GCC in Cybersecurity Market Report Scope & Overview:

Get More Information on GCC in Cybersecurity Market - Request Sample Report

The GCC in Cybersecurity Market Size was valued at USD 10.59 Billion in 2023 and is expected to reach USD 30.37 Billion by 2032, growing at a CAGR of 12.46% over the forecast period 2024-2032.

The Global Capability Centers (GCCs) in Cybersecurity Market is growing due to the increasing digitalization of business operations and the subsequent rise in cyber threats. As companies move towards digital transformation, they rely on centralized GCCs to handle cybersecurity functions such as threat monitoring, risk management, and compliance. According to recent data, over 50% of GCCs are located in India. A substantial portion of this growth is attributed to the demand for cybersecurity services, especially as global organizations seek cost-efficient yet effective cybersecurity operations.

Furthermore, the increasing implementation of AI and machine learning technologies in GCCs for cybersecurity functions is another major factor fuelling growth. These technologies enable threat detection, response automation, and predictive analytics to equip GCCs against sophisticated cyber-attacks. Whilst 65% of GCCs have embraced AI-driven security systems, they still need to catch up with the ever-evolving cyber threats. This shift is likely to drive the adoption of cybersecurity services in GCC, as firms work towards more robust and proactive security models.

Furthermore, government regulations and compliance mandates, such as the General Data Protection Regulation (GDPR) in Europe and the Cybersecurity Information Sharing Act (CISA) in the U.S., are prompting multinational corporations to enhance their cybersecurity measures, with Global Capability Centers (GCCs) playing a vital role in ensuring compliance with these standards. Notably, the Biden administration is proposing $13 billion in cybersecurity funding for civilian departments and agencies in fiscal year 2025, an increase from $11.8 billion in fiscal year 2024 and $11.3 billion in fiscal year 2023. This funding highlights the government's commitment to strengthening cybersecurity efforts. Additionally, the global cybersecurity workforce within GCCs is expanding, with the U.S. alone employing 1.3 million professionals in 2023. As cyber threats intensify and regulatory frameworks become more stringent, the importance of cybersecurity within GCCs is expected to grow, leading to substantial market growth in the years ahead.

GCC in Cybersecurity Market Dynamics

Drivers:

• Increasing digitalization of business operations leads to greater reliance on technology, resulting in heightened vulnerability to cyber threats.

• Adoption of advanced technologies like AI and machine learning in cybersecurity processes

• Increasing frequency and sophistication of cyberattacks

The increasing frequency and sophistication of cyberattacks are critical driving factors for the Cybersecurity in Global Capability Centers (GCC) market. Cybercrime is projected to cost the world $10.5 trillion annually by 2025, a dramatic rise from $3 trillion in 2015, according to Cybersecurity Ventures. Organizations faced an average of 1,636 cyberattacks per week, indicating a 30% increase compared to the previous year. Additionally, 74% of breaches involved external actors, with ransomware attacks surging by 13% in 2022 alone. In 2023, the FBI's Internet Crime Complaint Center (IC3) recorded an alarming 880,418 complaints, reflecting an increase of nearly 10% from the previous year. More concerning is that this rise in cybercrime led to reported losses increasing by approximately 22%, with the total financial impact surpassing $12.5 billion.

Organizations are acutely aware of the growing threat landscape, with a Cisco survey indicating that 39% reported a significant increase in cyberattack frequency in 2022. The average cost of a data breach reached $4.35 million in 2022, as reported by the Ponemon Institute, encompassing not only financial losses but also reputational damage and recovery expenses. As cyber criminals adopt advanced techniques, such as AI and machine learning, to automate attacks and evade detection, the challenges for organizations intensify. The Anti-Phishing Working Group (APWG) highlighted the detection of over 1.5 million phishing attacks in 2022, emphasizing the evolution of cyber threats.

In response to these escalating threats, organizations are increasingly turning to Global Capability Centers for their expertise in managing complex security landscapes. As the demand for robust cybersecurity solutions continues to grow, GCCs are poised to play a crucial role in developing proactive security measures that address the dynamic and evolving nature of cyber risks.

Restraints:

• Integration of new cybersecurity solutions with existing IT infrastructure can be complex and costly

• Significant shortage of skilled cybersecurity professionals hampers the ability of GCCs to effectively implement and manage security solutions

• Constant evolution of cyber threats means that organizations must continuously adapt their security strategies, which can be resource-intensive

The constant evolution of cyber threats presents a challenge for organizations, necessitating continuous adaptation of security strategies that can be both time-consuming and resource-intensive. As cybercriminals refine their tactics, organizations must remain vigilant and invest in the latest technologies and training to counteract emerging threats. According to the research, there were 2,365 cyberattacks in 2023, impacting 343,338,964 victims, which necessitates considerable resources for effective patch management and threat mitigation. The pressure to stay ahead of evolving cyber threats thus creates a challenging landscape, where effective cybersecurity requires significant financial investment and dedicated personnel. As a result, many organizations find themselves in a reactive stance rather than proactively managing their cybersecurity strategies, further complicating their efforts to safeguard sensitive information.

