Managed security services revenue in the Asia Pacific region is expected to hit US$17 billion in 2024, as a surge in cyber attacks sees enterprises ramp up investment in solutions to combat rising threats.
This is according to analysis by data and analytics firm GlobalData, which suggests that security risks, and ransomware incidents particularly, have been forcing enterprises across the APAC region to search for trusted and competent security services providers.
“The key factor driving the increased spending by enterprises on the managed security services market is the rise in cyber attacks (including direct, indirect and induced), resulting in significant losses to enterprises,” GlobalData senior technology analyst Rohit Sharma said.“Additionally, due to lack of skilled cybersecurity professionals, enterprises are looking for trusted partners, thereby resulting in the growth of the segment,” he added.
With this in mind, GlobalData estimates that managed security services revenue in the region will reach US$17 billion in 2024, with Indonesia and Australia expected to see the highest compound annual growth rates (CAGRs) of 5.2 per cent and 1.3 per cent, respectively, during the forecast period.
According to GlobalData, the banking, financial services and insurance (BFSI) and manufacturing industries accounted for a market share of 15 per cent and 14 per cent, respectively, of the overall managed security services revenue in 2019.
In 2024, the company predicts, both the BFSI and manufacturing industries will account for 15 per cent and 13 per cent, respectively.
However, the healthcare vertical is projected to grow at the highest compound annual growth rate (CAGR) of 5.6 per cent during the forecast period 2019-2024.
“The BFSI vertical is a major target for cybercrimes and digital frauds leading to a higher demand for managed security services,” Sharma said. “The demand for managed security services in the healthcare vertical is driven by the need to keep the patients’ data secure, stringent data security regulations and developments like remote patient monitoring.
“Recent technological developments such as cloud, 5G, and IoT [internet of things] will further reduce the barrier between physical and digital world landscapes, eventually leading to the growth in MSS revenue,” he added.
GlobalData’s predictions come after forecasts from Canalys that the global cyber security market — not just managed security services — is expected to grow 5.6 per cent by the end of 2020, to US$43.1 billion.
The need for this expected increase in cyber security, according to Canalys research analyst Ketaki Borade, is to combat the increase in security issues following the start of the coronavirus pandemic.
“The emergence of COVID-19 in January saw a surge in targeted phishing campaigns and malicious domains established to lure end users searching for information,” Borade said. “These fell once lockdown took effect. But hackers continue to target organisations and individuals by compromising unsecured and poorly trained remote workers via numerous vectors, including email, social engineering and RDP [remote desktop protocol] brute force attacks.
"Organisations will have to reassess changes to workflows, application use, customer engagement and training for cybersecurity awareness in a more virtual workplace.”