The cybersecurity market has been briskly increasing, being currently worth about $105 billion. But analysts expect even stronger growth, estimating the market to be worth more than $170 billion by the year 2020.
The anticipated strong growth is a big driving factor for the cybersecurity stocks, with Palo Alto Networks looking to have the best stocks in the industry. Palo Alto Networks is not like the others – it is winning the market share and has been extremely profitable.
Although more competition is hitting the cybersecurity industry, the company is doing quite well and seems to be gaining traction. In fact, the company has taken much of the market share away from its competitors – a trend that is likely to continue.
Although it is already fairly large, Palo Alto Network is growing at a rather rapid rate compared to other players in the sector. In its quarter one year-to-year figures, it saw substantial growth since it debuted on the market. In 2015, the company had an increase of 35 percent in client list up to around 26,000. And, during the fourth quarter, it added another 2,000, which stands to reason it is not going to slow down any time soon.
Going further, the average value on single client is also increasing for Palo Alto Networks. For instance, in order to be listed in the top 25 clients, a client needs to spend at least $9.2 million. This means that customer satisfaction is also increasing at a rapid rate.
It looks as though the competition is not affecting Palo Alto Networks, and most of its big rivals are not familiar with the skyrocketing competitor. The company has done wonders in exploiting the ever-increasing concerns folks have with cybersecurity.
According to data from the Identity Theft Resource Centre, the company handled about 670 data breaches in 2015, which is a 23-percent increase from the last two years. Palo Alto talks about how it has got several of the most up-to-date cybersecurity technologies available and is constantly looking for ways to better its products with technology partnerships and innovations. What should the company stay more focused on? Innovation, as it can maintain its futures’ inflated growth rate.
[Featured image credit: Converge Digest / Image cropped]