Endpoint security refers to the practice of securing the entry points or end-points of a number of end-use devices such as laptops, desktops, mobile and other portable devices, in order to prevent them from being broken into or hacked by bad actors or campaigns. Endpoint security has drastically evolved from its early days of being used as antivirus software, to offering all-round protection from sophisticated malware and zero-day threats. With both big and small organizations being the target of enemy nations, hackers and organized crime, endpoint security has assumed much greater importance in today’s data-driven environment.
With more and more devices, software and application being integrated in an organizational network, there has been an exponential increase in the number of security and data alerts. The introduction and rapid growth in adoption of BYOD (Bring Your Own Device), which allows professionals to use their personal laptops or mobiles for performing official work, has added complexity to the data and network security, thus highlighting the importance of endpoint security systems. Additionally, there has been an emerging trend of virtualization, which involves separation of physical systems into a number of virtual machines that require similar endpoint protection. This has added another layer to endpoint security, thus significantly expanding the market.
A 2019 survey by SlashNext and Dark Reading revealed that 66 percent of enterprises surveyed had detected phishing attacks on their network frequently, with 41 percent of enterprises frequently detecting malware. Additionally, 36% of businesses have experienced more than one serious breach or compromise a year, while three percent experienced such a compromise on a daily basis. A separate survey by SANS in 2018 revealed that 28% of participating respondents reported that their endpoints had been breached, and only 39% of attacks were detected by traditional antivirus. All these statistics point towards the importance of presence of a sophisticated endpoint security infrastructure, which has driven the market in recent years.
Access Research Report of Endpoint Security Market
Major companies in the endpoint security market such as McAfee, FireEye and Sophos have focused their operations on developing technologies that can improve capabilities, secure internet protocols, test software and analyze vulnerabilities. furthermore, there has been a growing adoption of cloud-based security services, which enables storage of significant amounts of data at one place. Various government regulations have been put in place to oversee this aspect, which is factoring in the market growth. Endpoint security serves a number of key sectors such as IT & telecom, BFSI and Retail, which provides significant opportunities for growth and expansion to major industry players.
In terms of solution, the endpoint security market has been segmented into firewall, antivirus, application control, MDS, ID/IP and encryption technologies, among others. Antivirus segment accounts for a respectable share in the market, as it is very useful in reducing or negating the threat of trojans, viruses, worms, adware, spyware, keyloggers and rootkits. The mobile device security segment is anticipated to grow at a rapid pace in the coming years, on account of the drastic increase in the usage of mobile and portable devices across organizations, coupled with the popularity of the BYOD system that is being rapidly implemented across companies.
Based on deployment, the endpoint security market is segmented into on-premise and cloud. Cloud-based services are expected to be the dominant segment in the near future, as more and more organizations move towards adoption of cloud across every aspect of the company. Additionally, the on-premise segment is much more expensive to maintain than cloud, which has led to migration of many professionals towards the latter segment.
With regards to organization, the endpoint security market has been classified into enterprise and SMBs. The former segment currently dominates the market, and is expected to remain so in the near future, on account of constant upgradation of existing security infrastructure. SMBs are expected to show substantial growth in the market, as organizations both big and small move towards adoption of cloud technology for storing data, thus necessitating the presence of strong security systems. However, it is expected that reluctance of SMBs to outsource security services to a third party will restrain the growth of the market to some extent.
Based on application, the endpoint security market has been segmented into IT & telecom, BFSI, Industrial, education, retail and medical, among others. IT & Telecom segment is expected to remain the major customer of endpoint security systems, while BFSI is also expected to generate substantial revenue for the market, on account of the growing regulation in the finance sector.
The medical sector is expected to show noticeable growth in the endpoint security market on account of the increasing risk of hacking faced by the multitudes of internet-connected healthcare systems. Moreover, mobile healthcare has also gained a lot of prominence across developed and emerging economies, which has necessitated the presence of an efficient security system. The 2019 Healthcare Data Breach Report by HIPAA Journal found that the year saw 510 healthcare data breaches in the US, in which 500 or more records were exposed, with the total number of patient records exposed drastically increasing from 13,947,909 in 2018 to 41,335,889 in 2019.
The North American and European regions are projected to dominate the endpoint security market in coming years, owing to the presence of established healthcare and IT infrastructure, and the rapid adoption of cloud-based security in the regional economies. The growth has been accelerated by the presence of major market players such as Bitdefender, IBM, Intel, Cisco and Microsoft in these regions. Asia Pacific is anticipated to show substantial market growth in the coming years, as the trend of BYOD and cloud adoption has massively caught up with the regional organizations in recent years, and more specifically in the emerging economies of India, Malaysia and China that have seen IT and telecom sector grow by leaps and bounds.
Recent Trends and Developments
COVID-19 Impact: The global COVID-19 pandemic has led to shutdown of workplaces across global economies, with organizations instead asking employees to work from home. This is expected to become a norm even after the pandemic recedes, as organizations are taking extra precautions for their employees. A recent Gartner survey revealed that 70% of the CFOs would be encouraging employees to work remotely, and this situation is expected to boost the development of the endpoint security market, as professionals make use of their personal devices and VPN networks for performing their tasks, which would enhance the risk of cyberattacks. To combat this situation, the company may provide established antivirus software as well as proactive solutions like moving target defense.
Intel announced in June 2020 regarding its plans to introduce new hardware-based protection against common malware attacks in the company’s upcoming 10-nanometer Tiger Lake laptop processors. This will be the first Intel processor family to utilize the new Intel Control-Flow Enforcement Technology (CET). CET is a set of silicon-level instructions that targets a malware type known as control-flow hijacking that has been traditionally difficult to mitigate through software. The feature is expected to satisfy the demands of organizations prioritizing endpoint security in the current work-from-home scenario due to the current coronavirus scenario.
In June 2020, Siemens teamed up with SparkCognition to collaborate on a new product and service offering aimed at devices utilized in industrial operational technology (OT) networks. This is a machine learning-based endpoint security offering, with the partnership expected to address the issue of the longstanding issue of tracking and protecting endpoints in OT networks. The product will initially offer support to only endpoints running Windows 2000 and later versions, and would be expanded to include other systems gradually.
Symantec revamped its endpoint portfolio with the introduction of Symantec Endpoint Security (SES) in October 2019, with the system delivering protection, detection and response in a single solution, along with a new attack surface reduction, threat hunting, and breach assessment and prevention capabilities. Furthermore, customers can deploy and manage SES via cloud or on-premises, or a hybrid of both, for all operating systems including mobile devices, with single agent installation.
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