Securing the Fourth Industrial Revolution | Cyber Security | ITEK | Megatrends
Overview
The fourth industrial
revolution is the current environment where disruptive technology trends such
as the Internet of Things (IoT), Robotics, Artificial intelligence (AI), Future
Cars/Autonomous Vehicles, Blockchain, Cloud Computing, Genomics and Social
Media are changing the way we live and work.
Unlike previous industrial
revolutions, these technologies are rapidly combining to create an
accelerating, virtuous cycle of nearly unlimited disruption. While previous
industrial revolutions were often localized, todays is interconnected and
global and its impact is already visible in ho
This is a short guide to help
investors understand the the main sectors of the fourth industrial revolution
and their features, applications, and growth potential. In part 3, we look at the cyber security theme.
Cyber Security
The cyber crime threat is
often identified by CEOs as the leading risk factor facing enterprises today.
As companies grow increasingly reliant on cloud-based software and as billions
of new internet-connected devices are launched (Internet-of-Things), the scope
for malicious cyber activity is increasing exponentially.
Cyber-crime includes, hacking
– shutting down or misusing websites and computer networks, identity theft,
phishing- using fake email messages to get sensitive information from users and
malware /ransomware attacks – inserting malicious code to damage a computer
system, surveillance and eavesdropping or electronic money laundering.
While an estimated 75% of
cyber-crime is carried out for financial gain, up to 25% is put down to
state-sponsored espionage. With military and police services introducing more
robotic technologies, drones and antonymous vehicles; cyber security is
transitioning from being a commercial to a national security concern for many
governments.
The scale of the issue is
already huge: data breaches are estimated to have compromised 4.1 Billion
records in the first half of 2019[1]
- up 11% year-on-year and cyber-crime is predicted to cost the global economy
an astonishing $6 Trillion a year by 2021 [1].
With the average data breach
costing a company $3.9 million, mitigating the risk of cyber crime is a top priority
for business leaders.
Recent
Examples:
- In 2016, 3 billion Yahoo! accounts were hacked
in one of the largest data breaches in history
- 1n 2016, Uber reported that hackers stole the
information of over 57 million drivers and riders
- In 2017, 148 million consumers were affected by
the Equifax breach
- In 2018 Under Amor reported its fitness app was
hacked, impacting 150 million users
-
In 2018 Marriott Hotels reported that up to 500
million guests had details compromised, including credit cards details and
passport numbers
-
In 2020, the Australian Defence Force was
itself forced offline for 10 days as it responded to data breach that exposed personal
details of tens of thousands of its members [2]
- It is estimated that in March 2020 alone, 832
million digital records were breached worldwide [3]
Growth of the Cyber
Security Sector
It has become imperative for
organisations and individuals to protect themselves against the widespread
economic, operational and reputational damages caused by cyber-attacks and
investment in cyber security measures is becoming on of the largest spends in
IT departments around the world.
In 2020 size of the cyber
security market is estimated to be $173 Billion. While analyst estimates vary,
there is broad consensus that the industry will continue to benefit from huge
tailwinds, reaching anywhere between $250 Billion and $1 Trillion per year by
2025 [4].
For illustrative purposes
only.
As ransomware hits more
companies, malware becomes refocussed on mobile and smartphones and billions of
Internet-of-Things devices connect, the scope for the cyber security market to
grow seems assured and 62% of companies plan to increase cyber security spend
this year [5].
Investing in Cyber Security
The increased threat of
cybercrime and the growth of internet-connected devices AI has spurred investor
interest in the Cyber Security theme. Investors who see long-term opportunity
in this theme can consider an allocation to The HAN-GINS Global InnovativeTechnology UCITS ETF (ITEK). ITEK includes Cyber Security as part of 8
transformational technology trends that are reshaping the world alongside Cloud
Computing & Big Data, Robotics & AI, Future Cars, Genomics, Social
Media, Blockchain, Augmented & Virtual Reality.
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Article Date: 22nd June 2020.