The Asia Pacific Network Security Market is valued at US$ 6.8 Billion in 2019 and is poised to grow at a CAGR of 15.2% to reach a market size of US$ 15.89 Billion in 2025.
The growth of the Market is driven by factors such as Embracement of BYOD by Enterprises, Growing need of security solutions for cloud technology and Increasing Cyber Threats at the Network Point.
- Definition / Scope
- Market Overview
- Key Metrics
- Market Risks
- Market Trends
- Industry Challenges
- Technology Trends
- Other Key Market Trends
- Market Size and Forecast
- Market Outlook
- Technology Roadmap
- Competitive Landscape
- Competitive Factors
- Key Market Players
- Strategic Conclusion
Definition / Scope
Cybercriminal activity is one of the biggest challenges that humanity will face in the next two decades. Cyberattacks are the fastest growing crime globally, and they are increasing in size, sophistication and cost. Network Security is one of the effective solutions for enterprises to defend their system against cyberattacks.
Network security is defined as protection from misuse, or hacking of files or directories of a device. Viruses, worms, Trojan horses, spyware and adware, zero-day attacks, hacker attacks, DDoS attacks and identity theft are the most common threats to the network.
Rapidly growing connectivity and the accelerating pace of digital transformation expose the APAC region, and make it particularly vulnerable to cyber exploitation. Evidently, according to the 2017 edition of the Global Risks Report, cyber concern around the likelihood and impact of technological threats has sharpened among business executives in APAC, and cyberattacks are ranked among the top 5 risks of doing business in the region.
Large-scale data breaches and the rising complexity of targeted attacks and phishing techniques continued to push organizations to search for robust network security capabilities. For instance, Toll Group of Australia confirmed ransomware attack called “Netfilim” in May 2020. Nefilim is a relatively new ransomware variant that was first identified in March 2020.
Notably, current reports suggest Nefilim uses exposed Remote Desktop Protocol (RDP) connections for infection. In fact, according to a new report, it’s estimated ransomware attacks in Australia cost businesses up to $240 million in 2019 alone.
Asia is 80 percent more likely to be targeted by hackers than other parts of the world. The number of high-profile cyber incidents has risen in recent years, although we assert that the public sees only a sliver of the real impacts of such incidents.
Reasons for the relatively higher cyber threat potential in APAC are twofold: the growing speed and scope of digital transformation, and the expanding sources of vulnerability stemming from increasing IoT connectivity
Digital transformation the connection of individuals, companies, and countries to the Internet has emerged among the most transformative means to ignite sustainable growth. This is most evident in APAC where strong economic growth in recent years has been powered by the rapid adoption of Internet and mobile technologies.
For example, estimates from The World Bank indicate 22 percent of Myanmar is now online, compared to less than 2 percent in 2013, opening abundant opportunities for the domestic consumer market.
In Indonesia, meanwhile, mobile device subscription rates were estimated to be higher than the rest of Asia in 2015 (132 percent vs 104 percent). The high subscription rate was one key driving force propelling the domestic mobile-money industry – annual e money transaction values in Indonesia grew almost to Rp8.2 trillion ($604 million) in 2019 from Rp520 billion ($54.7 million) in 2009.
Unfortunately, there remains a huge gap in cybercrime legislations in these countries – the lack of awareness and knowledge of basic security makes most online transactions highly susceptible to digital theft. While the breakneck speed of digital transformation is generally good news, safeguards must be in place alongside to protect users and sustain the burgeoning digital business.
The rapid spread of internet-enabled devices – IoT – enables new and more efficient modes of communications and information sharing. Asia-Pacific, in various aspects, leads in the IoT technology: South Korea, Australia, and Japan are among the top five countries, reaping the most benefits from IoTs, according to the 2016 International Data Corporation’s (IDC) “Internet-of-Things Index”.
The digital transformation and the adoption of smart technologies such as IoT (Internet of Things) is expected to open risks of cyberattacks. Thereby, fueling the growth of the Network Security Market.
Porters five forces is adopted for performing risk analysis on the Asia Pacific Network Security Market and the inferences obtained are as follows:
- Current offerings of cyber security are becoming obsolete – high level of competition and relatively high number of suppliers currently in operation.
- Traditional cyber security business are incorporating AI into their services, starting with machine learning, making up for shortages and lack of skilled professionals as they go.
