competent policies regarding cyber security, India is experiencing a strong boost in the cyber security industry. The relevant startups are also experiencing a new boost because of the changing circumstances. Cyber insurance, an associated industry, is also impacted by this boom.

Disclaimer: The above information is for illustrative purpose only. For more details, please refer to policy wordings and prospectus before concluding the sales.

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