Asia Pacific Cybersecurity Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

The Asia Pacific Cybersecurity Market is segmented by Product Type (Solutions, Services), Deployment (On-cloud, On-premise), End-user Industry (Aerospace and Defense, Banking, Financial Services, and Insurance, Healthcare, Manufacturing, Retail, IT and Telecommunication), and Country.

Market Snapshot

Asia Pacific Cybersecurity Market
Study Period: 2019- 2026
Base Year: 2021
CAGR: 18.3 %

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Market Overview

The APAC cybersecurity market was valued at USD 30.45 billion in 2019, and it is expected to register a CAGR of 18.3% during the period of 2021-2026. Cyber threats are internet-based attempts to damage or disrupt information systems and hack critical information, using spyware, malware, and phishing. Cybersecurity solutions help enterprises monitor, detect, report, and handle cyber threats to maintain data confidentiality.

  • The adoption of cybersecurity solutions is likely to grow with the increasing penetration of the internet into developing and developed countries. Additionally, the expanding wireless network for mobile devices has increased the vulnerability of data, making cybersecurity an essential and integral part of every organization.
  • Many emerging countries in the region, such as India, China, Singapore, and Japan, are facing increasing cybersecurity-related issues. India has experienced a rapid increase in cybercrime registration, with the country ranking fifth in terms of the overall DNS hijacks. Also, according to Gemalto, India accounts for 37% of the global breaches in terms of records compromised or stolen.
  • Microsoft has blamed a Chinese cyber-espionage group for attacks on its mail server software in March 2021. Microsoft's Threat Intelligence Centre attributed the attacks with high confidence to Hafnium, a group assessed to be state-sponsored and operating out of China.
  • In India, Maharashtra's cybersecurity cell noted the increased activity of Chinese state-backed hackers targeting numerous sectors in India. While Chinese threat actors are known cybercrime actors across the world, the recent surge in hacker activity comes in light of heightened geopolitical tensions in Galwan Valley at the Indo-China border. The cell further noted 40,300 cyber-attack attempts in just five days in June 2020.Moreover, According to the British Bankers' Association (BBA) report, as of March 2021, 30% of global cyberattacks originate from China.
  • With the recent outbreak of COVID-19, the APAC Cybersecurity market is expected to witness significant growth as there are increasing trend of cyber-attacks through malware and ransomware in the context of COVID-19 which is forcing the organizations to adopt cybersecurity solutions as many of them have shifted to remote work atmosphere amid lockdown in various countries.According to Microsoft, 19 million ransomware and phishing attacks were noticed in the Asia region from February to May 2020 with respect to Covid-19 themed attacks.
  • The increasing usage of cloud-based services during this pandemic is becoming a hotspot for cyberattacks as millions of people are working in unfamiliar, less secure circumstances. According to Barracuda Sentinel, the number of coronavirus COVID-19-related email attacks has increased by 667 percent. Thus, a cloud-based cybersecurity solution plays a vital role during this pandemic and is expected to witness a surge.
  • In June 2020, in view of the COVID-19 cyber-based attack, Infosys is offering managed security services to clients across the globe from its seven cyber defense centers located in Pune, Hyderabad, Bengaluru, Mysuru, Indianapolis (US), and Bucharest (Romania).

Scope of the report

IT advancement, communication technologies, and smart energy grids are changing the landscapes of almost every country’s critical infrastructure and business networks. However, with rapidly changing technology comes rapidly advancing threats. Cybersecurity solutions help an organization to monitor, detect, report, and counter cyber threats, which are internet-based attempts to damage or disrupt information systems and hack critical information, using spyware and malware and by phishing, to maintain data confidentiality. The market sizing for the study has been provided based on the end-user spending on Cybersecurity solutions and services.

By Product Type
Solutions
Identity and Access Management
Threat Detection and Prevention (Unified Threat Management and Threat Mitigation)
Security and Vulnerability Management
DDoS Mitigation
Next Generation Firewall
IDS/IPS​
Security Information and Event Management
Other Solutions
Services
By Deployment
On-cloud
On-premise
By End-user Industry
Aerospace and Defense
Banking, Financial Services, and Insurance
Healthcare
Manufacturing
Retail
IT and Telecommunication
Other End-user Industries
By Country
China
India
Japan
South Korea
Rest of Asia Pacific

