“Millionaires are made during the recession.”
It's true for both cybercriminals and cybersecurity providers in 2023. As global conditions finally trend back to normal after the pandemic, a new challenge is on the horizon: Economic Recession. The recession news has been spreading, and businesses are preparing to face another economic crisis, expected in 2023. The continuous disruptions after the pandemic and the expected crisis in the next year are building inflationary pressure, forcing businesses to cut down on various spending.
Though economic recession affects all industries, there are some sectors such as food, healthcare, transportation, etc that remain more resistant to the effects of a downturn than others. One such industry that ordinary people might not expect to thrive in is the “Cybersecurity Industry.” Many people are asking: Will cybersecurity 2023 remain recession-proof or face the impacts of economic slow-down?
Experts believe that cybersecurity is practically a recession-proof industry. Despite all the ongoing geopolitical and economic challenges, cybersecurity remains strong defying current macroeconomic headwinds. The sector has seen significant growth in Q3 and Q4 of this year and is likely to rise in the coming years. Why?
Here are some reasons why cybersecurity will keep growing even during the recession:
Despite the looming threat of economic recession, cybercriminals will not have mercy on businesses. The COVID-19 pandemic fueled the digitization of organizations. Increased adoption of the Cloud, Artificial Intelligence, IoT, Multiplication of devices, etc. has exposed security gaps in organizations’ defense. There was a sudden uptick in cybersecurity attacks and there has been no going back since then.
The increasing cyber-attacks are pushing businesses to ramp up their security expenditure. Therefore, Cybersecurity 2023 is likely to outpace the rest of the IT market in the coming years. This presents a growth opportunity for investors seeking growth and profit amidst the ongoing economic challenges.
“No doubt digitalization has connected the whole world but a more connected society is more vulnerable too”
The increase in digitization provides an attack surface for malicious factors to exploit these vulnerabilities resulting in more frequent and severe cyber attacks.
Along with the cost of the data breach, legal fees, increased insurance costs, potential ransom costs, reputational harm, and loss of customers’ trust can completely devastate a business. Therefore, cybersecurity is imperative to protect an organization’s data and assets before it becomes a victim. Digital adoption is not slowing down, so cybersecurity 2023 has become an absolute need to protect data networks.
Due to geopolitical tensions, the cyber battlefield is active. Countries are targeting the energy and information infrastructures of their rivals. For example, the devastating cyber attacks “Not Petya Attacks” caused a huge financial loss of several business dollars to the European Union and the United States. Hackers have become so strong that they can put industries and societies at standstill by launching dangerous cyber attacks.
More than ever, businesses of all sizes, from startups to large enterprises as well as the government, need to shore up or else they will end up becoming the collateral damage of this cyber war.
Securing the business landscape is imperative for economic stability and that’s why it’s a priority for governments around the globe. Businesses around the globe lost more than $6 trillion in 2021 because of data breaches, productivity loss, reputation loss, penalties, etc. The impact of cybercrimes can be particularly damaging for startups and small businesses that can impact the GDP of a country.
Therefore, countries are increasing their cybersecurity 2023 spending. The US has increased its cybersecurity 2023 spending by 10% in the budget. It’s because cybersecurity has become an important part of a country’s defense strategy.
As the market grows, the leading cybersecurity solutions providers are growing more efficiently to outpace their competition. Moreover, as new types of cyber attacks are surfacing every day, cybersecurity companies need to fill the gaps in their product portfolios.
There is increasing pressure on CISOs, CIOs, and other security practitioners to invest in solutions that can handle the latest cyber attacks. Thus, they are looking for advanced cybersecurity 2023 solutions to keep business networks protected. That increasing demand for cybersecurity solutions has opened new job opportunities.
According to Cybersecurity Ventures’ Boardroom Security report, 35% of the Fortune 500 companies will have senior members with cybersecurity experience by 2025 and it will climb to 50% by the year 2030. This suggests that cybersecurity 2023 will not slow down even during the recession.
As businesses are facing increasing cyber threats, the importance of cybersecurity will be paramount in the coming years. Businesses no longer require old and obsolete cybersecurity solutions. They require advanced solutions that can handle the latest cybersecurity 2023 threats. The CISO cybersecurity demands are also changing as they are looking for advanced solutions to mitigate both physical and digital security threats.
Cybersecurity vendors or companies that sell cybersecurity should develop advanced security software such as AI cybersecurity solutions, zero-trust networking solutions, next-generation breach detection tools, etc. to keep up with the latest demands of the businesses. Learn the inner workings of Managed Cybersecurity Services in our latest blog on how these services defend against cyber threats 24/7, offering a proactive shield for your digital fortress.
New advancements in technology mean new opportunities for hackers. This year will be challenging for businesses to survive the recession and shield themselves against the looming cybersecurity threats.
The demand for cybersecurity solutions will rise, therefore, cybersecurity professionals must gear up and grab this opportunity by providing your services to businesses. If you want to grow your cybersecurity business, you can join Execweb - a CISO executive network where you will have the opportunity to discuss the latest cybersecurity demands with Fortune 500 CISOs and CIOs through virtual roundtables.