Asia Pacific Internet Of Things (Iot) Security Market - Growth, Trends, Covid-19 Impact, and Forecasts (2023 - 2028)

Asia Pacific Internet Of Things (Iot) Security Market - Growth, Trends, Covid-19 Impact, and Forecasts (2023 - 2028)

The Asia Pacific Internet of Things (IoT) Security Market has registered a CAGR of 38.34% during the forecast period of (2021 - 2026). Covid-19 has played a major role in giving rise to the work from home concept, which has been increasing the demand for IoT security solutions to improve safety and provide real-time monitoring to bring transparency. An increase in the number of ransomware attacks on various IoT devices and the rise in the number of IoT security regulations among the developing economies in the region, along with an increase in malware and phishing threats among different enterprises, are driving the growth of the market.

Asia Pacific region has surfaced as a manufacturing hub, owing to low production costs in the emerging countries, such as India and China, which still remain a major market in Asia Pacific's IoT security market. Investments are being planned for the quality of growth, addressing environmental concerns, and reducing overcapacity. The region's automotive industry holds emerged as the largest in the world and is expected to grow further over the next five years. According to Beijing Automotive Industry Holding (BAIC), BAIC has generated revenue of over CNY 176 billion in 2020.

India is the fastest-growing economy in the world, and having the ability to generate enough energy is the key to achieving developmental ambitions to support expansion. The country is regarded as a newly industrialized landscape, turning out to be a preferred manufacturing hub. India has a far superior advantage over many nations in the manufacturing of medical drugs and products. Cyber attackers took advantage of the conditions created by the Covid-19 pandemic in the region and targeted sectors like hospitals, medical and pharmaceutical manufacturers, and others as companies. According to IBM Security Report, India was second on the list of countries facing the highest cyberattacks in Asia-Pacific in 2020. As per the 2021 X-Force Threat Intelligence Index, the banking, finance, and insurance industry was the most affected sector in India as it faced 60% of the attacks.

APAC is one of the fastest-growing regions in terms of digital transformation and internet penetration and has experienced exponential growth in financial technology and e-commerce, resulting in a rising demand for Internet and broadband services. While this transition brought many advantages and has significant future potential, it has also opened the door to a considerable number of cybersecurity threats, which has been driving the growth of the market.

The rise in connectivity between companies in the region has exposed vulnerabilities in hardware and software environments, giving cybercriminals greater attack surfaces to exploit. This includes employees' smaller, personal IoT devices, which can provide a potential backdoor into more well-protected systems. Further, several countries have attempted to impose data protection laws and data breach notification laws, but as a whole, cybersecurity regulation in APAC is still in the early stages of development and tends to focus primarily on critical infrastructure and regulated industries.

Increasing government focus on smart cities, smart buildings, and Industry 4.0 initiatives are driving the demand for digital IoT solutions in the Asia-Pacific region, such as eGovernment, public transportation, smart traffic management systems, and smart power grids. The integration of edge-computing networks into IoT systems and new narrow-band (NB) IoT deployments, along with growing investments in 4G/LTE and 5G, reduced IoT sensor costs, and governmental support, are fueling the growth of the market in the region.

5G is expected to accelerate the adoption of Smart Home IoT devices in the region. Companies such as China Mobile International (CMI) are supporting the transition to 5G with a global digital infrastructure that encompasses more than 70 international cables, including various self-built submarine cables and invested terrestrial cables, with a total network capacity of over 98 terabits per second. Its growing network also includes over 180 overseas points of presence across key continents, 340 data centers across China, and four self-owned data centers in key centers overseas.

Government spending on smart cities accounts for almost one-third of the region’s combined spending, followed by transportation and logistics, then manufacturing. Various governments in the region are promoting the adoption of smart cities. According to Government Technology Agency, a statutory board of the Singapore government, in 2021, the Singapore government planned to spend 13% of their ICT spending on accelerating the adoption and deployment of Artificial Intelligence (AI) for the public sector and 70% on transforming, integrating, and streamlining digital services. The planned ICT spending for the year 2021 was SGD 3.8 billion.

However, the resource-constrained nature of various IoT devices in a smart home environment, such as meters, thermostats, and entertainment units, among others, do not permit the implementation of standardized security solutions. Therefore, currently, smart homes are vulnerable to security threats.

Also, the rise of high-tech smart devices that store and share personal data poses a serious threat to the privacy of the people in the region and one that is not adequately addressed by existing privacy laws, which could hinder the growth of the overall smart home market in the region.

The major factors for the growth of the IoT security market in the China region are the high adoption of advanced technologies, increasing cyberattacks, and a growing number of connected devices in the country. The country is one of the dominant regions for IoT deployment. Other factors include the growth in digitalization and IoT security spending in the region.

China's Ministry of Industry and Information Technology issued guidelines for the construction of a security standard system for the Internet of Things. The guidance seeks to outline a framework that will promote public network security risk mitigation and prevention, along with the development and implementation of standards for the IoT. Software security, access authentication, and data security are among the standard requirements listed by MIIT.

Companies such as China Mobile International (CMI) are also building an ecosystem to help industry partners capitalize on the flourishing market for smart solutions, with an initial focus on elevating the smart home experience for consumers. CMI develops and delivers international data services and solutions that lay the foundation for the rapid growth of IoT across key markets. As of October 2021, CMI has provided IoT solutions to more than 100 enterprises across 20 countries and regions, in particular in the Asia Pacific. This can promote IoT connectivity and eSIM platform integration, enhancing IoT network capabilities around the world.

In September 2021, China government informed companies about boosting cyber data security oversight on connected vehicles. The companies were asked to establish data security management systems and regularly assess risks from network attacks, according to the ministry of industry and information technology.

Asia Pacific Internet of Things (IoT) Security Market is fragmented with few major players, which are various established international brands, domestic brands, as well as new entrants that form a competitive landscape. Some of the major players are increasingly seeking market expansion through various strategic mergers and acquisitions, innovation, increasing investments in research and development.

• August 2021: OneLogin partnered with Truvisor to enable Identity and Access Management in Southeast Asian regions. The partnership was formed to enable Truvisor to distribute OneLogin services in southeast Asia and formalize a joint commitment to providing a secure, seamless experience for both end-users and administrators. OneLogin offers robust product functionality across the workforce and IoT security solutions such as customer identity access management (CIAM).
• July 2021: Optus partnered with Akamai Technologies to introduce a self-service IoT platform, providing enterprises with secure internet and VPN systems to simplify the management of applications and devices. The platform uses Akamai Security and Personalisation Services Secure IoT suite and real-time intelligence to keep IoT deployments safe and secure.

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