Global cybersecurity spending reached a total of $21.1 billion in the second quarter of 2024, representing a year-on-year growth of 9.9 per cent.
Despite ongoing macroeconomic uncertainty, including political disruptions from elections and budget scrutiny, platform adoption across key vendors played a crucial role in maintaining robust growth, according to the latest data from Canalys, a technology industry analyst firm.
While the growth rate came in slightly below Canalys’ best-case forecast, it highlights the continued importance of cybersecurity for organisations across the world.
Companies are prioritising cyber defences, even as they navigate prolonged deal cycles and budget constraints.
Cross-selling of cybersecurity platforms emerged as a primary strategy for vendors to capture market share, with many focusing on expanding their suite of services and consolidating product offerings to attract customers.
The top 12 vendors in the cybersecurity market were among the primary beneficiaries of this platform-driven approach.
Collectively, they accounted for 53.2 per cent of total cybersecurity spending in Q2 2024, up from 51.9 per cent in the same period last year.
This marks a shift in spending as more customers begin transitioning to integrated platforms to streamline their security operations.
Palo Alto Networks led the market with an 11.2 per cent increase in market share, driven by the popularity of its Prisma Cloud, Cortex for security operations, and Secure Access Service Edge (SASE) solutions.
The company’s recent acquisition of IBM’s QRadar assets further bolstered its platform strategy, helping it expand its offerings in security operations and cloud environments.
Fortinet also saw an 11.1 per cent rise in market share. Its renewed focus on security operations and SASE contributed to the company’s growth, alongside signs of recovery in its firewall business.
Meanwhile, Microsoft recorded an impressive 18.6 per cent growth, benefiting from the increased adoption of its E5 licence, which integrates advanced cybersecurity capabilities into its broader platform.
Cisco, which completed its acquisition of Splunk during the quarter, also reported modest growth of 5.3 per cent (excluding Splunk).
CrowdStrike, however, stood out with an exceptional 33.2 per cent increase in market share, driven by strong demand for its Falcon platform, though its July outage may negatively impact future performance.
As more companies transition to cloud-based infrastructures and artificial intelligence (AI) technologies, they are also rethinking their cybersecurity strategies.
Matthew Ball, Chief Analyst at Canalys, explained that these shifts are driving a surge in ransomware attacks and other cyber threats, necessitating an overhaul of security approaches.
Vendors are responding by consolidating their offerings into platforms that reduce the complexity of managing multiple, disparate cybersecurity products.
“Vendors are positioning their cybersecurity platforms to reduce customers’ complexity by consolidating redundant and legacy point products,” Ball noted.
However, he also cautioned that relying on fewer vendors could diminish organisational resilience, making a balanced approach critical for businesses looking to fortify their defences.
Ball emphasised the need for an “integration-first” strategy among platform vendors. This means supporting a wide range of independent software vendors (ISVs) and simplifying procurement processes for multi-vendor systems.
He also stressed the importance of fostering partnerships with global systems integrators (GSIs), managed security service providers (MSSPs), managed service providers (MSPs), and emerging partners such as cyber insurers.
These partners play a crucial role in helping vendors drive innovation and create value for customers.
Platform adoption is not only reshaping how organisations approach cybersecurity but also how they procure and deploy security technologies.
Channel partners—such as systems integrators, MSSPs, and MSPs—are set to play an increasingly important role in this ecosystem.
As customers shift to platform strategies, these partners will be pivotal in advising, designing, and managing comprehensive cybersecurity solutions.
Srikara Upadhyaya, Research Analyst at Canalys, pointed out that cybersecurity services will continue to grow in importance, especially as companies seek expert guidance to navigate complex platform offerings.
According to Upadhyaya, “For every dollar of cybersecurity technology spent by organisations this year, partners will generate $1.90 on average from services.”
Key service areas include managed detection and response (MDR), incident response, and security operations centre (SOC) management, among others.
What is more, Canalys expects global spending on cybersecurity services to grow 12.9 per cent in 2024, reaching a total of $163.3 billion.
Growth was observed across all regions during Q2 2024. The Asia-Pacific region recorded an 8.0 per cent increase in cybersecurity spending, while Europe, the Middle East, and Africa (EMEA) saw a 9.8 per cent rise.
North America, despite remaining a strong market with a 10.3 per cent growth rate, experienced a slight slowdown compared to the previous quarter, driven by concerns over rising unemployment and potential recessionary pressures.
Finally, Latin America outpaced other regions with an 11.2 per cent growth rate, making it the fastest-growing region during the quarter.