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Key Market Trends

Cloud Deployment Drives the Market Growth

  • The increasing realization among companies about the importance of saving money and resources by moving their data to the cloud, rather than building and maintaining new data storage, drives the demand for cloud-based solutions, hence increasing the adoption of on-demand security services.
  • Owing to these benefits, both large enterprises and SMEs in the region are increasingly adopting cloud-based solutions. Over the next few years, cloud platforms and ecosystems are expected to serve as the launchpad for an explosion in the pace and scale of digital innovation.
  • According to the CISCO Cybersecurity Series latest report, Asia Pacific countries tend to have higher percentages of their infrastructures hosted in the cloud rather than on-premise. 16% have between 80–100% hosted, compared to just 9% in this bracket globally. 52% of organizations in Asia Pacific countries felt the ease of use of cloud deployment, and 50% of the organization in the region felt cloud deployment of cybersecurity solution offers better data security.
  • With the rising adoption of cloud services, like Google Drive, Dropbox, and Microsoft Azure, and with these tools emerging as an integral part of business processes, enterprises have to deal with security issues, such as loss of control over sensitive data. This gives rise to increased incorporation of on-demand cyber-security solutions.
  • The company, such as Microsoft in the region, is offering Cloud-based endpoint protection technology that enables employees to work when, where, and how they need to work and can allow them to use the devices and apps they find most useful to get their work done.
Cloud Readiness new_malaysia.png

China Occupy Maximum Market Share

  • Growing cyber-attacks in the country have propelled China to strengthen its defensive capabilities. The country also stands to be a major source of origin for cyberattacks on other parts of the world.
  • According to the statistics provided by Kaspersky Lab, in July 2020, China observed a rapid increase in the country’s network attacks. As per the statistics, on 5th July 2020, the country has seen 1.91 million network attack cases, which has reached 2.78 million on 26th July.
  • The increasing initiatives by the government and the related regulatory bodies to strengthen cloud security are expected to fuel the adoption of cyber security-based solutions over the forecast period. For instance, additional provisions, known as the Regulations on Internet Security Supervision and Inspection by Public Security Organs to China’s Cybersecurity Law, were passed in the recent past. The law outlines how the country’s main domestic security agency, the Ministry of Public Security (MPS), can conduct both onsite and remote inspection of computer networks, which are generally defined in the CSL as five or more computers connected to the internet.
  • Recently a new identity and access management related Law have been passed by the Government of China, which came into effect in January 2020, intending to bestow legitimacy to Blockchain and Cryptography. This is planned to regulate how government agencies and private companies use data to run their cryptography management systems. With this effect, the OSCCA (Office of State Commercial Cryptography Administration) and only approved products are sanctioned for use in China.
  • Moreover, encryption has met greater resistance in China. The government's encryption regulations and implementation are among the most restrictive in the world, giving the government full access to all encrypted content within its domestic territory. Article 31 of China's Cryptography Law allows the State Cryptography Administration to inspect and have access to encrypted systems. This law applies to all sectors, including social media companies such as WeChat, which are required (and able) to turn over all user data since messages are not end-to-end encrypted.
  • Owing to technological advancements, there is an increase in the number of connected devices in China. It is the world's largest Internet of Things (IoT) market. Furthermore, 5G and 5G enabled devices will exponentially increase the devices' interconnectivity. As a result, it increases connected devices, thereby directly augmenting the need for security products in the market.
web threats_China.png

Competitive Landscape

The Asia Pacific cybersecurity market is moderately fragmented. Players in the market adopt strategic initiatives such as mergers and acquisitions, partnerships, and new product offerings due to increasing awareness regarding mobility security among enterprises. Some of the recent developments in the market are:

  • July 2020 - FireEye, Inc., the intelligence-led security company, announced its strategic partnership with Athena Alliance – an organization dedicated to helping women advance as senior leaders and attain board seats – to support women cybersecurity leaders in achieving executive roles and board seats.
  • June 2020 - Check Point Software Technologies Ltd., a leading provider of cybersecurity solutions globally, introduced CloudGuard Cloud-Native Security. This fully-automated cloud platform enables customers to seamlessly protect their cloud deployments and workloads and manage security through a single pane of glass. CloudGuard streamlines and simplifies cloud security, preventing the most advanced 6th generation cyber-attacks from impacting organizations’ cloud environments, and enables them to take full advantage of the speed and agility of the cloud.

Recent Developments

  • June 2021 - Microsoft launched the first Asia Pacific Public Sector Cyber Security Executive Council.  The council aims to accelerate public-private partnerships in cybersecurity, share threat intelligence and strengthen cyber security defense.
  • September 2021- Proofpoint Inc., a leading cybersecurity and compliance company, announced it had completed an official review of its partner ecosystem across the Asia Pacific region with the appointment of authorized distributors Ingram Micro(Singapore, Malaysia, Australia, and New Zealand), M.Tech (Singapore, Hong Kong, Vietnam, Indonesia, India, Malaysia, Taiwan, and Australia) and ITSDI (Philippines).

