Growing market: Why cybersecurity is worth investing in. (Photo: Freepik)
The digital world offers us convenience, but is also a playground for cybercriminals. As hacker attacks increase and cost companies billions, the cybersecurity industry is proving to be a bulwark against digital threats – and an exciting future market for investors. With the L&G Cybersecurity ETF and the Cybersecurity Leaders Fund, investors can benefit from this growth industry.
Invisible enemies, huge damage
The world of cybersecurity is a constant balancing act between protection and threat – the Stuxnet worm is a striking example of this. In 2010, he infected uranium enrichment facilities in Iran, exploited unknown Windows vulnerabilities and manipulated Siemens control systems. He remained undetected for months while he damaged the centrifuges and massively set back Iran’s nuclear program.
Presumably developed by the USA and Israel, Stuxnet ushered in a new era: cyber attacks can specifically sabotage physical systems. The attack highlighted the enormous vulnerability of critical infrastructure and remains a reminder of the destructive power of digital weapons and the importance of strong cybersecurity measures.
Cyber attacks are still highly relevant today. Energy and financial systems were attacked in the Ukraine conflict. In Germany alone, the number of cyberattacks rose by 78 percent last year. The resulting economic damage was loud Federal Office for Information Security (BSI) to an impressive 266.6 billion euros. Two thirds of these can be directly attributed to digital attacks.
A growing market: Why cybersecurity is worth investing in
The demand for solutions to counter these threats is increasing rapidly. Loud Statista Global spending on cybersecurity services increased by 133 percent between 2017 and 2023 – from $34 to almost $80 billion. These growth rates make cybersecurity a future market with great technological and financial potential.
Increasing digitalization, hybrid warfare and new regulatory requirements continue to drive demand. Companies and governments are increasingly relying on innovative technologies such as artificial intelligence (AI), blockchain-based authentication and automated threat detection. This is a unique opportunity for investors to benefit from a growing market that is not only financially relevant, but also socially relevant.
Investing in cybersecurity: 2 promising options
- L&G Cybersecurity ETF: Broad investment in digital security – 35 leading companies developing and offering innovative technologies and services
- Cybersecurity Leaders Fund: Active management for above-average returns – the fund invests in leading companies in the cybersecurity industry worldwide.
Outlook: Opportunities and challenges of the cyber world
Digitalization opens up immense potential, but also entails considerable risks. Cyberattacks pose a constant threat to companies, governments and private individuals Cybersecurity sector however, offers investors the opportunity to benefit from this trend. The L&G Cybersecurity ETF and the Cybersecurity Leaders Fund are 2 exciting offers for investors who want to invest in this growth market.
Given the increasing cyber threats and increasing demand for security solutions, it is clear: cybersecurity is more than just a future market – it is a necessity. For investors, this means now is the time to invest in the digital security of tomorrow.
Disclaimer:
Not investment advice. No call to buy or sell securities.