Cyber security spending in Asia Pacific to reach $36 bn: IDC

Spending on cyber security in Asia Pacific (excluding Japan) is expected to grow 16.7 percent to reach $36 billion in 2023, according to IDC.
Cyber security spending in Asia Pacific in 2023 forecastSpending on cyber security-related products and services to grow at a five-year CAGR of 15.4 percent over the forecast period (2021-2026) and reach $55 billion by 2026. Key drivers behind this growth are rise in cyber-attacks, digital transformation initiatives, and hybrid workforce trends.

IDC sees increased security budgets and growth over the next few years to address the more prevalent sophisticated attacks. Security and business leaders must work together justify their security spending, said Christian Fam, Research Manager, Security Services, IDC Asia Pacific.

Banking, financial services, and insurances (BFSI), telecommunications, government, and manufacturing are the top spenders on cyber security solutions in 2023.

Initiatives such as open banking, digital payments, e-governance, IT infrastructure modernization, and changing compliance regulations trigger investments in these industries. Together, these industries will account for more than 50 percent of the total security spending in the region.

Industries seeing the fastest growth in 2023 are state/local government, utilities, and telecommunications.

As per the latest IDC survey, over 70 percent of the organizations have experienced cyberattacks in the last 12 months, out of which, 55 percent have paid ransom to avert operational disruptions and financial losses, said Sharad Kotagi, Market Analyst, IT Spending Guides, IDC Asia/Pacific.

The need for security capabilities to support IT environments, including network, cloud, and endpoints, will see demand and shortage of skilled cybersecurity resources, creating opportunities for vendors and channel partners to provide security service options.

Security services will dominate the security markets, accounting for nearly half of the security spending throughout the forecast period, growing at a 14.7 percent five-year CAGR.

Managed services will be the largest category in the security services market – delivering around 40 percent of the spending throughout the forecast – followed by consulting services and integration services.

Security services will be followed by the security software, led by endpoint security, information and data security software, and identity and digital trust software, accounting for more than half of the overall security software spend in 2023.

Security software will be followed by security hardware spending, dominated by network security needs – including firewalls, intrusion detection and prevention, unified threat management, and virtual private networks.

China will be at the forefront in security investments in the region, accounting more than 40 percent of total Asia/Pacific security spending in 2023, with a five-year CAGR of 18.8 percent during the forecast period.

The other top two countries in terms of security spending are Australia and India. Together, Australia and India will account 25 percent of the overall Asia Pacific cyber security spending in 2023.

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