Indonesia Cybersecurity - Market Share Analysis, Industry Trends & Statistics, Growth Forecasts (2024 - 2029)

The Indonesia Cybersecurity Market size is estimated at USD 1.15 billion in 2023, and is expected to reach USD 3.39 billion by 2028, growing at a CAGR of 24.19% during the forecast period (2023-2028).

Key Highlights

• The key drivers contributing to the increase in the adoption of data-intensive approaches and decisions with the growth include the increase in the number of cyber-attacks globally with the growing digitalization has the potential to damage the Internet-linked digital infrastructure of various government or private sector enterprises, thereby significantly driving the market's growth rate.
• One of the growing economies is Indonesia, which has been investing in information technology infrastructure and rising smartphone and internet penetration. Although the country has made progress in ICT, it does not have adequate cybersecurity safeguards that can be exploited by hackers. In this way, the need for security measures is growing due to an increasing number of Internet of Things connections.
• Cybersecurity collaboration is an efficient way to tackle the growing challenge of cyber threats. Organizations can benefit from synergies of knowledge, resources, and expertise working together to improve threat detection response to incidents or strengthen their security. Therefore, the growing collaborations at a global level are analyzed to contribute to the growth rate of the cybersecurity services market.
• To achieve improved efficiency and competitiveness, organizations are increasingly reliant upon digital transformation as it involves the integration of digital technologies in all business operations. Businesses have collectively been driven to a new stage of technological sophistication by the development of cloud-based infrastructure, interconnections among IoT devices, and the use of artificial intelligence in data analysis. However, this digital renaissance has also expanded the attack surface for cyber threats, necessitating a proportional growth in cybersecurity strategies.
• As organizations undergo digital transformation, the challenges associated with seamlessly integrating advanced cybersecurity solutions with existing legacy systems become increasingly evident. Legacy infrastructure, characterized by outdated hardware, software, and protocols, poses limitations to implementing modern cybersecurity measures. Combining these outdated systems with modern technology frequently results in an environment that makes it more challenging to implement and maintain strong cybersecurity frameworks.
• Due to the COVID-19 pandemic, governments worldwide have encouraged everyone to work from home, and technology has grown increasingly pervasive in everyone's personal and professional lives. The rise in remote working exposes people to greater cyber risk. Cybercriminals take advantage of this opportunity to ramp up their criminal activity.

Indonesia Cyber Security Market Trends

IT & Telecom Sector to Witness the Growth

• Businesses, government agencies, and organizations across the country are taking a leading role in ICT and telecommunications. As more and more people rely on connected networks, cloud computing, or digital communication, the need for significant cybersecurity measures has become critical. IT and telecom end users form a substantial portion of the Indonesian cybersecurity market as they seek to protect their sensitive data, networks, and communications from evolving cyber threats.
• In the Indonesian cyber security market, the IT and telecommunications sectors show strong growth driven by a number of important factors. First, organizations in this sector are increasingly being forced to increase their cybersecurity measures due to the increase in complexity and frequency of cyberattacks on IT and telecommunications infrastructure.
• In addition, given the increased recognition in the industry of the need for comprehensive cloud security solutions, cloud deployment is expected to increase its presence on the market.
• A distributed denial-of-service attack, also known as a distributed denial-of-service attack, is a cybercrime where an attacker overwhelms the server with Internet traffic in order to prevent users from accessing associated websites and online services. In the first half of 2023, DDoS attacks on wireless telecommunication carriers in Indonesia had the highest average duration, accounting for around 158 minutes per attack.
• Moreover, cybersecurity solutions such as network security equipment, cloud security, and application security play a significant role in allowing organizations to address a wide range of threats and challenges.

Cloud to Witness the Growth

• By moving their data into the cloud rather than building new storage and maintaining it, businesses have become more aware of how to save money and resources while driving demand for solutions. Cloud-based solutions are expected to increase the adoption of on-demand security services.
• Businesses need to address security issues such as the loss of control over confidential data in view of the growing adoption of cloud services, such as Google Drive, Dropbox, and Microsoft Azure, which are becoming an integral part of their business processes. As a result, cybersecurity solutions are being mixed more and more on demand.
• Various factors, including scalability, flexibility, platform centralization, ease of accessibility, and cost-effectiveness, drive the growing adoption of cloud-based cybersecurity solutions. The county workforce's increasing reliance on remote and mobile capabilities contributes to the demand for cloud-based cybersecurity. Cloud solutions can facilitate secure access and monitoring of systems from any location, supporting the needs of modern, flexible work environments.
• In addition, there are important trends in the adoption of public cloud, multi-cloud orchestration, hybrid strategies, cloud-native security with integrated DevOps practices, increased automation, and, more importantly, cloud-based analytics threat and intelligence. This is expected to lead to major demand in the market during the forecast period.

Indonesia Cyber Security Industry Overview

The Indonesian cybersecurity market is fragmented and competitive, with few international and regional players. Innovation can bring about a sustainable, competitive advantage to these firms. New fields, such as big data and IoT, are reshaping security trends, and the firm concentration ratio is expected to record higher growth during the forecast period. Some of the major players include IBM Corporation, Cisco Systems Inc., and Dell Technologies Inc.

• November 2023: Palo Alto Networks introduced Strata Cloud Manager, the industry's first AI-powered zero trust management and operations solution. With these innovations and over 4,400 machine learning models, Palo Alto Networks is well-positioned to prove the combination of AI and zero trust can best protect today's customer needs.
• October 2023: IBM announced the launch of its new managed detection and response service offerings with new AI technologies. The new threat detection and response services (TDR) provide 24-hour monitoring, investigation, and automated remediation of security alerts from all relevant technologies across the client's hybrid cloud environments.

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• The market estimate (ME) sheet in Excel format
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