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The Latin American cybersecurity market was valued at USD 5.73 billion in 2021 and is expected to register a CAGR of 11.8% during the forecast period (2022-2027). With the recent COVID-19 pandemic, organizations worldwide must respond proactively to cyber threats that have witnessed a spike during the pandemic. Therefore, cyber resilience, which refers to a sector or organization's ability to respond to, prepare for, and recover from cyberattacks, has become an absolute necessity rather than an option in the current scenario.
- Cyber threats are internet-based attempts to damage or disrupt information systems and hack critical information using spyware, malware, and phishing. Cybersecurity solutions help organizations monitor, detect, report, and counter cyber threats to maintain data confidentiality.
- The rising digital penetration, augmented by internet usage and mobile growth in the region, is pushing the demand for cybersecurity. According to Atlantico, technology penetration as a percentage of GDP has been rapidly growing at 65% Y-o-Y. Moreover, the region's adoption of technologies such as IoT in industrial space is increasing.
- As Latin America embraces the digital revolution, the risk of abuse rises. The region has the world's fourth-largest mobile market. The Internet is used by half of the country's population. In Latin America, some countries process all their government purchases electronically. The risk will increase continuously with the advent of the IoT, in which computers and all kinds of smart devices and sensors will be monitored and controlled virtually.
- The adoption of cybersecurity solutions is expected to grow with the increasing penetration of the Internet among Latin American countries. Also, the expanding wireless network for mobile devices has increased data vulnerability, making cybersecurity an integral part of every organization across Latin America. The rising incidents of cyberattacks and regulations requiring reporting are driving the growth of the cybersecurity market in Latin America.
- Brazil is one of the emerging economies with increasing investment in IT infrastructure and rising smartphone and internet penetration. Although the country is moving toward advanced ICT, it lacks proper cybersecurity measures, due to which hackers find vulnerabilities to exploit. Hence, the growing M2M or IoT connections are strengthening the demand for cybersecurity solutions.
- However, the lack of cybersecurity professionals has been a concerning factor, limiting the growth of the cybersecurity market in Latin America.
Scope of the Report
The study analyzes the current market scenario and growth trends related to cybersecurity technology in the Latin American region, which has emerged as one of the major hotspots for investments, aided by strong M&A activity, partnerships, and supportive governmental policies. The study tracks the country-level market dynamics and the major implementation use cases for cybersecurity.
The Latin American cybersecurity market is segmented by security type (network security, endpoint security, application security, cloud security, and wireless network security), component (hardware, solution, and services), deployment (cloud and on-premise), end-user industry (banking, financial services, and insurance, healthcare, manufacturing, retail, government, and IT and telecommunication), and geography.
|Wireless Network Security|
|Other Types of Security|
|Banking, Financial Services, and Insurance|
|IT and Telecommunication|
|Other End-user Industries|
|Rest of Latin America|
Key Market Trends
Rapidly Increasing Cybersecurity Incidents and Regulations Requiring its Reporting
- Emerging markets in Latin America are the most vulnerable to hacks and breaches because they are still struggling in terms of cybersecurity. As things stand, Latin America lacks the strong cybersecurity foundation required to safeguard the future of its businesses. In Latin America, cybercrime has manifested most through computer hacking techniques, such as malware, phishing, and denial of service (DoS) attacks.
- As Latin America embraces the digital revolution, the risk of abuse rises. The region has the world's fourth-largest mobile market. The Internet is used by half of the country's population. In Latin America, some countries process all their government purchases electronically. The risk will increase continuously with the advent of the IoT, in which computers and all kinds of smart devices and sensors will monitor and control virtually.
- Cybersecurity incidents in the region are rapidly increasing due to the growing enterprise propensity toward digitalization and adopting connected solutions as part of their operations. According to IBM, in 2020, Brazil observed a 29% increase in the number of data breaches, which was the highest across the world. Such developments are pushing the demand for cybersecurity solutions in the region.
- For instance, in September 2021, SoftBank Group announced the launch of the SoftBank Latin America Fund II, its second dedicated private investment fund focused on Latin American technology companies, with a USD 3 billion initial commitment.
- Owing to such developments, countries such as Colombia, Brazil, and Mexico are expected to be at the forefront of the security budget increase over the coming years. According to a Cyber Edge study, Colombia, Brazil, and Mexico are expected to be at the top when it comes to an increase in security budgets across the world.
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Growing M2M/IoT Connections Demanding Strengthened Cybersecurity in Enterprises
- With the increasing internet penetration across Latin American countries, the adoption of cybersecurity solutions is expected to grow. Furthermore, the growing wireless network for mobile devices has increased data vulnerability, making cybersecurity an essential component of every organization in Latin America.
- In Latin America, IoT is increasingly used as part of a larger enterprise transformation agenda. Furthermore, the urgency to deploy IoT solutions as part of digital transformation initiatives proliferates in several markets, including Brazil.
- In March 2021, Movistar announced the first implementation of IoT technologies in a public services company in Argentina. It launched a six-month NB-IoT network pilot with electricity provider Edenor, enabling remote intelligent meter reading and remote detection of faults, clandestine connections, and cuts in power lines.
