The analyst company Canalys has revealed that the cybersecurity market grew by 15.9% year-over-year during the third quarter, despite the tougher economic conditions. Canalys said revenues in the sector grew to $17.8 billion during the quarter but small-to-medium businesses had to restrict their spending.
According to Matthew Ball, Chief Analyst at Canalys, the revenues in the cybersecurity market should be protected and continue growing over the next 12 months due to the prevalence of subscription-based models.
Out of all the regional markets, $9.6 billion of sales came from North America, making it the biggest cybersecurity market, it represents 53.8% of global spending. This region grew at 17.1%. The second largest region was Europe and the Middle East (EMEA) which accounts for $5.2 billion in sales and witnessed 15% growth. In third was Asia-Pacific (APAC), which recorded $2.4 billion in sales and 13.8% growth. Finally, Latin America recorded just $600 million in sales with a growth rate of 13.1%.
Among all the players in the cybersecurity market, Palo Alto Networks came in first place with 8.4% and 24.9% annual growth. Microsoft is ninth on the list with 2.9% market share and 38.6% growth. The company that experienced the highest annual growth was CrowdStrike which jumped from 2.4% market share in Q3 2021 to 3.2% in Q3 2022.
The cybersecurity market will certainly be interesting to watch given its apparent resilience to the worsening economic outlook. As businesses look to scale back their spending, cybersecurity is likely one of the last places expenses will be reduced due to its importance.