- Training of professionals and staff may be needed for some current suppliers, since they are adjusting their traditional cyber security offerings to current demand by adding AI capabilities.
- As with other digital business, buyers have leverage over market, since it responds to their needs and expectations.
- Budgets for cyber security are on the rise (12-15% annually), due to the increasing worry on data security by companies and government.
- Access and authentication, advanced malware protection, data security, application security and compliance are key aspects of spending.
- As technology evolves, companies can one-up each other by offering the latest tech available
- New entries biggest threat to current suppliers, as they may incorporate new and emerging technologies into their cyber security offering from launch
- Evolving legislation could limit competition and/or leave current suppliers behind, adjusting their capabilities
- Current cyber security offerings are becoming obsolete, with market, cyber threats and needs of consumers changing faster than companies’ capabilities
Threat of Substitution
- Current cyber security offerings not using AI are not enough to face cyber threats
- Numerous companies name shortage of skills (82%) in their current cyber security methods, which caused damage to their business (71%)
Threat of New Entries
- The digital economy allows for easy entrance to any market
- Shared economy services are not currently very apt for the the cyber security, but could potentially disrupt the market
- Slew of new startups focusing on AI for cyber security, which points at an increased competition
- Universities and colleges are now incorporating Cyber Security with AI into their computer science curriculum, bringing in a new generation of more skilled IT professionals – which could potentially direct their efforts towards entrepreneurship
Top Market Opportunities
The advent of 5G Technology
5G technology rollout is growing at a rapid pace. 5G delivers enhanced network capabilities that help users run at high speeds, with increased reliability, efficient usage of bandwidth and decreased latency. This has led to high adoption of 5G among other items in technologies such as artificial intelligence (AI), machine learning (ML), and industrial IoT.
When technology adoption with 5G improves, more data can be exchanged across the network creating more risks to data protection. The risk of threats and cyber-attacks is linked not only to 5G service providers but also to consumers.
The confidential information of all the industries will be present in every layer of wireless systems. The rising adoption of 5G services is expected to boost the demand for this market.
High Cyberattacks in IT Industry
Malicious cyberattacks are on the rise, as hackers use ever more sophisticated strategies to infiltrate systems and networks, For instance, an average client of the technology company IBM Corporation experienced 178 security incidents in 2019 an increase of 64% over the previous year.
Network security is considered reliable in the market because of some of the features like incident responses, intrusion detection and alerts, firewall monitoring, security audits, system upgrades, vulnerability assessments and so on.
Consequently, the negative impacts of cyber-crimes and the positive impacts of security services by network service providers are the opportunistic pathways for network security market.
Growing adoption of M2M communication in enterprises
One of the significant factors driving the growth of network security market is the growing adoption of M2M communication in enterprises. M2M communication uses various technology such as cameras, a global positioning system (GPS), RFID, and bar codes. These systems are used to manage and control an organization’s physical assets.
Such innovations also improve operational performance and boost business value. For instance, RFID is used mainly in the retail industry, as RFID-tagged products are easier to track in the supply chain. M2M links all devices and assets, and allows close monitoring and control of business processes.
M2M helps in taking decisions efficiently in real time. With the growth in the adoption of M2M, it becomes essential to maintain security to ensure data confidentiality. The rise in adoption of M2M would thus fuel demand for network security, driving market growth.
Embracement of BYOD by Enterprises
The increasing adoption of BYOD, one of the critical network security market trends, will also drive market growth. BYOD implementation requires specific network security solutions, and IT service delivery frameworks, to ensure electronically secure work environments.
Vendors are providing network security solutions to successfully implement BYOD to provide an environment where employees can use their own devices through robust internet and connectivity infrastructures.
As a result of such factors, during the forecast period, the network security market will record a CAGR of more than 11% in the APAC region.
Growing need of security solutions for cloud technology
The key factor driving the Network Security market is the rising need for cloud technology security solutions. Threats such as malware or faulty processes are reducing the performance of the hypervisor due to heavy use of virtualization.
It has enabled Network Security Solution Providers to deliver advanced Network Security Solutions like Firewall to scan every byte of each packet on all network traffic.
This Network security solution enhances cloud-based security by offering additional benefits such as malware protection, intrusion detection, data theft infringement policy and other security measures.
Increasing Cyber Threats at the Network Point
In APAC, a rising connected digital world requires continuous data security and services from any location. Companies introduce multiple hosting environments for this purpose in which both mobile and fixed devices are connected to server.
