Cybersecurity Market in South Africa Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)

The Report Covers Cybersecurity Companies in South Africa and it is Segmented by Product By Type (Solutions and Services), By Deployment (On-premise and Cloud), By End-user Industry (BFSI, Healthcare, Aerospace and Defense, IT and Telecommunication, Government, Retail, Manufacturing and the End-user Industries)

South Africa Cybersecurity Market Size

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South Africa Cybersecurity Market Summary
Study Period 2019 - 2029
Base Year For Estimation 2023
Market Size (2024) USD 0.26 Billion
Market Size (2029) USD 0.49 Billion
CAGR (2024 - 2029) 12.97 %
Market Concentration Medium

Major Players

South Africa Cybersecurity Market Major Players

*Disclaimer: Major Players sorted in no particular order

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South Africa Cybersecurity Market Analysis

The South Africa Cybersecurity Market size is estimated at USD 0.26 billion in 2024, and is expected to reach USD 0.49 billion by 2029, growing at a CAGR of 12.97% during the forecast period (2024-2029).

The rapid introduction of digital technologies for data assembly, storage, analysis, and sharing has created a need for digital data security, which is a major factor driving the growth of the South African cyber security market.

  • The robust digitalization in verticals like banking and financial services, and government sector, and the oil and gas industries has consequently triggered the risk of cyber-attacks. However, the growing awareness and the adoption of various cybersecurity services needed to safeguard smart grid devices, digitalized businesses, and IoT-based smart cities are expected to drastically boost the South Africa Cybersecurity Market.
  • Moreover, the growth of hacking, cracking, and other forms of cyber-mischief have made personal, commercial, financial, and other digital data more vulnerable, thereby increasing the need for cyber security and market growth within the region. Furthermore, growing cyberattacks have forced administrations to improve their security measures and adopt cybersecurity services, significantly boosting the market's growth opportunities.
  • Businesses in Africa are especially vulnerable to cybercrime, with over half of the continent's countries having insufficient Cyber Security laws and regulations, creating a favorable factor for cybercriminals. These factors are driving up the demand for cyber security.
  • Also, factors like the lack of cybersecurity professionals, the high reliance on traditional authentication methods, and low preparedness can restrict the market's growth opportunities throughout the forecast period.
  • Moreover, the sudden outbreak of COVID-19 in the country halted the operation in several sectors, such as retail, hospitality, energy & utility, hampered the growth of the cybersecurity industry. However, during the post-COVID-19 period, the rise in digitalization within the country is expected to drive the market exponentially.

South Africa Cybersecurity Market Trends

Growth of digitization across the region

  • Digital transformation plays a crucial part in the business landscape in South Africa as companies and businesses across all sectors and industries automate and digitalize business processes while leveraging data to improve decision-making, create value, and augment strategic planning.
  • Due to the outbreak of COVID-19, advanced automation was adopted in workplaces at a rate that signified the coming of a digital revolution, where data was gathered along the entire supply and demand chain with the help of digital innovations like sensorization, networked data analytics, and artificial intelligence.
  • Most large company leaders in South Africa anticipate that more hybrid work patterns will become the norm over time. The pandemic pushed digitalization, enabling businesses to use their data more wisely to gain insight and become more competitive.
  • Moreover, South African countries are making heavy investments in digitalizing their economy. The DCDT is mandated to facilitate South Africa's digital transformation by creating an enabling policy and regulatory environment to encourage digital inclusion and economic growth.
  • According to Sophos, on average, 78 percent of organizations in South Africa were victims of ransomware in the year 2023. The total share of organizations in South Africa hit by ransomware attacks in 2022 was around 51%. This significant rise in ransomware attacks plays a considerable role in driving the market's growth significantly.
South Africa Cybersecurity Market: Share of organizations in South Africa hit by ransomware attacks in 2022 and 2023,

