Indonesia’s endpoint security software market sees growth

Endpoint security software plays a crucial role in countering attack attempts

According to the International Data Corporation (IDC) Worldwide Semiannual Software Tracker, the endpoint security software market in Indonesia witnessed a year-over-year growth of 10.8 per cent in the second half of 2022. Companies in Indonesia are increasingly investing in endpoint security software to protect their assets at various endpoints, including desktop computers, laptops, mobile devices, servers, and other network-connected devices.

The shift towards flexible work arrangements and the adoption of cloud, mobile, and IoT technologies have heightened companies’ awareness of the importance of bolstering endpoint security to mitigate cybersecurity risks. Implementing endpoint security software that combines preventive measures, endpoint detection and response (EDR), and robust hardening technologies plays a crucial role in countering attack attempts, as highlighted by Sandika Putra, Associate Market Analyst at IDC Indonesia.

Endpoint security software refers to products designed to safeguard physical and virtual endpoints such as personal computing devices (e.g., virtual desktop infrastructure), servers, virtual workloads, and smartphones against cyber-attacks through the detection of malicious code and behaviours. These solutions also aim to reduce vulnerabilities through attack surface reduction techniques and limit the impact radius across different operating systems, including Windows, Linux, macOS, iOS, Chrome OS, and Android.

The IDC 2022 Trust & Security Survey reveals that Indonesian companies are already implementing trust and security strategies focused on sustainability, cost savings, and business resilience. However, the IDC Cybersecurity Outlook 2023 report indicates that organizations are grappling with increasing complexity in their infrastructure environments, particularly with the adoption of multi/hybrid cloud operations. Additionally, the widespread adoption of work-from-home practices has expanded the security parameters that companies need to defend, posing challenges in effectively managing security across diverse platforms and environments. The survey further highlights that 22 per cent of Indonesian companies express concerns about intellectual property loss resulting from sophisticated cyberattacks.

The endpoint security market can be categorized into two segments: consumer digital life protection (CDLP) and corporate endpoint security. CDLP provides comprehensive cybersecurity solutions to protect users’ devices, data, and online activities, enhancing their digital security and online experience. In contrast, corporate endpoint security comprises modern endpoint security and server security. Modern endpoint security focuses on protecting personal computing devices by detecting malicious code and behaviours, while server security aims to safeguard physical and cloud servers.

In Indonesia, CDLP constitutes a significant portion of the endpoint market. However, its growth is expected to be in the single digits due to the availability of built-in or free alternatives that offer similar features, including antivirus, anti-malware, anti-phishing, and VPN services. On the other hand, corporate endpoint security is experiencing stronger growth driven by the increasing adoption of cloud-enabled infrastructure and mobile work practices. The modern endpoint security market in Indonesia is growing by 17.9 per cent year-over-year, and server security is gaining traction with an impressive growth rate of 28.1 per cent year-over-year.

The significance of corporate endpoint security is influenced by various factors. The adoption of cloud-based digital business processes introduces new risks, necessitating robust security measures to protect sensitive data and critical operations. Additionally, Indonesia’s position as one of the top spenders on IoT technologies in the Asia/Pacific region highlights the need for strengthened endpoint protection. As the number and diversity of threats increase, organizations face significant challenges in securing endpoints, leading to the adoption of new approaches and tools for endpoint security. In the Indonesian context, regulatory factors also drive the need for server security. The BSSN Regulation mandates organizations operating electronic systems to implement adequate security measures to safeguard against potential cyberattacks and enhance overall cybersecurity.

The endpoint security software market is expected to continue its growth trajectory as awareness of the importance of security intensifies in response to cybersecurity incidents in Indonesia, including high-profile data breaches involving well-known companies in recent years. This growth will be further propelled by the widespread adoption of remote work practices and the increasing utilization of cloud computing.

 

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