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Global Deception Technology Market Size and Share Analysis 2023-2028
The Deception Technology Market is projected to experience significant growth in the coming years. According to estimates, the market size will reach USD 3,930 million by 2028, with a Compound Annual Growth Rate (CAGR) of 14.75% during the forecast period of 2023-2028.
Deception technology is an advanced security solution that aims to identify and prevent targeted attacks. It achieves this through various techniques such as intentional obstacles, false responses, misdirection, and forgery.
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USD 1.6 billion in 2021
Deployment, Organization Size, Service, Deception Stack, End-User, and Geography
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With the increasing number of cyber threats, organizations are recognizing the need to detect and mitigate advanced risks that have already infiltrated their networks. This has led to a growing adoption of deception technology. While current security tools are effective at detecting anomalies, they often generate numerous alerts that require investigation by security teams. Unfortunately, many of these alerts turn out to be false threats, wasting valuable resources and diverting attention from genuine threats. Deception technology helps address this issue by altering the dynamics of an attack, enabling security teams to focus on real threats to the network. This advantage has contributed to the rising popularity of deception technology over the forecast period.
Many deception solutions incorporate Artificial Intelligence (AI) and Machine Learning (ML) capabilities into their core functionalities. These features ensure that deception techniques remain dynamic and reduce the operational burden on security teams by eliminating the need for continuous creation of new deception campaigns.
The COVID-19 pandemic witnessed a significant increase in cyberattacks targeting individuals, businesses, and organizations. As a result, impacted enterprises are investing in upgrading their outdated systems, thereby driving the growth of the deception technology market. For instance, the US Department of Homeland Security issued warnings about emerging pandemic-related cybercriminals and advanced persistent threat groups, while Interpol cautioned against criminals intentionally targeting medical facilities.
The market is segmented based on various factors, including Deployment, Organization Size, Service, Deception Stack, End-User, and Geography
Segmentation by Deployment
Segmentation by Organization Size
Small and Medium Enterprises
Segmentation by Service
Segmentation by Deception Stack
Segmentation by End-User
IT and Telecommunication
Segmentation by Geography
Middle East and Africa
Cloud deception technology creates a highly sophisticated trap environment that closely mimics the existing network, presenting itself as an enticing target for potential attackers. By deploying fake assets within the cloud, deception technology addresses vulnerabilities that could be exploited by attackers to compromise cloud-based data and workloads. The addition of in-cloud visibility and awareness through deception technology enhances overall security measures, taking advantage of its scalability.
The emergence of deception technologies in the realm of cyber defense has provided valuable resources that shift the advantage towards defenders. Organizations strategically deploy false decoys and lures across their networks, transforming the entire environment into a trap designed to attract and deceive in-network attackers, prompting them to reveal their presence and intentions.
In terms of market segmentation, the large enterprises segment held the largest share of 59.00% in 2022. However, it is expected that the small and medium enterprises segment will experience the highest compound annual growth rate (CAGR) of 16.84% over the forecast period. Enterprises with high volumes of network traffic strive for zero false positives and advanced detection capabilities as a standard requirement. Given the persistent breaches and data theft targeting large companies worldwide, deception technology has gained traction among these enterprises, offering early breach detection and enhanced network visibility.
Factors such as the increasing frequency of cyberattacks, the rise of hybrid work culture, and the growing prevalence of Bring Your Own Device (BYOD) practices in large enterprises are driving the demand for robust cybersecurity measures. Consequently, the adoption of deception technology is proliferating as organizations seek effective solutions. For example, in February 2022, hackers attacked Marquard & Bahls, a German energy company, leading to the destabilization of its IT infrastructure and the subsequent closure of over 200 gas stations across Germany. This cyberattack also disrupted fuel supplies for other companies, including Shell.
Professional services offered by IT staffing firms focus on specific projects with defined end dates, encompassing all stages from brainstorming and planning to final implementation. This segment can be further categorized into consulting, training and education, design and system integration, as well as support and maintenance. Revenue for professional services provided by deception technology platform vendors is typically generated through service contracts based on either time and material or fixed fees. These services include deployment and training related to software and cloud-based products, incident response services, and security advisory services.
In terms of market segmentation, the network security segment held the largest market share of 42.79% in 2022, while the data security segment is projected to witness the highest compound annual growth rate (CAGR) of 16.17% over the forecast period. Network security encompasses an organization’s strategies and provisions for ensuring the integrity, confidentiality, and availability of data stored, transmitted, processed, or received by computing and communication assets. With the increasing need for network security due to technological advancements, multiple layers of security measures are implemented, allowing access only to authorized users while preventing malicious actors from executing threats and exploits.
The BFSI (Banking, Financial Services, and Insurance) segment accounted for the largest market share of 31.23% in 2022, while the IT and telecom segment is expected to witness the highest CAGR of 16.46% over the forecast period. The BFSI industry continually advances its processing and transaction technologies, necessitating end-to-end security solutions to optimize operations against both internal and external threats. Moreover, the introduction of new and enhanced financial products and services within the industry makes it an attractive target for cybercriminals seeking sensitive customer information. Therefore, designing integrated solutions that offer secure access to information whenever and wherever required becomes crucial. Cyber deception technology plays a vital role in assisting BFSI customers in safeguarding their critical information from potential threats and vulnerabilities.
The North America segment has emerged as the leading market, accounting for the largest share of 34.08% in 2022. Meanwhile, the Asia-Pacific segment is projected to witness the highest compound annual growth rate (CAGR) of 17.59% over the forecast period. The North American region’s prominence in the global deception technology market can be attributed to the increasing adoption of deception technology solutions, particularly in highly regulated industries such as financial services, healthcare, and government. Notably, several US states, including California with its California Consumer Privacy Act (CCPA), have implemented privacy laws that have significantly contributed to the demand for deception technology solutions across various end-user sectors.
