Middle East and Africa Cybersecurity Market

The Middle East and Africa Cybersecurity Market size is projected to grow from $22.2 billion in 2023 to $36.2 billion by 2028, at a CAGR of 10.2% during the forecast period. Factors driving market growth include the growing adoption of cybersecurity solutions and services due to the rising number of cyber-attacks, the growing era of eCommerce along with digital payment solutions, and the growing demand for digital transformation initiatives. However, insuffiecient regulatory frameworks; and low cyber security budget and spending is expected to hinder market growth.

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Middle East and Africa Cybersecurity Market Dynamics

Driver: Increased cyber threats and attacks

The Middle East and Africa region has been a target of various cyber threats and attacks in recent years. These threats and attacks are often carried out by state-sponsored groups, cybercriminals, or hacktivists seeking to disrupt the region's political and economic stability. Cyberattacks have become more frequent and sophisticated as the region's economy and businesses become more digitalized. These attacks can have significant financial and reputational impacts on businesses, leading to an increased demand for cybersecurity solutions to protect against them. A report by Trend Micro showed that the Middle East and Africa region saw a 23% increase in cybercrime from Q1 to Q2 in 2021, with the financial sector being the most targeted industry. According to a report by Cybersecurity Insiders, the Middle East and Africa region saw a 56% increase in data breaches in 2021 compared to the previous year. This highlights the growing need for businesses and governments to invest in cybersecurity solutions to protect sensitive information.

Restraint: Lack of awareness and understanding

Lack of awareness is a significant issue in the cybersecurity market in the Middle East and Africa region. Many organizations in the Middle East and Africa region have limited resources and are often unable to invest in cybersecurity measures. As a result, they may not be aware of the latest threats and vulnerabilities in the cyber landscape. Cybersecurity is often not a priority for many organizations in the Middle East and Africa region. They may focus more on other aspects of their business, such as revenue growth, and may not realize the potential damage that a cyberattack can cause. A lack of education and training in cybersecurity in the Middle East and Africa region can lead to a lack of awareness. Many organizations may not understand the potential risks associated with their IT systems and may not have the necessary skills to implement effective cybersecurity measures. Cultural factors may sometimes contribute to a lack of cybersecurity awareness. For example, some organizations may be hesitant to share information about security breaches or vulnerabilities due to concerns about reputation and loss of trust.

Opportunity: Cross sector collaboration

Cross-sector collaboration is becoming increasingly important in the cybersecurity market in the Middle East and Africa region. This collaboration involves sharing information, resources, and expertise between different sectors, such as government, finance, healthcare, and energy, to strengthen cybersecurity measures and protect against cyber threats. Several initiatives have been launched in the Middle East and Africa region to encourage cybersecurity information sharing between different sectors. For example, the UAE Computer Emergency Response Team has established partnerships with various sectors, including telecommunications, finance, and transportation, to share intelligence on cyber threats and vulnerabilities.

Challenge: Limited cybersecurity budget

Limited cybersecurity budgets are a significant challenge that many organizations in the Middle East and Africa region face when it comes to cybersecurity. With limited financial resources, it becomes difficult for these organizations to invest in advanced security technologies, hire skilled cybersecurity professionals, and build a comprehensive cybersecurity program. One of the main reasons for the limited cybersecurity budgets in the Middle East and Africa region is the low priority given to cybersecurity. Many organizations do not understand the potential impact of cyber threats or recognize the need to invest in cybersecurity. According to a survey by Ernst & Young, only 27% of organizations in the Middle East have a dedicated cybersecurity budget. Additionally, cybersecurity is often viewed as a cost center rather than a revenue generator, making it difficult for organizations to justify investing in cybersecurity.

Middle East and Africa Cybersecurity Market Ecosystem

The cybersecurity ecosystem in the Middle East and Africa region is complex and dynamic, with multiple players involved in delivering cybersecurity solutions across various areas, including network, cloud, application, and endpoint & IoT device security. In terms of network security, the ecosystem includes hardware and software manufacturers, system integrators, Managed Security Service Providers (MSSPs), and end users. Network security solutions in the Middle East and Africa region include firewalls, intrusion detection and prevention systems, VPNs, and other technologies that protect networks against cyber threats.

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By Component, the hardware segment to grow at the highest CAGR during the forecast period

Hardware devices are an essential component of cybersecurity, including encryption, network access control (NAC), firewalls, and authentication tokens. Hardware encryption provides protection to data both at rest and in transit by utilizing specialized electronic circuits integrated with storage drives, enabling full channel speed encryption without requiring software or driver installation. This technology safeguards data stored on devices from various attacks, such as malicious codes, brute force attacks, and cold boot attacks. As technology continues to evolve, smaller and more efficient neuromorphic chip-based systems are expected to replace larger hardware devices. High-computational hardware devices are designed to handle graphic-intensive applications, enabling high-quality image rendering, animations, and videos. These advancements are among the factors driving the growth of the cybersecurity market in the Middle East and Africa.

