Cybersecurity: digitalization’s safety net

Cybersecurity: digitalization’s safety net

01 July 2021Reading time: 2 minutes

On the back of the surge in mobile communications, the Internet of Things, and cloud computing, the importance of digital security is growing. Meanwhile, the marked increase in data transfer means IT systems are ever more vulnerable. Against this backdrop, demand for a wide range of technological solutions in the cybersecurity area is set to increase further. This segment is developing into a technological trend in its own right, boasting strong growth potential.

At the start of June 2021, the world’s largest meat company, JBS, fell victim to a massive cyberattack: hackers used ransomware to encrypt the business’s computers and demanded a ransom to unencrypt them. Just a few days later, hackers stole internal data and personal information from the fast food giant McDonald’s. Colonial, the largest pipeline in the US, was even forced to interrupt part of its crude oil supply in May 2021 following a cyberattack.

 

More need for cybersecurity

These three recent examples show that the increasing digitalization of the economy, the emergence of the Internet of Things, and the increase in handling work processes via network structures mean the necessity of cybersecurity is increasing for businesses. The rise in hacker attacks on private individuals, companies, and institutions with highly sensitive data could lead to cybercrime becoming one of the biggest challenges of the next few decades. The rapid growth in the cybersecurity sector further underlines this theory.

Market growing in size by 10 % a year

In order to protect ourselves against attacks from the internet, the demand for a wide range of technological solutions in the cybersecurity area is set to continue growing in the future. This segment is developing into a technological trend in its own right, boasting strong growth potential. Experts estimate that the global cybersecurity market could grow by around 10 % each year. Market size is expected to reach more than USD 190 billion by 2028. And no wonder, as this is a cross-sectional segment that spans all the other emerging technologies.

Cyber Security Performance-Index

The Cyber Security Performance Index was set up to save potential investors the time and effort it takes to search for and select appropriate shares. The selection pool includes securities in companies that generate significant revenues within the cybersecurity segment.

At the index advisor’s discretion, it is also analyzed according to the criteria of “high barriers to entry,” “product attractiveness/market growth,” “management quality,” and “business internationality.” The index is adjusted twice a year, whereby dividends and other distributions are reinvested in the index net – less country-specific withholding taxes.

 
 

The Cyber Security Performance Index is priced by Solactive AG (the “licensor”). Structured Products on the Cyber Security Performance Index are not sponsored, promoted, sold, or supported in any other manner by the licensor, and nor does the licensor offer any express or implicit guarantee or assurance with regard to the results of using the index, with regard to the index level at any time, or in any other respect.

 
20/01/2022 19:30:55

 

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