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

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

South Africa Cybersecurity Market is expected to grow at a CAGR of 11.01% over the forecast period (2022-2027). The Robust digitalization in verticals like banking and financial services, and government sector, and oil and gas industries has consequently triggered the risk of cyber-attacks, along with the growth rate is improved awareness, and the adoption of various cybersecurity services that are needed to safeguard smart grid devices, digitalized businesses, and IoT-based smart cities boost South Africa Cybersecurity Market.

Key Highlights

• The rapid introduction of digital technologies for data assembly, storage, analysis, and sharing has created a need for digital data security, which is a major factor driving the growth of the South Africa cyber security market.
• The growth of Hacking, cracking, and other forms of cyber-mischief have made personal, commercial, financial, and other digital data more vulnerable, thereby increasing the need for cyber security and market growth. Furthermore, Increasing cyberattacks have forced administrations to improve their security measures and adopt cybersecurity services, this demand has boost the growth of the market.
• Businesses in Africa are especially vulnerable to cybercrime, with more than half of the continent's countries having insufficient Cyber Security laws and regulations, creating a haven for cybercriminals. These factors are driving up the demand for cyber security.
• Securing universal internet access and the ability to operate safely and effectively in an increasingly digitized economy are two of the most difficult challenges for African businesses.
• However, the sudden outbreak of COVID 19 in the country has halted the operation in several sectors such as retail, hospitality, energy & utility, which in turn had hampered the growth of cybersecurity industry

Key Market TrendsGrowth digitization across the region

• Due to the outbreak of covid 19, Advanced automation is being adopted in workplaces at a rate that portends the coming of a digital revolution, where data is gathered along the entire supply and demand chain with the help of digital innovations like sensorization, networked data analytics, and artificial intelligence.
• Most large company leaders in South Africa anticipate that more hybrid work patterns will become the norm over time. The pandemic pushed digitalization, enabling businesses to use their data more wisely to obtain more insight and become more competitive.
• Moreover, South African countries are making heavy investments in digitalizing their economy. The DCDT is mandated to facilitate South Africa’s digital transformation by creating an enabling policy and regulatory environment to encourage digital inclusion and economic growth.
• Furthermore, The shift to remote work has revealed numerous security vulnerabilities, and it is predicted that in 2021, the average global cost of a data breach would rise by 10% annually. There have been several assaults in South Africa, including one on Transnet Port Terminals, which shut down ports and railroads. The greatest cyber threat for the coming year is ransomware attacks, followed by business interruptions, which are expected to drive growth in the cybersecurity market.

Growing digitalization in IT and Telecommunication

• As part of the IT and telecommunication strategy, The Department's main goal is for all South Africans to have access to digital tools that will enable them to develop and take part in opportunities that will promote inclusivity, employment, and economic transformation in all of cities, towns, and provinces. By the middle of 2021, the Department had completed a plan for the digital economy and was working with various stakeholders to create an implementation strategy.
• However, In order to maximize investment in the information and communications technology (ICT) sector and to develop new, competitive business opportunities for the sector's growth for socioeconomic development, the Department's strategic outcome-oriented objectives are to make ICT infrastructure accessible, robust, reliable, affordable, and secure to meet the needs of the nation.
• Future more, To ensure that cutting-edge digital solutions are developed and implemented in government, it is planned to concentrate on building partnerships with research institutions, providing that agency staff members' skills keep pace with the changing technological landscape, and ensuring that the State and its citizens can transact, communicate, and interact in a secure and safe environment.
• Moreover, numerous domestic fiber network providers in South Africa, including Vuma, offer an open access fiber network that is resold to several retail service providers and has download speeds of up to 1 Gbps. South Africa is connected to the world by five major international subsea cable systems. With Microsoft Azure Cloud and AWS entering the market as a gateway for the rest of Africa, there has been a quick emergence of new CSPs in South Africa, which are expected to drive growth in the cybersecurity market.

Competitive Landscape

South Africa Cybersecurity Market is moderately concentrated and dominated by a few major players like Palo Alto Networks Inc., Cisco Systems, Inc, Kaspersky Labs, and CyberArk ​And Check Point Software Technologies Ltd. These major players, with a prominent share in the market, are focusing on expanding their customer base across foreign countries.

• In August 2022 - According to Kaspersky analysis, attacks related to data loss threats (phishing and scams/social engineering) increased significantly in Africa in Q2 2022 as The company’s security solutions detected 10,722,886 phishing attacks in Africa in Q2.

Additional Benefits:

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

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