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

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

The Mexico cybersecurity market is expected to register a CAGR of 14.65% during the period of 2022-2027. Cyberattacks on public and private establishments in Mexico are expected to increase exponentially throughout the forecast period. Mexico, however, has no national cybersecurity plan, encouraging the private sector to independently introduce self-regulatory schemes to try and protect itself against cyberattacks.

Key Highlights

• Mexico is also witnessing rapid urbanization and internet penetration, further fueling the cybersecurity market. Brazil, Argentina, and Mexico have already established Cyber Emergency Response Teams and Computer Security Incident Response Teams to combat cyber-attacks, resulting in a surge in demand over the forecast period.
• At a global level, Mexico's market demand is high, and there are some large international companies. However, there are also domestic companies that are benefiting from the growth of the industry. There is a clear requirement for increased product offerings (especially for SMEs) and more competition within the sector. A dedicated IT cluster could be a solution for developing low-cost cybersecurity products and services.
• Mexico ranks 52 out of 182 countries in terms of vulnerability to cyberattacks, according to the International Telecommunications Union (ITU). Moreover, the country has been witnessing numerous attacks. Crypto-jacking is one of the leading cybersecurity issues the country's businesses face. Mexico is immature in cybersecurity due to a lack of investment in cybercrime protection.
• COVID-19 has boosted the market in the country. For instance, according to a study by National Cyber Security Organizations, the revenue generated from cyber solutions in the country increased to EUR 56 billion in 2021 from EUR 0.45 billion in 2020. The same study also forecasts that the revenue will cross EUR 1.48 billion by the end of 2027.

Key Market TrendsCloud Deployment is Expected to Drive the Market

• Cloud is one of the most rapidly growing recent technologies, eliminating the traditional boundaries of IT, creating new markets, spurring the mobility trend, and enabling advances in unified communications.
• Cybercriminals targeting remote employees to steal critical data have recently increased the demand for cybersecurity in the country. According to the Inter-American Development Bank (IDB), the situation is much more volatile in Latin America, where most countries like Mexico do not have a strong cyberinfrastructure to withstand attacks.
• Installation prices are an integral part of the deployment. Most Mexican companies are shifting to cloud-based cybersecurity services as it is seen as a flexible and economical alternative.
• Moreover, Mexico is one of the major IaaS markets in the Latin American Region. The government has also announced plans to improve the nation’s digital infrastructure with cloud connectivity.

BFSI Segment is Expected to Hold a Significant Market Share

• The BFSI industry is one of the vulnerable infrastructure segments facing numerous data breaches and cyberattacks. This is due to the sector's large customer base and financial information at stake. For instance, in 2021, malware called Ploutus targeted ATMs of prominent banks in Mexico.
• In the past, the Bank of Mexico (Banco de México), along with other banks and insurance companies, have been attacked. The major insurance regulator, the Insurance and Bonding National Commission (Comisión Nacional de Seguros y Fianzas) (CNSF), was also targeted. Demand for cyber security insurance will continue to grow, as no sector is immune to cyberattacks and the responsibilities that arise from them (which are exacerbated by privacy laws and financial secrecy).
• At a global level, the demand in the Mexican market is high, and there are some large international companies. However, there are also domestic companies that are benefiting from the growth of the industry. There is a clear requirement for increased product offerings (especially for SMEs) and more competition within the sector. A dedicated IT cluster could be a solution for developing low-cost cybersecurity products and services.
• Cybercriminals are optimizing various diabolical cyberattacks to immobilize the financial sector as a highly lucrative operation model with returns and the added upside of relatively low risk and detectability. These attacks' threat landscape ranges from Trojans, ATM, ransomware, mobile banking malware, data breaches, institutional invasion, data thefts, fiscal breaches, etc.
• Amid the rising cyber attacks, the country has set up various bodies to protect citizens' data. For instance, Information and Protection of Personal Data protect the personal information of Mexican citizens. According to a study by Wilson Center, Mexico's digital infrastructure has reached around half of the population, the vulnerabilities are prevalent, and the country's administration has been required to adapt to the era of smart grids, telecommunications, and online finance.

Competitive Landscape

The Mexico cybersecurity market is moderately fragmented. Players in the market adopt strategic initiatives such as mergers and acquisitions, partnerships, and new product offerings due to increasing awareness regarding mobility security among enterprises.

• May 2021: Tec de Monterrey and Microsoft signed a partnership agreement to promote the development of technologies and capabilities for access controls, incident responses, sharing intelligence information, detecting new forms of attacks, and forensic computing. This will take place at Tec's Cybersecurity Hub to make these technologies more accessible, secure, and reliable against online risks.
• September 2021: Tata Consultancy Services (TCS) began the construction of a cyber security center in Queretaro, Mexico. This facility is aimed to serve clients throughout Latin America.

Additional Benefits:

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

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