Table of Contents

  1. 1. INTRODUCTION

    1. 1.1 Study Assumptions and Market Definition

    2. 1.2 Scope of the Study

  2. 2. RESEARCH METHODOLOGY

  3. 3. EXECUTIVE SUMMARY

  4. 4. MARKET INSIGHTS

    1. 4.1 Market Overview

    2. 4.2 Industry Value Chain Analysis

    3. 4.3 Industry Attractiveness - Porter's Five Forces Analysis

      1. 4.3.1 Bargaining Power of Suppliers

      2. 4.3.2 Bargaining Power of Consumers

      3. 4.3.3 Threat of New Entrants

      4. 4.3.4 Threat of Substitute Products

      5. 4.3.5 Competitive Rivalry within the Industry

    4. 4.4 Industry Guidelines and Policies

    5. 4.5 Assessment of the Impact of the COVID-19 on the Market

  5. 5. MARKET DYNAMICS

    1. 5.1 Market Drivers

      1. 5.1.1 Rapidly Increasing Cybersecurity Incidents and Regulations Requiring Their Reporting

      2. 5.1.2 Growing M2M/IoT Connections Demanding Strengthened Cybersecurity in Enterprises

    2. 5.2 Market Restraints

      1. 5.2.1 Lack of Cybersecurity Professionals

      2. 5.2.2 High Reliance on Traditional Authentication Methods and Low Preparedness

    3. 5.3 Market Opportunities

      1. 5.3.1 Rise in the Trends of IoT, BYOD, Artificial Intelligence, and Machine Learning in Cybersecurity

  6. 6. MARKET SEGMENTATION

    1. 6.1 By Product Type

      1. 6.1.1 Solutions

        1. 6.1.1.1 Identity and Access Management

        2. 6.1.1.2 Threat Detection and Prevention (Unified Threat Management and Threat Mitigation)

        3. 6.1.1.3 Security and Vulnerability Management

        4. 6.1.1.4 DDoS Mitigation

        5. 6.1.1.5 Next Generation Firewall

        6. 6.1.1.6 IDS/IPS​

        7. 6.1.1.7 Security Information and Event Management

        8. 6.1.1.8 Other Solutions

      2. 6.1.2 Services

    2. 6.2 By Deployment

      1. 6.2.1 On-cloud

      2. 6.2.2 On-premise

    3. 6.3 By End-user Industry

      1. 6.3.1 Aerospace and Defense

      2. 6.3.2 Banking, Financial Services, and Insurance

      3. 6.3.3 Healthcare

      4. 6.3.4 Manufacturing

      5. 6.3.5 Retail

      6. 6.3.6 IT and Telecommunication

      7. 6.3.7 Other End-user Industries

    4. 6.4 By Country

      1. 6.4.1 China

      2. 6.4.2 India

      3. 6.4.3 Japan

      4. 6.4.4 South Korea

      5. 6.4.5 Rest of Asia Pacific

  7. 7. COMPETITIVE LANDSCAPE

    1. 7.1 Company Profiles

      1. 7.1.1 AVG Technologies (Avast Software s.r.o.)

      2. 7.1.2 IBM Corporation

      3. 7.1.3 Check Point Software Technologies Ltd

      4. 7.1.4 Cisco Systems Inc.

      5. 7.1.5 Cyber Ark Software Ltd

      6. 7.1.6 Dell Technologies Inc.

      7. 7.1.7 Fireeye Inc.

      8. 7.1.8 Fortinet Inc.

      9. 7.1.9 Imperva Inc.

      10. 7.1.10 Intel Security (Intel Corporation)

      11. 7.1.11 Palo Alto Networks Inc.

      12. 7.1.12 Proofpoint Inc.

      13. 7.1.13 Rapid7 Inc.

      14. 7.1.14 Broadcom Inc.

      15. 7.1.15 Trend Micro Inc.

    2. *List Not Exhaustive
  8. 8. INVESTMENT ANALYSIS

  9. 9. FUTURE OF THE MARKET

**Subject to Availability

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Frequently Asked Questions

The Asia Pacific Cybersecurity Market market is studied from 2019 - 2026.

The Asia Pacific Cybersecurity Market is growing at a CAGR of 18.3% over the next 5 years.

AVG Technologies (Avast Software s.r.o.), IBM Corporation, Check Point Software Technologies Ltd, Cisco Systems Inc., Dell Technologies Inc. are the major companies operating in Asia Pacific Cybersecurity Market.

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