Overview of the Best Cybersecurity Stocks. What are the Prospects?
The cybersecurity market continues to grow at a high pace despite challenging macroeconomic conditions. In Q1 2023, it grew by 12.5% on an annual basis, reaching $18.6 billion. Cybersecurity companies still have prospects for growth and development.
Today, organizations spend less than 5% of their total IT budgets on cybersecurity. In the near future, cybersecurity expenses will increase due to the high risk of breaches, which can result in serious reputational risks. This means that demand for cybersecurity measures will be high as risks only increase.
The use of artificial intelligence, particularly generative AI, also increases risks for organizations but contributes to the development and strengthening of security. Many companies already use AI to detect vulnerabilities and protect against cyber attacks.
In the near future, cybersecurity expenses will only increase. This opens up great opportunities for investors to profit in the “cybersecurity” segment. Therefore, if you are looking for promising investment directions in the IT industry, it is definitely worth considering the developing cybersecurity market. Below, we will look at the most promising companies with the highest market share in cybersecurity.
Table of the most promising companies in the cybersecurity industry:
| Company | Market share |
|---|---|
| Palo Alto Networks | 8.7% |
| Fortinet | 7.0% |
| Cisco | 6.1% |
| CrowdStrike | 2.9% |
| Microsoft | 2.7% |
Among these companies, the most promising and competitive ones may be those who can offer products and solutions based on generative AI for more effective cybersecurity.
Companies that can offer breakthrough AI-based products have prospects for earning and preventing cyberattacks. The largest players in the cybersecurity market currently are Palo Alto Networks (8.7% market share), Fortinet (7.0% market share), and Cisco (6.1% market share). CrowdStrike (+39.9%, 2.9% market share) and Microsoft (+32.3%, 2.7% market share) showed the most impressive growth in market share.
Palo Alto Networks is an American company founded in 2005 that specializes in creating security systems to prevent cyberattacks on corporate networks. Palo Alto Networks offers high protection against threats related to web security, network security, data leakage protection, and cloud security.
Fortinet is a multinational company founded in the USA in 2000 that specializes in creating universal security systems to protect information and corporate networks. Fortinet offers a wide range of products to protect against threats related to web security, network security, data leakage protection, and cloud security.
Cisco is an American technology company founded in 1984 that specializes in developing and manufacturing network devices, software, and services. In addition, Cisco offers products to ensure network and data security.
CrowdStrike is a company founded in the USA in 2011 that specializes in creating security systems to protect against cyberattacks and security threats. CrowdStrike offers products that allow for the detection, identification, and prevention of cyberattacks on corporate networks.
Microsoft is an American corporation founded in 1975 that specializes in developing and manufacturing software, hardware, and services. Microsoft also offers products to protect against cyberattacks and security threats, including cloud security and products to protect corporate networks.
Overall, the cybersecurity market continues to grow, and companies that offer AI-based products have prospects for development and earnings. However, organizations are still heavily cutting costs on security, despite the high risks of cyberattacks. The largest players in the cybersecurity market currently are Palo Alto Networks, Fortinet, and Cisco. CrowdStrike and Microsoft have also shown impressive growth in market share.