It increases the risk of data security as companies offer multiple hosting services. Hackers then actively target networks to hack and obstruct sensitive information and kill client databases. The network has become a prominent channel for disrupting information about the organization.
The other challenge for the users is viruses and malware that passes through the network directly. These viruses and malware disrupt files and only document after a specific action is triggered by the user.
A network architect or the IT specialist can provide network security with the aid of antivirus and anti-malware. The increase in threats is boosting the growth of the network security industry as more network security solutions will be needed.
Thus, the rising attacks on the network are boosting the need for adopting secure network software.
Low Security Budget by the Companies
Today, nearly every industry faces challenges in addressing threats and a lack of genuine data security. Nevertheless, the companies are not keeping the required budget for security solutions.
Also, the software’s initial installation cost is high, and it also requires frequent testing that is likely to hamper the adoption of this product for a limited period of time.
Given the high cost of the solutions and can threats, however, small and medium-sized businesses can implement tailored, affordable security solutions according to the organization’s needs and operations.
Complexity of network solutions
Computers and networking have become inseparable. Various organizations have acknowledged that the complexity of the network has risen in the last few years, and will continue to grow over the next five years. Also there is high rate of hacking and cyber-attacks happening across the APAC region.
In addition, with businesses growing day by day, the architecture of the network and the complexity of the network is also becoming more dense in nature. In addition, companies are making regular improvements in the network architecture according to business needs on a continual basis.
The complexity in the network architecture has led to difficulty in developing effective Security solutions for the network and thus, restrains the growth of the segment.
The technical constraints witnessed in the segment include tool interoperability shortcomings and lack of visibility.
Tool interoperability shortcomings arise as a result of using too many tools that don’t share data seamlessly. A network is not a single zone. It is a system of software-defined networks, micro-segmentation, and rules and assets of the network which create exponential complexity.
To try to understand what’s going on in the network, security teams have to switch from console to console, struggling to make sense of what one metric means in context with the others. The result is an environment that promotes human error and leaves gaps that could be exploited by adversaries.
Lack of Visibility is felt as Visibility varies from moment to moment as new devices and endpoints enter and exit the network. Usually, there’s no way to tell if the network is safe or compliant at any given point in time at most, security professionals might look back at historical data to see if the network was protected in the past at some point.
The technical constraints that arises due to the complexity of the network, puts workload on the security professionals and emphasises that the network must be closely monitored round the clock 24X7, added with the shortage of security professionals, enterprises feel the brunt to counter network attacks such as DDOS (Distributed Denial of Service) attacks, Phishing and Man in the Middle Attack.
Availability of Open-Source Network Security Solutions
There are numerous Open-Source Network Security Solutions available in the market that offers the same service and features as that of the paid Network Security Solutions.
The superior functionality offered by the open source network security solutions makes enterprises prefer them over paid services as they have to bear one-time fixed buyout cost and additional costs such as initial installation cost and updation cost.
The performance offered by the open source solutions are on-par and sometimes superior than the paid network security solutions, hence without second thought enterprises are adopting open-source network security solutions.
Shortage of Skilled Professionals
There is an acute shortage of skilled professionals in the APAC Network Security Market attributed to several factors such as surge in demand for security professionals due to the region’s growing economies and the enactment of new cybersecurity and data privacy legislation.
According to a Cybersecurity Workforce Study by the International Information System Security Certification Consortium (ISC2), the Asia Pacific region is experiencing the biggest workforce shortage in cybersecurity at about 2.14 million.
The survey involved more than 1,500 cybersecurity professionals from around the world, who also weighed in on their workplace challenges and development priorities.
Among the top challenges cited was a lack of funding, a lack of skilled cybersecurity professionals, and a lack of understanding from management, and the rest of the organisation, about the significance of cybersecurity.
The shortage of Skilled Professionals places companies at risk is hardly surprising. What is perhaps less intuitive is the effect the gap has on the jobs that are filled. It’s clear from the findings that cybersecurity professionals are feeling the pressure created by inadequately staffed cybersecurity teams.
The lack of skilled cybersecurity personnel is doing more than putting companies at risk; it’s affecting the job satisfaction of their existing staff, the report says. This is a dangerous side effect that affects morale.
With the rising number of network assets being used by companies, one pain point for the network security industry is keeping up with the various obsolete assets maintaining protection.
