Techaisle's study on SMB and Midmarket Security Adoption Trends projects that IT security spending by small and mid-sized businesses worldwide is expected to reach US$90 billion in 2024, showing a 9.4% increase from the previous year. In the US alone, the market expenditure is set to rise by 8.3%. Significant investments will concentrate on Endpoint Protection, Network Security, and Identity and Access Management, with MDR (Manage, Detect, Respond) services seeing the most rapid growth in the SMB and midmarket sectors.
A significant increase in funding for IT security is projected among high-growth SMBs. Notably, 21% of rapidly growing small and medium-sized enterprises (SMBs) and 26% of mid-sized companies are forecasting a minimum growth of 15% in their IT security budgets for 2024. Highly innovative organizations are committed to improving security measures as well, with 18% of SMBs and 21% of midmarket companies planning to boost their spending by 12% compared to the previous year.
Techaisle's data also reveals a concerning cybersecurity preparedness gap among small and medium-sized businesses, with 42% having no cyber incident response plan. Despite nearly half experiencing security breaches, often going unnoticed, only 40% are confident in their recovery capabilities, likely downplaying the risks. These cyberattacks come at a high cost, with SMBs' average annual losses reaching $1.4 million. Contributing to this issue is the fact that 46% of these businesses lack formal risk assessment methods, indicating a serious underestimation of online threats.
Addressing SMB and Midmarket security issues can be done through various lenses. Segmenting security adoption into four categories—Prevent & Protect, Detect & Respond, Adapt & Comply, Restore & Recover—provides an understanding of preferred solutions and areas poised for growth. This framework helps clarify how these companies prioritize and distribute funds for cybersecurity strategies.
Prevent & Protect:
The Prevent and Protect category shows one of the most significant growth rates in adoption, spearheaded by Security Awareness Training, which is at a 90% likely adoption increase. This indicates that numerous SMBs and mid-market enterprises are focusing on preventive strategies to circumvent security breaches. Other technologies within this category likely to see significant growth in adoption are Endpoint Protection (83%), Email Threat Protection (66%), and Data Loss Prevention (66%).
Detect & Respond:
The aim of Detect and Respond is to find and act upon security risks. User Behavior Analytics leads the anticipated growth in adoption, with a projection of 103%, showcasing small and medium-sized businesses' growing interest in behavior analytics for spotting insider threats and anomalies. Other solutions set to see significant adoption increases include Intrusion Detection/Prevention Systems (IDP/IPS), Network Detection & Response, as well as Security Information and Event Management (SIEM)/Security Orchestration, Automation, and Response (SOAR).
Adapt & Comply:
Adapt & Comply includes solutions that help SMBs and Midmarket firms implement and comply with relevant security policies and regulations. The solution with the highest projected adoption growth rate in this category is Managed Detection & Response (112%). SMBs and Midmarket firms are increasingly outsourcing their security monitoring and response needs to managed security service providers (MSSPs). Other solutions in this category with high adoption rates include Multi-Factor Authentication (MFA) and Identity Access Management (IAM) (85%).
Restore & Recover:
Restore & Recover offers tools that assist small and medium-sized businesses in recovering from security breaches. The top solution expected to see significant adoption growth in this segment is Cloud-to-Cloud Backup (103%), reflecting the trend of these businesses storing data online and needing cloud data protection. Other adoption growth solutions in the category are Data/Drive Encryption and Endpoint Backup.
The Need for a Multi-Layered Approach
The evidence is definitive: multiple layers of security are crucial for small and medium-sized business (SMB) cybersecurity. It begins with Security Awareness Training to educate employees, followed by Endpoint Protection to defend devices against threats. Email Threat Protection is necessary to counter phishing attacks, and Data Loss Prevention is critical in guarding against data breaches. The rise in Managed Detection and Response (MDR) underscores its importance in offering specialized monitoring and rapid threat response. Beyond prevention, conducting regular Risk Assessments identifies weak points, and having an Incident Response Plan provides quick, efficient action against cyber incidents. By adopting these strategies, SMBs can establish a strong defense for their information and activities.
Call to Action for Security Suppliers to Capture the Booming SMB Cybersecurity Market
The cybersecurity market is expanding rapidly, especially for small and medium-sized businesses. It's crucial to develop security strategies that are multi-layered, affordable, and user-friendly for businesses with limited IT staff. Focus on newer areas such as mobile security and instruct SMBs on the serious consequences of cyber threats like data breaches and reputation harm. Provide straightforward tools for evaluating risks and templates for basic response plans, partner with managed service providers who work with SMBs, and offer educational content in plain language, including success stories to highlight the benefits of your cybersecurity solutions.