Cybersecurity is a $183 billion opportunity and these are the stocks tapping into it
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Cybersecurity product sales are set to reach $US124 billion ($183 billion) in 2019 as organisations become aware of the costs of cyber attacks.
This sales figure was estimated by industry group AustCyber, which said while cyber crime was a threat, it was also an opportunity for business.
“It [cybersecurity] is now a sector in its own right but it also underpins the success of every other sector and activity,” AustCyber said.
“Every part of the economy, including the governments, require cybersecurity products and services to manage cyber risk.
“Likewise, all endeavours require cyber security products and services to grow in a world that is connected and data is everything.”
AustCyber believes that a globally competitive Australian cyber security will ultimately underpin the future success of every industry in the national economy.
“It promotes greater trust in Australia as a safe and desirable place for businesses to pursue digitally driven growth by providing products and services that assure the cyber resilience of all organisations,” the organisation said.
The submission was made as part of a public consultation on Australia’s cyber security strategy.
Yesterday a panel tasked with updating the strategy, last updated two years ago, met for the first time.
It will be chaired by Telstra CEO Andrew Penn and include among other members NBN Chief Security Officer Darren Kane as well as Vocus and Tesla chairs Robert Mansfield and Robyn Denholm.
“We recognise that our role does not stop at our own networks; we know we have an important role to play in supporting our nation to be cyber resilient,” Penn said yesterday.
“I strongly believe that building this secure foundation is a shared responsibility for governments, the private sector and the community.”
There are six ASX small caps involved in cyber security.
The most successful stock in recent times is Prophecy International (ASX:PRO) which has gained 93 per cent in six months.
It was established in 1980 and sells software that monitors event log data to detect threats but also adhere to required security and audit standards.
Canberra-based Archtis (ASX:AR9) offers a content and collaboration cloud service for government departments to share classified information securely.
Senetas (ASX:SEN) is likewise focused on secure encryption services particularly for file sharing.
Tesserent (ASX:TNT) has 24/7 monitoring services for clients ranging from schools and universities to car makers (BMW) and e-game makers (Nintendo).
Whitehawk (ASX:WHK) is an online exchange of cyber security services and products.
Elsight’s (ASX:ELS) flagship technology is essentially a credit card-sized receiver and sender of data over celluar networks. The data is secured by being broken up into pieces, decrypted and connected together again at the other end.
Finally there’s PS&C (ASX:PSZ), which is a digital agency that offers security advisory and application as part of its offerings, particularly data protection.