The Latin America Cyber Security Market was valued at USD 14.62 billion in 2020 and expected to reach USD 37.92 billion by 2026 and grow at a CAGR of 17.2% over the forecast period (2021 - 2026). Cyber threats are internet-based attempts to damage or disrupt information systems and hack critical information using spyware, malware, and phishing. Cybersecurity solutions help an organization to monitor, detect, report, and counter cyber threats to maintain data confidentiality.
- The adoption of cybersecurity solutions is expected to grow with the increasing penetration of the internet among the Latin American countries. Also, the expanding wireless network for mobile devices has increased data vulnerability making cybersecurity an integral part of every single organization across Latin America. The rising incidents of cyber attacks and regulations requiring for reporting are driving the growth of the cybersecurity market in Latin America.
- Brazil is one of the emerging economies with increasing investment in IT infrastructure and rising smartphone and internet penetration. Although the country is moving towards advanced ICT, it lacks proper cybersecurity measures owing to which the hackers are finding vulnerabilities to exploit. Hence, the growing M2M or IoT connections is strengthening the demand for cybersecurity solutions.
- However, the lack of cyber security profession has been a concerning factor, limiting the growth for cybersecurity market in Latin America.
Key Market Trends
BFSI Sector to Grow Significantly
- The BFSI sector is one of the critical infrastructure segments that suffers several data breaches and cyber-attacks, owing to the large customer base that the industry serves and the financial information that is at stake. The financial service institutions have been identified to be four times more susceptible to cyber attacks, as compared to other industries, which is expected to drive the demand for such solutions.
- The phishing attacks have been rising in the region accounted for 192,000 attacks per day in 2017, which grew by 115% from the previous year. In 2018, more than 2,000 mobile banking users in Brazil downloaded android-based malware, which breached the confidential data from the device.
- Moreover, in May 2018, Mexico central bank announced that a cyber attack in April 2018 cost undisclosed five financial institutions around USD 15.2 million was owing to several fraudulent transfers.
- In Latin America, Brazil is the most targeted country for cyber attacks. it registered over 28% of the phishing attacks occurred in the region and the country is followed by Guatemala with 20.34%.
Increasing M2M Connections Demand Cyber Security
- While GSMA reported that IoT connections in Latin America are expected to grow to 1300 million by 2025 from 444 million in 2017, M2M connections are also anticipated to witness a significant rise. The IoT describes the coordination of multiple devices, machines, and appliances connected to the Internet through multiple networks.
- These devices include everyday objects such as tablets, consumer electronics, and other machines, such as vehicles, monitors, and sensors equipped with M2M communications that allow them to send and receive data.
- As M2M connectivity support sensors, probes, modems, modules and routers used, the IoT and M2M connectivity has driven the market for cyber security in the region.
The market for cyber security in Latin America has witnessed increased competition among many big players existing in the market. Additionally, more emerging companies are entering into the market with the growing economies in the region.
May 2019 - Proofpoint Inc. signed a definitive agreement to acquire Meta Networks, an innovator in zero-trust network access. With this acquisition, the company is aiming at strengthening its cloud-based architecture and people-centric security platform.
May 2019 - FireEye Inc. acquired security instrumentation company Verodin at USD 250 million. With this acquisition, the company is planning to leverage the Verodin Security Instrumentation Platform into its portfolio by identifying gaps in security effectiveness due to equipment misconfiguration, changes in the IT environment.
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