APAC Cybersecurity - Market Share Analysis, Industry Trends & Statistics, Growth Forecasts (2025 - 2030)

Key Highlights

• The increasing frequency of cyber-attacks and the growth of e-commerce platforms, smart device proliferation, and cloud solution deployment drive market growth. Cyber threats will evolve as intelligent and IoT (Internet of Things) technologies become more prevalent. Consequently, organizations are likely to adopt and implement advanced cybersecurity solutions to detect, minimize, and mitigate cyber-attack risks, further propelling market growth.
• With the rapid expansion of digital transactions and connectivity, Asia Pacific - a region that hosts more than half of the world's internet users - is experiencing a significant rise in threats that hinder business growth. According to the IBM X-Force Threat Intelligence Index, the region accounted for 23% of global cyber-attacks in 2023, following a higher share of 31% in 2022, highlighting its vulnerability to such risks.
• In the APAC region, governments are tightening cybersecurity policies and responding to escalating threats. As a result, companies are increasingly prioritizing compliance within their cybersecurity strategies.
• In August 2024, following nearly two and a half years of deliberation, the State Council approved the Network Data Security Management Regulation. Given the extended drafting process, revisions are expected, leveraging insights from enforcing other data regulations. This regulation builds on China's existing data and cybersecurity framework, which includes the Cybersecurity Law (CSL), the Data Security Law (DSL), and the Personal Information Protection Law (PIPL). It establishes clear legal requirements for companies handling 'important' data and personal information, particularly for users in mainland China.
• Various factors, including scalability, flexibility, platform centralization, ease of accessibility, and cost-effectiveness, drive the growing adoption of cloud-based cybersecurity solutions. Cloud adoption is rapidly transforming the business landscape in the Philippines, with organizations increasingly recognizing its strategic importance. A survey titled "The Next-Generation Cloud Strategy in Asia,"commissioned by Alibaba Cloud, the digital technology and intelligence division of Alibaba Group, reveals that 85% of Philippine businesses plan to execute a full-scale migration to the cloud within the next two years. Over 91% of these businesses will also increase their cloud-related investments in the coming years.
• In the region, individuals, SMEs, and certain government entities often exhibit limited cybersecurity awareness. Such gaps in understanding can result in risky online behaviors, insufficient security measures, and increased vulnerability to cyber threats, thereby providing cybercriminals with ample opportunities to exploit these weaknesses.

Asia Pacific Cyber Security Market Trends

BFSI Segment is Expected to Hold Significant Market Share

• As cities and industrial hubs emerge across the region, the demand for banking and financial services is surging. Rapid infrastructure development and urbanization are fueling this need. The BFSI sector, recognizing this trend, is offering tailored financial solutions, including corporate banking, project financing, and insurance services, alongside robust risk management strategies.
• The industry is witnessing a significant shift in its security measures, driven by factors such as the digital transformation of financial services, cloud adoption, and the integration of emerging technologies like blockchain and artificial intelligence. The increasing prevalence of fintech innovations adds complexity, necessitating agile cybersecurity strategies to secure transactions and customer information in an interconnected and dynamic environment.
• The increasing adoption of digital technologies and the rise of online financial services have expanded the attack surface for cyber threats in the BFSI sector. The expansion of mobile banking, digital payment platforms, and online transactions has created new challenges for cybersecurity, necessitating advanced solutions to protect against fraud, data breaches, and other cyber risks.
• Global investments in the fintech sector have surged, reaching unprecedented highs over the years. For instance, after a prolonged funding lull, the Indian fintech ecosystem has shown remarkable recovery. The sector recorded a 66% year-on-year growth in funding, amounting to USD 778 million in Q3CY24. This growth highlights the resilience and potential of the fintech sector, even in the face of challenging economic conditions, and underscores its critical role in driving financial innovation and inclusion.
• In India, the adoption of digital wallets, mobile payment platforms, and robo-advisors has fundamentally transformed the way financial transactions are conducted. This shift has been further accelerated by government initiatives aimed at promoting a cashless economy. The introduction of the Unified Payments Interface (UPI) has been a game-changer in this regard, facilitating seamless digital transactions. By March 2024, UPI recorded an impressive USD 2.375 trillion in transaction values, reflecting its widespread acceptance and the growing preference for digital payment solutions. These developments signify a major transition in the financial landscape, driven by technology and policy support.
• As finances increasingly shift online, the imperative to safeguard them intensifies. Hackers can exploit credit card numbers, bank account PINs, phone numbers, investment accounts, and other personally identifiable information (PII) for criminal gain, leading victims to invest significant time, money, and energy to reclaim their privacy.
• Fintech companies navigate a landscape rife with regulations, necessitating compliance with both local and international mandates like PCI DSS, GDPR, and SOX. Failing to adhere can lead to substantial fines and legal consequences. By implementing robust cybersecurity measures, fintech not only ensure regulatory compliance but also shield themselves from potential legal challenges, thereby bolstering market growth.

