Deception Technology Market

Deception Technology Market Outlook (2023-2033)

The global deception technology market is expected to advance at an astonishing CAGR of 14.1% and reach a valuation of US$ 7.5 billion by the end of 2033, up from US$ 2 billion in 2023.

Deception technology is crucial in securing an organization's critical data by developing realistic-but-fake assets, including domains, databases, servers, files, credentials, applications, cookies, and more that are placed in the network alongside real assets.

It is tough to distinguish between real assets and decoys. When an attacker engages with a decoy, a silent alarm is triggered, alerting the system of the attacker's intentions.

Businesses that use deception solutions are more secure, safe, and dependable. Furthermore, the system has a low initial cost, which is why it is often used in small and medium-sized businesses. IT infrastructure has always been in a perpetual state of flux. IT organizations seek to implement new solutions in their network infrastructure due to the increased demand for new technologies such as secure access services and zero trust.

• According to an Enterprise Strategy Group (ESG) research report, 70% of firms have completed or are currently completing digital transformation initiatives. As per the same source, this figure has risen by 15% since the outbreak of COVID-19.

Many countries implemented cutting-edge digital technologies to combat the pandemic. Numerous business sectors, including energy and utilities, manufacturing, BFSI, and retail, encountered several issues during the COVID-19 pandemic, such as guaranteeing optimal business operations and maintaining the workforce's health. Cybercrime has increased dramatically during these critical times.

• As per PurpleSec's research, cybercrime increased by 600% during the COVID-19 pandemic.

The key reason for the rise in cybercrime is the increase in online shopping and remote working.

• According to IBM, remote work has raised the average expense of a data breach by USD 137.0 million.

As a result, many firms implemented deception technologies in their network infrastructure to combat cybercrime.

Moreover, many deception systems now have artificial intelligence (AI) and machine learning (ML) incorporated into their core. These elements not only guarantee that deception techniques remain dynamic but also help to reduce operational overheads and the impact on security teams by relieving them of the burden of constantly designing new deception campaigns.

• For example, in October 2020, CSIRO's Data61 inked a research collaboration with the cybersecurity business Penten to develop AI-enabled cybersecurity defense technology, which comprises cyber traps and decoys. The research was intended to assist Penten's work on employing deception technology to combat cyber attackers.

Report Attributes	Details
Market Size (2023)	US$ 2 Billion
Projected Market Value (2033)	US$ 7.5 Billion
Global Market Growth Rate (2023-2033)	14.1% CAGR
North America Market Value (2022)	US$ 830 Million
Government Segment Share (2022)	35.7%
Key Companies Profiled	Acalvio Technologies, Inc CYBERTRAP Software GmbH Allure Security Technology, Inc CounterCraft SL Attivo Networks, Inc Cymmetria, Inc

Why Do Businesses Need Deception Technology Solutions?

“Facilitate the Early Identification of Attackers”

Deception technology is a type of incident detection and response technology that assists security teams in detecting, analyzing, and defending against advanced threats by luring attackers into interacting with bogus IT assets installed within the network.

The deception strategy can provide high-fidelity alerts to end users about specific harmful actions, many of which are difficult to uncover using a SIEM tool or log analysis alone. Furthermore, it can detect suspicious behavior early in an attack chain and misdirect and confuse an adversary on an internal network.

Moreover, deception technology is a powerful tool for diverting hostile traffic away from critical systems, detecting unusual network scans, and revealing information about attackers and their methodology. As a result, the demand for deception technology is increasing.

“Increase in APTs and Zero-Day Attacks across the World”

APTs (advanced persistent threats) are targeted network attacks that occur when an unauthorized person gets control of a company's network infrastructure, remains unnoticed within the network, and steals large amounts of sensitive data.

APTs use a variety of tools to infiltrate network infrastructure, including SQL injection, malware, spyware, spam, and phishing. Sykipot Attacks, Titan Rain, GhostNet, Deep Panda, and Stuxnet Worm are some of the most notable known APT attacks.

A zero-day attack is a software-based targeted attack where the attacker finds and exploits software flaws alongside other hackers until the software firm becomes cognizant of the vulnerability. These attacks have the potential to cause significant financial and data losses.

Due to the increase in APTs and zero-day attacks, businesses all around the world are implementing deception technologies to identify the attack and reduce the impact on sensitive data.

Country-wise Insights

Why is the United States the Frontrunner in the North American Market?

“Rising Number of Cyberattacks in the United States”

The North American market was worth US$ 830 million in 2022. North America is the most important region for deception technologies, owing to the region's significant demand for cybercrime protection and control systems. Furthermore, the region has the highest rate of adoption of IoT technology, resulting in a growing requirement for data protection.

