According to IDC’s latest Worldwide Security Spending Guide, spending on security hardware, services, and software in Asia/Pacific excluding Japan (APeJ) is expected to reach US$36 billion in 2024, an increase of 12.3% over the previous year.
With the evolving threat-landscape and increasing complexities, organisations in the region are prioritising investments in security-related products and services, recognising their critical importance in safeguarding against emerging risks. IDC expects spending on security to grow at a five-year CAGR of 12.8% over the forecast period (2022-27) and reach $52 billion by 2027.
Commenting on the report, Sharad Kotagi, Market Analyst at IDC said: “The surge in cyber-threats utilising 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 behavioural analysis capabilities.”
In 2024, the Financial Services, Government, and Telecommunications sectors remain the leading investors in security solutions from an industry end-user perspective. Together, these industries contribute to over 50% of the total security spending in APeJ. Industries are investing strategically to keep up with technological advancements such as open banking, digital payments, e-governance, modernization of IT infrastructure, and changing compliance regulations. Software and Information Services, and High Tech and Electronics are showing the fastest growth in 2024.
The demand for security in complex IT environments, including networks, cloud services and endpoints, is high, amid a cyber-security talent shortage. This creates opportunities for vendors and partners to provide varied security services. Services, especially Managed Services, will lead the market, forming nearly 40% of security spending, growing at a 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.
Among the leading segments within security software are Endpoint security, Information and Data Security Software, and Identity and Digital Trust Software, collectively representing a significant portion of the overall spending in 2024. Security software is followed by security hardware spending, dominated by network security needs – including firewalls, intrusion detection and prevention, unified threat-management, and VPNs.