Chile Cybersecurity Market Trends

Market Trends of Chile Cybersecurity Industry

Cloud Deployment Strengthened Cyber Security Market Growth

• The demand for cloud-based solutions is growing as companies become more aware of cybersecurity solutions. Instead of building and maintaining new data storage, this cloud-based solution reduces costs and stores huge amounts of data on a secure cloud platform.
• With the increasing internet penetration across Latin American countries, the adoption of cybersecurity solutions is expected to grow. Furthermore, the growing cloud deployment has increased data vulnerability, making cybersecurity an essential component of every organization in Latin America.
• On March 15, 2022, the Cybersecurity and Critical Infrastructure Bill was introduced in the Chilean Senate. The comprehensive cybersecurity bill aims to improve security structures and measures in public and private institutions. The bill outlines regulatory standards to prevent cyberattacks and protect public and private institutions targeted by cyberattacks. The bill also aims to increase cooperation between different government agencies.
• As 5G adoption grows, demand for IoT solutions and cloud deployment is expected to increase and require the construction and implementation of new networks and systems. Personal data security is a key challenge, and the Chilean government must update security policies and procedures. Telecom companies are looking for new revenue streams to help offset the USD 3.5 billion investment in nationwide 5G service deployment.

BFSI Segment Is Boosting The Cybersecurity Market Growth

• The Chilean IT infrastructure outsourcing services market presents a relatively mature stage of awareness and adoption compared to other countries in the region. The benefits of outsourcing IT services are the main drivers of the market. The finance and banking, industry and commerce, and government sectors are the more advanced verticals in outsourcing their IT services (cybersecurity services).
• With an internet penetration rate of 92%, Chile quadrupled the number of cyberattacks attempted in 2021, reaching 9.4 billion. Since Chile has the highest population and internet penetration, the demand for adopting cybersecurity solutions and services is growing.
• Advancing cybersecurity protection measures has become a top priority for the Pinera Administration and the Chilean private sector. For instance, Chilean officials prioritize cybersecurity as they learned that hackers stole over USD 10 million from the country's second-largest bank, Banco de Chile.
• In May 2022, the Chilean Government presented Chile Digital 2035; a new strategy focused on reducing digital inequality and guiding the country's digital transformation by promoting digital rights, infrastructure development, cybersecurity, and digitalization of the public sector. By 2022, 86% of public services will be digitalized, with a goal of 95% by 2025 and 100% by 2035.
• For instance, in August 2022, Chile's CSIRT (computer emergency response team) issued an alert regarding Chile Locker, a recently reported ransomware, which had affected a government service in Chile.
• Chile is also witnessing an increase in cashless payments among its people. The Chilean state-owned bank, BancoEstado, offers a bank account with a debit card linked to each citizen's identification number. In 2020, there were 1.08 active credit and debit cards for each citizen, and 45% of these cards were issued by Banco Estado, representing 63% of the adult population. Historically, this type of bank account has mainly been used for ATM withdrawals. Still, in recent years, Banco Estado has offered innovations to its users related to payment methods, which has increased their use for transactions. COVID-19 increased the demand for online transactions, which are expected to witness significant growth in the cybersecurity market.