Market Trends of Singapore Cybersecurity Industry
This section covers the major market trends shaping the Singapore Cybersecurity Market according to our research experts:
Cloud Deployment Drives the Market Growth
- As Singaporean businesses increasingly recognize the importance of saving money and resources by moving data to the cloud instead of building and maintaining new data storage, the demand for cloud-based solutions and adopting on-demand security services are increasing.
- Due to these advantages, both large and small domestic companies are increasingly adopting cloud-based solutions. Over the next couple of years, cloud platforms and ecosystems are expected to serve as starting points for an explosive increase in the pace and scale of digital innovation.
- Businesses with fluctuating bandwidth demand primarily need to be able to scale capacity up and down in a short period. Cloud technologies allow organizations to increase or decrease bandwidth to meet operational needs. This approach can cut costs and give businesses an edge over the competition. As the country is home to SMEs, the cloud deployment of cybersecurity services has mostly increased over the years.
- Many companies are also entering the country amid the growing demand for cloud cybersecurity services. For instance, in June 2022, Thrive, a premier provider of cybersecurity and digital transformation managed services, acquired Edge Technology Group, a leading global technology advisory and fully managed IT services provider for alternative investment managers. With this acquisition, the company has expanded to various APAC countries, including Singapore.
- Moreover, an MoU was signed between Singapore and Australia to battle scam and spam communications. With Government's focus on building cybersecurity strength and the companies implementing cloud deployments, the segment is forecasted to drive the market with a higher CAGR.
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BFSI holds a significant highest market share
- The country's BFSI (Banking, Financial Services, and Insurance) industry is one of the critical infrastructure segments that face multiple data breaches and cyber-attacks, owing to the massive customer base that the sector serves and the financial information at stake.
- Cybercriminals are optimizing various diabolical cyberattacks to immobilize the financial sector as a highly lucrative operation model with phenomenal returns and the added upside of relatively low risk and detectability. These attacks' threat landscape ranges from Trojans, ATM, ransomware, mobile banking malware, data breaches, institutional invasion, data thefts, fiscal breaches, etc.
- In January 2022, the MAS (Monetary Authority of Singapore) and the Association of Singapore Banks (ABS) introduced further measures to enhance digital banking security in light of the recent spate of SMS phishing scams targeting banking customers.
- Singapore government stated that it would invest SGD 1 billion until 2023 on its cyber and data security systems, as various agencies are increasingly adopting technologies such as artificial intelligence (AI), cloud, and Internet of Things (IoT).
- Also, in March 2021, the Singapore government announced launching two initiatives to manage cybersecurity risks across the supply chain. One initiative focuses specifically on the critical information infrastructure owners, and the other on improving cybersecurity in all industries' supply chains. Such developments are expected to boost the demand for cybersecurity.