California passed a separate law addressing default passwords on Internet of Things (IoT) devices and vulnerabilities associated with IoT technology. In response, the National Cybersecurity and Communications Integration Center (NCCIC) introduced a Technical Alert (TA) aimed at assisting Managed Service Providers (MSP) customer network and system administrators in detecting malicious activity, mitigating associated risks, and providing guidance on incident reporting. This TA offers insights into the Tactics, Techniques, and Procedures (TTP) employed by Advanced Persistent Threat (APT) actors within MSP network environments, along with suggestions for effective mitigation strategies.
The growth of the deception technology market in the North American region is fueled by various factors. These include the presence of robust infrastructure, the concentration of global financial institutions, a high frequency of cyberattacks, and the extensive adoption of advanced technologies. Moreover, the region exhibits significant trends driving the adoption of deception technology. The proliferation of smartphone devices and the widespread use of social apps generate vast amounts of data containing valuable information, thereby increasing the risk of cyber threats. Additionally, the region’s substantial data volume in organizations, coupled with the presence of prominent market vendors, further drives the demand for deception technology solutions. Furthermore, the early adoption of cutting-edge technologies like 5G, artificial intelligence (AI), cloud computing, and the Internet of Things (IoT) across various industry sectors accelerates the pace of demand for deception technology solutions.
The deception technology market is characterized by a high level of fragmentation, with key players such as Illusive Networks, Commvault Systems Inc., Smokescreen Technologies Pvt. Ltd., Attivo Networks Inc. (SentinelOne Inc.), and Rapid7 LLC leading the industry. These major players employ various strategies, including partnerships, innovations, mergers, and acquisitions, to enhance their product offerings and establish a sustainable competitive advantage.
In February 2023, Rapid7 and the University of South Florida (USF) announced a collaborative partnership to establish a cyber threat intelligence laboratory. This initiative aims to support interdisciplinary research endeavors involving faculty experts and students from multiple colleges and diverse disciplines. The creation of this laboratory will foster cutting-edge research and contribute to advancements in cybersecurity knowledge and practices.
In September 2022, Commvault unveiled Metallic ThreatWise, an advanced early warning system designed to proactively identify unknown and zero-day threats. By providing real-time detection and mitigation capabilities, Metallic ThreatWise helps organizations minimize data breaches and mitigate the potential impact on business operations. This innovative offering strengthens Commvault’s position in addressing emerging security challenges and protecting valuable digital assets.
Key companies profiled in this report include Illusive Networks, Commvault Systems Inc., Smokescreen Technologies Pvt. Ltd, Attivo Networks Inc. (Sentinelone Inc.), Rapid7 LLC, Ridgeback Network Defense Inc., Akamai Technologies Inc., Acalvio Technologies Inc., CounterCraft SL, CyberTrap Software GmbH, Fidelis Cybersecurity Inc. (Skyview Capital LLC), LogRhythm Inc., WatchGuard Technologies Inc., NTT Security Limited (Nippon Telegraph and Telephone Corporation), Broadcom Inc. (Symantec Corporation).
Recent Industry Developments
In March 2023, Rapid7, a prominent cybersecurity company, announced its acquisition of Minerva Labs Ltd., a leading provider of anti-evasion and ransomware prevention technology. This strategic move aims to enhance Rapid7’s capabilities in combatting cyber threats and bolster their portfolio of advanced security solutions.
Also in March 2023, Akamai Technologies, a global leader in content delivery network services, revealed an agreement to acquire Ondat. Ondat specializes in cloud-based storage technology and offers a Kubernetes-native platform for running stateful applications at scale. By incorporating Ondat’s expertise and solutions, Akamai aims to strengthen its cloud infrastructure offerings and provide customers with more robust and scalable storage solutions.
Furthermore, Acalvio Technologies, a provider of advanced threat defense solutions, announced a partnership with Carahsoft Technology Corp. Carahsoft, a trusted government IT solutions provider, will act as Acalvio’s Master Government Aggregator under this agreement. This collaboration enables Carahsoft to offer Acalvio’s highly regarded Active Defense Platform and ShadowPlex Advanced Threat Defense to the public sector, enhancing the government’s ability to detect and mitigate advanced cyber threats.
These developments reflect the dynamic nature of the cybersecurity industry, with companies strategically aligning themselves to expand their capabilities and provide innovative solutions to address evolving cyber risks.
Key Questions Answered
What is the projected size of the Deception Technology Market?
The Deception Technology Market is expected to reach a size of USD 1,975 million in 2023 and grow at a compounded annual growth rate (CAGR) of 14.75% to reach USD 3,930 million by 2028.
What is the current size of the Deception Technology Market?
In 2023, the Deception Technology Market is expected to reach USD 1,975 million.
Who are the major players in the Deception Technology Market?
Illusive Networks, Commvault Systems Inc., Smokescreen Technologies Pvt. Ltd, Attivo Networks Inc. (SentinelOne Inc.), and Rapid7 Inc. are among the key companies operating in the Deception Technology Market.
Which region is experiencing the fastest growth in the Deception Technology Market?
Asia Pacific is estimated to have the highest compound annual growth rate (CAGR) over the forecast period (2023-2028) in the Deception Technology Market.
Which region holds the largest share in the Deception Technology Market?
In 2023, North America has the largest market share in the Deception Technology Market.