Indian cybersecurity sector to hit US$13.6bn by 2025: Report

Through innovative offerings and adoption of next-gen technology, India’s cybersecurity services industry is estimated to reach a total valuation of US$13.6 billion by 2025, according to a report by NASSCOM and the DSCI

May 21, 2020

The report is based on a combination of data insights, case studies, and success stories from various industry stakeholders

The cybersecurity services industry generated an income of US$4.3 billion in 2019, at an estimated CAGR of 21 per cent by 2025

Over 50 per cent of global companies have included digital integration and security in their annual strategies

Almost 80 per cent of total cybersecurity services revenue comes from foreign markets, showing India’s potential as a global hub

Through innovative offerings and adoption of next-gen technology, India’s cybersecurity services industry is estimated to reach a total valuation of US$13.6 billion by 2025, according to a report from NASSCOM and the Data Security Council of India (DSCI) on May 21. The report delves into the performance of dedicated cybersecurity companies in India, using a collection of data insights, case studies, and success stories from different industry stakeholders. The industry cumulatively generated US$4.3 billion in 2019 and is estimated to report a compound annual growth rate (CAGR) of 21 per cent in the next five years.

Across industries, there has been a growing trend of companies adopting a digital presence and way of working. The report acknowledges this trend with evidence of 50-55 per cent of analysed companies including digital integration as part of their strategy for the coming year. With close to 80 per cent of revenue for cybersecurity services coming from markets in North American, Europe, and Australia, India is well-positioned to serve as a global hub for these IT services. Meanwhile, data consumption in India is predicted to grow at a compounded annual growth rate (CAGR) of over 70 per cent by 2021.

The Government’s ongoing target of recording annual IT revenue of US$350 billion by 2025 continues to be a major building block towards steady economic growth. India serves as a reliable destination for IT solutions through constant innovation and improving capabilities in next-gen technologies. The Government of India had approved the National Policy on Software Products-2019 to develop the nation as a software product hub, budgeting over US$215 million to encourage R&D into IP-driven emerging technologies, and offering the potential for a 10-fold increase in India’s share of the Global Software product market by 2025. In 2018-19, the IT-ITeS sector had contributed 25 per cent of India’s exports.

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