By Software, the Log Management and SIEM segment to grow at the highest CAGR during the forecast period

IT organizations utilize software tools such as Security Information and Event Management (SIEM) and log management to monitor their security posture, detect and respond to Indicators of Compromise (loC), and conduct forensic data analysis and investigations into network events and possible attacks using log files. Log management is a continuous practice that involves the collection, storage, processing, synthesis, and analysis of data from various programs and applications to improve system performance, identify technical issues, manage resources effectively, enhance security, and ensure compliance. Log files, which are computer-generated files, capture activity within the operating system or software applications and document system administrator-designed information such as error reports, messages, file requests, and file transfers automatically.

By Service, the professional segment is expected to account for largest market share during the forecast period

Professional services are the services provided by product vendors to strategically help clients organize, design, analyze, implement, and manage technological systems. These services play a vital role in any ecosystem. The professional services include consulting, training and education, design and implementation, risk and threat assessment, and support and maintenance. As these services are complex, service providers must possess high-level technical skills and expertise.

By Security Type, the Application Security segment is expected to grow at the highest CAGR during the forecast period

Security solutions enable enterprises to secure their business-sensitive applications through greater visibility and control. Using existing security solutions, such as IAM, web filtering, and application whitelisting, enables the security of enterprise applications and software codes from external and internal threats, including web attacks, DDoS, site scraping, and fraud. Business-sensitive applications are one of the primary targets of attackers, as they carry information about critical assets and processes followed by enterprises. Several organizations rely on network security and neglect applications, which creates a security gap and makes them susceptible to attacks. Cybersecurity solutions and services prevent user applications from being attacked. These solutions and services collect security and event information from all web applications, after which they analyze the data for vulnerable or malicious events and study the event behavior to protect user applications.

By Deployment Mode, the Cloud segment is expected to grow at the highest CAGR during the forecast period

The cloud deployment mode is the fastest-growing segment in the Middle East and Africa cybersecurity market. Using cloud-based cybersecurity solutions, organizations can avoid hardware, software, storage, and technical staff costs. Cloud-based platforms offer a unified way to secure business applications via SaaS-based security services. These platforms are beneficial for organizations that have strict budgets for security investments. SMEs deploy their solutions in the cloud, enabling them to focus on their core competencies rather than invest their capital in security infrastructures. The cloud deployment mode is growing as cloud cybersecurity solutions are easy to maintain and upgrade. Furthermore, deploying security solutions in the cloud can help businesses focus on their core operational functionalities rather than increasingly investing in capital infrastructure for IT security. Cloud-based cybersecurity solutions help secure Access Control Management (ACM) in a physical and virtualized cloud data center environment. Enterprises that have completely migrated their IT capabilities to the cloud increasingly deploy cloud-based cybersecurity solutions, driving the market growth.

By vertical, the healthcare segment is expected to grow at the highest CAGR during the forecast period

The future of healthcare lies in the increase in interconnected IoMT devices, augmented reality, and robotics. This clarifies that most healthcare organizations' current perimeter-based security model will no longer be effective. To stay ahead of these trends, healthcare organizations are expected to invest in the basics while making a fundamental shift from the castle-and-moat approach to a cybersecurity model. Various compliance acts, such as HIPPA and PCI DSS, also encourage the adoption of cybersecurity solutions in the healthcare vertical. Recent attacks on Electronic Health Records (EHRs) have led SMEs and large healthcare organizations to invest in cybersecurity architecture and defend and prevent attacks from internal and external threat actors. Healthcare IT security teams are strengthening their network infrastructure with different security solutions by considering each endpoint device as a hostile device, thereby encouraging the growth of the Middle East and Africa cybersecurity market.

By region, Africa is expected to grow at the highest CAGR  during the forecast period

Africa has experienced a significant surge in internet usage, leading to a rise in cybercrime as hackers exploit weaknesses to gain access to sensitive information. African nations are also struggling to establish a robust cybersecurity framework to defend against these threats. This requires investing in cybersecurity technology, crafting policies and laws, and developing a competent workforce to handle cyber attacks. However, Africa faces exceptional challenges, including insufficient resources and infrastructure, political instability, and inadequate law enforcement, which complicate the cybersecurity landscape. These challenges make it more challenging to combat cybercrime effectively.

Key Market Players

Key players in the Middle East and Africa Cybersecurity market include IBM (US), Cisco (US), Palo Alto Networks (US), Check Point (Israel), Trend Micro (Japan), Fortinet (US), Norton LifeLock (US), Sophos (UK), Kaspersky (Russia), Trellix (US) and ESET (Slovakia).

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Scope of the Report

Market Segmentation

Recent Developments

• In February 2023, Cisco fulfilled its commitment to simplifying IT operations by unveiling new advancements in cloud-managed networking. The company has introduced robust cloud management tools specifically designed for industrial IoT applications, streamlined dashboards that merge IT and OT operations, and adaptable network intelligence to monitor and secure industrial assets. This results in a cohesive experience that offers genuine business flexibility.
• In December 2022, Palo Alto Networks announced the successful acquisition of Cider Security, a leader in application security and software supply chain security. This acquisition will enhance Palo Alto Networks' cybersecurity offerings.
• In December 2022, Fortinet and Rockwell Automation formed a partnership to offer robust cybersecurity solutions to customers worldwide by combining advanced networking and security capabilities. The distinctive features of OT and IT environments result in varied cybersecurity risks and a distinct threat landscape for ICS systems. Hence, the need for customized security solutions to address the specific challenges arising.

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