IT and Telecommunication Sector to Witness the Significant Adoption of Market

  • South Africa has one of the most significant information and communications technology markets in Africa. It possesses technological leadership, especially in mobile software, security software, and various electronic banking services. As an increasingly significant contributor to South Africa's GDP, the country's ICT and electronics sector is thus both sophisticated as well as developing.
  • Several international corporates operate subsidiaries from South Africa, including Cisco, IBM, Unisys, Microsoft, AWS, Intel, Systems Application Protocol (SAP), Novell, Dell, and Compaq. It is thus seen as a crucial regional hub as well as a supply base, especially for the neighboring countries.
  • Also, the major trend of moving towards cloud-based systems has gained significant momentum in South Africa, especially with the increased improvements in connectivity, reducing cost, and data center infrastructure. The strong entrepreneurial drive within the local IT sector is thus creating a massive demand for cloud-based services. The cloud-based solutions and services offer safer and cheaper alternatives and efficiency gains in operations. However, cloud usage is also vulnerable to piracy and cyber threats. Hence, with the rise in cloud adoption within the region, the demand for cybersecurity is expected to increase exponentially throughout the forecast period.
  • Moreover, numerous domestic fiber network providers in South Africa, including Vuma, offer an open-access fiber network that is resold to several retail service providers and has download speeds of up to 1 Gbps. South Africa is connected to the world by five major international subsea cable systems. With Microsoft Azure Cloud and AWS entering the market as a crucial gateway for the rest of Africa, there has been a quick emergence of new CSPs in South Africa, expected to drive growth in the cybersecurity market.
  • According to American Tower, in the second quarter of 2022, Vodacom held the largest market share of mobile subscriptions in South Africa, with around 41 percent. Telkom has held the smallest share of the South African market but has grown the most. Such a rise in the telecom sector in the region is expected to aid the market's growth significantly.
South Africa Cybersecurity Market: Wireless subscriber share in South Africa by carrier from 2018 to 2022, in percentage

South Africa Cybersecurity Industry Overview

South Africa's Cybersecurity Market is moderately concentrated and dominated by major players like Palo Alto Networks Inc., Cisco Systems, Inc, Kaspersky Labs, and CyberArk And Check Point Software Technologies Ltd. These major players, with a prominent market share, are focusing on extending their overall customer base across foreign countries.

In November 2022, Vodacom Business partnered with CybSafe to provide its businesses and clients with on-demand security training and awareness access. CybSafe is mainly known for its industry-leading, customizable and behavioral-science-based cybersecurity solutions. Now, Vodacom Business clients can download the CybSafe app onto their mobile devices and utilize it to gain cybersecurity compliance while improving the security behaviors of their employees.

In August 2022, Vodacom and Microsoft South Africa collaborated to train around twenty interns around the significance of cybersecurity. Vodacom is keen to play a crucial role in addressing cyber skills scarcity in South Africa, with cybersecurity a vital threat for businesses, governments, and individuals worldwide.

South Africa Cybersecurity Market Leaders

  1. Check Point Software Technologies Ltd

  2. CyberArk

  3. Kaspersky Labs

  4. Cisco Systems, Inc

  5. Palo Alto Networks Inc.

*Disclaimer: Major Players sorted in no particular order

South Africa Cybersecurity Market Concentration
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South Africa Cybersecurity Market News

  • June 2023: Syrex, a provider of hyper-converged cloud technology solutions in South Africa, has declared a strategic collaboration with Seceon, a provider of one of the most advanced AI and ML-driven cyber threat detection and remediation platforms for enterprises as well as managed security service providers, to offer customers with the Seceon Open Threat Management Platform.
  • December 2022: As part of the U.S.-Africa Leaders Summit, President Biden declared the introduction of a new Digital Transformation with Africa initiative. A crucial signature initiative of the Biden-Harris Administration, DTA would extend digital access and literacy. It was expected to strengthen the digital allowing environments across the entire continent. Working with Congress, this initiative intended to invest over USD 350 million and facilitate more than USD 450 million in financing for Africa in line with the African Union's Digital Transformation Strategy and the U.S. Strategy Toward Sub-Saharan Africa.