The Philippines is expected to experience significant market growth.

• The Philippines digital economy is emerging as a vital driver of economic growth, showcasing its expanding influence on the nation’s overall development. 2023 the digital economy was valued at approximately USD 35.4 billion, contributing 8.4% to the country’s Gross Domestic Product, according to the Philippine Statistics Authority (PSA). This reflects a 7.7% increase from the USD 33.6 billion Gross Value Added in 2022, underscoring the sector’s steady upward trajectory.
• The Philippines government is actively advancing its digital transformation initiatives by implementing comprehensive laws and policies emphasizing cybersecurity's critical importance. Since 2012, the country has established and enforced legislation on data privacy and prevention of cybercrime. At present, Congress is prioritizing the passage of three significant cybersecurity-related bills. In February 2024, President Marcos formally approved the National Cybersecurity Plan 2024-2028. This strategic framework outlines actionable measures to protect the nation and its citizens in the digital space, develop a highly skilled cybersecurity workforce, and enhance the robustness of the country’s cybersecurity policy infrastructure.
• The growing digital transformation in the banking sector in the country is set to bolster the market growth rate. As digital adoption accelerates, ensuring the security of financial transactions has become a critical focus area. The Philippine Banking Association has taken proactive steps to enhance cybersecurity measures. According to the Digital Banking Trust Index 2023, 88% of users expressed confidence in the security features of digital banking platforms, reflecting the financial sector’s commitment to safeguarding user data and building trust in the digital space.
• The Bangko Sentral ng Pilipinas (BSP) continues to lead the digital transformation of the Philippines' financial landscape, achieving remarkable progress in recent years. Through its Digital Payments Transformation Roadmap 2020-2023, BSP successfully met its objectives of digitizing 50% of retail transactions and onboarding 70% of Filipino adults into the financial system by the end of 2023. These efforts have significantly broadened access to secure and reliable financial services for millions of Filipinos, fostering greater financial inclusion.
• Building on this momentum, BSP's 2024-2026 roadmap is set to further enhance financial connectivity and inclusion. Key initiatives such as Open Finance and Project Nexus are designed to strengthen cross-border payment interoperability across ASEAN, facilitating seamless regional transactions. Complementing these efforts, programs like Paleng-QR Ph and Bills Pay Ph embed digital payments into everyday activities, ensuring that businesses and individuals benefit from the convenience and efficiency of digital financial solutions.
• The Philippine central bank is set to expand the digital banking landscape, with plans to approve four new digital banks by 2025, as BSP Deputy Governor Chuchi Fonacier stated. The selection process will prioritize unique value propositions and innovative business models, with a capitalization requirement of 1 billion Philippine pesos (USD17.3 million). This move aims to address strong market demand and advance financial inclusion and digitization. With a population of 116 million and a geographically dispersed structure, the Philippines relies on digital lenders to efficiently bridge financial service gaps.

Asia Pacific Cyber Security Industry Overview

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support