[PDF] Asia-Pacific Cyber Security Industry Outlook - Goldstein Market Intelligence

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AUGUST 2020

ASIA-PACIFIC CYBER SECURITY INDUSTRY OUTLOOK Published by

Goldstein Market Intelligence

WRITTEN BY: Dennis Abraham Vice President Goldstein Market Intelligence

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INDUSTRY ENVIORNMENT

A

sia Pacific Cyber Security Market is expected to reach

USD 50.07 billion by 2024, from an estimated USD 15.67 billion in 2016, growing at a CAGR of 15.43% during 2016-2024. Public market valuations for Cyber security have begun to increase since their rerating a year ago from ’The Peak’ in 2016, with median trailing twelve month revenue multiples up as compared to a year ago Cyber risk and security is getting more attention from the ocean shipping community too. In February 2016, BIMCO and other leading shipping organizations launched a set of guidelines "to help the global shipping industry prevent major safety, environmental and commercial issues that could result from a cyber incident onboard a ship Cyber security Ventures predicts cybercrime will continue rising and cost businesses globally more ©GOLDSTEIN MARKET INTELLIGENCE

USD 5 trillion annually by 2024.

The estimate is based on historical cybercrime figures including recent year-over-year growth, a dramatic increase in hostile nation state sponsored and organized crime gang hacking activities, a cyber attack surface which will be an order of magnitude greater than it is today, and the cyber defenses expected to be pitted against hackers and cybercriminals over that time.

The cyber damage estimates do not include unreported cybercrimes, legal and public relations fees, declines in stock and public company valuations directly and indirectly related to security breaches, negative impact on post-hack ability to raise capital for start-ups, interruptions to ecommerce and other digital business transactions, loss of competitive advantage, departure of staff and recruiting replacement employees in connection with cyber-attacks and resulting losses.

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Digitalization in Asia Pacific: Asia is already reaping major benefits from digitalization. Digital innovation has accounted for nearly one-third of Asia’s per capita growth over the past two decades. While digitalization and automation are not new, they have accelerated in recent years, and a new wave of innovation—triggered

All of these technological advances may eventually lead to a dramatic boost in productivity and GDP growth, but the fact is that Asia has already benefited immensely from digitalization. The diffusion of global innovation was the key driver of growth in Asia over the past two decades, with digital innovation alone accounting

Digital Usage: Level and Momentum (Index 0-10)

Source: ©2020 Goldstein Market Intelliigence

by advances in artificial intelligence, robotics, computing power, and cryptography, as well as the explosion of big data—is reshaping the global economy.

The digital revolution is affecting all sectors and activities of the economy, with a far-reaching social and economic impact. ©GOLDSTEIN MARKET INTELLIGENCE

for about 28 percent of per capita growth.

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DEVELOPMENTS IN DATA PRIVACY AND BREACH DISCLOSURE REGULATIONS CHINA Introduced a sequence of legislative reforms in recent years that seek to ensure stronger data protection.

Complex overlay of piecemeal regulations as there is no single dedicated regulator, rendering it difficult to interpret and implement THAILAND Drew up a draft data protection bill in 2015, but that has come under criticism for placing undue responsibility on thirdparty providers to ensure data privacy.

Bill is still in the midst of revisions VIETNAM Introduced the Law on Cyber Information Security in July 2016, although there are questions about what constitutes compliance for many of the standards.

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Hong Kong The Personal Data (Privacy) Ordinance has been in effect since 1995, but it has not been strongly enforced.

Enforcement has picked up in recent years with reported incidents to the Commissioner increasing by 40 percent yearon-year in 2015 and four offenders being convicted and fined.

SINGAPORE Introduced the Personal Data Protection Act (PDPA) in 2014 that has a penalty of up to $800,000.

Singapore’s central bank, the Monetary Authority of Singapore, requires that financial institutions notify it of any “adverse development” – events that could lead to prolonged service failure or disruption, or any breach of customer information.

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ARTIFICIAL INTELLIGENCE POWERED CYBER SECURITY Two unicorn companies valued at over USD 1.0 billion are included in the table above: the automated endpoint protection company Tanium, which utilizes AI-based Natural Language Processing (NLP), and the predictive intelligence company Cylance, which leverages machine learning algorithms.

Startups leveraging AI aim to automatically detect, investigate, classify, and help mitigate advanced types of malware preemptively, or at least in real-time. Startups leveraging AI to counter malware include: Cylance, PatternEx, and SentinelOne.

and subsequently flag when the normal behavior of an IoT ecosystem is compromised.

Startups addressing the threats facing IoT and endpoints include: Fortscale Security, Tanium, and CUJO. However, it is important to note that AI in cybersecurity is not necessarily a silver bullet solution. For example, nonmalware attacks that require no software downloads, and disguise malicious activity within legitimate cloud services are on the rise, and AI is not yet capable of thwarting those types of network breaches.

Instead, the new-school approach involves utilizing machine learning algorithms that can monitor network device traffic to model a baseline of "normal" device ŠGOLDSTEIN MARKET INTELLIGENCE

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Scan the QR code or click the link below for our study on future of Asia-Pacific Cyber Security Industry. bit.ly/2FWG9R2

About the author Dennis Abraham Ph.D, senior vice president at Goldstein Market Intelligence, leads GMI's syndicated health and wellness research. Before joining Goldstein Market Intelligence, Dennis held a variety of senior leadership positions in global and regional consulting roles covering consumer and retail insights across a broad range of healthcare categories. Dennis has been providing crosscategory strategic insights to healthcare brands for over 12 years on topics including digital disruption, ecommerce, and healthcare technology. Dennis holds a Ph.d from Havard University.

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About Goldstein Market Intelligence Goldstein Market Intelligence helping businesses to be successful at strategy and take informed decisions to grow the business in future. Goldstein Market Intelligence is one of the leading professional services firms, providing Intelligence Services, Consulting & Advisory and research related services to clients. We, at Goldstein Market Intelligence practice works side by side with chief executives and their teams to create effective strategies and secure alignment across the organisation. ŠGOLDSTEIN MARKET INTELLIGENCE

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