Revenue Forecast

The revenue estimate for the base year 2023 is $1,644.3 million, with a CAGR of 32.8% for the study period 2023–2028.

The Impact of the Top 3 Strategic Imperatives on the Threat Intelligence (TI) Industry

Disruptive Technologies

• Why: AI creates both opportunities and challenges for businesses. It empowers hackers without technical expertise to exploit vulnerabilities, leading to significant damage. For instance, threat actors utilize generative AI tools for infiltrating networks and orchestrating phishing attacks. Conversely, organizations can use AI to proactively enhance security, bridge talent gaps, and gain a strategic advantage in cybersecurity. Harnessing AI can fortify security, address vulnerabilities, and ensure compliance.
• Frost Perspective: AI's ubiquitous influence drives demand for TI solutions across industries and regions. Traditionally, AI was utilized for back-end functions, but integrating generative AI at the front end is a recent, promising development. AI adoption into the life cycle enhances detection, response, productivity, and customer reporting. Frost & Sullivan expects a surge in AI-enabled TI offerings in the next five years, which will reshape the TI landscape and compel non-AI-enabled providers to adapt to avoid obsolescence.

Competitive Intensity

• Why: Venture capital injections, industry convergence, and regulations drive cyber threat intelligence (CTI) adoption. Start-ups encounter a low barrier to entry, thanks to low-cost web crawlers and open-source data. Enhanced data correlation engines and reporting capabilities facilitate packaging raw threat data into actionable reports, fueling the emergence of start-ups and attracting vendors from adjacent sectors to the CTI/threat intelligence platform (TIP) arena. Nearly all cybersecurity vendors can offer some TI, ranging from telemetry data to strategic threat reports.
• Frost Perspective: TI is crucial for proactive protection, with regulators and other insurance firms promoting CTI/TIP adoption. This boosts demand and competition, driving vendors to expand their use cases. Pure-play CTI providers integrate DRP* and EASM** while cybersecurity platform providers leverage economies of scale and vendor lock-in advantages by entering the TI space. This trend will persist, leading to diversification among potential solution providers and the acquisition of more industry players.

Geopolitical Chaos

• Why: Economic sanctions and global conflicts such as the Russia-Ukraine War perpetuate a damaging cycle of escalating geopolitical tensions and state-sponsored espionage. This chaos has a dual impact on the TI industry; organizations face relentless threats, driving demand for TI solutions, while imposed sanctions and mistrust constrain the industry. Western governments restrict local organizations from collaborating with certain vendors, hindering partnerships and global expansion for cybersecurity providers.
• Frost Perspective: Geopolitical turbulence will profoundly affect the cybersecurity industry, shaping demand for TI and vendors' go-to-market (GTM) strategies. The merging of physical security with cybersecurity will magnify these effects, emphasizing the need for proactive strategies in the interconnected TI landscape.

Scope of Analysis

• In the context of cybersecurity, threat intelligence (TI) serves as an umbrella term describing any actionable information about dangers targeting an organization.
• The conventional TI industry is divided into 4 main areas: CTI, TIP, EASM, and DRP, each with distinct use cases.
• As the segments share critical core security practices, these former distinct security domains continue to converge.
• Considering the significant overlap, this study focuses on the CTI and TIP spaces to highlight some of the most significant growth opportunities in these subdomains.
• Frost & Sullivan has conducted a separate analysis for the DRP and ERMM industries.
• CTI primarily focuses on collecting information about threats, often generating TI feeds and reports for tactical, operational, and strategic purposes.
• TIP typically specializes in aggregating and operationalizing TI feeds.
• Most CTI and TIP vendors deliver services via a Software-as-a-Service (SaaS) model and set subscription prices based on the number of data feeds, user licenses, and/or modular capabilities.

Growth Drivers

The Dynamic Threat Landscape

Cyberattacks are increasing in sophistication, volume, and diversity, propelled by AI advancements and carried out by specialized threat actors, including criminals and nation-states. As a result, businesses face heightened risks, particularly phishing attacks, prompting a shift in cybersecurity spending toward proactive security, such as TI to gain insights into attackers' methods and motivations.

The Expanding Attack Surface

Enterprise digitalization, such as cloud migration, remote work, and IoT, has exponentially expanded organizations' attack vectors. Traditional perimeter-based security is no longer adequate, demanding proactive measures and comprehensive visibility into the threat landscape and digital footprint to effectively mitigate attacks.

The Synergistic and Symbiotic Relationship between TI and Other Security Solutions

TI enhances security solutions by providing insights into emerging threats and attacker tactics. Simultaneously, data from various security tools fuels TI, enhancing overall effectiveness. This mutual exchange strengthens security ecosystems, making TI a crucial component, particularly in key solutions such as firewalls, SIEMs, TIPs, and XDR platforms.

The Increase in Security Maturity

The shift toward proactive security and rising security maturity among organizations, cyber insurance, and regulators is driving demand for  The Growth Pipeline™ Company solutions. As the threat landscape evolves and awareness grows about it, TI is increasingly crucial in safeguarding against emerging risks.

Growth Restraints

The Cybersecurity Talent Shortage

The lack of security professionals prevents organizations from fully leveraging their TI deployments and effectively monitoring the evolving threat landscape. With limited professionals, companies struggle to manage the vast amount of information these solutions generate, leading to gaps in threat detection and response strategies, which ultimately slows their ability to keep pace with emerging threats.

Budget Restrictions

Economic recessions often prompt reductions in cybersecurity spending, impacting the TI industry growth. Despite their importance, TI solutions are often considered non-essential and among the first to be cut from budgets. This misconception undermines investment in proactive security measures, hindering TI vendors’ ability to realize their full growth potential.

The Ability to Make a Compelling Business Case for TI

TI helps organizations mitigate risks by offering actionable insights into the threat landscape, yet its practical implementation poses challenges. Quantifying TI's value among a complex ecosystem of security solutions proves problematic due to the difficulty of isolating its specific impact on preventing attacks. This challenge, particularly in defining financial benefits, presents hurdles for both vendors and CISOs.

Competitive Environment