Report Overview

Digital transformation and rising awareness of the potential financial and reputational damage caused by cyber attacks are expected to boost the growth of South Africa Cybersecurity market during the forecast period between 2023 and 2029.

South Africa Cybersecurity Market - Industry Trends & Forecast Report, 2029

South Africa cybersecurity market size was estimated to be worth USD 3.28 billion in 2022. During the forecast period between 2023 and 2029, the South Africa Cybersecurity market size is projected to grow at a CAGR of 20.45% reaching a value of USD 10.02 billion by 2029. Major growth factors for the South Africa cybersecurity market include the adoption of IoT and the BYOD trend, as well as an increase in malware and phishing threats among businesses. The demand for digital data security has arisen due to the quick adoption of digital technologies for data collection, storage, analysis, and sharing, which is also emerging as a key element fueling the expansion of the South African cybersecurity market.

South Africa 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.

South Africa Cybersecurity Market

Growth Drivers

Increasing Rate of Cyberthreats and Data Breaches

South Africa recorded 230 million threat detections overall in 2022, according to INTERPOL's 2022 Africa Cyber Threat Assessment report. About 219 million of the 230 million threats that were found across the nation were tied to email. The size of the country's cybercrime problem is further illustrated by estimates that 577 malware attacks take place every hour and that fraud on mobile banking applications has increased by 100%. As a result, the South African government is taking initiatives to strengthen cybersecurity in the country. The Minister of Justice, Ronald Lamola, recently announced that South Africa has signed a cooperation protocol agreement with France to improve its cybersecurity defenses.

Restraints

High Implementation Cost

The adoption of cybersecurity solutions by SMEs is hampered by the high cost of implementation and internet security solutions and services, which is predicted to restrict South Africa cybersecurity market growth.

Impact of COVID-19 on South Africa Cybersecurity Market

South Africa cybersecurity market witnessed unprecedented growth post the COVID 19 pandemic outbreak. The government as well as payment platforms were overburdened with traffic and exposed to threats. According to the Cybersecurity Institute, an unanticipated technical issue with the South African Social Security Agency's payment system prevented over 450,000 social grant recipients from receiving their urgently needed financial assistance, while over 435,000 people received double payments. The cybersecurity deployment in South Africa spiked following pandemic to prevent such glitches, propelling the overall market growth.

South Africa Cybersecurity Market

Segmental Coverage

South Africa Cybersecurity Market – By Offering

Based on offering, the South Africa cybersecurity market is segmented into security type and services. The services segment holds a larger share in the South Africa cybersecurity market by offering and is projected to register highest CAGR during the forecast period. The extensive adoption of cybersecurity technologies among SMEs is directly influencing the demand for security services in the country. However, the security type also covers substantial market share owing to rising demand for identity access management among organizations.

South Africa Cybersecurity Market – By Deployment Mode

Based on deployment, the South Africa cybersecurity market is split into cloud and on-premises segment. The on-premises deployment mode accounts for a larger market share. On-premises deployment gives organizations control over their data that the cloud frequently lacks and is dependable and secure. However, cloud deployment is anticipated to register highest growth rate during the forecast period. This form of deployment is becoming more popular among businesses with aggressive worldwide expansion plans since it makes it simple for them to communicate with customers, partners, and other businesses wherever they are.

South Africa Cybersecurity Market – By End User

Based on end user, the South Africa Cybersecurity market is segmented into BFSI, healthcare, manufacturing, government & defense, IT & telecommunications, and others. The BFSI segment dominates the South Africa cybersecurity market. The BFSI sector is exposed to cyber threats as a result of the rapid digitization of banking operations and other financial institutions, as well as the growing adoption of advanced technologies like artificial intelligence, machine learning, blockchain, and others. As a result, the organizations are investing more in the adoption of cybersecurity technologies, driving the growth of the overall market.

Competitive Landscape

Major players operating in South Africa cybersecurity market include Dimension Data, Nclose, Bytes Technology Group, SensePost, CyberTech, Astute FSE, ContinuitySA, Telspace Systems, and Securicom. 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 – Sendmarc, a South Africa-based cybersecurity startup, raised USD 7 million in Series A funding to provide businesses with defense against email phishing and impersonation threats.

Scope of the Report

By Offering

• Security Type

• Services

By Deployment Mode

• Cloud

• On-premises

By End User

• BFSI

• Healthcare

• Manufacturing

• Government & Defense

• IT & Telecommunication

• Others