Report Overview

There has been an explosion in the number of cyberattacks against businesses in the Middle East, resulting in financial losses and data thefts. This is the reason why Middle East cloud computing market is registering a healthy growth.

Middle East Cybersecurity Market- Industry Trends & Forecast Report 2027

Middle East cybersecurity market was worth USD 16.2 billion in 2020 and is further projected to reach USD 36.1 billion by the year 2027, growing at a CAGR of 12.2% in the forecast period. As a result of the escalating number of cyberattacks on businesses for data thefts and financial losses, the Middle East cybersecurity market is growing rapidly. Moreover, the expanding adoption of cloud computing and IoT technologies in the Gulf countries is expected to drive the market in the forecast period.

Source: BlueWeave Consulting

Middle East Cybersecurity Market- Overview

The concept of cybersecurity refers to securing data, hardware, and software from internet-connected threats. Individuals and businesses leverage cybersecurity to ensure their data centers and other computer systems are protected from unauthorized access. The number of cyberattacks is growing at a high rate to gain unauthorized access to computers and computer networks, which is becoming the cause of concern for several industries across the Middle East. Cybersecurity offers comprehensive protection against data theft and further reduces the risk of data breaches and attacks on IT systems. The advantages offered by cybersecurity is driving the growth of the Middle East cybersecurity market.

Middle East Cybersecurity Market Forecast and Trends

Growth Drivers

Growing Adoption of IoT in the Middle East

The Middle East is on par with the rest of the world in the adoption of IoT technologies. It is estimated that around 32% of organizations in the Middle East plan to adopt IoT in the next two years. However, with this growth in the adoption of network-connected devices that share data on a real-time basis, the risks of cyber threats and data theft increases severalfold. Thus, the adoption of cybersecurity to mitigate this risk associated with the IoT is anticipated to boost the Middle East cybersecurity market during the forecast period.

Expanding Penetration of E-Commerce Websites

Middle Eastern countries, such as Saudi Arabia, UAE, Israel, etc., are very lucrative markets for the e-commerce industry. There are also standalone online stores belonging to major brands, including souq.com, Amazon, Shopia, Ikea, and Supermarket.ae. These platforms carry crucial information and sensitive data such as the banking details of their users. Because of this, this industry is extremely vulnerable to cyber threats and data theft. Therefore, e-commerce and online stores in the Middle East are adopting cybersecurity solutions and services to protect themselves from potential attacks.

Restraints

Limitations of Cybersecurity Solutions

Despite all the technological advancements, cybersecurity solutions may not prove to be 100% foolproof in protecting from potential cyberattacks. The scope of cybersecurity gets very limited around the growing adoption of IoT in various industries. Since IoT devices are interconnected through a single network and transfer huge volumes of data in real-time, the risks of hacking or cyberattacks amplifies on a that particular network. And even though IoT increases the efficiency of the business, it may also lead to high vulnerability to data breaches and cyberattacks. This acts as a major threat to the growth of the middle east cybersecurity market.

Impact of COVID-19 on Middle East Cybersecurity Market

COVID-19 outbreak accelerated adoption of cybersecurity solutions and services in Middle East countries. The requirement for cybersecurity has grown as a result of the rapid digital transformation of companies and the shift towards cloud computing. According to the International Security Journal, the number of DDoS (distributed denial-of-service) attacks in the Middle East exceeded 10 million in 2020 alone, showing a dramatic surge from around 8.5 million in 2019. DDoS attacks and other cyber threats emerged as the major cause of concerns among the businesses and prompted them to invest in the adoption of cybersecurity solutions and services.

Middle East Cybersecurity Market - By Component

Based on components, the Middle East cybersecurity market is segmented into hardware, software, and services. The services segment accounts for the largest share in the market as it proves to be cost-effective, especially for small and medium-sized enterprises. Cybersecurity services offer professional and real-time services without the need for physical IT setup, which is why it is preferred by SMEs and is gaining significant traction in the Middle East. The hardware segment is also growing at a substantial rate because of the growing investment towards next-generation cybersecurity equipment such as USB flash drives, firewalls, etc.

Middle East Cybersecurity Market - By Security Type

Based on security types, the Middle East cybersecurity market is segmented into network security, application security, endpoint security, cloud security, and others. Among these, the network security segment holds the largest share in the Middle East cybersecurity market because of the growing penetration of online entertainment, digital media, and social networking sites. This security type protects the network and data from breaches, intrusions, and other threats. However, the cloud security segment is anticipated to grow at the highest rate during the forecast period due to the growing adoption of cloud computing.

Middle East Cybersecurity Market - Regional Insights

Geographically, the Middle East cybersecurity market is segmented into Saudi Arabia, United Arab Emirates, Iraq, Iran, Israel, and others. Among these, Israel dominates the Middle east cybersecurity market and is counted as one of the world leaders in this domain. Growing government investments and proper training of its human resources play a crucial role in propelling the market's growth. In 2018, Israeli cybersecurity companies received over USD 1 billion, which contributed to the growth of the market.

Competitive Landscape

The leading players in the Middle East cybersecurity market are Xact IT Solutions, Digital HubSolution, Redwerk, Vosco Technologies Pvt. Ltd., Aspirantz Cyber Security Consulting, Cybersec Consulting, Clario Tech DMCC, Braineering IT Solutions, Ethos Global Solution, IOActive, Hashtaag, and other prominent players.

The market is highly competitive, with the presence of several industry players. In order to expand and strengthen their security services, the companies are rapidly adopting advanced technologies. They are also focused on expanding beyond geographic boundaries. Partnerships, mergers, acquisitions, joint ventures, etc., are the common strategies employed in this market.

Recent Developments

• In October 2021, Cybereason, a cybersecurity technology company, announced its partnership with Taqnia Cyber, the cybersecurity arm of Saudi Arabia’s government-owned technology investment company to provide cybersecurity services to large enterprises and defense, and government organizations across the Kingdom.

• In September 2021, ColorTokens, a zero-trust cybersecurity solutions provider, announced its partnership with Paramount Computer Systems, for securing the information assets of enterprises in the Middle East.

Scope of the Report

By Component

• Hardware

• Software

• Services

1. Professional Services

2. Managed Services

By Software

• Antivirus/Antimalware

• Disaster Recovery

• Advanced Persistent Threat

• Encryption

• Network Access Control

• Threat Intelligence

• Intrusion Detection And Prevention System

• Security And Information Event Management

• Firewall

• Security And Vulnerability Management

• Secure Web Gateway

• Risk And Compliance Management

• Security Orchestration Automation And Response

• Identity And Access Management

• Others

By Security Type

• Network Security

• Endpoint Security

• Application Security

• Cloud Security

• Others

By Deployment Mode

• On–Premises

• Cloud

By Organization Size

• Small And Medium–Sized Enterprises

• Large Enterprises

By End-User

• Aerospace And Defense

• Government

• Banking, Financial Services, And Insurance (BFSI)

• IT

• Healthcare

• Retail

• Manufacturing

• Energy And Utilities

• Telecommunication

• Media And Entertainment

• Others