Hong Kong Cybersecurity Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

Hong Kong Cybersecurity Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

Hong Kong Cybersecurity Market is expected to register a CAGR of 13.43 % over the forecast period (2022 - 2027). The country is digitizing several economic and operational sectors, exposing more organizations to data breaches and cyber-attacks and increasing market demand for new services. Companies are introducing new security products to deliver a safe and secure experience.

Key Highlights

• Cybersecurity protects from cyberattacks on networks, information, and personal data. BYOD, AI, IoT, and machine learning are all emerging technologies in cybersecurity. For instance, Machine learning has advantages in outlier detection, which enhances cybersecurity.
• According to a survey conducted by ESET software company, the number of macOS threats detected decreased by 5.9 percent in T3 2021, with Trojans accounting for more than one-third of all macOS threats detected. In 2021, Hong Kong was targeted by a watering hole assault that used iOS and macOS zero-day or N-day vulnerabilities. More targeted and evasive assaults are projected in 2022, with adware being the most prevalent macOS threat.
• In addition, email risks increased by 8.5 percent in T3 2021. Since May 2021, phishing attacks have increased. Detection of a publicly known attack for CVE-2017-11882, a vulnerability in Microsoft Equation Editor, increased by 60% in T3 2021. From September to October 2021, Hong Kong's highest phishing emails mimicked DHL detections.
• Many firms face a critical shortage of skilled cybersecurity employees when dealing with cyberattacks. The quantity of skilled cybersecurity specialists, particularly in Hong Kong, is low compared to the need for security professionals to cope with cyber threats to financial institutions, government organizations, and private sector/industrial firms.
• The COVID-19 epidemic has emphasized the necessity for increased digital security. People have expanded their internet access to maintain personal and professional work. On the other hand, hackers have taken advantage of the situation, focusing on e-commerce, e-payment businesses, and the healthcare system.

Key Market TrendsIncreasing Demand for Digitalization, Internet and Scalable IT Infrastructure drive the Hong Kong Cybersecurity Market

• While rapid digitization has made lives easier, it has also raised cyber threats. While using the apps, they generate a large volume of data that must be protected. Hackers might intercept data as personal data and information travel through the internet. If they get this sensitive and personal information, it can be misused.
• The cyber-attacks have increased as internet use increases across the country. According to the World Bank, internet users in Hong Kong accounted for 92.4 percent of the country's population in 2020, 91.7 percent in 2019, and 90.5 percent in 2018. According to a survey by the Thales group, In 2021, 47% of global respondents indicated concern about security threats connected to quantum computing.
• Regarding geographical breakdown, Hong Kong, with 55%, stated being most concerned. Quantum computing rests on quantum mechanics and can be used to conduct virtual experiments and other complex problems that present computers cannot solve. Cybersecurity researchers worry that this computer could potentially break most modern cryptography and pose a serious security risk.
• According to a survey conducted by the government of Hong Kong, in 2021, the international internet bandwidth per person in Hong Kong was 20,623.2 kilobits per second, an over 4,000 kilobits per second increase from the previous year. The international internet bandwidth is an indicator of data transmission speed between different countries.
• Furthermore, in 2021 the number of Personal computers at home connected to the internet in Hong Kong from 2012 to 2021 has increased gradually. In 2021, approximately 2.04 million households in Hong Kong had computers connected to the internet. As the use of the internet increases, cybersecurity needs to increase.

Increase in Cyber attacks in Hong Kong Propel the Use of Cybersecurity Solutions amongst Enterprises

• Hong Kong Computer Emergency Response Team (HKCERT23) reviewed Hong Kong's information security environment in 2021 and a forecast for 2022. Phishing events accounted for 3,737 (48%) of the 7,725 security issues addressed in 2021. The number of phishing occurrences climbed by 7% from 2020, continuing a four-year upward trend and reaching a new high. HKCERT advised individuals and companies of the significant information security concerns in 2022, including Metaverse security issues, Non-fungible tokens (NFT), cryptocurrencies, developing technologies, supply chain assaults, and targeted and orchestrated cyber attacks.
• According to a survey conducted by HKCERT, the total number of reported computer security incidents in Hong Kong from 2007 to 2018 increased gradually, and later from 2019 to 2021, it decreased. In 2021, around 7,738 information security incidents were reported in Hong Kong, a decrease from 8,357 reports in the previous year.
• Although cybercriminals will continue to use tried and proven tactics such as phishing emails, unprotected secrets, and exploiting known vulnerabilities, they will also experiment with new technologies such as Java, Adobe Flash, and WebLogic.
• Hackers have used Malware such as Odinaff, Danabot, Backswap, and Camubot to attack banks that use the SWIFT network to convey money-moving messages. The most important revenue possibilities for the Defense/Government cybersecurity industry include expanding government data privacy laws, more cyber threats, and an increasing number of data centers.
• Targeting the software supply chain allows cybercriminals to extend their victim pool and accelerate attacks. Several attack vectors exist during the software development lifecycle: from contributing open source code to building and testing, then deployment and staging in different pre-production settings, and ultimately deployment to a production environment. Developers use various tools and services throughout this lifespan, increasing the attack surface. Furthermore, because DevOps pipelines hold the keys to the castle, attackers are likelier to target popular development tools such as Kubernetes to remain undetected while compromising many levels of an enterprise's network.

Competitive Landscape

The Hongkong Cybersecurity Market is moderately fragmented, owing to the presence of several local players. Many key players compete in the market under intense competition to cater to the client companies' security needs. The companies partner with other service providers to offer innovative cybersecurity solutions, exchanging technologies that strengthen existing services and launch new services for different end-users.

• April 2022 - SecurityScorecard, one of the global leaders in cybersecurity ratings, announced a collaboration with TriTech Distribution Limited ("TriTech"), one of leading Hong Kong and Macau-based value-added distributors (VAD), to assist enterprises in the region in gaining greater visibility into security vulnerabilities across their organizations. The collaboration will also assist third-party partners in complying with new government rules, prioritizing remediation for the most serious threats, and protecting important assets.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support

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