Spear Phishing Market size is projected to reach $1.94 billion by 2025 from $ 922.46 Million in 2018, with a CAGR of 11.30% during 2020-2025. The market is driven mainly by increasing spear phishing attacks, increasing organizational adoption of BYOD policy, and increasing security solutions for cloud email. Moreover, the cyber threats to critical infrastructure and growing digital data volume are causing spear phishing solutions to be adapted. In addition to Spear phishing, SMS phishing has also grown in popularity among cyber criminals. Public awareness about phishing, smishing and other attacks continues to increase, as many cases are reported in the media.
- Due to advanced technology and easy adoption in countries such as the United States, North America accounts for the largest Spear phishing market share.
- Based on component, the solutions segment is anticipated to rise at the highest CAGR during the forecast period.
- Critical Infrastructure segment among vertical is expected grow with a high CAGR during 2020-2025
By Component - Segment Analysis
The spear phishing market was segmented into solutions and services based on the component. From 2020 to 2025, the solution segment is expected to grow at the highest CAGR of 9.23% during 2020-2025. This growth is due to the wider adoption of such solutions by various companies, such as BFSI, government & defense, healthcare, and retail to increase their IT security effectiveness. Such tools help monitor emails and email gateways and prevent data loss by providing full visibility to inbound and outbound emails across a variety of industries. Solutions include spam filtering, avoidance of data loss, email authentication, intelligence risk, email archiving, and malware attack warnings. Security Companies have been alerting about spearfishing during the past years and the use of spear phishing protection solution has been increasing. For instance, Barracuda released a Comprehensive Anti-Spear Phishing Solution Called Sentinel in 2017, the cloud-based system uses artificial intelligence technology to block hazardous messages in real time, including prevention of domain fraud and functionality of end-user awareness. Such innovations by various competitors drive the growth of the spear phishing market's solutions segment.
By Vertical - Segment Analysis
Based on vertical, the critical infrastructure segment is projected to grow in the spear phishing market at a CAGR of 7.23% during 2020-2025. The critical infrastructure industry comprises energy grid plants, nuclear power plants, and water installations. Smart Grids uses the Internet of Things or IoT, Big Data and data analytics with top-of - the-line artificial intelligence and machine learning, specific standards of communication used to send data from one point to another and more technologies. According to Energy's Smart Grid system report from the U.S. Department, the U.S. In 2016, utilities invested around $144 billion in electricity generation, transmission and distribution systems. Annual smart grid investment grew from $3.4 billion to $4.8 billion between 2014 and 2016 and is anticipated to reach $13.8 billion by 2024.The increase in investments for technology and security based solutions has been primarily attributed to the demand for this segment.
By Geography - Segment Analysis
The Spear Phishing market share for the North American Region will be 37.33% during the forecast period due to enhanced digitization, smartphone email access, and online browsing in this region. For instance, according to Adestra, a one-to - one email marketing solutions firm, 61 % of emails opened in the U.S. took place on mobile, 15 % on desktop and 24 % on a webmail client in 2017. The high market share of the region is also because of high investments by leading manufacturers in technological up gradation of the cyber security system and broad trends in consumer acceptance of products. The government funding also leads to the region's high market share. For instance, The President's budget of the FY 2019 includes $15 billion in budget authority for cyber-related activities, a rise of $583.4 million (4.1 percent) above the FY 2018 estimate. In FY 2019, the Department of Defense announced $8.5 billion in funding for cybersecurity, an increase of $340 million (4.2%) above the FY 2018 estimate.
Drivers – Spear Phishing Market
- Increasing Incidents of Spear Phishing Attacks
Spear phishing is an email phishing threat from spammers or attackers to organizations in order to gain business confidential and sensitive data. Typically it's done by email or social media. Usually it is used by the attacker to gain access to corporate secrets and financial data. Spear phishing protection is used to remove and protect confidential information from all unauthorized access in the enterprise systems. The average financial cost of a data breach is $3.86 million, and phishing accounts for 90% of data breaches, according to IBM's Cost of a Data Breach Report. Business Email Compromise scams accounted for more than $12 billion in losses, according to the Federal Bureau of Investigation from October 2013 to May 2018.Also, the phishing attacks in Webmail/Online Services has increased from 12% to 26% in 2017 of all the phishing attacks reported. This increase in the number shows that there is a great demand for anti-phishing solutions and this drives the market.
Surging adoption of digitization in the industry verticals is contributing of the growth of the market
Growing adoption of cloud email security solutions and increasing numbers of cybercrimes in various end-user industries such as banking and finance, defense, healthcare, and retail. The demand for convergence of Spear Phishing solutions with other mainstream technologies also drive the market. For instance, India's digital lending was at $75 billion in FY18, according to India Brand Equity Foundation. Digital lending is projected to reach $1 trillion by FY2023 driven by the five-fold increase in digital disbursements. Digital lending to micro, small and medium-sized enterprises (MSMEs) in India is expected to reach $100 billion by 2023. This growth in digitization will give rise to opportunities for more phishing operations, which in turn will boost market demand.
Challenges – Spear Phishing Market
- Lack of knowledge and understanding of current threats and cyber warfare
Lack of knowledge and understanding of cyber-attacks is expected to hamper the growth of the spear phishing security market in various end-use industries. According to FBI, in recent years, Business Email Compromises (BEC) hackers have focused heavily on the real estate sector. BEC scams are on the rise to target the real estate sector. From calendar year 2015 to calendar year 2017, there was an increase in the number of BEC victims reporting the real estate transaction angle over almost 1100% and a nearly 2200 percent increase in the reported monetary loss. Such increasing number shows that the anti-phishing solutions are not being successful in preventing the phishing activities. The lack of knowledge to develop and use anti phishing solution will cause hindrance to the growth of the market.
Technology launches, partnerships and R&D activities are key strategies adopted by players in the Spear Phishing market. In 2018, the market of Spear Phishing has been consolidated by the top five players accounting for 39% of the share. Spear Phishing top 10 companies are Cisco Systems Inc., Votiro Inc., IronScales Ltd., Microsoft, Symantec Corporation, PhishLabs, Cofense, Trend Micro Incorporated, Mimecast and Barracuda Networks Inc.
- In May 2019, for the management of phishing detection and response, IRONSCALES entered into a strategic alliance with BDO MDR. It will allow the company to ease the burden on its SOC team and will now be able to deliver time savings and risk reduction benefits to its customers that will keep the company's customers and make it a dominant force.
- Cofense introduced its latest technology in February 2019. It is an addition of response delivery to its flagship product, enabling users to send phishing scenario emails only when intended recipients perform the task effectively in their mail client. The product will gain the consumers and raise the company's revenue.
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