- In March 2022, Amazon Web Services (AWS) announced collaborations with two Latin American operators, reflecting a global trend in cloud-telecoms collaboration. Meanwhile, Claro's partnership with AWS will accelerate its adoption of cloud-based applications while also assisting in improving IoT services to serve a variety of industry verticals.
- IoT is the new wave of technological change disrupting Latin American industries. Companies and governments are investing in IoT solutions; according to GSMA Intelligence, the number of IoT connections in the region is expected to reach 1,200 million by 2025.
- Moreover, according to various sources, there is expected to be lower double-digit percentage growth in the number of machine-to-machine (M2M) connections in the region. According to Machina, the total revenue opportunity for the region by 2023 is USD 176 billion, out of which about USD 82 billion will be the application itself. Such growth is expected to augment the demand over the forecast period further.
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The Latin American cybersecurity market is riddled with major global vendors and smaller regional vendors that cater to various segments of the market, owing to which the competitive space of the market is expected to be high.
- October 2021 - Telefónica Tech and CyberArk teamed up to deliver an expanded portfolio of SaaS-based cybersecurity solutions that prioritize a security-first approach to protecting against identity-driven risk. Additionally, the customers will benefit from being able to secure access to all human and machine identities without sacrificing business agility.
- August 2021 - Check Point Software Technologies Ltd, one of the leading providers of cybersecurity solutions to corporate enterprises and governments globally, announced the acquisition of Avanan, the fastest-growing cloud email security company. Avanan technology provides the highest level of security for emails and SaaS collaboration suites. Avanan will integrate into the Check Point Infinity consolidated architecture to deliver the world’s most secure email security offering.
Check Point Software Technologies Ltd
Cisco Systems Inc.
Cyber Ark Software Ltd
Dell Technologies Inc.
- September 2022 - TCS expanded its presence in Latin America and launched a threat management center in Mexico. It plans to employ more than 500 local cyber security engineers because of growing global digitalization and increased cyber attacks.
- February 2022 - IBM announced a multi-million-dollar investment in its resources to help businesses prepare for and manage the growing threat of cyberattacks to organizations across the Asia-Pacific region.
- February 2022 - Cisco and Rakuten signed a strategic agreement to accelerate the open RAN and telco cloud market. The deal will offer solutions allowing mobile operators to compete more effectively in the cloud era.
Table of Contents
1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET INSIGHTS
4.1 Market Overview
4.2 Industry Value Chain Analysis
4.3 Industry Attractiveness - Porter's Five Forces Analysis
4.3.1 Threat of New Entrants
4.3.2 Bargaining Power of Buyers
4.3.3 Bargaining Power of Suppliers
4.3.4 Threat of Substitute Products
4.3.5 Intensity of Competitive Rivalry
4.4 Assessment of Impact of COVID-19 on the Market
5. MARKET DYNAMICS
5.1 Market Drivers
5.1.1 Rapidly Increasing Cybersecurity Incidents and Regulations Requiring their Reporting
5.1.2 Growing M2M/IoT Connections Demanding Strengthened Cybersecurity in Enterprises
5.2 Market Restraints
5.2.1 Lack of Cybersecurity Professionals
6. MARKET SEGMENTATION
6.1 Security Type
6.1.1 Network Security
6.1.2 Cloud Security
6.1.3 Application Security
6.1.4 End-point Security
6.1.5 Wireless Network Security
6.1.6 Other Types of Security
18.104.22.168 Threat Intelligence and Response
22.214.171.124 Identity and Access Management
126.96.36.199 Data Loss Prevention
188.8.131.52 Security and Vulnerability Management
184.108.40.206 Intrusion Prevention System
220.127.116.11 Other Solutions
18.104.22.168 Professional Services
22.214.171.124 Managed Services
6.4 End-user Industry
6.4.1 Banking, Financial Services, and Insurance
6.4.6 IT and Telecommunication
6.4.7 Other End-user Industries
6.5.4 Rest of Latin America
7. COMPETITIVE LANDSCAPE
7.1 Company Profiles*
7.1.1 AVG Technologies
7.1.2 Check Point Software Technologies Ltd
7.1.3 Cisco Systems Inc.
7.1.4 Cyber Ark Software Ltd
7.1.5 Dell Technologies Inc.
7.1.6 FireEye Inc.
7.1.7 Fortinet Inc.
7.1.8 IBM Corporation
7.1.9 Imperva Inc.
7.1.10 Trend Micro Inc.
7.1.11 Intel Corporation
7.1.12 Symantec Corporation (Broadcom Inc.)
8. INVESTMENT ANALYSIS
9. MARKET OPPORTUNITIES AND FUTURE TRENDS
Frequently Asked Questions
What is the study period of this market?
The Latin America Cybersecurity Market market is studied from 2020 - 2027.
What is the growth rate of Latin America Cybersecurity Market ?
The Latin America Cybersecurity Market is growing at a CAGR of 11.8% over the next 5 years.
Who are the key players in Latin America Cybersecurity Market ?
AVG Technologies, Check Point Software Technologies Ltd, Cisco Systems Inc., Cyber Ark Software Ltd, Dell Technologies Inc. are the major companies operating in Latin America Cybersecurity Market .