Market Trends of Asia-Pacific Security Services Industry
Cloud Adoption to Hold Significant Market Share
- The rapid expansion of cloud adoption contributes to the high demand for security services due to the unique security issues and considerations that emerge in cloud computing settings. Security services respond to the shift to a cloud-native model by protecting microprocessors, serverless computing, and containerized applications.
- As a result of IT trends such as digitization and remote working, cloud services have seen a dramatic increase in penetration in South Korea over the past decade. Korean users primarily use cloud services to manage data and information. For instance, recently, KISDI reported that Naver Cloud was the most popular cloud service used by approximately 72% of respondents, followed by Google Drive, with around 29% using it.
- Ensuring secure access to cloud assets and applications is essential. Identity and access management (IAM) services are in high demand for managing user access. For instance, in August 2023, identity and access management company Okta declared its entry into the Indian market. As the Indian market is undergoing significant digital transformation in various industries, Okta stated that it would allow local businesses to improve security, simplify identity procedures, and expedite digital initiatives. The company further asserted that India is currently in a digital transformation, and IAM has become an essential component for organizations in various industries.
- Cloud computing has significantly increased the scope of digital transformation, transforming it from a simple adoption of new technologies to an entirely re-engineered process, toolset, and user experience in a virtualized environment. Furthermore, cloud computing has improved security, improved user experiences, and safeguarded documents from destruction. As a result, businesses are increasingly integrating cloud into their operations, thus driving the expansion of security services markets.
- The emergence of cloud computing technology has transformed the supply chain management process for businesses seeking to rapidly and effectively develop their SCM. For instance, at the beginning of 2023, Flipkart and Google Cloud agreed to a multi-year strategic partnership. This partnership will enable the e-commerce platform to expand its reach on Google Cloud's infrastructure, allowing it to reach more customers. Furthermore, the partnership will leverage Google Cloud's global infrastructure and cutting-edge networking technologies to provide reliable application access and performance, even during peak purchasing periods with increased traffic.
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India to Witness Significant Growth
- The increasing demand for security services in India results from various factors, including its expanding digital economy, heightened cyber security risks, and regulatory compliance obligations. India is amid a digital transformation across multiple sectors, including financial services, electronic commerce, government, and healthcare. This digital transformation has increased the attack surface and necessitates implementing robust security services to safeguard digital assets and data.
- The threat landscape in India is becoming increasingly complex, with an increased incidence of cyberattacks, data breaches, and ransomware. As a result, organizations require security services to identify, mitigate, and prevent such threats. For instance, as of 2023, among the application programming interface (API) attacks, security misconfigurations were the main type of cyber attack in the Indian financial sector, with a share of 57%. Distributed denial of service (Dos/DDoS) made up 34% of the API attacks in the sector in the same year.
- The Indian fintech sector is booming, and the banking sector is growing digitally. These industries necessitate comprehensive security measures to protect financial transactions, customer information, and online banking services. As organizations strive to enhance customer experience and remain competitive in a rapidly digitalized world, security threats have also increased at a similar rate. To address this, in June 2023, the Government of India proposed six cybersecurity strategies to enhance the cybersecurity framework for a more secure financial system.
- The healthcare sector in India is increasingly adopting digital health records and telemedicine. For instance, the data leak of millions of Indian citizens in July 2023, including their names, Aadhaar identification numbers, mobile phone numbers, voter identification numbers, passports, and vaccination status for COVID-19, has been one of the most significant in India's healthcare sector. This breach follows other data breaches involving CoWIN, Aadhaar, and medical records of a prominent Delhi hospital. As India has no data protection law, individuals are exposed to various risks, such as scams, harassment, and discrimination, which cannot be remedied without using security services to protect patient data and adhere to healthcare regulations.
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