South Africa Cybersecurity Market Report - 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 Value Chain Analysis

    3. 4.3 Porter's Five Forces Analysis

      1. 4.3.1 Threat of New Entrants

      2. 4.3.2 Bargaining Power of Buyers

      3. 4.3.3 Bargaining Power of Suppliers

      4. 4.3.4 Threat of Substitutes

      5. 4.3.5 Intensity of Competitive Rivalry

    4. 4.4 Impact of Covid-19 on the Market

  5. 5. MARKET DYNAMICS

    1. 5.1 Market Drivers

      1. 5.1.1 Increasing Demand for Digitalization and Scalable IT Infrastructure

      2. 5.1.2 Need to tackle risks from various trends such as third-party vendor risks, the evolution of MSSPs, and adoption of cloud-first strategy

    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 Trends Analysis

      1. 5.3.1 Exponential growth to be witnessed in cloud security owing to shift toward cloud-based delivery model.

  6. 6. MARKET SEGMENTATION

    1. 6.1 By Offering

      1. 6.1.1 Security Type

      2. 6.1.2 Services

    2. 6.2 By Deployment

      1. 6.2.1 Cloud

      2. 6.2.2 On-premise

    3. 6.3 By End-User

      1. 6.3.1 BFSI

      2. 6.3.2 Healthcare

      3. 6.3.3 Manufacturing

      4. 6.3.4 Government & Defense

      5. 6.3.5 IT and Telecommunication

      6. 6.3.6 Other End-Users

  7. 7. COMPETITIVE LANDSCAPE

    1. 7.1 Company Profiles

      1. 7.1.1 International Business Machine Corporation (IBM)

      2. 7.1.2 NEC Corporation

      3. 7.1.3 Cisco Systems, Inc

      4. 7.1.4 Palo Alto Networks Inc.

      5. 7.1.5 Kaspersky Labs

      6. 7.1.6 Symantec Corporation

      7. 7.1.7 Dell Technologies Inc.

      8. 7.1.8 Check Point Software Technologies Ltd.

      9. 7.1.9 Symantec Corporation

      10. 7.1.10 FireEye, Inc.

      11. 7.1.11 CyberArk

      12. 7.1.12 DXC Technology

      13. 7.1.13 F5 Networks

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

  9. 9. FUTURE OF THE MARKET

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South Africa Cybersecurity Industry Segmentation

Cyber security utilizes technology, controls, and processes to protect systems, networks, programs, devices, and data against cyberattacks. Its purpose is to minimize the risk of cyber-attacks and to guard against unauthorized networks, systems, and technologies. Cybersecurity safeguards internet-connected systems from cyber threats such as hardware, software, and data. Individuals and corporations also use the technique to stop illegal access to data centers and other digital systems.

South Africa Cybersecurity Market by Offering (Security Type, Services), By Deployment (Cloud, On-premise), By End-user Industry (BFSI, Healthcare, Manufacturing, Government & Defense, IT and Telecommunication). The market sizes and forecasts are provided in terms of value in USD for all the above segments.

By Offering
Security Type
Services
By Deployment
Cloud
On-premise
By End-User
BFSI
Healthcare
Manufacturing
Government & Defense
IT and Telecommunication
Other End-Users
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South Africa Cybersecurity Market Research FAQs

The South Africa Cybersecurity Market size is expected to reach USD 0.26 billion in 2024 and grow at a CAGR of 12.97% to reach USD 0.49 billion by 2029.

In 2024, the South Africa Cybersecurity Market size is expected to reach USD 0.26 billion.

Check Point Software Technologies Ltd, CyberArk, Kaspersky Labs, Cisco Systems, Inc and Palo Alto Networks Inc. are the major companies operating in the South Africa Cybersecurity Market.

In 2023, the South Africa Cybersecurity Market size was estimated at USD 0.23 billion. The report covers the South Africa Cybersecurity Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the South Africa Cybersecurity Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.

South Africa Cybersecurity Industry Report

Statistics for the 2024 South Africa Cybersecurity market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. South Africa Cybersecurity analysis includes a market forecast outlook to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.

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Cybersecurity Market in South Africa Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)