Report Overview

A rapidly growing number of data breaching incidents across Indonesia and increasing number of e-commerce platforms are expected to boost the growth of Indonesia cybersecurity market during the forecast period between 2023 and 2029.

Indonesia Cybersecurity Market - Industry Trends & Forecast Report, 2029

Indonesia cybersecurity market size was estimated to be worth USD 1.04 billion in 2022. During the forecast period between 2023 and 2029, the Indonesia cybersecurity market size is projected to grow at a CAGR of 24.29%, reaching a value of USD 3.83 billion by 2029. Major growth factors for the Indonesia cybersecurity market include the increasing rate of cyberattacks in the country and the rising sophistication of these attacks. According to Asmag, Indonesia is the number one target for cyberattacks, with approximately 42,000 attacks a day, which is prompting the government and organizations to implement necessary security measures, propelling the overall Indonesia cybersecurity market.

Indonesia Cybersecurity Market – Overview

Security is the process of guarding against unwanted access to networks, systems, and applications, as well as online or digital threats. Numerous strategies can be used to combat cybercrime, including but not limited to critical infrastructure security, network security, application security, cloud security, disaster recovery/business continuity planning, storage security, and others. Additionally, since organizations gather, store, and use a lot of personal data online, cybersecurity is a primary priority for corporations and military, financial, and healthcare organizations.

Indonesia Cybersecurity Market

Growth Drivers

Government’s Efforts toward Digitization

The use of cybersecurity-based solutions is anticipated to increase over the projected period as a result of growing focus by the government and regulator attempts to improve cybersecurity. According to the 2018 UN e-government study, Indonesia is already categorized alongside nations like Monaco and New Zealand that have a middle-to-high e-government development score, as reported by AHK Indonesian. Indonesia ranked 41st in terms of its dedication to cybersecurity in 2018, up from 69 in 2017, according to the Global Cybersecurity Index, which is published by the Geneva-based International Telecommunications Union, a specialized agency of the UN.

Restraints

Lack of Skilled Cybersecurity Professionals & Infrastructure

Infrastructure and human resources are the two biggest problems facing Indonesian cybersecurity firms. The larger islands are quickly adopting digitization, while the rest of the country is not yet very connected. Thus, human resources are the short-term issue that cybersecurity firms can address. Furthermore, according to estimates, Indonesia requires about 1,000 cybersecurity specialists to keep up with the rest of the globe in both the public and commercial sectors.

Impact of COVID-19 on the Indonesia Cybersecurity Market

The COVID-19 pandemic presented significant growth opportunities for the Indonesia cybersecurity market owing to the substantial surge in cyber threats and data breaches. According to a report by Reuters back in September 2021, the Indonesia Health Alert Card (eHSC) (also known as the COVID-19 test and trace app) exposed personal data and the health status of 1.3 million people due to a suspected security flow. Additionally, the rising prevalence of remote working and the increasing use of cloud computing and software are also exposing organizations’ crucial data to potential cyber threats. These factors are anticipated to proliferate the integration of advanced cybersecurity measures in Indonesia, propelling the overall market growth.

Indonesia Cybersecurity Market

Segmental Coverage

Indonesia Cybersecurity Market – By Component

Based on component, the Indonesia cybersecurity market is divided into hardware, software, and services segments. The services segment holds the highest share in the Indonesia cybersecurity market, due to the growing demand from small and medium-sized enterprises (SMEs) for consulting services as well as maintenance and upgrade services. Due to their small teams and tight budgets, SMEs frequently confer with other firms before implementing any cybersecurity solutions.

Indonesia Cybersecurity Market – By Security

Based on security, the Indonesia cybersecurity market is segmented into network security, endpoint security, application security, cloud security, infrastructure protection, data security, and others. Infrastructure protection accounts for the largest market share. Organizations operating in Indonesia might benefit from Critical Infrastructure Protection (CIP), which provides protection against an increasing variety of threats and aids in planning for and responding to significant incidents involving critical infrastructure environments. Cloud security is also gaining substantial growth owing to the rising adoption of cloud-based solutions.

Indonesia Cybersecurity Market – By Deployment Mode

Based on deployment mode, the Indonesia cybersecurity market is bifurcated into on–premises and cloud segments. The on-premises deployment mode holds a higher share in the Indonesia cybersecurity market because of its higher data protection compared to other modes. Due to local storage, companies have complete control over the data and security. Sensitive information doesn't need to leave the business's premises. That might be a clear advantage, particularly when it comes to compliance-related issues. The advantage of on-premises systems is that employees may still access the data if network issues cause the connection to the Internet to be disrupted. However, cloud deployment is projected to register the highest growth rate during the forecast period owing to the rising adoption of SaaS following the pandemic outbreak.

Indonesia Cybersecurity Market – By Industry Vertical

Based on industry vertical, the Indonesia cybersecurity market is segmented into aerospace & defense, government, BFSI, IT & telecommunications, healthcare, retail, manufacturing, and others. The BFSI segment accounts for the highest market share. The increasing usage of remote work, hybrid workforces, cloud-based software platforms, and online payment platforms has exposed the BFSI sector to new cyber threats. Employees no longer access data solely through networks and systems under the control of the company. As a result, the BFSI industry in Indonesia is witnessing a significant growth in the Indonesia cybersecurity market.

Indonesia Cybersecurity Market – By Organization Size

Based on organization size, the Indonesia cybersecurity market is split into small and medium–sized enterprises (SMEs) and large enterprises. The large enterprise segment dominates the Indonesia cybersecurity market owing to the large volumes of data and substantial risk of financial fraud associated with such an organization's size. However, the small and medium–sized enterprises (SMEs) segment is projected to register the highest growth rate during the forecast period. The increasing prevalence of remote and hybrid working, resulting in access management risks, is directly influencing the demand for cybersecurity among SMEs in Indonesia.

Competitive Landscape

Major players operating in the Indonesia cybersecurity market include Trend Micro Inc., Caulis Inc., Internet Initiative Indonesia, Inc., IBM Corporation, Cisco Systems, Inc., LAC Co. Ltd., SCSK Corporation, NEC Corporation, Spider Labs Ltd., Cybereason Indonesia Corporation, Caulis Inc., and Cybersecurity Cloud, Inc. To further enhance their market share, these companies employ various strategies, including mergers and acquisitions, partnerships, joint ventures, license agreements, and new product launches.

Recent Developments

• In June 2023 – The Indonesian Cyber and Encryption Agency (BSSN) renewed the memorandum of understanding (MoU) with Huawei, the Chinese telecom giant for cooperation in cybersecurity.

Scope of the Report

By Component

• Hardware

• Software

1. Advanced Persistent Threat

2. Threat Intelligence

3. Security and Information Event Management

4. Security and Vulnerability Management

5. Network Access Control

6. Antivirus/Antimalware

7. Others

• Services

1. Professional Services

2. Managed Services

By Security

1. Network Security

2. Endpoint Security

3. Application Security

4. Cloud Security

5. Infrastructure Protection

6. Data Security

7. Others

By Deployment Mode

1. On–Premises

2. Cloud

By Industry Vertical

1. Aerospace & Defense

2. Government

3. BFSI

4. IT & Telecommunication

5. Healthcare

6. Retail

7. Manufacturing

8. Others

By Organization Size

1. Small & Medium–sized Enterprises (SMEs)

2. Large Enterprises