A new report from the Center for American Progress finds that the U.S. has more than $700 billion in untapped growth potential in cybersecurity, but that the country still faces significant challenges.
According to the report, U.K.-based RSA Technologies, which develops encryption software, is poised to become the leading global cybersecurity company with more than a $6 billion in revenue this year.
“RSA is poised for a global surge of growth,” says Matt Luscombe, president of the center.
“We believe this is due in part to the combination of its core technology, leadership, and strategic partnerships.
RSA’s focus on enterprise applications and its recent acquisition of the company’s security services division is another positive sign.
But it’s important to remember that RSA’s core technology remains proprietary and remains a work in progress.
As a result, the company will need to leverage existing marketplaces and partnerships to expand its global reach.”
The report also found that China is leading the way in cybersecurity in the U., and the country is expected to surpass the U, China, in cybersecurity by 2020.
China has been investing in cybersecurity since the 2008 financial crisis, and is currently investing in more than 300 cybersecurity companies and programs.
“China is a major cybersecurity market for us,” says Mark Kim, principal research analyst at the Center.
“They’ve built a robust cybersecurity industry, with large scale investments in advanced systems and capabilities, and they are currently on track to become China’s largest cybersecurity market in 2020.”
The study also looked at how countries such as Russia, India, and Israel are investing in cyber capabilities.
“The findings highlight the potential for these emerging nations to provide cyber capabilities to their citizens and businesses for years to come,” said Kim.
“A strong cybersecurity workforce, particularly in the private sector, is key to enabling the rapid development of new technologies and cybersecurity capabilities in these emerging markets.”
North America and Europe have also seen significant cybersecurity investments, according to the study.
North America accounts for roughly 70 percent of the cybersecurity market.
“Europe is home to some of the most advanced cybersecurity technologies in the world, with strong cybersecurity organizations and government policies, including the EU-U.S.-Russia Cybersecurity Framework and EU-US-Israel Security Framework,” said Luscastle.
“As a result of these strong ties, North America has been leading the global cybersecurity effort in terms of the amount of funding spent on cybersecurity programs.
This is especially true in Europe where Europe has long been a leader in cybersecurity and is the only major region to have the highest number of cyberattacks per capita.”
China is currently the second-largest cyberthreat in the global economy.
But the report found that in the past decade, China has dramatically ramped up its cybersecurity activities, increasing the amount and variety of cybersecurity tools available to its citizens.
“With more than 400 cybersecurity programs, China is already among the most sophisticated nations in the international cybersecurity space,” said Lee.
“Its cyber capabilities are growing at a rapid pace and its investment in the cybersecurity sector is growing faster than the rest of the world.”
The top three countries for cybersecurity spending in 2020 are the United States ($4.6 billion), Russia ($4 billion), and China ($4 million).
North America continues to lead the global spending in cybersecurity with $4.3 billion in spending, followed by Europe ($3.5 billion), Asia ($3 billion), the Middle East ($2.4 billion) and Latin America ($1.9 billion).
The U.N. has said that it expects to spend more than US$5 trillion on cybersecurity in 2020, a number that has not changed over the past five years.
The Center for AMERICAN PROGRESS is the leading nonpartisan think tank in Washington DC.
This article is part of Next Big Futures, a series of reports on the future of technology and the economy that highlight the most important trends and issues facing the United, U and Beyond.
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