Cybersecurity: Market Activity Report Q1 2024

ComCap’s latest coverage on the cybersecurity sector centers on identifying fresh avenues for growth available to cybersecurity companies in safeguarding business assets. The report’s primary objectives are to underscore developing trends within specific sectors, pinpoint factors driving growth, observe changes in the market landscape, and explore acquisition & investment patterns among industry participants, both from financial and strategic perspectives. Furthermore, our report emphasizes noteworthy acquisitions made by industry leaders aimed at bolstering and fortifying their capabilities. Additionally, it delves into the activities of prominent disruptors across various sub-sectors within the cybersecurity domain.

Key trends highlighted in ComCap’s Q4 2024 report include:

  • Investments and the adoption of new solutions are increasing in response to cyber attacks targeting IoT-dominant industries like manufacturing, healthcare, transportation, and urban infrastructure (smart cities)
    • Prominent strategic entities, like Honeywell’s purchase of the cybersecurity startup SCADAfence in July 2023 and DEKRA’s acquisition of Onward Security in March 2023
  • The field of cybersecurity is increasingly embracing generative AI models due to their significant potential to transform defence strategies. These models can revolutionize cyberattack detection, prevention, and autonomous response mechanisms.
  • The surge in digitalization across diverse private and governmental domains, coupled with a rise in data breaches and the implementation of government compliance and regulations, has propelled the demand for infrastructure and data security solutions.
  • The growth of GRC (Governance, Risk, and Compliance) platforms is anticipated to be fueled by a growing focus on risk reduction to protect sensitive data and intellectual property (IP) across various sectors. Additionally, organizations are increasingly seeking ways to navigate intricate regulatory frameworks to steer clear of potential legal and financial consequences.
  • During the initial nine months of 2022, we witnessed a notable uptick in M&A deal volumes executed by both strategic and financial entities. However, there was a decline in deal activity in the first half of 2023. With Cisco’s substantial $32 billion acquisition of Splunk in Q3’23, we anticipate a substantial surge in both the volume and value of deals in the year 2024.
  • Private placement activity saw a decrease during the initial three quarters of 2023, however, the final quarter of 2023 experienced a notable increase in fundraising activities, and we anticipate strong sponsor interest as we move into 2024.

Please reach out to ComCap to discuss your transaction needs within the space.