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A new cybersecurity research report has been issued by a consortium of market intelligence firms.

According to the report:

  • Digital transformation is exposing companies to higher and more costly cyber risks.
  • Firms whose cybersecurity practices do not keep pace with their digital transformation are more likely to see $1 million or more in cyberattack losses.
  • Majority of attacks will shift from malware (81%), phishing (64%) and ransomware (63%) to from customers and vendors (247%), supply chains (+146%), denial of service (+144%), apps (+85%) and embedded systems (84%) in the next two years.

The survey was conducted on some 1,300 global firms by a consortium of research firms including ESI ThoughtLab, the Wall Street Journal, the Security Industry Association, Baker McKenzie, CyberCube, HP Inc., KnowBe4, Opus, Protiviti and Willis Towers Watson.

Don Erickson, CEO, SIA, said: “As validated by SIA’s just-released 2019 Security Megatrends – highlighting the top factors influencing both short- and long-term change in the global security industry – security companies see cybersecurity as the dominant trend shaping the industry."

Lou Celi, CEO of ESI ThoughtLab and director of the study, added: “Cybersecurity should not be an afterthought. It needs to be integrated into the fabric of an organisation’s growth strategy.”

Surveyed firms are increasing cybersecurity investments by 7% this year and by 14% next year to cope with rising cyber risks.

Companies with revenue between $250 million and $1 billion will spend $2.9 million next year, $1-5 billion ($5.7 million), $5-$20 billion ($10.7 million) and $20+ billion ($16.8 million).

These companies say they will allocate 39.3% of their cybersecurity budgets to technology, 30.7% to process and 30% to people.

Technologies currently being used to improve security processes include multi-factor authentication (90%), blockchain (68%), the Internet of Things (62%) and artificial intelligence (44%).

Over the next two years, technologies that will see an increase in use include behavioral analytics (+1,735%), smart grid technologies (+831%), deception technology (+684%) and hardware security and resilience (+114%).

Countries with the highest maturity in cybersecurity include the United States (107.2), South Korea (104.7), Japan (102.6), France (101.9) and Australia (101.3).

Most of the lowest scoring companies were headquartered in emerging markets, including Brazil (88.6), Argentina (93.6) and India (93.7).