The stronger our interdependence, the more vital cyber defenses become. However, on the cyber front, most investments are often defensive and reactionary. While many businesses still prioritize asset preservation, value generation is becoming more critical for cybersecurity.
Cybersecurity measures are anticipated to be deployed across all digital platforms in 2024 and beyond. As such, cybersecurity in governance will be prioritized more than ever, especially in areas like crowdfunding, open banking, and audits.
Shifting Priorities: Emphasizing Cybersecurity Measures in a Connected World
Most consumer data will be covered by current privacy laws by 2024, but less than 10% of businesses will have effectively exploited privacy as a competitive advantage by then, according to Gartner.
The result? Most enterprises now understand that instituting privacy safeguards is essential to expanding their data use, standing out from the competition, and gaining the confidence of their clientele, investors, and government agencies.
Security leaders should implement a GDPR-like comprehensive privacy standard to stand out in a crowded industry and continue expanding without restrictions. The value of the global information security industry is forecast to be almost $175 billion by 2024, as estimated by Statista.
AI's Rise in the Cybersecurity Industry
Empowered by the prospect of assisting organizations in solving the dearth of competent cybersecurity experts in a cost-effective way, AI is projected to gain momentum more swiftly in the cybersecurity industry than in other domains. The vast majority of cybersecurity professionals (88%) interviewed by Gitnux agree that AI will be very important in the future of security.
With its potential to assist organizations in dealing with the scarcity of competent cybersecurity experts in a cost-effective way, AI is predicted to acquire momentum more quickly in the cybersecurity industry than in other domains.
But one thing to remember is that while AI might improve analytics, threat detection, and reaction times, it also opens up new entry points for cybercriminals to exploit.
From Cyber Risks to Cyber Opportunities
For those with a longer-term perspective in the cybersecurity sector, investing typically involves purchasing shares of a specific company or investing in an ETF that tracks a portfolio of cybersecurity stocks. The goal is to profit from the anticipated increase in share prices over time.
But for those with a more short-term and speculative outlook, trading cybersecurity stocks can present additional opportunities. Engaging in trading activities, such as using derivative products like Contracts for Difference (CFDs), makes it possible to speculate on the future movement of market prices.
Unlike traditional investing, trading allows you to take positions on company shares and ETFs without owning the underlying assets. This means you can potentially profit from both rising and falling markets, maximizing opportunities for financial gains.
Analysts in the field have seen a spate of new companies rapidly stealing market share from the more established ones. Netskope, Wiz, Snyk, and Illumio are some of the most well-known names in the industry. Businesses like Recorded Future, Venafi, Obsidian Security, and Noname Security are worth watching. Incumbents are feeling the heat from these new entrants, and as a result, they are increasing their spending on R&D.
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