Around 97% of Indian organizations have invested in AI/ML technologies, according to a report released by the Data Security Council of India (DSCI) on Friday.
Additionally, around 84% of the organizations surveyed had invested in cloud technology, according to DSCI’s ‘India Cybersecurity Domestic Market’ report.
“Organizations are increasingly investing in emerging technologies, with Cloud and AI/ML becoming cornerstones of strategic investment. Around 97% and ~84% of analyzed organizations have invested in AI/ML and cloud, respectively,” said Vinayak Godse, CEO, DSCI.
The cybersecurity market in India reached $6 billion in 2023, growing at a compound annual growth rate (CAGR) of over 30% between 2019 and 2023, while the cybersecurity products segment grew more than 3 times, 5 to reach $3.7 billion in 2023, up from around $1 billion in 2019, according to the report.
Additionally, the survey also estimates that the Indian cybersecurity market will account for 5% of the global market by 2028.
“The Indian cybersecurity industry has been at the forefront, supporting government and other critical sectors, facilitating the adoption of emerging technologies including AI/ML and cloud, and mitigating the evolution cybersecurity risks. India is emerging as a global cybersecurity hub,” said S. Krishnan, Secretary, Ministry of Electronics and Information Technology.
The report also highlights how threat actors are using email as the most critical tool to target organizations, followed by phishing, where approximately 90 percent of organizations recognized email as the largest and most critical avenue for cyberattacks, and 84 percent recognized phishing as the predominant cyberthreat facing their industry.
The cybersecurity talent shortage has become a major concern for end-user organizations and security companies nationwide, the report highlights. While approximately 75 percent of surveyed organizations highlighted the shortage of qualified professionals as a major concern, in another study conducted by DSCI, 47 percent of participants indicated that cybersecurity professionals represent less than 5 percent of the total workforce.
“Among the significant challenges cited by 75% of respondents was a shortage of talent. Additionally, organizations across the country are grappling with the added challenge of attrition,” the report reads.
Sector-wise, the banking, financial services and insurance (BFSI) and IT/IT services (ITeS) sectors were reported as the top cybersecurity spenders in India, in the study.
“BFSI spending on cybersecurity increased at a CAGR of 35%, from $518 million in 2019 to $1,738 million in 2023 due to stringent and granular policy requirements,” the report said.
The impact of cyberattacks on businesses was also highlighted in the report, with 87.5 percent of respondents saying that cyberattacks had damaged their organization’s reputation.
According to the survey results, 75% of the organizations surveyed also reported financial and revenue losses as well as disruptions in internal operations as damages caused by cyberattacks in India.
The report was prepared by DSCI and involved an analysis of over 120 organizations in India.
The Data Security Council of India (DSCI) is an industry body on data protection in India, led by Nasscom, and works collaboratively with the government and its agencies, law enforcement and industry in the Indian cybersecurity space.
First publication: December 29, 2023 | 6:24 p.m. STI
