APAC Cybersecurity Market to Cross $6 Billion by 2027

The cybersecurity market for small and medium-sized businesses (SMBs) and midmarket companies in the Asia/Pacific (including Japan) region is expected to surpass USD $6 billion by 2027, according to a new IDC report. This growth will be driven by a robust compound annual growth rate (CAGR) of 13% over the next five years, as cyber threats continue to escalate and companies prioritize security investments.

SMBs and midmarket companies currently account for 46% of the total cybersecurity spending in the APJ region. With an increasing number of ransomware attacks and other cyber threats, IDC’s Security Spending Guide estimates that overall security spending in the region, which stood at USD $7.6 billion in 2023, will grow to USD $12 billion by 2027, at a CAGR of 10.5%.

The report also highlights challenges such as the lack of uniform cybersecurity standards across the region and the rising cyber-espionage threat due to Indo-Pacific tensions and AI-powered attacks. Despite these challenges, countries like Australia, Japan, and China are leading security spending, with SMBs and midmarket companies in India expected to see the highest growth rates.

“To succeed in the APJ region, security vendors must adapt to the diverse regulatory landscape and focus on localized compliance solutions,” says Supriya Deka, Research Manager at IDC. Partnering with local vendors and government entities is seen as a key strategy to enhance cybersecurity resilience.