Market Trends of Thailand Cybersecurity Industry
Cloud Security to Register Major Growth
- The cloud security demand in the Thailand cybersecurity market is driven by the considerable presence of cloud regions and the evolving regulatory landscape, coupled with high growth in cloud migration among businesses, which requires new approaches to ensure that data remains secure across online infrastructure, applications, and platforms.
- Cloud computing has transformed how public and private sector organizations in the country use, share, and store data, applications, and workloads. However, it has also introduced new security threats and challenges to organizations. Moreover, significant data going into the cloud and public cloud services further increase the exposure, thus positively driving the demand for cloud security solutions. Moreover, as organizations across the country shift workloads to the cloud rapidly, data protection, loss of visibility, and control are emerging as major concerns, driving the demand for cloud security solutions.
- The country is at the forefront of cloud adoption, augmented by the end-user drive for digitalization and government initiatives such as cloud-first policy. The country's government is partnering with cloud vendors such as Google and Microsoft to facilitate governmental agencies using public cloud providers as part of the country's cloud-first policy. Such initiatives are further expected to bolster the adoption of cloud security solutions in government institutions as well as private end-user businesses of the country.
- Furthermore, cloud market vendors such as Google, Microsoft, and AWS have launched cloud regions in the country to bring the power and benefits of cloud services closer to businesses and organizations in Thailand, enabling them to leverage advanced cloud technologies for their digital transformation initiatives. However, as businesses in the country continue to migrate to the cloud per the Thai government's cloud-first policy, understanding the security requirements for keeping data, applications, and platforms safe is becoming increasingly crucial. Thus, such developments are analyzed to result in significant demand for cloud security solutions in the country's end-user businesses during the forecast period.
- According to the Digital Economy Promotion Agency (DEPA), the market value of digital services in Thailand was reported to be THB 346.7 billion (USD 9.91 billion) in 2021. By 2024, this amount is anticipated to reach THB 700 billion (USD 20 billion). Moreover, in 2022, Thailand's digital market value was around THB 2.6 trillion (USD 74 billion). As Thailand's digital economy expands, businesses and government organizations are expected to strengthen their efforts to adopt and implement scalable IT infrastructure, cloud services, and other digital technologies. This increased digital activity further enhances the need for robust cybersecurity measures to protect valuable assets and sensitive information.
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BFSI to be the Largest End User
- The BFSI industry in Thailand is witnessing a significant shift in its cybersecurity security measures, primarily driven by factors such as the digital transformation of financial services, cloud adoption, and the integration of advanced technologies like machine learning and artificial intelligence to enhance banking and finance operations. In addition, growing data breaches and cyberattacks in financial firms further necessitate adopting cybersecurity solutions in the country's BFSI sector.
- SurfShark, a secure VPN (Virtual Private Network) service provider in Thailand, published statistics in July 2023 stating that Thailand has been registering a significant number of online account breaches, showing the risk of cyber crimes, fueling the demand opportunity for cyber security solutions in Thailand.
- Furthermore, with the growing technological penetration and digital channels, such as mobile banking, Internet banking, etc., in the country's financial sector, the attack surface for cyber threats in the BFSI sector has expanded. The expansion of mobile banking, digital payment platforms, and online transactions in the country's BFSI sector has created new challenges for cybersecurity, thus driving the demand for advanced cybersecurity solutions to protect against fraud, data breaches, and other cyber risks.
- Moreover, the growth in cyberattacks in banks and financial firms has witnessed a significant rise in the past few years, necessitating the demand for robust cybersecurity measures to protect customer data. For instance, in September 2023, CardX, one of Thailand's major digital financial platforms, disclosed a data leak that exposed their customers' personal information related to personal loan and cash card applications. This information includes the customer's first and last name, address, telephone number, and email.
- Furthermore, the country's BFSI sector is undergoing a significant transformation due to technological advancements, regulatory changes, evolving customer preferences, and the rise of innovative financial models, necessitating the need to safeguard against cyberattacks and data breaches. For instance, banking institutions, including the Bank of Thai (BoT) and commercial bank members of the Thai Bankers' Association (TBA), have been upgrading their digital technology to handle cyber risks and strengthen cybersecurity. Such factors will boost investment in cybersecurity measures in the BFSI sector to guard against cyber risks.