This can be resolved by the implementation of a company-wide asset security strategy and a corporate risk management programme. It involves getting good company leaders in charge of maintaining these systems and offering simple ways for workers to make sure the tools they are using for work are safe.
Four new technologies adopted in the field of network security include hardware authentication, deep learning, deepfake technology and user behavior analytics.
Companies are moving to hardware authentication as usernames and passwords become easier to hack. Often users would need to provide a certain device that serves as a token of authentication, making it more difficult to sign in to a device that is not the users.
Intel’s Authenticate solution for its sixth generation Core vPro processor is one example of this.
Deep learning blends artificial intelligence and machine learning for malicious behavior detection. Moving beyond analytics of behavior, deep learning looks at organizations rather than single individuals, which can be used to counter advanced persistent threats.
Deep Instinct is one organization that offers deep learning solutions for cybersecurity applications. The company’s attention is on preventing “zero-time” threats
Deepfake technology is an emerging technology that enables the video and voice to be manipulated in ways that seem extremely real. This technology could be used by hackers for sophisticated phishing scams.
By creating software that detects these deep-fakes, some startups address this problem. Truepic and Serelay are amongst these startups.
User Behavior Analytics
User behavior analytics are used to detect malicious and suspicious actions, which can alert to threats to cybersecurity. Big data analytics was used by the technology to detect attacks right after they occur based on anomalous activity by hackers.
Few examples of companies that provide cybersecurity user behavior analytics solutions include Aruba, Dtex, and Exabeam.
The exact cost model of network security depends essentially on the approach chosen. There are differences in the price of a license, the number of users, the volume and appearance of devices and the quality of a tied package in this sense.
On the low end, network security systems cost as little as $50 per year; on the higher end, systems can cost as much as $6,000 per year, with some system reaching $24,000 for a single year of use.
The wide range between the lower and higher ends of network security cost corresponds with the large variety of available solutions. On the lower end of the spectrum, systems such as business VPNs and email security solutions, which can help protect business from specific threat types (such as phishing scams) on a smaller scale can be found.
Higher-priced systems are often full-featured network monitoring solutions with advanced security event logging and detection capabilities. They can help shield the enterprise from large-scale attacks on the network and, sometimes, predict intrusions before they even happen.
The Different categories of Pricing Model of Network Security Systems include
Pricing model: Per license
Licensing fees have the widest cost range, often due to the level of intensity of the program. For example: for a basic email security program, the average cost is around $30 per license. For a network monitoring solution with predictive capabilities, however, it can cost several thousand dollars per license.
Overall, the average cost per license for one year is $1,000-$2,000.
Pricing model: Per user
The users in question in this pricing scenario typically refer to anyone using the software to monitor and secure the network but, some companies define users as those accessing the network, which can include your entire staff.
The average cost of systems with this pricing model is $37 per user, per month.
Pricing model: Per endpoint or device
In networking, device or endpoint can refer to the same thing (a laptop can be both an endpoint and a device). However, an endpoint can also refer to a server or modem, which falls outside most people’s definition of a device.
The average cost of systems with this pricing model is about $2.25 per device or endpoint.
Pricing model: Tiered packages
A tiered package charges based on specific, included features, a lower-cost package often includes only basic or essential features, and costs increase as more features are added or as features become more advanced.
The average cost of these system types is about $500 per month for basic packages that meet the needs of smaller teams.
|Pricing Model||Price Range|
|Per license||$26 – $6,000 per license|
|Per user||$4 – $130 per user, per month|
|Per endpoint or device||$0.96 – $4.50 per endpoint, per month|
|Tiered packages||$20 – $2,000 per month|
The Governments of Asia-Pacific have laid stricter norms on the protection of data of both private persons or of an Enterprise. There is rising awareness about data privacy and security of private data among Governments and Enterprises.
Regulations are developing in the region of Asia-Pacific, but it is not uniform. The security measures are localized and are different. Hence, there arises a need for setting up harmonized standards.
Generally businesses operating in countries that have more advanced ICT infrastructure and a bigger digital economy face greater cybersecurity risks. For instance, Singapore, Korea, Japan and Australia have been found to be nine times vulnerable to cyber-attacks than other Asian economies.
