Cybersecurity picks for September – how to navigate for high returns
Iryna Trygub-Kainz, MBA, FRM?
Investment Management, Investment Blogging & Coaching
Recent estimates project that the global cybersecurity market will reach $194 billion by the end of 2024, marking a 12.8% year-over-year growth. From 2024 to 2030, the market is expected to grow at a compound annual growth rate (CAGR) of 15.7%. In light of this impressive growth, we offer insights into the most promising companies within the cybersecurity industry – companies that present strong investment opportunities for achieving double-digit returns.
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Key growth drivers – Cybersecurity Industry
The ongoing digital transformation across various sectors has necessitated robust cybersecurity measures. Organizations are increasingly adopting cloud services, IoT, and other digital technologies, which require enhanced cybersecurity solutions. By 2025, the global cybersecurity market is projected to increase by 7.2% year-over-year , with revenue expected to reach approximately?$208 billion. This growth is fueled by the rising demand for robust cybersecurity solutions across various sectors, including IT, telecommunications, and finance. To read more detailed analysis on the latest trends in cybersecurity industry, click here >>>
In the coming years organizations are expected to increase their cybersecurity budgets significantly. This is driven by the need to protect against sophisticated threats and comply with regulatory requirements. During the first eight months of 2024, companies significantly invested in cybersecurity to mitigate increasing threats. According to Statista, on average, spending in the cybersecurity industry reached approximately $87 billion, reflecting the heightened emphasis on securing digital assets. In 2023, companies globally invested approximately $80 billion in cybersecurity. Cybersecurity investments are expected to see substantial growth by 2025.
The U.S. federal budget for FY 2025 has boosted cybersecurity investments by 17% over 2023 levels, emphasizing the importance of enhanced security measures amid escalating threats.
In 2024, the European cybersecurity market is expected to see significant investments. According to the latest report from Euronews, the European Commission has earmarked €214 million for cybersecurity, highlighting the growing emphasis on strengthening digital defenses. Additionally, the overall European cybersecurity market is projected to reach USD 56.96 billion by 2024, reflecting a steady increase in spending. Looking ahead to 2025, cybersecurity investments in Europe are expected to continue their upward trajectory. The European cybersecurity market is anticipated to grow at a compound annual growth rate (CAGR) of 10.81%, reaching USD 95.17 billion by 2029, according to Mordor Intelligence.
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As of today, our research indicates that companies are heavily investing in several key cybersecurity segments. The primary areas of investment include:
Identity and Access Management (IAM): This segment is crucial as it helps in managing digital identities and ensuring that only authorized users have access to specific resources. Companies like CyberArk are leading in this area, focusing on identity management and seizing opportunities for growth.
Endpoint Security: This segment is essential for protecting devices such as laptops, smartphones, and tablets from cyber threats. CrowdStrike Holdings (CRWD), for instance, has seen significant investment, driven partly by its deal with Google.
Cloud Security: With the increased adoption of cloud services, securing cloud environments has become a priority. Companies like Zscaler (ZS) are major players in this segment, providing robust cloud security solutions.
Ransomware Protection: Given the rise in ransomware attacks, organizations are investing heavily in solutions that can prevent and respond to such incidents. This includes advanced threat detection and response technologies..
Supply Chain Security: Protecting the supply chain from cyber threats has also become a significant focus area. This involves ensuring that all partners and suppliers comply with stringent cybersecurity standards.
Cybersecurity Investment Picks for September
Based on our in-depth proprietary research and sophisticated valuation models, we have identified several companies that are poised to outperform the broader stock market in the near term. We are pleased to share these insights with our Premium and Professional investment community.
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