Moreover, the increasing use of smart gadgets and a rise in the usage of social apps, which produce a large amount of data containing important information, are two main trends driving the demand for deception technology in North America.

The United States is leading the North American market. Cyberattacks in the United States have risen considerably in recent years.

• For example, the US Health and Human Services Department experienced a cyberattack on its computer system in March 2020.

Furthermore, the existence of several prominent financial institutions and the growing utilization of connected technologies are predicted to boost the demand for deception technology in the United States.

Which Countries are Driving Market Growth in Asia Pacific?

“Growing Demand for Deception Technology in Japan and South Korea”

The demand for deception technology is increasing in Asia Pacific. Japan and South Korea are boosting the market expansion in Asia Pacific. Growing usage of internet of things (IoT) devices, the increasing trend of bring your own device (BYOD), and rising urbanization are raising the demand for deception technology in Japan and South Korea.

Where are Deception Technology Solution Providers Focusing on Europe?

“Increasing Deployment of IoT Systems in Numerous Enterprises and Government Sectors in Germany”

The European market is witnessing considerable growth as a result of increased government and manufacturing sector investment in improving threat detection, creating business risk awareness, and providing comprehensive coverage for the environment, like IoT, SCADA/ICS, and cloud technology.

Germany is pushing European market growth due to the increased deployment of IoT systems across enterprises and government sectors.

Category-wise Insights

Why are Government Organizations the Main Users of Deception Technology?

“Substantial Investments by Government Organizations to Boost Cybersecurity”

Government organizations accounted for 35.7% of the global demand for deception technology in 2022. Cybersecurity attacks against local and state governments are becoming more common. Traditional network defensive mechanisms are designed to prevent such actions, but attackers are devising new methods to circumvent them. Deception technology is widely utilized around the world to protect government organizations from cyberattacks.

Cybersecurity at government institutions plays a crucial role in securing vital data by offering early and accurate detection of in-network threats and prompt response. Due to these capabilities, the National Institute of Standards and Technology has incorporated this technology into SP 800-53, SP 800-160, and the 800-172 draft. Moreover, increased government expenditure on cybercrime prevention is expanding the use of deception technologies.

• For example, the National Cybercrime Program (NPCC) revealed in April 2021 a multi-million-dollar commitment from the United Kingdom government to establish a specialized cybercrime unit in each police force in Wales and England.

As a result, the government bodies' major attention on the implementation of deception technologies is likely to fuel the market expansion throughout the forecast period.

Competitive Landscape

The market for deception technology solutions is extremely competitive due to the presence of numerous small and major players. Key players in the deception technology market are pursuing methods such as mergers and acquisitions and product innovation to broaden their reach and maintain a competitive edge. Moreover, many startups are seeking investments to improve their market presence.

• Illusive Networks, a start-up based in Tel Aviv, Israel, revealed in December 2022 that it had raised a total of US$ 54 million in venture capital investments since its inception. Illusive Networks was one of the first companies to develop so-called cyber deception solutions, which claimed early breach detection through the use of decoy assets that triggered warnings. The company marketed a product that produced a "hostile environment for attackers" with the goal of preventing lateral movement on already compromised networks.
• Acalvio Technologies, the pioneer in cyber deception, revealed in April 2022 that the FedRamp Ready ShadowPlex platform had been added to the Department of Homeland Security Cybersecurity & Infrastructure Security Agency (CISA) Approved Products List (APL).
• Attivo Networks, Inc. collaborated with the Department of Defense (DoD) to deploy the Threat Defend platform in July 2021. To defend against threats, they employ modern deception and machine learning technology.
• Seminole State College of Florida and Attivo Networks launched a cooperative venture in March 2021 to close the worldwide cybersecurity skills gap. With this collaboration, Seminole State College was one of the first institutions of higher learning in the United States to integrate threat deception coursework into the cybersecurity specialization component of its bachelor's degree programs.
• GuardiCore revealed numerous new features in its Guardicore Centra Security Platform in February 2021, with the goal of assisting security architects in visualizing, segmenting, and protecting cloud-native applications while streamlining the process by minimizing risk to mission-critical business applications through segmentation.

Key Segments of Deception Technology Industry Research

• By Component :

  • Solutions
  • Services

• By Deception Stack :

  • Network Security
  • Application Security
  • Data Security
  • Endpoint Security

• By Deployment :

  • On-premise
  • Cloud

• By End User :

  • BFSI
  • IT & Telecom
  • Government
  • Retail
  • Energy & Utilities
  • Others

• By Region :

  • North America
  • Latin America
  • Europe
  • APAC
  • MEA