security systems offers harmful attack prevention solutions and a cost-effective security platform.

In
addition to this, IBM also provides managed services to educational institutions.

Transportation
Interdependencies in transportation are changing and are continuously increasing with numerous
activities and services. In addition, dependency services are a summation of information technology,
electric power and the internet network structure securing the service. Transportation systems have
been constructed in highly tethered ways with only a few links connecting to multiple routes, making
the environment more congested. The interaction of slow internet services provided for the connected
vehicle users increases the potential for disruption and recovery delays. The built-in navigation system
and sensors provided in most vehicles dispense information to users about their surroundings. Through
these systems, the driver or end user can be informed about dangers and traffic-related issues
associated with a selected route. Sensor systems can serve multiple purposes of detection for security
by tracing adverse conditions, environmental conditions and impending suggestions about imminent
accidents.

The threat to transportation includes overburdening service providers by creating unwanted traffic in
the network. Such controlled network jams deviate the customer from available alternate route options.
Connected vehicle companies use internet security solutions provided by service providers that enable
them to secure the customer data and remotely access their vehicles. The companies such as Audi and
AT&T have entered into a collaboration to provide Audi car drivers with secure and fast network
services. The user-accessed data will be secure and provide efficient information about the probable
route options.

Market Size and Forecast

The BFSI industry is expected to be the major revenue contributor in the North American cyber security
market, accounting for approximately 25% of the overall market in 2017. The market for the telecom
and IT industry is expected to be the fastest growing segment, with a CAGR of 10.8% over the forecast
period. This market’s value will reach nearly $15.6 billion by 2023, owing to a surge in traffic over
telecom networks and a demand for secure and threat-free internet services.

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 Table 4
North American Cyber Security Market, by Industry Vertical, Through 2023
($ Millions)

CAGR%
Industry Vertical 2017 2018 2023
2018–2023
Banking, financial services and insurance (BFSI) 11,551.7 12,781.8 20,835.6 10.3
Government 9,537.4 10,573.0 17,397.4 10.5
Telecom and IT 8,375.7 9,316.6 15,591.7 10.8
Retail 4,483.0 4,928.1 7,775.2 9.5
Defense and intelligence 5,120.0 5,472.6 7,503.1 6.5
Healthcare 3,963.0 4,372.4 7,024.9 9.9
Other Industry Verticals 3,813.1 4,177.5 6,324.1 8.6
Total 46,843.9 51,622.0 82,452.0 9.8

Source: BCC Research

In recent years, vendors in the telecom and IT market have started deploying security solutions to
achieve higher levels of cyber security for their customers as well as uninterrupted business operations
in the North American region. For instance, in July 2018, BAE Systems became partner with Vodafone
and CyLon (the world’s leading cyber security accelerator and seed investment program) to help
telecom and IT solution providers by providing a strong and secure network of communications. This
partnership is expected to strengthen cyber security measures in the telecom and IT industry. Also, in
July 2018, Check Point launched a security gateway solution to protect enterprise networks and their
data centers from suspected SSL-encrypted traffic. The launch of this solution is expected to drive the
growth of cyber security solutions in the telecom and IT industry as IT vendors are very concerned about
protecting their data centers from cyberattacks.

The government sector is anticipated to grow with a healthy CAGR of 10.5% due to several government-
funded initiatives for cyber security and partnerships between government agencies and cyber security
solution providers in the North American region. Recently, in October 2017, the Mississippi Secretary of
State (U.S.) selected Check Point Software Technologies Ltd to implement end-to-end security solutions
to protect official documents from cyber threats. This partnership can be considered as a major step for
government agencies to implement security solutions in the region.

© 2018 | BCC Research LLC IFT174A Cyber Security: North American Markets | 45
 Figure 3
North American Cyber Security Market, by Industry Vertical, 2017-2023
($ Millions)

25,000

20,000
$ Millions

15,000

10,000

5,000

0
2017 2018 2023

Banking, financial services and insurance (BFSI) Government

Telecom and IT Retail
Defense and intelligence Healthcare
Other Industry Verticals

Source: BCC Research

© 2018 | BCC Research LLC IFT174A Cyber Security: North American Markets | 46
 Chapter 7
Market Breakdown
by Country

© 2018 | BCC Research LLC IFT174A Cyber Security: North American Markets | 47
Chapter 7: Market Breakdown by Country

Cyber Security Market by Country

Based upon a country analysis, this chapter focuses on the North American market for cyber security
solutions. The report focused on providing analysis for the U.S., Canada and Mexico.

U.S.
The U.S. has always been an early adopter, innovator and consumer of various technologies. Advanced
technologies such as IoT, industry 4.0, cloud computing, analytics, robotics, Big Data and others are
attracting various industries to use more connected devices. However, the increasing use of the internet
and web-based platforms had led to an increase in the threat of cyberattacks in recent years. According
to the Identity Theft Resource Center, in 2016, the U.S. experienced nearly 1.1 billion data breaches,
which was 40% increase from the previous year. The professional service industry has proven to be the
most vulnerable in terms of cyberattacks in the U.S. According to Appknox, one of the leading mobile
app security providers in the U.S., 84% of mobile shopping apps had experienced at least one high-level
security breach in 2017. These factors are driving the need for cyber security solutions in the U.S. retail
industry. To promote cyber security solutions and build a strong IT security infrastructure, several U.S.
government agencies have specified new guidelines for companies listed in the country’s stock
exchange. For example, the “Interpretive Guidance on Public Company Cybersecurity Disclosures” has
been specified by Security and Exchange Commission (SEC) and states following guidelines:

• Revaluation of processes for cyber security risks must be done by the company’s board of
directors.
• Review of policies for the cyber security measures taken by the company must be completed;
and if needed, these policies can be restructured according to the current need.
• Disclosure by the company of any major cyber security risks and incidents to the stakeholders
and investors.

Healthcare is also one of the industries where the U.S. has faced major challenges in cyber security.
Commonwealth Health Corp., Airway Oxygen Inc., and Pacific Alliance Medical Center are some of the
key organizations who faced severe cyberattacks in 2017. A ransomware attack on Airway Oxygen Inc.
led to unauthorized access to the health information of 500,000 of its customers. With all these data
breaches and stringent government regulations required for cyber security, the market in the U.S. is
expected to remain in the highest position in the coming years.

Canada
According to the Canadian Chamber of Commerce, Canada loses around $3.12 billion per year due to
cyber-related crimes. As a developed economy, Canada has implemented preventive measures to
mitigate the loss associated with cyber security expenses. Recently, in June 2018, as a part of its
National Cyber Security Strategy, the Canadian government allocated $431.5 million to counter cyber
threats in the country over the next 10 years. As part of this program, The Canadian Cyber Incident

© 2018 | BCC Research LLC IFT174A Cyber Security: North American Markets | 48