Rising cyber attacks drive APAC managed security spend

GlobalData has revealed that growing security risks and incidents of ransomware have forced enterprises across the Asia–Pacific region (APAC) to search for trusted and competent security services providers, with managed security services (MSS) revenue in the region estimated to reach US$17 billion in 2024.

According to Rohit Sharma, Senior Technology Analyst at GlobalData, the key factor driving the increased spending on managed security services market is the rise in cyber attacks (including direct, indirect and induced), resulting in significant losses to enterprises. Additionally, due to a lack of skilled cybersecurity professionals, enterprises are looking for trusted partners, thereby resulting in growth of the segment.

An analysis of GlobalData’s Market Opportunity Forecasts Model reveals that banking, financial services and insurance (BFSI) and manufacturing industries comprise a 15% and 14% market share, respectively, of the overall MSS revenue in 2019. In 2024, both the BFSI and manufacturing industries are forecast to account for 15% and 13%, respectively. Healthcare vertical is projected to grow at the highest CAGAR of 5.6% during the forecast period, from 2019–2024.

“The BFSI vertical is a major target for cybercrimes and digital frauds, leading to a higher demand for managed security services. 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,” said Sharma.

In terms of revenue, China is estimated to account for US$4.5 billion in 2020, becoming the highest revenue-accounting country by 2024, with more than 33% of the MSS revenue. The key driver for the market is the increased emphasis by the government to raise cybersecurity awareness amongst public and private enterprises. Managed security services’ revenue in Indonesia and Australia is expected to witness the highest CAGRs of 5.2% and 1.3%, respectively, during the forecast period.

The growing need for security solutions across verticals such as BFSI, health care, manufacturing, and aerospace and defence is predicted to drive MSS market growth in Australia. Increasing government investment in security solutions and rising data breach concerns also contribute to MSS market growth in the country.

“Recent technological developments such as cloud, 5G and IoT will further reduce the barrier between physical and digital world landscapes, eventually leading to the growth in MSS revenue,” said Sharma.

Image credit: ©stock.adobe.com/au/jijomathai