According to Data Security Council of India (DSCI)’s latest report, the number of Indian cybersecurity product startups in 2020 has grown to over 225 from over 175 in 2018, while the revenue doubled to over $1 billion in 2020 from $475 million in 2018. (https://www.dsci.in/content/indian-cybersecurity-product-landscape-2.0)
The interest among entrepreneurs is such that the majority of the start-ups are bootstrapped, with co-founders rushing to tap the potential by putting in personal assets and raising crowd-funding to start off.
Another important factor is the size of the domestic market for cybersecurity has doubled, with 63 per cent of the product revenue coming from India. The revenues of cybersecurity firms have witnessed a four-fold growth over the past four years. The funding landscape has witnessed consistent growth too.
AI-based security startups have particularly been in the lead. As per DSCI, 63 per cent of data security products leverage AI/ML to enhance their production capabilities, perhaps because technologies such as AI/ML are scalable, fast, efficient, and more accurate.
As the threat landscape evolves, security providers have to be always on their toes, and businesses have to adopt a more unified approach to cyber risk management. Some of the biggest challenges that security and risk management leaders face are the lack of a consistent view at a micro and macro level, the ability to prioritise what’s most critical, and maintaining transparency across the organisation when it comes to cybersecurity.
As advances in AI and ML move at breakneck speed, use of AI and ML is expected to grow further in cyber defences. Like Sentry AI, which uses AI to power video analytics solutions for physical security. It processes security camera feeds to identify security and safety risks, such as intrusion by people and vehicles in restricted areas or at restricted times or the presence of unknown people or vehicles, people falling, violence, etc.
However, the pandemic seems to have impacted the global growth of the industry. As per a DSCI report forecast the overall cybersecurity product market would be at $59.5 billion by the end of 2021, against the earlier $58.9 billion. Budget constraints are geared to continue to haunt cybersecurity firms this year as well.
The product refresh rate is estimated to decrease in order to address budget constraints, CISOs (Chief Information Security Officers) are considering extending the usage of security applications before upgrading, especially for hardware based products, as per a DSCI report.