In this article, we will be taking a look at the 25 fastest growing cybersecurity companies in the world. If you’re interested, you can also check out 12 Most Advanced Countries in Cybersecurity.
The Rising Costs and Expanding Market of Global Cybersecurity
Fortune Business Insights says that the global cybersecurity market size was valued at $172.32 billion in 2023 and is projected to reach $424.97 billion by 2030, growing at a CAGR of 13.8% during the forecast period. The potential impact of cybercrime is significant, with damages estimated to reach $10.5 trillion annually by 2025, a 300% increase from 2015, according to McKinsey.
The US is a major player in the global cybersecurity market, with the North American region accounting for a market value of $67.77 billion in 2022 and a projected CAGR of 12.7% from 2023 to 2030. According to Gartner, worldwide security spending in the US is expected to reach $188.1 billion in 2023 and $288.5 billion by 2027.
Malicious actions have increased along with the expansion of the world’s cyber infrastructure, resulting in substantial costs for damage and prevention. Cybersecurity Ventures stated that victims of cybercrime lost $6 trillion in 2021, and that figure is expected to rise to $10.5 trillion by 2025, at a rate of 15% per year. In comparison, the GDP of Japan is $4.4 trillion. Berkshire Hathaway CEO Warren Buffett believes that cyberattacks are the largest issue facing humanity and highlights the dire consequences of these escalating expenses.
Companies and organizations invested $150 billion in cybersecurity in 2021, according to McKinsey. The threat picture is, nevertheless, changing quickly. 40% of malware and 80% of threat groups were brand-new in 2021, according to a survey of 4,000 businesses. Additionally, McKinsey points out that the $150 billion invested is a very tiny portion of the cybersecurity total addressable market (TAM). The market can grow to $1.5 trillion even at only ten percent market penetration.
Also check out15 Best Cities for Cybersecurity Jobs in the World.
Major Players in the Cybersecurity Industry
Major players in the cybersecurity industry include CrowdStrike, Fortinet, and Palo Alto, among others. These companies have been largely contributing to the cybersecurity market in various ways. For Example, CrowdStrike’s flagship product, the CrowdStrike Falcon platform, is a cornerstone of its cybersecurity offerings. This platform provides comprehensive protection for endpoints, cloud workloads, identities, and data. The company has been named a Leader in the Gartner Magic Quadrant for Endpoint Protection Platforms for four consecutive years and has received high scores in the Vision and Innovation criteria. CrowdStrike partners with this veteran-led nonprofit organization to support the recovery and rehabilitation of medically retiring or retired military service members through motorsport activities. This partnership includes a multi-year donation of $400,000 and various volunteer and mentorship opportunities for CrowdStrike employees. Financially, in Q1 2024, the company’s total Revenue was $692.6 million which is a 42% increase compared to $487.8 million in Q1 2023 and their subscription revenue was $651.2 million which is also a 42% increase compared to $459.8 million in Q1 2023. Based on their Q1 2024 report, their annual recurring revenue grew 42% year-over-year to $2.73 billion in the same period, with $174.2 million in net new ARR added in the quarter. urt Podbere, the CFO of the company said
“CrowdStrike delivered an exceptional start to the fiscal year, driven by strong execution and increased platform adoption as customers prioritize their cybersecurity budgets around consolidation on the Falcon platform, driving bigger deals and increased wallet share”
Similarly, Fortinet is also one of the biggest cybersecurity companies in the world. The company is a member of the Joint Cyber Defense Collaborative (JCDC), established by the Cybersecurity and Infrastructure Security Agency (CISA). Through this collaboration, Fortinet shares threat intelligence and best practices to strengthen the United States’ security posture. Fortinet also participates in strategic alliances, such as the Cyber Threat Alliance (CTA), to share threat intelligence and enhance the overall security posture of the industry. Financially, in Q1 2024, Fortinet reported total revenues of $1.35 billion which is a 7% increase year-over-year and their service revenue stood at $944 million, a 24% increase year-over-year. Their product revenue stood at $408.9 million which is an 18% decrease year-over-year. They reported a GAAP operating margin of 23.7% and a non-GAAP operating margin of 28.5%. This is what Keith Jensen, CFO of Fortinet said about Fortinet’s Q1 earnings:
“Total billings declined 6%, primarily due to the difficult year-over-year comparison caused by backlog contribution in the prior year’s first quarter. However, unified SASE and SecOps had outstanding growth, and existing customers delivered over 90% of SecOps and unified SASE billing”
He also added:
“We saw slight weakness in Europe, which nudged the billings towards the lower end of the guidance range, but it wasn’t a significant deviation. The overall annual guidance remains consistent with our expectations, supported by a healthy pipeline and operational improvements made over the last 6-9 months.”