Some of the Key legislations in the Asia-Pacific region governing Cybersecurity include
China’s cyber security law
This law was enacted by the Standing Committee of the National People’s Congress on November 7, 2016 and was implemented on June 1, 2017. It requires network operators to store select data within China and allows Chinese authorities to conduct spot-checks on a company’s network operations.
The Cybersecurity Law is applicable to network operators and businesses in “critical sectors.” By critical sectors, China roughly divides the domestic businesses into networking businesses that are involved in telecommunications, information services, energy transport, water, financial services, public services, and electronic government services.
These definitions mean the law is applicable to all businesses in China that manage their own email or other data networks. Network operators are expected, among other things, to: clarify cybersecurity responsibilities within their organization, take technical measures to safeguard network operations and prevent data leaks and theft; and report any cybersecurity incidents to both users of the network and the relevant implementing department for that sector.
Singapore’s Cyber Security Bill
Cybersecurity Act 2018 (Act. 9 of 2018) (the Act), which was passed by the Singapore Parliament on 5 February 2018, came into force on 31 August 2018.
The new law creates a regulatory framework for the monitoring and reporting of cybersecurity threats to essential services in Singapore through the appointment of the Commissioner of Cybersecurity.
It also creates a licensing regime that will require certain data security service providers in Singapore to be registered.
Australia Privacy Act
in February 2017, Australia amended the Australia Privacy Act 1988 to include mandatory breach notification requirements that will require organizations to report an “eligible data breach” to the Office of the Australian Information Commissioner and notify affected customers immediately.
Japan Personal Information Protection Act (PIPA)
In May of 2017, Japan also amended its privacy law, Personal Information Protection Act (PIPA), to change how companies handle personal information with respect to disclosures to third parties, international transfers, anonymously processed information and the collection and use of sensitive personal information.
The amendments also created the Personal Information Protection Commission (PIPC), an independent authority charged with overseeing data protection compliance.
Other Key Market Trends
Impact of COVID-19
Despite expected economic turmoil, the network security industry is primed for sustainable development. Implementation of remote working policy, due to lockout, puts unanticipated stress on remote networking systems and triggers security issues with operational technology (OT) over insecure protection of the home network.
Furthermore, as digital infrastructure becomes a vital aspect of strategic business priorities, network security becomes a competitive differentiator for enterprises and overhauls their remote working strategies.
Market Size and Forecast
The Asia-Pacific Network Security (Hardware, Software and Services) Market is valued at US$ 6.8 Billion in 2019 and is poised to grow at a CAGR of 15.2% to reach US$ 15.89 Billion in 2025.
Asia-Pacific is expected to grow at the fastest rate during the forecast period. IT & telecom sector drives the network security market in Asia-Pacific region.
Asia-pacific is economically and technologically developed region and countries such as China, Japan, and India are expected to dominate the network market in Asia-Pacific region.
Budget constraints in the enterprises to spend sufficiently on cybersecurity solutions are expected to hinder the growth of the market in the Asia-Pacific region.
Market Size based on Type
The type segment is categorized into firewalls, antivirus and antimalware software, VPN, data loss prevention, intrusion prevention systems, wireless security, others (email security, application security etc.)
The Firewall segment is mostly adopted in every industry, thereby contributing to maximum revenue share. It constitutes a market share of 32% and market size of US$ 2.17 Billion in 2019 and is poised to grow at a CAGR of 14.5% to reach US$ 4.89 Billion in 2025.
Antivirus and Antimalware software segment occupies a market share of 18% and is poised to grow at 14.2% to reach a market size of US$ 2.71 Billion in 2025 from US$ 1.22 Billion in 2019.
VPN segment is projected to hold a market share of 12% and market size of US$ 816 Million in 2019 and is expected to grow at a CAGR of 15% to reach a market size of US$ 1.89 Billion in 2025.
Data Loss Prevention segment is estimated to hold a market share of 10% and market size of US$ 680 Million in 2019 and is projected to grow at a CAGR of 16.5% to reach US$ 1.7 Billion in 2025.
Intrusion Prevention System segment is expected to record a market share of 12% and market size of US$ 816 Million in 2019 and is poised to grow at a CAGR of 16.3% to reach US$ 2.0 Billion in 2025.
Wireless Security segment is estimated to constitute a market share of 9% and market size of US$ 612 Million in 2019 and is projected to reach US$ 1.43 Billion in 2025 recording a growth rate of 15.2%.
