The Asia/Pacific cybersecurity market is on a rapid growth trajectory, with projections estimating it will surpass $6 billion by 2027. The IDC report, IDC Playbook for Tech Marketing Leaders Tech Marketing Leaders: Capitalizing on SMB and Midmarket Security Spending for Growth in Asia/Pacific (Including Japan), highlights that small and medium-sized businesses (SMBs) and midmarket companies will drive this growth, accounting for 46% of the region's total security spending. With a robust compound annual growth rate (CAGR) of 13% anticipated over the next five years, this segment is set to significantly increase its investments in cybersecurity.
As cyber threats escalate—evidenced by a rise in ransomware attacks—both large enterprises and SMBs are prioritizing security measures. The IDC Security Spending Guide indicates that total security spending in Asia/Pacific reached $7.6 billion in 2023 and is expected to grow to $12 billion by 2027, reflecting a CAGR of 10.5%.
Despite government initiatives to bolster cybersecurity, the absence of standardised regulations across the region poses challenges for cohesive security strategies. Ongoing Indo-Pacific tensions and AI-driven threats have heightened the risk of cyber espionage, prompting countries to forge strategic alliances to enhance their cybersecurity resilience.
Australia, Japan, and China are projected to lead in security expenditures, while India’s SMBs and midmarket sector are expected to experience the highest growth in security spending. To capitalise on these opportunities, security vendors must navigate the diverse regulatory landscape and develop localised compliance solutions.
Supriya Deka, research manager at IDC, emphasises the need for vendors to adopt innovative strategies and engage with local partners, startups, and government entities. This collaborative approach will not only enhance credibility but also strengthen the overall cybersecurity framework across the region.