Den Rise/Shutterstock.com
Our Methodology
For our methodology, we ranked the 25 fastest-growing cybersecurity companies in the world based on their YoY revenue growth rate from 2022-23. We have also included some companies that aren’t pure-play but are critical to the cybersecurity industry.
At Insider Monkey we are obsessed with the stocks that hedge funds pile into. The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
Here is our list of the 25 fastest-growing cybersecurity companies in the world.
25. F5, Inc.
YoY Growth: 0.20%
F5’s core offerings revolve around securing and optimizing application delivery. Their Web Application Firewall (WAF) and API security solutions protect applications and APIs against critical threats like those listed in the OWASP Top 10, mitigating vulnerabilities such as Log4j quickly. F5’s revenue declined 1% year-over-year to $693 million in Q1 2024 and F5 expects Q2 2024 revenue of $675-$695 million and non-GAAP EPS of $2.79-$2.91.
24. Cisco
YoY Growth: 0.85%
Cisco is traditionally known for its networking hardware and software. Notably, in 2023, Cisco made headlines with its $28 billion acquisition of Splunk which is the largest acquisition in cybersecurity history. This acquisition alone was three times larger than all cybersecurity M&A activity in the first half of 2023 combined ($8.8 billion) and larger than the quarterly M&A totals for the past 22 quarters. In addition to Splunk, Cisco has acquired several other cybersecurity companies over the years, including Duo Security for $2.35 billion in 2018, OpenDNS, Sourcefire, and Cloudlock. The company reported $14.7 billion in total revenues which is an increase of 8% year-over-year.
23. International Business Machines Corporation
YoY Growth: 2.45%
IBM offers a wide range of cybersecurity products, including Security Information and Event Management (SIEM), Security Orchestration, Automation, and Response (SOAR), Endpoint Detection and Response (EDR), Identity and Access Management (IAM), and Data Security solutions. In Q1 2024, their total revenue was $14.46 billion, up 1.5% year-over-year but slightly below analysts’ estimates. Their reported income in the same quarter stood at $1.6 billion, up 69% year-over-year.
22. Chеck Point Softwarе Tеchnologiеs
YoY Growth: 3.99%
Check Point Software Technologies is one of the biggest cybersecurity companies. Their flagship product, Check Point Infinity, is an AI-powered, cloud-delivered security platform that offers comprehensive protection across networks, cloud environments, and endpoints. One of Check Point’s notable achievements is its industry-leading catch rates for malware, ransomware, and other types of cyber attacks. In Q1 2024, their total revenues stood at $599 million which is a 6% increase year-over-year. Their security subscription revenues stood at $263 million during the same period, which is a 15% increase year-over-year.
21. Varonis Systems, Inc.
YoY Growth: 4.36%
Varonis has received numerous industry awards and recognition for its innovative technology and solutions, including:
- Leader in The Forrester Wave: Data Security Platforms, 2023.
- Named a Visionary in the 2022 Gartner Magic Quadrant for Data Security Platforms.
In Q1 2024, the company reported a total revenue of $114.0 million, up 6% year-over-year from $107.3 million in Q1 2023. Their SaaS revenues surged to $34.0 million from $2.1 million in Q1 2023 and their annual recurring revenues (ARR) grew 17% year-over-year to $560.3 million in Q1 2024.
