The United States Market Insights Report 2021 was released today, the first in a series of reports being produced as part of AustCyber’s global engagement strategy to assist Australian cyber security companies looking to scale and expand into international markets.
The report explores areas of growth, opportunities and risks for Australian cyber security product and service exports. It aligns closely with AustCyber’s initiatives and activities, providing clear direction for Australian cyber companies looking to scale.
Cyber security continues to be one of the largest growth markets globally – driven by the increased need for secure data solutions, privacy and transactional data, and the introduction of emerging technology that relies on the security of data transmission.
The decentralised provision of cyber security in the United States (and global) markets means that demand is large, diverse, and constantly changing.
In 2019, the global cyber security market size was valued at US$145 billion, and it is projected to expand at a compound annual growth rate (CAGR) of 15.6 per cent to US$270 billion by 2026. The United States will generate much of this demand, both for its domestic market, but also because many global organisations locate cyber security decision-making in the US.
The sectors of focus driven by broader federal government requirements and current expenditure include:
- critical infrastructure
- financial services
- government (federal and state)
- energy and utilities
- managed security services
- cyber insurance
Investment and spending trends within these sectors across the US and global markets include:
- security and resilience of supply chains
- data and privacy
- detection and response
- security awareness and training
- cyber policy and compliance
A free trade agreement was established between the US and Australia in 2005. The US is the largest and most significant investor in Australia, accounting for 27 per cent (AU$939 billion) of Australia’s total foreign investment stock as of December 2018. The US is also by far Australia’s largest foreign investment destination, accounting for 28 per cent (or AU$719 billion) of Australia’s total overseas investment stock as of December 2018. Two-way investment has almost tripled since the agreement came into force.
In 2018, the US was Australia’s third-largest two-way trading partner in goods and services, worth AU$73.9 billion. Australia’s goods and services exports to the United States were AU$23.1 billion.
Under AUSFTA, Australian companies have a competitive advantage as the agreement states that Australian companies pay no tariffs/import duties and have no quota restrictions on several product/sector areas. Additionally, Australian companies have access to streamlined customs procedures and a number of market access opportunities only open to Australian companies. The AUSFTA provides access to the federal government procurement market in the United States (valued at over US$535 billion) and the government procurement markets of 31 US states.
The United States Market Insights Report 2021 provides analysis on:
- the current state of play
- US National Cyber Strategy
- US Department of Defense expenditure
- accelerators and innovation
- cyber security standards and regulation
- investment opportunities
- considerations for entering the US
To learn more about scaling and expanding into the United States, email email@example.com.