GCC in Cybersecurity Market Segmentation Overview

By Security Type

In the Global Capability Centers (GCC) in Cybersecurity market, Network Security emerged as the leading security type with more than 31.8% revenue share in 2023. This dominance is driven by the increasing complexity and volume of cyberattacks targeting network infrastructures of multinational corporations. As GCCs manage vast IT operations for global companies, the need to secure networks against sophisticated threats like distributed denial-of-service (DDoS) attacks, ransomware, and phishing has become paramount. Approximately 42% of cybersecurity spending in GCCs is allocated to network security, with many centers prioritizing technologies like firewalls, intrusion detection systems (IDS), and network monitoring to protect their operations.

Furthermore, the rise in remote work and cloud adoption has intensified the need for network security, as GCCs are tasked with securing remote connections and maintaining safe communication channels across their global operations. Studies show that 63% of GCCs globally have upgraded their network security protocols to combat the growing risk of cyber threats. This trend is particularly strong in regions like India, where GCCs handle global IT infrastructure for sectors like BFSI and healthcare, making network security an essential part of their cybersecurity framework.

While other security types like cloud and data security are critical, network security leads due to its foundational role in protecting overall enterprise infrastructure. The increasing sophistication of network attacks and the growing volume of sensitive data passing through these networks further underscores the critical importance of robust network security solutions in the GCC landscape.

By Deployment Mode

In 2023, the Cloud-based deployment mode held the highest revenue share of more than 58.92% of the Global Capability Centers (GCC) in Cybersecurity market due to its scalability, flexibility, and cost-efficiency. As GCCs manage global operations, the ability to quickly scale cybersecurity measures across multiple regions and adapt to remote work environments has made cloud solutions highly attractive. Around 62% of GCCs have adopted cloud-based cybersecurity tools to protect their distributed infrastructure, particularly driven by the growing adoption of cloud computing and the need for real-time threat monitoring. The shift to remote work during the pandemic further accelerated the demand for cloud-based security solutions in GCCs.

By Industry Vertical

The Banking, Financial Services, and Insurance (BFSI) sector led the Global Capability Centers (GCC) in Cybersecurity market in terms of adoption and investment. This dominance is primarily due to the stringent regulatory requirements and the high risk of cyberattacks targeting financial data and transactions. With the BFSI sector managing vast amounts of sensitive customer data, GCCs serving this industry prioritize advanced cybersecurity measures to protect against fraud, data breaches, and financial crimes. Approximately 43% of GCC cybersecurity investments are driven by the BFSI industry, emphasizing its critical role in safeguarding global financial infrastructures.

Additionally, the BFSI sector has seen a rise in cyber threats such as ransomware and phishing, with over 61% of cyberattacks in the last two years targeting financial institutions. As a result, BFSI-related GCCs have significantly ramped up their cybersecurity frameworks. For example, many have adopted multi-factor authentication (MFA), encrypted communication channels, and secure financial transaction systems. Moreover, the growing trend of digital banking, mobile payment solutions, and the increasing number of fintech startups have further spurred the demand for robust cybersecurity in BFSI-related GCCs.

The regulatory environment also contributes to the sector's leadership. BFSI GCCs are required to comply with multiple global standards such as the General Data Protection Regulation (GDPR), Payment Card Industry Data Security Standard (PCI DSS), and other regional mandates. This necessitates continuous investments in cybersecurity to maintain compliance and avoid hefty fines, making BFSI the leading industry vertical in this market.

GCC in Cybersecurity Market Regional Analysis

The Asia Pacific region, particularly India, dominated the Global Capability Centers (GCC) in Cybersecurity market in 2023. India is home to over 1,500 GCCs, with 70-80% of them implementing advanced cybersecurity frameworks. The country’s talent pool, combined with cost advantages, has made it a hub for cybersecurity operations, handling tasks such as threat detection, vulnerability assessments, and incident response. India’s growing importance is evident as cybersecurity hiring in GCCs increased by 40% last year, and the country saw a 25% year-on-year rise in cybersecurity investments, driven by sectors like fintech and healthcare. Furthermore, 60% of large multinational firms have established Security Operations Centers (SOCs) in India, solidifying their role in global cybersecurity infrastructure.

While North America serves as a strategic decision-making center for many GCCs, most cybersecurity operations are outsourced to India and Asia-Pacific. Europe, similarly, is increasingly relying on Indian GCCs for vulnerability assessments and incident management, with 35% of its GCCs shifting their cybersecurity functions to India. In the Middle East, sectors like oil & gas and telecom are gradually expanding their cybersecurity focus, with Indian GCCs handling 30% of related projects for the region.

Need Any Customization Research On GCC in Cybersecurity Market - Inquiry Now

Key Players in GCC in Cybersecurity Market

• Cisco Systems, Inc.

• IBM

• Palo Alto Networks

• McAfee

• Check Point Software Technologies

• Fortinet

• FireEye (now Trellix)

• Microsoft

• Symantec (part of Broadcom)

• Kaspersky Lab

Recent Development

• In October 2024, Cisco announced its plans to establish a Point of Presence (PoP) for cloud-delivered security in the United Arab Emirates (UAE). This initiative is designed to help customers safeguard their users, infrastructure, and investments against potential threats.

• In August 2024, IBM unveiled new Generative AI capabilities for its managed Threat Detection and Response Services, which are utilized by IBM Consulting analysts to enhance and streamline security operations for clients.

• In August 2024, SLB and global cybersecurity provider Palo Alto Networks expanded their collaboration to bolster cybersecurity in the oil and gas sector. The partnership will leverage SLB’s cloud and edge technologies along with its domain expertise in the oil and gas industry, combined with Palo Alto Networks’ cross-industry, platform-based cybersecurity solutions.