Network security revenue in the Asia Pacific (APAC) region is estimated to reach US$1.4 billion in 2024, according to new figures released data and analytics firm GlobalData.
The company says the 2024 forecast is led by a rising threat of data breaches among enterprises that has raised the issue of securing enterprise networks.
The overall network security spending in the region is expected to grow at a compound annual growth rate (CAGR) of 1.3% during the forecast period 2019-2024, it says.
In 2019, manufacturing and banking, financial services and insurance (BFSI) verticals accounted for nearly 15% and 14%, respectively, of the total revenue for network spending. GlobalData says these verticals will continue to together account for approximately 28% of the revenue in 2024.
According to the forecast, network security spending in the government vertical is expected to witness a compound annual growth rate of 2.8% during the forecast period, as the government is required to ensure safety and privacy of personal data of citizens that is being accessed through mobiles and other personal devices.
"Key factors leading to the growth of network security market revenue in the Asia Pacific region includes instances of ransomware attacks, targeted attacks and phishing," says Rohit Sharma, senior technology analyst at GlobalData.
According to the analysis, in 2019, China and Japan together accounted for more than three-fifths of network security revenue in the region. China accounts for more than one-third of the overall network revenue. This is due to increasing emphasis by the government for better and more robust network security, GlobalData says. China introduced new cybersecurity law, forcing the companies to adopt network security solutions.
The development of new technologies such as artificial intelligence, industrial Internet, and 5G technology has also led to the growth in the requirement of network security solutions, the forecast says. Similar laws have also been introduced in other countries such as Singapore (Cybersecurity Bill) and Malaysia (Anti-Fake News Law).
"The COVID-19 pandemic has enforced most of the employees globally to work from remote locations to ensure business continuity," says Sharma.
"This has resulted in increased instances of data breach threats owing to the lack of resilient network security features at the employees and small and medium enterprises who writhed with time to secure their enterprise networks," he says.
"With increased emphasis on data security, network security is expected to witness demand by the enterprises over the next few years as well."