03 Mar Cybersecurity Asia-Pacific Q4 2015
Cybersecurity Asia-Pacific
A SPECIAL REPORT FROM THE EDITORS AT CYBERSECURITY VENTURES
Q4 2015
Cybersecurity Asia-Pacific provides market sizing and industry forecasts from consolidated research by IT analyst firms, emerging trends, employment, and resources for chief information security officers (CISOs) and IT security staff.
INTERNATIONAL REPORT
Asia-Pacific cybersecurity market expansion driven by DDoS attacks, adoption of cloud computing and mobile devices.
- Organizations in the Asia-Pacific region were forecast to spend $230 billion to deal with cybersecurity breaches in 2014 — the highest amount for any region in the world, according to International Data Corporation (IDC) and the National University of Singapore survey, as reported in Marsh’s “Cybercrime in Asia” 2014 report.
- A report from Research and Markets forecasts the Cyber Security market in the Asia-Pacific region to grow at a CAGR of 15.15 percent over the period 2014-2019.
- The Asia Pacific Cyber Security Market contributes 17.21 percent of the global market and will grow to 21.16 percent by 2019, according to MicroMarketMonitor.
- The private sector – highly developed, economically lucrative, and a prime target for the theft of intellectual property, blackmail, phishing, and identity theft – is investing in cybersecurity in nations such as China, Japan, Korea, Australia, New Zealand, Hong Kong, and Singapore”, according to ABI Research.
- Research and Markets states that demand for cloud-based security solutions is one key trend emerging in this market. End-users prefer cloud-based security solutions because they are cost-effective and can be easily managed. Therefore, both large enterprises and SMEs in the Asia-Pacific region are increasingly adopting cloud-based cyber security solutions.
- China leads Asia-Pacific nations with a total addressable cloud computing market totaling $141.9 billion. Japan is the number two nation in the region at $101.4 billion. Indonesia is number three at $76.8 billion. These figures are published by the Asia Cloud Computing Association.
- Research and Markets states that one of the major drivers of the market is increased use of mobile devices such as tablets and laptops, which has made it difficult to identify cyber threats. With the rising need to integrate networks with mobile devices of employees, demand for security solutions to prevent misuse of confidential data through fraudulent activities has also been on the rise.
- According to a recent report published by ApacMarket.com, titled “Asia-Pacific Mobile Security Research Report, 2014 – 2020″, the Asia-Pacific mobile security market is expected to garner $7.5+ billion by 2020, registering a CAGR of 42.9 percent during 2015 – 2020.
- Spurred by private sector awareness, political turmoil, and cybercrime, Asia-Pacific organizations will spend $22 billion on critical infrastructure technologies by 2020, ABI Research estimates. The lucrative OEM market – which ties Asia-Pacific to electronic manufacturers worldwide – also is an attractive target for hackers and malware creators. And as demand grows for Internet of Things (IoT) solutions, OEM vendor spending on security must increase to meet customers’ concerns. More businesses will turn to Asia-Pacific’s expanding roster of OEMs and original design manufacturers (ODMs) for partnerships and joint research and development agreements, according to IDC.
- India has the world’s second largest population, and a very small cybersecurity economy. But they are a nation to watch for cybersecurity market growth. According to a PwC report cited in The Economic Times, India’s cyber security market size will jump to $1 billion USD in 2015 (from an estimated $500 million USD last year). That is a whopping 100 percent year-over-year growth.
- Analyst firm Frost & Sullivan forecasted the cybersecurity market in Australia and New Zealand to reach revenues of more than $1.6 billion (USD) by 2019. This is up from a little over $590 million in 2012.
- Australia, India and Japan are the only Asia-Pacific nations with a national cybersecurity strategy in place, according to the “Asia-Pacific Cybersecurity Maturity Dashboard” published by BSA. BSA indicates that Australia and India are the only two nations who require mandatory reporting of cybersecurity incidents. Australia and Taiwan are the only two nations with legislation or policy requiring each agency to have a CIO or CSO (chief security officer).
