Virtual spaces have created new opportunities for cyber-attacks, data leaks, company breaches and internal threats. As a result, chief information officers (CIOs) have had to balance the benefits of digital transformation with the risks of cybersecurity threats by implementing various security measures and strategies to protect their company’s data and operations from potential attacks.
In recent years, cybersecurity has become a booming market in the Middle East and Africa (MEA) primarily driven by the region’s rapid digitalisation and growing security consciousness. According to a report by IDC, the MEA cybersecurity market is witnessing nearly double-digit growth (9.4% CAGR 2021-2026) in cybersecurity expenditures, presenting significant opportunities for both local and international players in the industry.
The growth in cybersecurity spending can be attributed to the increasing number of cyber threats and attacks in the region, which has led to a greater need for advanced security solutions and services. Spending will increase at a CAGR of 12.3% between 2021 and 2026 for cybersecurity software providers, while spending on security services will increase at a CAGR of 11.9%. This presents a lucrative market for cybersecurity companies looking to expand their operations in the MEA region.
For 2023, it is anticipated that MEA will spend a total of $5.4 billion on security, with security software and security services each contributing approximately $2.2 billion and hardware spending accounting for the remaining $1 billion. This projected spending reflects the increasing importance of cybersecurity in the region, as businesses and governments alike seek to protect themselves from a growing number of cyber threats. Additionally, this investment in security is expected to drive growth in the MEA cybersecurity market over the next few years. As such, companies are expected to continue prioritizing their security budgets to ensure they have the necessary tools and resources to safeguard their operations.
Major cybersecurity trends in the MEA region
Demand for Managed Detection and Response (MDR) services is on the rise, as it becomes increasingly difficult to manage security operations in-house due to a growing number of threats and a dearth of security resources. These services provide organisations with the expertise, technology, and resources needed to detect, investigate, and respond to cyber threats in real-time, allowing them to focus on their core business activities.
In addition, cloud adoption growth in the region has led to an increase in cloud security expenditures, particularly in the areas of posture management and cloud identity and entitlement management. As more businesses shift their operations to the cloud, there is a growing need for effective security measures to protect sensitive data and prevent cyber-attacks.
While cyber threats continue to evolve, it is crucial for companies to prioritize asset visibility and implement effective security measures. The MEA region is also interested in attack surface management, and asset visibility was a top priority for CISOs in the Middle East and Africa in 2023. This indicates that organisations are recognizing the importance of proactively managing their attack surface to prevent cyber-attacks and protect their assets.
In the MEA region, the strategy of security vendors was the most exciting development of the past year. Numerous global security vendors and service providers brought their services to the region via channel partners or partnerships with local service providers. This has resulted in increased competition and improved access to cutting-edge security solutions for businesses in the region.
Those with an established presence in the region have shifted towards localisation strategies by developing SOCs and PoPs to increase customer service adoption. This move has helped them to better understand the local market needs and provide customized solutions to their customers.
We observe a clear pattern of MEA telcos innovating and competing in the region’s cybersecurity services market amid increasing demand for secure digital infrastructure and the growing threat of cyber-attacks in the region. As such, it is expected that MEA telcos will continue to invest in cybersecurity services to meet the needs of their customers and remain competitive in the market.
Challenges and opportunities for CISOs
MEA CISOs’ top priorities in the present day are securing cloud transformation journeys and ensuring adequate asset visibility. However, they face numerous obstacles in achieving this, chief among them being a lack of cybersecurity talent. The shortage of cybersecurity professionals is a global challenge, and the MEA region is no exception. CISOs can explore innovative ways to address this talent gap, such as investing in training programs and collaborating with educational institutions to develop a pipeline of skilled cybersecurity professionals.
Multiple vendor management has also emerged as a result of the proliferation of cybersecurity technologies in the region. This approach allows organisations to leverage the expertise of different vendors and select the best solutions for their specific needs, while also reducing the risk of relying on a single vendor for all their cybersecurity needs. While the MEA organisation’s executive board has increased its focus on cybersecurity, this is a significant boost for securing cybersecurity budgets. Nonetheless, it places a tremendous amount of pressure on the CISO to ensure not only the deployment of cybersecurity controls, but also cyber resilience and business productivity.
As more businesses incorporate remote work and digital operations, it is crucial for companies to prioritize cybersecurity measures and invest in employee training to prevent these potential risks. One of the most effective ways CIOs have been able to balance competing priorities is by investing in advanced technologies to enhance their cybersecurity capabilities. IDC data highlights that the increased adoption of cloud-based services and the Internet of Things (IoT) in the region is further fuelling the demand for cybersecurity solutions. This is expected to continue in the coming years, making MEA a lucrative market for cybersecurity companies.
