The latest data from the International Data Corp. (IDC) show a significant uptick in security investments across the Asia Pacific excluding Japan (APeJ) region. Anticipated to hit $36 billion in 2024, the projected 12.3% increase from the previous year underscores the escalating concerns regarding cybersecurity threats in the region.
“The surge in cyber threats utilizing (artificial intelligence) AI, such as deepfakes, pretexting, and identity theft, has spurred a heightened demand for comprehensive security solutions in the region that encompass threat detection, automated remediation, and behavioral analysis capabilities,” says Sharad Kotagi, market analyst, IT Spending Guides, IDC Asia/Pacific.
China leads regional security investments, comprising over 40% of total spending in 2024, followed by Australia and India. This underscores the growing recognition of the critical importance of cybersecurity across the APeJ region.
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From an industry end-user perspective, the financial services, government, and telecommunications sectors emerge as the top investors in security solutions, collectively contributing to over 50% of the total security spending in APeJ. These sectors invest to adapt to technological advancements such as open banking, digital payments, and changing compliance regulations.
Managed services
The report highlights that security services, particularly Managed Services, will lead the market, forming nearly 40% of security spending with a projected 12.8% five-year CAGR.
“Regulatory requirements and data protection laws will be a catalyst for spending on security consultation and integration services, while the managed security services market will be buoyed by the increasing complexity of IT environments and the persistent shortage of cybersecurity talent in the region,” says Benjamin Ten, research analyst, IT Services, IDC Asia/Pacific.
Within security software, endpoint security, information and data security software, and identity and digital trust software emerge as leading segments, collectively representing a significant portion of overall spending in 2024.