Response Centre (CCIRC) has expanded its partnership network with 1,300 organizations in order to

provide alerts about and the necessary steps required to prevent any cyber-threat from unknown
sources. However, the use of various cyber security solutions varies with respect to organization size.
According to the Canadian Internet Registration Authority (CIRA), a member-based not-for-profit
organization, approximately 80% of small enterprises are using antivirus software more than traditional
hardware-based firewalls. Also, large enterprises with more than 500 employees are focused on
adopting security solutions that restrict malicious queries at the DNS level and malware protection
services. Moreover, to protect government websites and agencies from cyberattacks, the Canadian
government has assigned $220 million over the next six years, starting from 2018. The major factor
driving cyber security in the Canadian market is its extensive government support and funding for
various cyber security solutions such as antivirus software, data encryption, firewall, identity and access
management, disaster recovery, and many others. This represents a huge potential and opportunity for
cyber security solution vendors in the region, which is expected to drive the cyber security market for
the region.

Mexico
Compared to the U.S. and Canada, Mexico is experiencing a slow rate of cyber security adoption
because there is a lower rate of cyber threats due to the more limited penetration of the internet as well
as the lower usage of smart devices and other technology in the country. But presently the country is
experiencing growth in internet consumption and smartphone penetration as compared to previous
years. In 2016, Mexico’s internet penetration rose to 60% due to an increase in smartphone users in the
12 to 34 years age group. Because the smartphone is one of the potential targets for cyber threats, the
market for cyber security mobile solutions in Mexico is expected to grow in the coming years. The
Internet of Things (IoT) is also one of the areas for market opportunities for cyber security solutions in
Mexico, as IoT technology functions with connected devices, the chance of facing a security breach
increases with the use of smart devices that are connected through the internet and virtual networks. By
2017, the Mexican IoT market is anticipated to reach around $4.16 billion of investments. With the
surge in adoption of IoT-related security solutions, the market for Mexican cyber security solutions is
expected to see a healthy growth rate in the coming years.

Market Size and Forecast

In North America, the U.S. dominated the cyber security market with approximately 78.4% of the overall
market in 2017. The Canadian cyber security market is expected to be the fastest-growing segment, with
a CAGR of 11.4% over the forecast period, and it is expected to reach nearly $13.1 billion by 2023. This is
due to various government initiatives and spending by the Canadian to decrease the risk of cybercrimes
and malware attacks in the country’s IT infrastructure. As part of the cyber security project initiated by
the Canadian Cyber Incident Response Centre (CCIRC), government officials are closely working with
business organizations in the country to make them aware of any kind of IT security breaches in
advance. At the time of writing, this program has established partnerships with more than 1,300
organizations across the country and continues to deliver alerts regarding possible cyberattacks by
hackers over the internet.

Additionally, an increase in mobile phones and internet penetration in Mexico is expected to fuel market
growth for cyber security solutions in the country.

© 2018 | BCC Research LLC IFT174A Cyber Security: North American Markets | 49
 Table 5
North American Cyber Security Market, by Country, Through 2023
($ Millions)

CAGR%
Country 2017 2018 2023
2018–2023
U.S. 36,702.2 40,324.4 63,446.8 9.5
Canada 6,820.5 7,625.7 13,093.4 11.4
Mexico 3,321.2 3,671.9 5,911.8 10.0
Total 46,843.9 51,622.0 82,452.0 9.8

Source: BCC Research

Figure 4
North American Cyber Security Market, by Country, 2017-2023
($ Millions)

70,000

60,000

50,000
$ Millions

40,000

30,000

20,000

10,000

0
2017 2018 2023

U.S. Canada Mexico

Source: BCC Research

© 2018 | BCC Research LLC IFT174A Cyber Security: North American Markets | 50
 Chapter 8
Competitive Analysis

© 2018 | BCC Research LLC IFT174A Cyber Security: North American Markets | 51
Chapter 8: Competitive Analysis

Value Chain Analysis

A value chain analysis includes a series of activities that a business entity operating in a field of expertise
performs to deliver a service or a product to consumers. A value chain analysis helps a business entity
reduce overall costs by reducing the cost of individual activities or by reconfiguring the value chain to
achieve differentiation in terms of products or services. Businesses also tend to achieve high
performance levels by focusing on their core competencies.

Figure 5
Cyber Security Ecosystem

Security Vendors Managed Service System End Users

Providers Integrators
• Symantec • Large
• McAfee • Anomalix • Cisco Systems Enterprises
• BAE Systems • Delta Risk Inc. • SMEs
• Avast Software • NorthState • IBM Corp. • Government
• Check Point Technology • HP Development Organizations
Software Solution Co. LP • Banks
Technologies • Intrust IT • Others

Source: BCC Research

Market Share Analysis

The leading developers with their diverse and innovative offerings are seeking growth opportunities in
the cyber security market to maintain their competitive edge. The figure below explains the market
share percentages of leading companies in the market. The leading players in the market are adopting
new product launches, expansions and collaborations (or partnerships) as key developmental strategies.

The market share analysis of cyber security technology reveals that the market leader, Cisco Systems
Inc., contributes to 10.4% of the market share. Symantec, McAfee, Microsoft and IBM are the next
significant players, exhibiting market shares of 8.6%, 3.8%, 1.2% and 1.0%, respectively. In addition to
the top players, the market diversifies into numerous other vendors that contribute about 75% of the
market share.

© 2018 | BCC Research LLC IFT174A Cyber Security: North American Markets | 52
 Figure 6
North American Cyber Security Market Share Analysis, by Company, 2017
(%)

Cisco Systems Inc.

10.4%

Symantec Corp.
8.6%

McAfee
3.8%

Microsoft Corp.
1.2%

Others
IBM Corp.
75.0%
1.0%

Source: BCC Research

Figure 7
Key Development Strategies Used in the North American Cyber Security Market,
2016-2018*
(Number of Developments)
9
8
8

7
Number of Developments

5
4
4

2
1
1

0
New Product Launch Partnership Business Expansion

*Note: As of September 2018

Source: Company websites and annual reports

© 2018 | BCC Research LLC IFT174A Cyber Security: North American Markets | 53