We recently compiled a list of the 25 Fastest Growing Cybersecurity Companies in the World that you can check for free.
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.
Major Players in the Cybersecurity Industry
Major players in the cybersecurity industry include CrowdStrike Holdings, Inc. (NASDAQ:CRWD), Fortinet, Inc. (NASDAQ:FTNT), and Palo Alto, among others. These companies have been largely contributing to the cybersecurity market in various ways. For Example, CrowdStrike Holdings, Inc. (NASDAQ:CRWD)’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 CrowdStrike Holdings, Inc. (NASDAQ:CRWD)’s 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, Inc. (NASDAQ:FTNT) 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, Inc. (NASDAQ:FTNT) 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, Inc. (NASDAQ:FTNT) 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.”
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.
The Fastest Growing Cybersecurity Companies in the World
1. SentinelOne, Inc. (NYSE:S)
YoY Growth: 47.13%
SentinelOne, Inc. (NYSE:S) tops the list for being the fastest-growing cybersecurity company in the world. In Q1 2024 their revenue increased 70% year-over-year to $133.4 million and annualized Recurring Revenue (ARR) grew 75% year-over-year to $564 million. Their number of customers with over $100,000 in ARR reached 917, growing 61% year-over-year. The international revenue of SentinelOne, Inc. (NYSE:S) grew 84% year-over-year in the same quarter and represented 35% of total revenue. They also reported Non-GAAP gross margin of 74.5%, up 10 percentage points year-over-year.
To learn about other fastest-growing cybersecurity companies, you can check out our detailed report 25 Fastest Growing Cyber Security Companies in the World.
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Disclosure. None: The 25 Fastest Growing Cyber Security Companies in the World is originally published on Insider Monkey.