Cyber security is expanding rapidly and why investing now is a smart move
There’s no doubt that the cyberspace is one of the investment areas to look out for in 2019 and beyond.
Let’s face it – everyone worries about the safety of their data in the wake of rising cases of cyberbullying and attacks. But while that may worry you and me, firms in this space have been smiling all the way to the banks due to the positive movements in the cybersecurity stocks.
The buzz has been so high that many investors are opting to cash in on the sector that is still at its infancy; but why should anyone bother about the cybersecurity stocks? According to a publication by one of the tech-focused dailies, cybercrime is predicted to rise and cost businesses an average of $6 trillion annually by 2021.
Allow me to explain…
You all know how it’s said that best businesses solve problems, right? Well, this, like any other sector, decided to cash in on a billion-dollar problem. As you would imagine, many smart investors are now looking to be part of the solution by banking on cybersecurity companies.
But being smart, you already knew that, didn’t you? Well, we went looking for what may not seem obvious at this point to factually understand exactly why investing in the cybersecurity sector is viable in 2019 and beyond; below are our findings.
As mentioned earlier, internet users now, more than ever, are faced with all sorts of threats.
Take, for instance, the cryptocurrency sector that has seen thousands of investors lose millions of dollars to online burglars and system glitches. And it doesn’t stop at fintech; many other sectors continue to suffer due to a violation of their online privacies. These include social media platforms, customer relations, and more.
The reality is finally dawning on people that the internet is not what it used to be back in 2000.
Cybercriminals are becoming more and more sophisticated, forcing companies to collaborate with each other to guarantee their survival. In 2017, a State of Information Security Survey conducted by PWC confirmed that more than 55% of firms prefer partnering with other organizations to boost their security.
Think about for a moment – just a few years back, would you picture banking institutions partnering with fintech companies who they considered their key competitors? Of course not! Whether anyone would wish to term that as a “marriage of convenience”, we’re here now, aren’t we?
Cybercrime is a serious menace to many companies using any form of system in their operations. And it’s a no brainer that in the 21st Century, systems are the way to go in all sectors.
As more companies continue to digitize their operations, cybercrimes continue to remain on the rise and thus the need for more cybersecurity service providers.
After all, is said and done, the truth is cybercrime is a two-sided coin; on one side, investors are having their field day while the other side represents a faction that sees things total differently.
My two cents: as an investor, don’t entirely look at cybercrime as a problem, consider it an opportunity to provide a solution. You can do so by investing in a solution or providing the solution yourself. Either way, be a part of the solution. Remember, a problem is only a problem if you refuse to fix it – if you don’t take action to solve it, it will always remain a problem.
Market Growth and Development
From the above analysis, you can clearly see that the cybersecurity space is set to encounter an enormous growth in the years to come. In 2018, the global cybersecurity market value stood at $120 billion; but various sources project the sector be worth more than twice the figure by 2024. This is about 35 times more than it was thirteen years ago.
But that’s not all…
Equipment used to combat cyber attacks alone is estimated to be valued at $1 trillion by 2021; additionally, cybersecurity companies are expected to invest more than $10 billion on staff training and development on the latest industry trends by 2027.
At the very least, companies will engage cybersecurity firms to put in place preventive measures, if not corrective ones. This, of course, is in addition to periodic reviews to upgrade existing controls.
In the end, as the cyber market continues to take shape, we expect that the biggest beneficiaries of the expansion will be those who invested in the solution providers when the stocks are still warming up to investors.
There’s no doubt that the cyberspace is one of the investment areas to look out for in 2019 and beyond. You can be sure that as long as the internet is here to stay, there will always be threats lingering all over the place.
Cybersecurity companies will continue playing a major role in providing lasting solutions to businesses and individuals looking to safeguard their data. This means that anyone who invests in such companies is likely to win big, both in the short term and long term.
As a parting shot, if you’ve been looking to invest in less volatile industries, my take is, this might be a great field to consider.
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