Security hardware, services, and software spending in Asia/Pacific excluding Japan (APeJ) is expected to increase 12.3% over the previous year and reach US$36 billion in 2024, according to IDC’s latest Worldwide Semiannual Security Spending Guide. IDC projects security spending to grow at a five-year CAGR of 12.8% from 2022 to 2027 and reach US$52 billion by 2027.
“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 behavioral analysis capabilities,” says Sharad Kotagi, market analyst, IT Spending Guides, IDC Asia/Pacific.
Growth catalysts
Financial services, government, and telecommunications sectors continue to drive the market growth for security solutions in 2024, contributing to over 50% of the total security spending in the region.
Vendors and partners take advantage of the increasing security demand in networks, cloud services, and endpoints, along with the widening cybersecurity talent gap. IDC projects Managed Services to lead the market with, 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,” says Benjamin Ten, research analyst, IT Services, IDC Asia/Pacific.