Security: critical to customers
Cybersecurity remains one of the most important necessities in the tech world. With the IoT (Internet of things) and BYOD (bring your own device) movements gaining pace, the importance of network security will likely continue to rise.
The rise of wireless networks in companies and the increase in the adoption of mobile devices at workplaces have become the primary drivers of growth in network security. With increasing adoption of wireless networks at the workplace, attackers are now using more advanced and sophisticated tools to penetrate enterprise networks and acquire data.
The research firm Gartner expects the cybersecurity market to cross $100 billion in 2019 from $76 billion in 2015. Some vendors, including Cisco Systems (CSCO), Fortinet (FTNT), CheckPoint (CHKP), and Palo Alto Networks (PANW) are thus offering various solutions and services to stop network fraud.
Network security market expected to boom
According to MarketsandMarkets, enterprises continue to deploy wireless networks for data transfer and communication driven by low maintenance costs and high data-transfer capabilities.
According to MarketsandMarkets, the Wireless Network Security Market is expected to grow from ~$8.5 billion in 2014 to ~$15.6 billion in 2019 at a CAGR (compounded annual growth rate) of 12.94% in the forecast period. Notably, Cisco accounts for 3.9% of the iShares US Tech ETF (IYW).
In the next and final part, we’ll take a look at the communication equipment segment.