Market Trends of Turkey Cybersecurity Industry
Cloud Security to Witness Significant Growth
- Businesses increasingly recognize the cost and resource savings associated with migrating data to cloud security solutions. This awareness fuels the demand for cloud security solutions due to their capabilities concerning crucial security features, including standards compliance, intrusion prevention, and detection. With a large number of benefits, cloud security platforms and ecosystems are expected to witness growth.
- The rapid evolution of technology has propelled cybercrime to the forefront of global threats, affecting individuals, businesses, and government organizations. Turkey is investing in digital expansion and is facing the challenges of cyber offenses. For instance, an analysis by Kaspersky shows that, at the beginning of 2023, around 45% of ICS computers in Turkey encountered various malicious threats, surpassing the global average of 38%.
- Turkish-language underground hacking and fraud forums serve as a shelter for criminal hackers, offering anonymity for networking and advertising. These forums, alongside messaging apps, facilitate the exchange and trade of hacking tools for attacks like credential stuffing. The industries that hit hardest include e-commerce, banking, and insurance. Thus, organizations are investing in cloud solutions for data security.
- Moreover, small- and medium-sized enterprises in Turkey are increasingly adopting cloud security services, creating a substantial market for affordable and scalable cloud solutions that are tailored to the specific needs of the clients. Cloud security solutions operate on the subscription models, reducing the need for significant upfront costs involved in hardware and software. These models are beneficial for SMEs with limited budgets. As per the Turkish Statistical Institute, 99.7% of the enterprises operating in the country are SMEs, and they create 71% of the jobs in the country, thus driving the growth of the market.
- Additionally, there is a trend of using AI and machine learning in cloud security, which is becoming prevalent. These technologies are integrated into cloud security solutions to improve threat detection and response times. They facilitate the identification of patterns and indicate potential security threats. AI-driven behavioral analytics are used to monitor user activities and detect suspicious behaviors, enhancing overall security.
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BFSI to be the Major End-user Industry
- The financial sector in the country is subject to various regulatory requirements for data protection and cybersecurity, both locally, such as Turkey's Personal Data Protection, and Internationally, like GDPR. Such regulatory compliances necessitate investment in cybersecurity measures.
- Cybersecurity plays a pivotal role in banking and financial services, primarily aimed at protecting consumer assets. As cashless transactions become increasingly prevalent, a larger portion of consumers prefer online checkouts and credit card terminals. Yet, this transition increases the vulnerability of personally identifiable information (PII) to unauthorized access and potential misuse.
- According to Kaspersky's data, Turkey has experienced a significant growth in cyberattacks, with phishing attempts leading the surge. In Q3 of 2023 alone, phishing attacks rose by 20% from the previous quarter and increased by 47% from Q3 of 2022. These attacks, known for their deceptive nature, target sensitive user data, including passwords, credit card information, and banking details.
- The growing fintech sector in Turkey offers innovative opportunities for cybersecurity firms to provide specialized solutions for new digital financial products. By 2023, the fintech landscape had 696 active companies, signifying the growing faith in digital financial solutions. Acknowledging fintech's potential to bolster economic growth and financial inclusivity, the Turkish government rolled out regulatory frameworks.
- With the rising awareness of cyber risks, there is a growing market for cyber insurance products that help BFSI companies mitigate the financial impact of cyberattacks in the country. Moreover, with the rise of digital banking customers, there is a rising use of devices and data points for digital transactions, which can become an entry point for potential cyberattacks. As per the data by the Banks Association of Turkey, the number of active digital banking customers rose to 110.56 million in Q4 of 2023, thus ensuring the security of the transaction, which is vital to maintaining the trust of consumers and preventing financial losses.