The Other segments such as email security and application security is projected to hold a market share of 7% and market size of US$ 476 Million in 2019 and is estimated to grow at a CAGR of 15.4% to reach US$ 1.12 Billion in 2025.
Market Size based on Enterprise Size
This segment is categorized into Small & Medium Enterprises & Large Enterprises
The Large Enterprises hold a market share of 65% and market size of US$ 4.42 Billion in 2019 and is poised to grow at a CAGR of 14.6% to reach US$ 10.01 Billion in 2025.
Small & Medium Enterprises constitute a market share of 35% and market size of US$ 2.38 Billion in 2019 and is projected to grow at a CAGR of 15.7% to reach US$ 5.71 Billion in 2025.
Market Size based on Deployment
The deployment segment in the market is divided into on-premises and cloud.
The organizations with more confidential data and want to keep it internal have adopted the on-premises. Also, organizations that want to reduce the risks of latency and delay will go for on-premises.
The on-premises segment is expected to dominate the market but is expected to witness slowdown due to the rapid growth of the Cloud deployment.
The on-premises segment is estimated to constitute a market share of 60% and market size of US$ 4.08 Billion in 2019 and is expected to grow at a CAGR of 12% to reach a market size of US$ 8.05 Billion in 2025.
The Cloud Deployment is expected to attain significant growth rate, and is projected to hold a market share of 40% and market size of US$ 2.72 Billion in 2019 and is poised to grow at 17.1% to reach a market share of US$ 7.01 Billion in 2025.
Market Size based on Industry vertical
The industry segment is categorized into BFSI, IT and telecommunications, retail, healthcare, government, manufacturing, travel and transportation, energy and utilities and others (education, etc.)
The IT & telecom sector is expected to gain the highest market share followed by government and BFSI in the network security market.
The IT & telecom sector constitutes a market share of 24% and market size of US$ 1.63 Billion in 2019 and is poised to grow at a CAGR of 14% to reach US$ 3.58 Billion in 2025
BFSI sector holds a market share of 16% and market size of US$ 1.0 Billion in 2019 and is projected to grow at a CAGR of 14.6% to reach US$ 2.27 Billion in 2025
In terms of CAGR, the healthcare and retail industries are expected to witness high growth in the forecasted period. The issue of security and privacy of information is growing in the healthcare industry.
The healthcare industry is investing in new technologies such as cloud computing, artificial intelligence, natural language processing, and IoT to reduce operational cost and enhance healthcare services.
The Healthcare sector is expected to grow at a Significant rate of 17%, thereby holding a market share of 9% and market size of US$ 612 Million in 2019 and is expected to reach US$ 1.57 Billion in 2025.
The government sector is likely to have the second-highest market share, owing to its large sets of confidential data shared including public and official are shared for online process. The Government sector holds a market share of 18% and market size of US$ 1.22 Billion in 2019 and is poised to record a CAGR of 14.2% to reach US$ 2.71 Billion in 2025.
The Retail sector is estimated to hold a market share of 8% and market share of US$ 544 Million in 2019 and is expected to grow at 16.4% to reach a market size of US$ 1.35 Billion in 2025.
The Manufacturing sector constitutes a market share of 12% and market size of US$ 816 Million in 2019 and is projected to grow at a CAGR of 15.2% to reach US$ 1.9 Billion in 2025.
The travel and transportation sector holds a market share of 5% and market size of US$ 340 Million in 2019 and is projected to grow at a CAGR of 14.8% to reach US$ 778.3 Million in 2025
The energy and utilities sector constitutes a market share of 4% and market size of US$ 272 Million in 2019 and is poised to grow at a CAGR of 15.2% to reach US$ 635.75 Million in 2025
The other sectors such as education is estimated to hold a market share of 4% and market size of US$ 272 Million in 2019 and is projected to grow at a CAGR of 14.6% to reach US$ 616.14 Million in 2025.
Market Size based on Region
In 2019, Greater China Region (GCR) and Japan continued to lead the overall security network market in the APAC region in terms of market share, followed by the Association of South East Asian Nations (ASEAN), Australia and New Zealand (ANZ).
The Greater China region accounts for 40% of the market share and generated US$ 2.72 Billion in 2019 and is poised to grow at a CAGR of 14.4% to reach US$ 6.1 Billion in 2025.
Japan contributed to 22% of the market share and constituted US$ 1.5 Billion of the total revenue and is expected to grow at a CAGR of 14.7% to reach US$ 3.42 Billion in 2025.
