Cybersecurity spending by small and medium-sized businesses (SMBs) and midmarket companies in the Asia Pacific region is expected to grow significantly, reaching $6 billion by 2027, according to a new report by IDC.
The IDC said that this growth is driven by increasing investments in security solutions, with the market expected to grow at a rate of 13% annually over the next five years.
The report, titled IDC Playbook for Tech Marketing Leaders, highlights that SMBs and midmarket firms already account for nearly half of the total cybersecurity spending in the region. As cyber threats like ransomware rise, companies of all sizes are prioritizing security measures. In 2023, overall cybersecurity spending in Asia Pacific, including Japan (APJ), reached $7.6 billion and is expected to hit $12 billion by 2027.
“To thrive in this evolving landscape, security vendors need to adapt their strategies to the region’s diverse security regulations,” said Supriya Deka, research manager at IDC’s APJ program. “Creating localized compliance solutions will boost credibility, and partnerships with local vendors and government bodies can foster a collaborative approach.”
Countries such as Australia, Japan, and China are expected to lead in security investments, while India’s SMB sector is set to see the fastest growth. However, the lack of uniform cybersecurity standards across the region presents challenges. Regional tensions and AI-powered threats have also led to increased cyber espionage.