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 Geography.
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Scope of the report
Key Market Trends
TABLE OF CONTENTS
2018 - 2026
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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 2020-2025. 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 the developing and the 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.
According to Allianz Risk Barometer 2020, the average organizational cost of a data breach in the Association of Southeast Asian Nations (ASEAN) accounted for USD 2.62 million. The average number of records per breach is 22,500. 96% of the Singaporean businesses reported suffering a data breach between September 2018 and September 2019.
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.
According to the Cisco 2018 Asia-Pacific Security Capabilities Benchmark Study, Australia is the nation most under attack, with 90% of Australian companies reporting to have received up to 5,000 threats a day. Amongst it, 33% of Australian companies deal with 100,000 to 150,000 threats a day, and 7% deal with more than 500,000 threats each day.
Many governmental and regulatory bodies in the region are identifying the need to balance technological innovation with risk management and user protection. Thus, they are incorporating strong regulatory and legislative framework for cybersecurity measures such that the digital economy can prosper without any hindrance. For instance, in its request submitted for the fiscal 2019 budget, Japan defense ministry has demanded funds for exercise sessions in a special “cyber training area” between SDF members divided into attack and defense teams. Also, the ruling Liberal Democratic Party submitted a proposal in May 2018 to the central government to consider the possession of cyber-attack capabilities to include such a goal in the guidelines.
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.
Scope of the report
IT advancement, communication technologies, and smart energy grids are changing the landscapes of country’s critical infrastructure and business networks. However, with the rapidly changing technology comes rapidly advancing threats. Cybersecurity solutions help an organization to monitor, detect, report, and counter cyber threats. These are internet-based attempts to damage or disrupt information systems and hack critical information, using spyware and malware and by phishing, in order to maintain data confidentiality. As a part of the scope of the study, different cybersecurity solutions, such as IDS/IPS, SIEM, DDoS Mitigation, and Identity and Access Management, among others, have been considered.
By Product Type
Identity and Access Management
Threat Detection and Prevention (Unified Threat Management and Threat Mitigation)
Security and Vulnerability Management
Next Generation Firewall
Security Information and Event Management
By End-user Industry
Aerospace and Defense
Banking, Financial Services, and Insurance
IT and Telecommunication
Other End-user Industries
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 2019 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.
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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.
There is an increase in the number of connected devices in China. In 2019, GSMA, the industry association of more than 750 operators with nearly 400 companies in the broader mobile ecosystem globally, reported that China, with 64% of the 1.5 billion global cellular connections, is the world’s most extensive Internet of Things (IoT) market. As a result, it will increase connected devices, thereby directly augmenting the need for security products.
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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:
In 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.
In 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 protect their cloud deployments and workloads seamlessly, 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.
In November 2019 - IBM announced Cloud Pak for Security, a platform to connect with any security tool, cloud or on-premise system, without moving data from its source. The platform includes open-source technology for hunting threats, automation capabilities to help speed response to cyberattacks, and the ability to run in any environment.