The Association of South East Asian Nations (ASEAN) accounted for 16% of the market share and US$ 1.09 of the revenue and is projected to grow at a CAGR of 15.2% to reach US$ 2.55 Billion in 2025.
Australia and New Zealand (ANZ) constituted market share of 12% and market size of US$ 816 Million in 2019 and is expected to grow at a CAGR of 15.4% to reach US$ 1.93 Billion in 2025.
The Asia-Pacific Network Security (Hardware, Software and Services) Market is estimated at US$ 6.8 Billion in 2019 and is projected to grow at a CAGR of 15.2% to reach US$ 15.89 Billion in 2025.
Based on type, the Firewall segment is expected to dominate as firewall security is mostly adopted in every industry, thereby contributing to maximum revenue share. The firewall controls and monitors the incoming and outgoing files to the authentic source, IP address, and ports & protocols. The firewall software and services act as a barrier and prevents unauthorized access to the data.
On the basis of Enterprise, the Small & Medium Enterprises are expected to grow at the fastest rate due to the rising awareness of security and rising cyber-attacks attract small and medium-sized businesses and thereby boost the sector.
In several cases, hackers attack small and medium-sized enterprises for the sole purpose of interrupting business growth, there is data loss or some other important business things.
Despite this, companies are financially experiencing great losses and private data are being abused, so small and medium-sized enterprises too need safe networks. In addition, companies are investing in network security with the help of government programs and funds. The adoption of such safety technologies by small and medium-sized companies is projected to rise steadily in the near future.
Advances and rising application of technology such as artificial intelligence, machine language, IoT, and more are pushing cloud-based solutions for the industries. The cloud-based platform allows companies to easily scale up with the assistance of real-time configuration. The adoption of cloud based protection deployment is experiencing steady growth for these reasons.
The IT & Telecom industry is projected to gain the highest market share in the network security market followed by the government and BFSI. The BFSI includes a high amount of confidential data from its shareholders and personal information.
Throughout the time this industry experienced the highest threats and attacks. Increasing demand for mobile banking and internet banking also raises the risk for network attacks and data breaches. That will soon lead to the adoption of a solution to protection.
In order to meet overarching business goals, it is essential to establish clear security priorities that support the long-term goals of the businesses in APAC. APAC needs to establish a Cloud Native Architecture to improve access to emerging technologies amongst the stakeholders and enable the Services 4.0 ecosystem envisioned.
Given how critical addressing security concerns of individuals and businesses for the adoption of several of these technologies, It is expected that Network Security will play an important part in executing the Cloud Native Architecture
The market is competitive with all the players competing to gain market share. Strong competition, rapid growth in technology, and frequent changes in adoption rate of network security solutions by various industry verticals are key factors that confront market growth.
The vendors compete based on cost, reliability, and aftermarket method. It is crucial for the vendors to provide cost-efficient and high-quality solutions to survive and succeed in an intensely competitive market.
The companies in the network security market are majorly adopting the strategy of innovating on their product and service offerings with increasing investment on research and development (R&D) activities.
Recent Market Developments
- October 2019 Cisco Systems Inc. acquired Duo Security Inc., an intent-based networking strategy based in Michigan. The acquisition will help the company to provide a software-based and subscription-based security portfolio. By integrating Duo’s competitive edge of security with Cisco solution, will boost the company position in this market.
- November 2019 Cisco Systems Inc. acquired Singularity Networks, a network analytics provider for enhancing its network analysis based in Denver. The company offers real-time traffic analysis for cloud and premises-based. This will boost Cisco’s network automation portfolio along with it will offer real-time identifications of threats.
Key companies in this aims to gain and maintain a competitive differential advantage by constantly investing in security innovations and acquisitions.
The major players in the market such as Check Point Software Technologies Ltd., WatchGuard Technologies, Inc., FireEye, Inc., Juniper Networks, Inc., and McAfee, LLC are entering onto partnerships or acquiring other security businesses to offer an entire suite of security solutions.
The vendors are offering advanced network and endpoint security solutions as per the requirement of the organizations and size of enterprises. The market players are offering cloud-based solutions of network security such as Cisco Systems and McAfee, Kaspersky Lab.
Key Market Players
Some of the Key players in the Asia-Pacific Network Security Market are
Check Point Software Technologies Ltd. (Check point), incorporated in July 5, 1993, develops, markets and supports a range of products and services for information technology (IT) security.
