Digital networking is increasing. Cyber security is becoming a structural megatrend.
Security, and especially cyber security, is a major issue of our times. Both companies and private individuals must protect against cyber attacks. For investors, this is an opportunity to invest in the cyber security trend.
The Internet of Things requires more cyber security
Our world is becoming increasingly connected. Smartphones have long since become standard; smart homes are a growing trend; devices increasingly communicate via the internet. Digitalization, however, does not just connect and make processes easier. Data is also collected. This data is very valuable. If it falls into the wrong hands, it could do a lot of damage. For this reason, cyber security is becoming increasingly important.
Data protection is becoming increasingly important
Value of stolen data.
Source: Company reports, press, Credit Suisse
These days, we need to protect our homes and cars not just against theft or environmental influences, but also against cyber attacks. Both smart home and car systems can be hacked. Hackers could thus, for instance, take control of our alarm system or deactivate the brakes of our cars.
In a connected world, security is an integral part of our daily lives
Sources: Credit Suisse, Wisekey (annual report 2017)
Protection against cyber attacks
Companies also need to protect themselves from cyber attacks. Otherwise, for instance, hackers could take control of medical devices connected to the internet. For example, pacemakers, insulin pumps or cardiopulmonary bypass pumps could be manipulated by hackers. Production is increasingly being automated, so cyber attacks have the potential to do a lot of damage.
As these examples show, the need for security has increased and will continue to grow. "Security is a structural megatrend," insists Patrick Kolb, Lead Portfolio Manager at Credit Suisse. He sees great potential for companies in the field of cyber security, and thus also for investors. "We are in the early stages of this long-term trend."
Cyber security will become even more important with 5G
The risk of cyber attacks, and therefore the need for cyber security, will continue to grow in the future. The introduction of 5G in particular presents us with major challenges. There are significant security concerns. Quantum computing also opens up an entirely new spectrum for cyber security, for instance regarding the encryption of bank data. This is why Patrick Kolb is clear on one thing: "There's a lot of work ahead of us."
