India Cyber Security Market Outlook to 2030

India Cyber Security Market Overview

• The India Cyber Security Market size was valued at USD 3.9 billion in 2023. The growth has been fueled by the increasing digitization of businesses, rising cyber threats, and a growing emphasis on data privacy. The surge in cyberattacks, particularly ransomware and phishing attacks, has compelled organizations across sectors to invest heavily in cybersecurity solutions, further driving market growth.
• Key players in the market are Tata Consultancy Services (TCS), Wipro Limited, HCL Technologies, Infosys Limited, and Tech Mahindra Limited. These companies have established themselves as leaders through their comprehensive cybersecurity offerings, strategic partnerships, and continuous investments in innovation.
• In 2023, the Indian government announced the launch of the "Cyber Surakshit Bharat" initiative, aimed at strengthening the country's cybersecurity infrastructure. As part of this initiative in 2024, the government allocated 400 crore for cybersecurity initiatives. This development underscores the government's commitment to addressing the growing cyber threat landscape and is expected to further propel the growth of the cybersecurity market in India.
• The state of Maharashtra, particularly the city of Mumbai, dominates the Indian cybersecurity market. Mumbai, the financial capital of India, is home to several major banks, financial institutions, and technology companies, all of which have a high demand for advanced cybersecurity solutions. The state's proactive approach to cybersecurity regulations and the presence of a well-developed IT infrastructure have further contributed to its dominance in the market.

India Cyber Security Market Segmentation

The India Cyber Security Industry is segmented by product, industry vertical, and region.

By Product: The market is segmented by product into network security, endpoint security, cloud security, application security, identity and access management (IAM), and data security. In 2023, network security dominated the market due to the increasing number of cyberattacks targeting network infrastructure, leading organizations to prioritize investments in network security solutions.

By Industry Vertical: The market is segmented by industry vertical into banking, financial services, and insurance (BFSI), healthcare, IT and telecom, government, and manufacturing. In 2023, the BFSI sector held the largest due to the high volume of sensitive financial data it handles, making it a prime target for cyberattacks.

By Region: The market is segmented by region into north, east, west and south. In 2023, the Western region dominates the market largely due to the concentration of IT/ITeS companies and financial institutions in the region, which have a high demand for cybersecurity solutions.

India Cyber Security Market Competitive Landscape

• Wipro Limited: On August 8, 2024, Cyble announced a partnership with Wipro Limited to enhance enterprise cybersecurity. The collaboration integrates Cybles AI-driven threat intelligence with Wipros global security expertise, offering real-time threat detection and proactive risk management. This partnership strengthens defenses against advanced cyber threats, including Dark Web monitoring and brand protection.
• Tata Consultancy Services: On May 2, 2024, Tata Consultancy Services (TCS) partnered with CrowdStrike to enhance its managed detection and response (XMDR) services using CrowdStrike's AI-native Falcon XDR platform. This collaboration aims to bolster enterprise cybersecurity by providing real-time threat intelligence, cloud security, and next-gen SIEM capabilities, addressing the rising sophistication of cyberattacks.

India Cyber Security Market Analysis

Market Growth Drivers

• Proliferation of Digital Services: As of 2024, India's digital economy has expanded rapidly, with over 700 million internet users and 450 million active smartphone users engaging in digital services like e-commerce, online banking, and digital payments. The widespread adoption of these services has exposed users and businesses to potential cyber threats, driving the demand for advanced cybersecurity measures.
• Rising Incidents of Cyberattacks: India witnessed a dramatic increase in cyberattacks in 2024, with over 2,000 reported incidents targeting critical infrastructure, financial institutions, and government bodies. The rising threat landscape, characterized by ransomware, phishing, and advanced persistent threats (APTs), has driven the demand for comprehensive security solutions, ensuring continuous market growth.
• Adoption of IoT and Smart Devices: By 2024, the Indian market saw the deployment of more than 500 million IoT devices across various industries, including manufacturing, healthcare, and transportation. The increasing adoption of IoT technology has created new vulnerabilities, as these devices often lack adequate security measures. Consequently, businesses are investing in IoT-specific cybersecurity solutions to protect their networks from potential breaches.

Market challenges

• Shortage of Skilled Cybersecurity Professionals: In 2024, India faced a significant shortfall of over 500,000 skilled cybersecurity professionals, creating a gap between the demand for and supply of expertise in areas such as threat intelligence, incident response, and security operations. This talent shortage has made it challenging for organizations to effectively manage and mitigate cyber risks, impacting their ability to maintain robust cybersecurity defenses.
• High Cost of Advanced Cybersecurity Solutions: The implementation of advanced cybersecurity solutions, such as AI-powered threat detection and next-gen firewalls, has proven to be a costly endeavor for many organizations in India. Small and medium-sized enterprises (SMEs), which constitute a significant portion of the Indian market, often struggle to afford these solutions, leading to under-protected systems and a higher risk of cyberattacks.

Government Initiatives

• National Digital Infrastructure: In 2024, the Indian government allocated a record 750 crore for cybersecurity, reflecting its commitment to securing the nations digital infrastructure. Key initiatives include strengthening the National Cyber Coordination Centre and Cyber Surakshit Bharat, developing indigenous cybersecurity technologies, and establishing sectoral security operations centers to protect critical infrastructure and ensure national security.
• Establishment of Cybersecurity Centers of Excellence: The Indian government, in collaboration with leading academic institutions, established five Cybersecurity Centers of Excellence (CoEs). These centers are focused on research, development, and training in cutting-edge cybersecurity technologies. The establishment of these centers underscores the governments commitment to building a robust cybersecurity ecosystem.

India Cyber Security Market Future Outlook

The future trends in India cyber security Industry include the integration of AI and machine learning in cybersecurity solutions, the development of quantum-resistant technologies, the growth of managed security services, and the expansion of cybersecurity regulations.

Future Market Trends

• AI and Machine Learning Integration: Over the next five years, AI and machine learning will become integral to Indias cybersecurity landscape. By 2028, over 1,500 enterprises are expected to deploy AI-driven cybersecurity solutions, automating threat detection and response. The adoption of AI will enable organizations to analyze vast amounts of data in real-time, providing enhanced protection against sophisticated cyber threats and reducing the time taken to detect breaches.
• Quantum-Resistant Cybersecurity Technologies: As quantum computing advances, Indian companies are expected to invest in quantum-resistant encryption technologies by 2028. These technologies will be essential for protecting sensitive data from quantum-based cyberattacks, which are anticipated to become more prevalent.