Bangladesh Cybersecurity - Market Share Analysis, Industry Trends & Statistics, Growth Forecasts (2024 - 2029)

Bangladesh Cybersecurity - Market Share Analysis, Industry Trends & Statistics, Growth Forecasts (2024 - 2029)

The Bangladesh Cybersecurity Market size is estimated at USD 185.24 million in 2024, and is expected to reach USD 358.58 million by 2029, growing at a CAGR of 14.12% during the forecast period (2024-2029).

Key Highlights

• The rise in global cyberattacks, coupled with the expanding digital landscape, is driving both government and private entities to adopt data-intensive strategies. As digitalization increases, the potential damage to internet-linked digital infrastructure becomes more significant. This urgency for robust data-driven decisions and approaches is crucial to mitigate the risks posed by cyber threats, thereby significantly driving the market growth rate.
• Bangladesh has become increasingly vulnerable in cyberspace. As the number of internet users grows and threats become more sophisticated, the country experiences a corresponding rise in cyberattacks. The Bangladeshi government's Computer Incident Response Team (BGD e-GOV CIRT) issued a warning about a potential attack in August 2023. The alert targeted critical information infrastructures (CII) such as banks, financial institutions, healthcare, and various government and private organizations.
• Only 46% of firms in Bangladesh utilized computers between 2019 and 2022, with 50% having internet access, as per the Digital Progress and Trends Report 2023. The report also highlights a concerning statistic: internet services in Bangladesh are anticipated to face an average of seven crashes per month. These frequent disruptions pose significant challenges, hindering business continuity and the country's ability to compete effectively in the global digital landscape.
• The government is supporting in strengthening the cybersecurity landscape across the country. In September 2023, Bangladesh launched the "Bangabandhu International Cyber Security Awareness Award 2023" in collaboration with the Bangladesh Hi-tech Park Authority, Digital Security Agency, and UNDP. The award aims to bolster a secure digital landscape, transcending borders and industries to combat the ever-evolving cyber threats. Such instances boost the interest of market players to remain involved in launching enhanced cybersecurity offerings.

Bangladesh Cybersecurity Market Trends

Digital Transformation Technologies and Rise of Security Intelligence

• Digital transformation, characterized by integrating digital technologies into all business operations, has become crucial for organizations seeking enhanced efficiency and competitive advantage. The expansion of cloud-based infrastructure, the interconnectedness of IoT devices, and the utilization of AI for data analytics have collectively propelled businesses into a new period of technological sophistication. However, this digital renaissance has also expanded the attack surface for cyber threats, necessitating a proportional growth in cybersecurity strategies.
• Bangladesh is spearheading its digital transformation with the "Smart Bangladesh 2041" initiative. This comprehensive plan aims to modernize the country's digital infrastructure and services. The Cybersecurity Strategy for 2021-2025 underscores the critical need for robust cybersecurity governance, improved organizational management, and more effective business operations. Additionally, it focuses on enhancing incident management and cyber defense mechanisms, as well as increasing awareness, education, and skills in cybersecurity.
• The digital transformation era has driven a surge in data volume, velocity, and diversity, fueled by the rise of data-intensive applications and technologies. For example, in February 2024, Axentec PLC, a subsidiary of Robi Axiata, launched 'Cypher,' a Tier IV-standard data center in Bangladesh. This prefabricated center, featuring 2N redundancy and robust power backup, addresses the growing need for secure data processing. As businesses manage vast datasets containing sensitive information, the necessity for robust cybersecurity measures to mitigate risks and vulnerabilities becomes paramount.
• The country is among the top 10 in the National Cyber Security Index (NCSI) ranking in the Asia-Pacific region. This indicates the country's active involvement toward upgrading the cybersecurity practices across industries adopting digital services.
• Overall, this rapidly growing market driver emphasizes the crucial interaction between security intelligence and digital transformation technologies, placing businesses in a position to strengthen their cyber defenses during technological advancement and manage the complexity of the current threat landscape.

The Cloud Deployment Segment is Expected to Hold Significant Market Share

• Various factors, including scalability, flexibility, platform centralization, ease of accessibility, and cost-effectiveness, drive the growing adoption of cloud-based cybersecurity solutions. The global workforce's increasing reliance on remote and mobile capabilities contributes to the demand for cloud-based cybersecurity. Cloud solutions can facilitate secure access and monitoring of systems from any location, supporting the needs of modern, flexible work environments.
• Cloud computing has transformed how organizations use, share, and store data, applications, and workloads. It has also introduced new security threats and challenges to organizations. Moreover, significant data going into the cloud and public cloud services further increase the exposure, thus positively driving the demand for cloud security solutions.
• In February 2024, Gennext Technologies launched operations at Bangladesh's first cloud data center. The data center provides cloud infrastructure, including servers, storage, networking equipment, and software technology. It is expected to serve both government and private entities, enabling Bangladeshi organizations to no longer depend solely on foreign cloud providers.
• In the first three months of 2023, the number of internet users increased by 2 million. Recent data from the Bangladesh Telecommunication Regulatory Commission (BTRC) shows that the country currently has over 126 million internet users. The rising number of internet users is also increasing the exposure of their data across hackers, which is further propelling the demand for robust cybersecurity solutions.
• Bangladesh is also witnessing a significant growth in its download speed which attracts more users to access the internet effectively. According to Ookla, median fixed broadband download speeds increased from 37.66 Mbps in May 2023 to 46.96 Mbps in May 2024.
• The country is actively involved in improving its digital infrastructure. The Bangladesh Smart Cities Development Project aims to enhance urban infrastructure and services in cities along the national economic corridors. It focuses on bolstering urban services, strengthening institutions, and implementing e-governance and project management initiatives. The government invested a significant amount of USD 4.25 million as of October 2023, for this project. Such initiatives are expected to boost the country's cloud adoption and is propelling the market growth.
• In April 2024, CoLoCity, in collaboration with Microsoft and Dell, pioneered hybrid cloud in Bangladesh. This marks the country's debut of a cutting-edge service, merging Microsoft Azure Stack Hub and Dell Technologies, aimed at propelling technological growth. These advancements are accelerating the adoption of cloud computing in the country, which is expected to further boost the market's growth.

Bangladesh Cybersecurity Industry Overview

The Bangladeshi cybersecurity market is semi-consolidated and dominated by a few major players. With a prominent market share, these major players focus on expanding their customer base across foreign countries. Some of the recent developments are:

• June 2024: Prime Bank PLC, a prominent second-generation local commercial bank in Bangladesh, announced its partnership with CTM360, a global digital risk protection leader. The collaboration aims to bolster the bank's defenses against digital threats and online frauds, safeguarding both its brand and clientele.
• April 2024: Kaspersky, the global cybersecurity and digital privacy company, announced its expansion into new territories in Asia-Pacific, including Bangladesh, Cambodia, and Sri Lanka. This strategic move marked a significant milestone in the company's mission to fortify digital infrastructure across the developing economies in the region, particularly in the enterprise cybersecurity market.

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