Report Overview

Rising frequency and sophistication of cyberattacks in Malaysia and ongoing digitalization across industries are expected to boost the growth of Malaysia cybersecurity market during the forecast period between 2023 and 2029.

Malaysia Cybersecurity Market - Industry Trends & Forecast Report, 2029

Malaysia cybersecurity market size was estimated to be worth USD 41.75 million in 2022. During the forecast period between 2023 and 2029, the Malaysia cybersecurity market size is projected to grow at a CAGR of 17.44%, reaching a value of USD 109.51 million by 2029. Major growth factors for the Malaysia Cybersecurity market include the expanding integration of cloud computing and advanced technologies such as AI, AR/VR, and machine learning, along with the increasing frequency of data breach incidents in the country.

Malaysia 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 private data online, cybersecurity is a primary priority for corporations, and military, financial, and healthcare organizations.

Malaysia Cybersecurity Market

Growth Drivers

Favorable Government Initiatives and Stringent Laws

According to research by Cisco, most Malaysian respondents to the Cybersecurity Readiness Index said they anticipate cybersecurity incidents to affect their organization within the next 12 to 24 months (95%). As a result, the Malaysian government is tightening cybersecurity laws by drafting a new cybersecurity bill. In June, Prime Minister Datuk Seri Anwar Ibrahim declared that the nation would immediately begin drafting a Cybersecurity law. The National Cybersecurity Committee decided to make sure that all pertinent parts of the law were finished. Such laws are anticipated to offer new growth opportunities to the Malaysia Cybersecurity market during the forecast period.

Restraints

Low Cybersecurity Adoption Rate among SMEs

According to a recent index by Cisco, only 16% of Malaysian firms are at the 'mature' level of readiness required to be resistant to current cyber threats. Companies lack awareness regarding cybersecurity requirements and constantly face issues of risk and compliance. Furthermore, the increasing sophistication of cyber threats and constantly changing cybersecurity technology prove to be overwhelming as well as a financial burden for small and medium-sized enterprises, which may act as huge restraining factors for the Malaysia cybersecurity market.

Impact of COVID-19 on Malaysia Cybersecurity Market

The Malaysia cybersecurity market witnessed boisterous growth after the COVID-19 pandemic outbreak in the country. Additionally, as a result of the COVID-19 pandemic, nation-state cyber activity has increased in depth and severity because traditional methods of gathering intelligence and knowledge are no longer practical due to social norms that encourage distance. Furthermore, during the lockdown caused by the coronavirus, the number of cyberattacks directed at enterprises has significantly grown, principally leading to an increase in demand for qualified cybersecurity professionals and reliable solutions.

Malaysia Cybersecurity Market

Segmental Coverage

Malaysia Cybersecurity Market – By Offering

Based on the offering, the Malaysia cybersecurity market is segregated into security types and services. The security type offering is further classified into cloud security, data security, identity access management, network security, consumer security, infrastructure protection, and other types. Identity access management covers a significant market share. The ability for employees to quickly access their personal data and files and manage their online identities makes identity management essential in today's workplaces. The demand for IAM proliferated significantly post the COVID-19 pandemic owing to the spike in work-from-home culture.

Malaysia Cybersecurity Market – By Deployment Mode

Based on deployment, the Malaysia cybersecurity market is segmented into cloud and on-premises. The on-premises accounted for a larger market share. On-premises apps are reliable and safe and give businesses control over their data that the cloud frequently lacks. However, cloud deployment is projected to register the highest CAGR during the forecast period. Organizations that intend to aggressively expand globally are increasingly turning to this type of deployment since it makes it easy for them to connect with clients, partners, and other companies wherever they are.

Malaysia Cybersecurity Market – By End User

Based on end user, the Malaysia cybersecurity market is segmented into BFSI, healthcare, manufacturing, government & defense, IT & telecommunications, and others. The BFSI sector dominates the Malaysia cybersecurity market. The use of remote work, hybrid workforces, and cloud-based software systems has almost completely taken over as the pandemic approaches its third year. Additionally, this implies that financial organizations now more than ever have possible cybersecurity weaknesses. Employees no longer exclusively use company-controlled networks and systems to access data. As a result, Malaysia is experiencing a huge increase in the demand for cybersecurity in the BFSI sector.

Competitive Landscape

Major players operating in Malaysia cybersecurity market include Symantec Corporation, Fortinet Inc., Cisco Systems, Inc., Trend Micro Incorporated, Palo Alto Networks, Inc., FireEye, Inc., Check Point Software Technologies Ltd, Kaspersky Lab, Sophos Ltd, and McAfee, LLC. 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 February 2023 – Siemens Energy, a Germany-based global energy development company, launched its cybersecurity operations center in Cyberjaya, Selangor, Malaysia.

Scope of the Report

By Offering

• Security Type

1. Cloud Security

2. Data Security

3. Identity Access Management

4. Network Security

5. Consumer Security

6. Infrastructure Protection

7. Other Types

• Services

By Deployment Mode

• Cloud

• On-premises

By End User

• BFSI

• Healthcare

• Manufacturing

• Government & Defense

• IT & Telecommunications

• Other