- Hiring in Hong Kong’s IT industry is heavily focused on security and risk professionals this year due to the increased threat of cyber attacks, according to Hong Kong Business. They state that with companies around the globe already being affected by security issues, job opportunities are available in Hong Kong for expatriates with the right IT skills.
- The Xinhua News Agency recently reported that Philippine President Benigno S. Aquino III has formed the National Cybersecurity Inter-Agency Committee that will assess the vulnerabilities of the country’s cybersecurity. The Committee will issue updated security protocols to all government employees involved in the storage, handling and distribution of all forms — digital, electronic, snail mail, and others — of documents and communications. It will also enhance the public-private partnership in the field of information sharing, involving cyberattacks, threats and vulnerabilities to cyber threats; and conduct periodic strategic planning and workshop activities that will reduce the country’s vulnerabilities to cyber threats.
- Cloud Expo Asia, Asia’s largest cloud event for business, is being held in Singapore from October 28-29. Some of the leading cybersecurity companies globally will be exhibiting at Cloud Expo Asia.
- Singapore’s Second Minister for Home Affairs and Trade and Industry, S. Iswaran, spoke at Interpol World 2015 – held recently in Singapore – and stated “New cybercrime attack vectors and more points of entry are being introduced, allowing criminals to easily steal personal information for fraudulent activities, or even worse, cripple entire systems simply by targeting one device”. Iswaran added “The move to cloud computing aggregates immense data in computer servers around the world. This poses higher security risks, as hackers can now access massive amounts of data by hacking just one server.”
- Law360, a trusted news source for top lawyers, business leaders, and judges and court staff across the U.S., states that Indonesia ranks as one of the world’s top countries for originating cyberattacks and 36.6 million attacks were recorded in the country in the past three years, according to Akamai Technologies and the Indonesian Ministry of Communications and Informatics. In early 2015, Indonesia announced that it would form a National Cyber Agency to coordinate an integrated defense against rising cyberattacks.
- Nexusguard, a global leader in fighting malicious internet attacks, has launched a program for service providers in Asia Pacific to deliver essential DDoS services through an innovative business model. The Nexusguard Service Provider Enablement program offers an easy-to-operate solution that enables service providers to deliver essential DDoS protection services — without the complexity of maintaining or managing mitigation appliances. By delivering carrier-grade DDoS mitigation services through its industry-leading network of globally distributed scrubbing centers, Nexusguard enables service providers to offer a flexible and scalable security solution that provides high value to their customers.
- “The Asia-Pacific region produces the most amount of DDoS scans to the internet” says Terrence Gareau, Chief Scientist at Nexusguard. “It also is the largest target for denial of service. Asia Pacific receives more DDoS attacks than anywhere else in the world. It has more software piracy than anywhere in the world. It is not a surprise that the large botnets are able to operate in this region because there are so many vulnerable systems” adds Gareau.
- Fortune recently reported that about 90 percent of cyber insurance is being purchased by U.S. firms, leaving other companies around the world – including Asia-Pacific corporations – exposed. Cyber insurance protects businesses from internet and IT based risks that are not covered by traditional commercial general liability policies. Cyber insurance policies provide coverage against losses including denial of service attacks, hacking, data theft, and even PR and investigative costs incurred after a cyber incident. “With cybercrime in general – and DDoS attacks in particular – rising in the Asia-Pac region, we expect to see the emergence of local country specific cyber insurance markets” says Steve Morgan, founder and CEO at Cybersecurity Ventures and Editor-In-Chief of the Cybersecurity Market Report.
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CYBERSECURITY VENTURES
Steven C. Morgan, Editor-In-Chief
- is Founder and CEO at Cybersecurity Ventures, and Editor-In-Chief of the Cybersecurity Market Report and the Cybersecurity 500 list of the world’s hottest and most innovative cybersecurity companies. Steve writes the weekly Cybersecurity Business Report for IDG’s CSO, and he is a contributing writer for several business, technology, and cybersecurity media properties.
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