The Company’s products and services are sold to enterprises, service providers, small and medium sized businesses and consumers. It offers enterprises a platform to deploy independent, modular and interoperable security applications (Software Blades), such as firewall, virtual private network (VPN), intrusion prevention system (IPS), Application Control, Anti-Bot, antivirus, data loss prevention (DLP), policy management, event analysis or multi-domain management.
Cisco Systems, Inc., is engaged in designing and selling a range of technologies across networking, security, collaboration, applications and the cloud. It operates through three geographic segments: Americas; Europe, Middle East, and Africa; and Asia Pacific, Japan, and China.
Its product and technologies includes infrastructure platforms; applications; security and other products. It also offers technical support services and advanced services.
F5 Networks, Inc. is a developer and provider of software defined application services. The Company is engaged in the development, marketing and sale of application delivery networking products that optimize the security, performance and availability of network applications, servers and storage systems.
The Company’s Traffic Management Operating System (TMOS) based offerings include software products for local and global traffic management, network and application security, access management, Web acceleration and various network and application services.
Fortinet, Inc. is a network security company. The Company provides cyber security solutions to a range of enterprises, service providers and government organizations across the world. Its network security solution consists of FortiGate physical, virtual machine and cloud platforms, which provide integrated security and networking functions to protect data, applications and users from network-and content-level security threats.
Hillstone Networks Co., Ltd. is a China-based company mainly engaged in network security business. The Company provides customers with network security products and services including border security, cloud security, data security, and intranet security, providing users with comprehensive, smarter, and zero-interference network security solutions.
The Company’s business has covered more than 50 countries and regions in the Americas, Europe, Southeast Asia and the Middle East.
Juniper Networks, Inc. designs, develops and sells products and services for high-performance networks to enable customers to build networks for their businesses. The Company sells its products in over 100 countries in three geographic regions: Americas; Europe, the Middle East and Africa, and Asia Pacific.
The Company sells its high-performance network products and service offerings across routing, switching and security. Its products address network requirements for global service providers, cloud providers, national governments, research and public sector organizations, and other enterprises.
McAfee, Inc. operates as a computer security software company. The Company offers data center, cloud defense, threat intelligence network, and cybersecurity solutions, as well as data and endpoint protection, risk, compliance, and security information management services. McAfee serves education, enterprises, governments, and consumer clients worldwide.
Palo Alto Networks, Inc. offers a next-generation security platform. The Company’s security platform consists of three elements: Next-Generation Firewall, Advanced Endpoint Protection and Threat Intelligence Cloud.
Its Next-Generation Firewall delivers application, user and content visibility and control, as well as protection against network-based cyber threats integrated within the firewall through its hardware and software architecture.
Its Advanced Endpoint Protection prevents cyber attacks that run malicious code or exploit software vulnerabilities on a range of fixed and virtual endpoints and servers.
Trend Micro Incorporated is a Japan-based company principally engaged in the development and sale of computer security products, as well as the provision of related services.
The Company conducts product research, development, sale, and operational support through five geographical segments: Japan, North America, Europe, Asia Pacific, and Latin America.
The Company’s main products include personal computer (PC) client products, local area network (LAN) server products, Internet server products, integrated products, as well as other products, among others. The Company also provides total solutions for mobile device platforms and mobile Internet services.
WatchGuard Technologies, Inc. provides Internet security software solutions. The Company offers wireless and gateway security, virtual solutions, support service, data loss prevention, and blockers to protect networks from spam, viruses, and intrusions. WatchGuard Technologies serves education, finance, healthcare, manufacturing, and hospitality industries worldwide.
To summarize, the network security industry is fast growing, with spending on IT security expected to reach USD$753.6 billion in APAC by 2020. Both companies and national governments look set to spend an increased percentage of their annual budgets on network security, as cybercrime becomes more sophisticated and attacks increase.
Meanwhile, a rise in the use of cloud services and mobile devices among businesses means that network security companies will most likely be developing more enhanced cloud network security in the coming years.
Larger network security providers are also expected to increase their market share significantly.
- SMEs – Small & Medium Enterprises
- IoT – Internet of Things
- R&D – Research & Development
- IIoT – Industrial Internet of Things
- AI – Artificial Intelligence
- ML – Machine Learning