20. Hub Cyber Security Ltd.
YoY growth: 4.47%
HUB Cyber Security Ltd is a rapidly growing cybersecurity company based in Tel Aviv, Israel. The company’s total revenues for fiscal year 2022 were $79.7 million, up from $32.5 million in 2021.
19. Akamai Technologies, Inc.
YoY Growth: 7.01%
Akamai Technologies, Inc. has emerged as one of the fastest-growing cybersecurity companies. The company’s revenue was $987 million in Q1 2024, up 8% year-over-year and when adjusted for foreign exchange. Their security revenue was $491 million, up 21% year-over-year and compute revenue was $145 million, up 25% year-over-year. Security and compute solutions combined represented 64% of total revenue and grew 22% year-over-year. The report also highlights that Akamai’s board authorized a new $2 billion share repurchase program over 3 years.
18. Trend Micro Incorporated
YoY Growth: 10.28%
Trend Micro Incorporated is a leading cybersecurity company. The company launched the Trend Vision One platform in 2023 which helps organizations better understand, communicate, and mitigate cyber risks. The company reported a 1% increase in global net sales at actual currency in 2023 compared to 2022 and a 19% increase in subscription annual recurring revenue (ARR), exceeding US$784 million in Q4 2023.
17. Qualys, Inc.
YoY Growth: 12.35%
Qualys has established strategic partnerships with major cloud providers like Amazon Web Services, Microsoft Azure, and Google Cloud Platform, as well as managed service providers and consulting organizations, enabling seamless integration of its solutions. In Q1 2024 their revenues increased 12% year-over-year to $145.8 million and operating cash flow increased 28% to $85.5 million, representing 59% of revenues. The company also unveiled TotalCloud 2.0 with TruRisk Insights for a unified multi-cloud risk view
16. Rapid7, Inc.
YoY Growth: 12.49%
Rapis7, Inc. Stands sixteenth among the fastest-growing cybersecurity companies in the world. Rapid7’s flagship product, InsightVM, is a leading vulnerability management solution that enables organizations to identify, prioritize, and remediate vulnerabilities across their IT infrastructure. In Q1 2024, their total revenue was $205 million, up 12% year-over-year, and product subscriptions revenue was $197 million, up 13% year-over-year.
15. Broadcom Inc.
YoY Growth: 12.94%
Broadcom Inc. Is one of the giant players in the cybersecurity market. One of its notable contributions includes the acquisition of Symantec’s enterprise security business in 2019, bolstering its cybersecurity capabilities. In Q1 2024 their semiconductor solutions revenue grew 4% to $7.4 billion. The Q1 report also highlights adjusted EBITDA of $7.16 billion or 60% of revenue.
14. Microsoft Corporation
YoY Growth: 13.97%
Microsoft has been named a Leader in multiple Gartner Magic Quadrant reports, including the 2023 Magic Quadrant for Endpoint Protection Platforms and the 2023 Magic Quadrant for Access Management. In Q1 2024, their revenue was $56.52 billion, up 13% year-over-year.
13. Fortinet, Inc.
YoY Growth: 14.20%
Fortinet is the only cybersecurity company listed in both the Nasdaq 100 and S&P 500. It has appeared multiple times on Fortune Magazine’s list of 100 Fastest Growing Companies. Their total revenue was $1.35 billion in Q1 2024, up 7% year-over-year and Service revenue was $944 million, up 24% year-over-year. The Q1 report also highlights a GAAP operating margin of 23.7% and a non-GAAP operating margin of 28.5%.
12. GenDigital, Inc.
YoY Growth: 14.20%
GenDigital, Inc. Stands twelfth among the fastest-growing cybersecurity companies in the world. The company’s Norton Antivirus and Avast Antivirus solutions are widely recognized for their real-time protection and advanced threat detection capabilities. Their Q1 2024 GAAP revenue was $946 million, up 34% year-over-year (YoY) in USD and Q1 GAAP diluted EPS was $0.29, compared to $0.33 a year ago. Their GAAP operating margin was 38.3%, up 140 basis points YoY.
