India’s cybersecurity market has posted a compounded annual growth rate of 25 per cent since 2019, crossing the USD 6 billion mark in 2023, and is projected to expand further with global spending touching USD 200 billion this year, Prayank Swaroop, partner at global VC fund Accel, said on Thursday.

Cybersecurity startups in the country are poised to see a steady growth on the back of higher spending in the domestic market, he said at the Accel Cybersecurity Summit 2024 in Bengaluru.

Highlighting the potential of the country’s cybersecurity market, Swaroop said Indian cybersecurity startups are poised to make a global impact, and continue their growth momentum amid a sharp rise in spending for cybersecurity globally.

The Accel Cybersecurity Summit 2024, India’s largest cybersecurity summit, saw participation from across the world. The gathering included prominent founders, global cybersecurity experts and CISOs (chief information security officer) of major enterprises.

“Our mission with this summit is to elevate the ecosystem of cybersecurity founders and operators by bringing together some of the best minds in the domain,” said Swaroop.

Data available with IDC, Gartner, and other leading research firms suggest that global spending in cybersecurity is expected to cross USD 200 billion in 2024.

“Indian cybersecurity startups will impact the global landscape as the market proliferates significantly,” he said, adding that the country’s cybersecurity market witnessed a 25 per cent CAGR since 2019 and crossed USD 6 billion in 2023.

Indian cybersecurity startups received USD 157 million funding in the past two years.

Multiple reports attest to the spike in global spending for cybersecurity, with an IDC report projecting spends upwards of USD 36 billion in the Asia Pacific alone.

This spike in spending, the growing importance of security awareness, a need to foster a robust security system and looking for solutions to the rising spectre of cybersecurity threats were the crux of Swaroop’s inaugural address at the summit.

Despite growing interest, data security and privacy remain significant concerns, alongside issues such as data breaches, IoT attacks, and social and regulatory pressures, Swaroop said.

He pointed out that cyber attacks have increased by 71 per cent on a year-on-year basis and are conducted using stolen or compromised credentials.

This, he said, makes safeguarding data, the most valuable asset, very important.

Generative AI is the flavour of the season, and Swaroop dwelt on the impact of generative AI on cybersecurity in-depth and termed it a ‘gamechanger’.

This is not just introduction of spaces but also the usage of cutting-edge technology to automate security services spending, estimated to be worth up to USD 50 billion.

On the generative AI impact, Swaroop said, “AI can significantly enhance operational efficiency by streamlining tasks such as log monitoring, alert summarisation, patch management, and reporting, thereby allowing cybersecurity practitioners to dedicate more time to strategic initiatives and strengthening defences against cyberthreats.”

The growing importance of AI in cyber defence, especially in areas such as early vulnerability detection, automated threat modelling, and real-time threat detection, was also emphasised.

According to Swaroop, generative AI has emerged an indispensable tool in the war against cyber threats.

“In the future, AI will play an increasingly pivotal role in cyber defence. It is reshaping the industry by enhancing key areas such as early vulnerability detection, automated threat modelling, and real-time threat detection.

“Moreover, it improves vendor risk management, penetration testing, and addressing new attack surfaces created by AI technologies,” he said.

The evolution of AI solidifies its status as an indispensable tool in the ongoing war against cyber threats. “We think it is important to secure the AI stack against threats like data poisoning and supply chain vulnerabilities while ensuring compliance and security,” Swaroop said.

The Accel partner concluded his address by highlighting the importance of integrating AI technologies to create new opportunities and face more formidable challenges as the broader cybersecurity market expands.