The endpoint security software market in Indonesia grew by 10.8% year-over-year (YoY) in 2H22, according to International Data Corporation’s (IDC) Worldwide Semiannual Software Tracker. In Indonesia, companies are increasing their investments in endpoint security software to protect their assets at endpoints, such as desktop computers, laptops, mobile devices, servers, and other devices connected to the network.
“As companies transition to more flexible work arrangements and continue to adopt cloud, mobile and IoT technologies, there is a noticeable increase in companies’ awareness of the importance of bolstering endpoint security to address cybersecurity risks to their business. The implementation of endpoint security software that combines preventive measures, endpoint detection & response (EDR), and robust hardening technologies plays a crucial role in mitigating attack attempts,” said Sandika Putra, Associate Market Analyst, IDC Indonesia.
IDC defines the endpoint security software market as products designed to protect physical and virtual endpoints, such as personal computing devices such as virtual desktop infrastructure , servers, virtual workloads, and smartphones from cyber-attacks through malicious code and behavioral detection, as well as reducing vulnerabilities through attack surface reduction techniques and impact radius limitations across various operating systems (e.g., Windows, Linux, macOS, iOS, Chrome OS, and Android).
According to the IDC 2022 Trust & Security Survey, Indonesian companies are already implementing trust and security strategies aimed at sustainability, cost savings, and business resilience. However, the IDC Cybersecurity Outlook 2023 report highlights that organizations are currently grappling with growing complexity in their infrastructure environments, particularly with the adoption of multi/hybrid cloud operations. Furthermore, the implementation of work-from-home practices has expanded the parameters that companies need to defend, posing challenges in effectively managing security across diverse platforms and environments. The IDC 2022 Trust & Security Survey further reveals that 22% of Indonesian companies express concerns about intellectual property loss resulting from increasingly sophisticated cyber security attacks.
The endpoint security market can be divided 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. Corporate endpoint security has two main components: modern endpoint security and server security. Modern endpoint security protects personal computing devices by detecting malicious code and behaviors and taking appropriate actions to address threats. Server security focuses on safeguarding physical and cloud servers.
In Indonesia, CDLP is a significant portion of the endpoint market. In terms of growth, it is expected to grow at single digit as consumers now have access to built-in or free alternatives that offer similar features, including antivirus, anti-malware, anti-phishing, and even VPN services. In contrast, 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 increasing by 17.9% year-over-year. Server security is also gaining traction in Indonesia with a remarkable 28.1% year-over-year growth rate.
The importance of corporate endpoint security is influenced by various factors. The adoption of cloud-based digital business processes introduces new risks, requiring robust security measures to protect sensitive data and critical operations. Indonesia’s position as one of the top Asia/Pacific (excluding Japan and China) spenders in IoT technologies underscores 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 imposes obligations on organizations operating electronic systems to implement adequate security measures, aiming to safeguard against potential cyberattacks and enhance overall cybersecurity.
The endpoint security software market is expected to experience sustained growth as awareness of the importance of security increases in response to cybersecurity incidents in Indonesia, including high-profile data breaches involving several well-known companies in recent years. This growth will be further driven by the widespread adoption of remote work practices and the increasing use of cloud computing. IDC