11. Tenable Holdings, Inc.
YoY Growth: 15.88%
Tenable has made significant contributions towards cybersecurity. Tenable created Nessus which is one of the most widely used vulnerability scanners in the world. Their Q1 2024 revenue was $216.0 million, a 14% increase year-over-year and their GAAP net loss was $14.4 million, compared to $25.1 million in Q1 2023. The Q1 report also highlights that the company launched Tenable One for OT/IoT Security, providing visibility into IT and operational technology environments
10. Palo Alto Networks
YoY Growth: 20.05%
Palo Alto Networks is a leading cybersecurity company renowned for its innovative solutions. Their flagship product line, NGFWs provides advanced threat prevention capabilities through deep packet inspection and application-level control. Their Q1 2024 revenue grew 20% year-over-year to $1.9 billion. Their non-GAAP net income was $466.3 million or $1.38 per diluted share and their GAAP net income was $194.2 million or $0.56 per diluted share. Palo Alto Networks stand among the largest cybersecurity companies in the world.
9. Okta, Inc.
YoY Growth: 20.45%
Okta, Inc. is one of the biggest cybersecurity companies in the world. In Q1 2024 their total revenue was $251 million which is an increase of 37% year-over-year and subscription revenue was $239 million, up 39% year-over-year. The report also highlights that Okta added 550 new customers in Q1, bringing the total customer count to over 11,950.
8. Datadog, Inc.
YoY Growth: 25.87%
Datadog’s cloud security platform enables customers to detect threats in real-time, manage vulnerabilities, and conduct risk assessments. This offering has gained significant traction, with over 6,000 customers utilizing Datadog’s cloud security solutions as of the fourth quarter of 2023. The company was named a leader in the 2023 Gartner Magic Quadrant for Application Performance Monitoring and Observability. In Q1 2024, their revenue was $611 million which is an increase of 27% year-over-year. The report also highlights that the company had around 28,000 total customers in Q1, up from 25,500 a year ago, and around 3,340 customers with ARR of $100,000 or more, up 15% year-over-year.
7. Darktrace plc
YoY Growth: 27.41%
Darktrace plc is a rapidly growing British cybersecurity company that has emerged as a leader in the field of autonomous cyber defense powered by artificial intelligence (AI). One of Darktrace’s notable achievements is its claimed ability to defend against zero-day attacks, including some log4j vulnerabilities, which are particularly challenging for traditional security solutions. In April 2024, Darktrace announced its agreement to be acquired by Thoma Bravo which is a leading private equity firm, for $5.3 billion.
6. CyberArk Software Ltd.
YoY Growth: 29.70%
CyberArk has made strategic acquisitions to enhance its product portfolio, such as the acquisition of Idaptive in 2019 and the planned acquisition of Venafi in 2024 for $1.54 billion. CyberArk’s solutions are trusted by over 8,000 customers across 110 countries, including more than 55% of the Fortune 500 and 35% of the Global 2000 companies. Their total revenue in Q1 2024 was $221.6 million, up 37% year-over-year and subscription revenue was $156.2 million, up 69% year-over-year. Their non-GAAP operating income was $33 million in Q1 2024, compared to a loss of $12.6 million in Q1 2023 and GAAP net income was $5.47 million, up from a $35 million loss in Q1 2023. CyberArk is one of the largest cybersecurity companies in the world.
5. BlackBerry Limited
YoY Growth: 30.03%
Blackberry Limited stands fifth among the fastest-growing cybersecurity companies in the world. BlackBerry’s acquisition of Cylance in 2019 has been a game-changer that enabled the company to integrate advanced artificial intelligence (AI) and machine learning (ML) capabilities into its cybersecurity offerings. BlackBerry’s SecuSUITE solution which is certified by NATO, offers end-to-end encryption for secure voice, data, and messaging communications. Their Q1 2024 total revenue was $373 million which is a significant increase from $168 million in Q1 2023 and their Adjusted earnings per share was $0.06, compared to an adjusted loss of $0.05 per share in Q1 2023.
