Asia-Pacific Critical Infrastructure Protection Market Outlook, 2029

In the recent decades, critical infrastructure protection in the Asia-Pacific region has been subject to tremendous change. The initial APAC critical infrastructure protection was focused on physical security measures due to rapid industrialization and economic growth which most countries in the region have been subject to. The initial efforts were majorly directed to protection against physical damage of assets such as transportation systems, energy installations, and communication systems. With this shift of emphasis in thinking and the strengthened infrastructural set-up of IT networks, CIP increasingly started leaning on cyber threats.

From the early 2000s, APAC countries had started growing an understanding of the fact that critical infrastructure was becoming more integrated and digitized. This then resulted into the development of numerous structures and laws around cybersecurity guarding against cyber threats and promoting the resilience of critical infrastructure. The Asia Pacific is currently the new base for cybercrimes. The number and the level of cyber-attacks have sharply risen in the region. The World Economic Forum reported that it is the region where cyber incidents are mushrooming. On the other hand, mega-breaches for Asia-Pacific organizations have increased over the past three years.

In 2023, PwC reportedly noted that, over the last three years, 35% of organizations are said to have been breached, incurring a cost ranging between USD 1 million and 20 million. Proliferation of connected devices and rapid adoption of digital technologies have exposed critical infrastructures, like energy grids, financial systems, and healthcare networks, to cyber threats. One New Zealand has had an outstanding success in the fight against cyber threats, it has conducted the service Malware Free Networks. Just within the first six weeks after launching, the MFN service has managed to block 313,000 phishing scams and other harmful threats.

Peace of mind being the catchphrase, it's important to understand that One New Zealand is the only telecom business in Aotearoa deploying cybersecurity functionalities within the network in partnership with DEFEND and the GCSB's National Cyber Security Centre. It's a big challenge of the CIP market to integrate various imperative security systems and ensure its interoperability by nature.

According to the research report "Asia-Pacific Critical Infrastructure Protection Market Outlook, 2029" the Asia-Pacific Critical Infrastructure Protection market is anticipated to grow with more than 5% CAGR from 2024-2029. Most organizations often employ more than one security solution in the different segments of the infrastructure, which brings compatibility issues and fragmented protection efforts. A lot of organizations, particularly in developing regions within the APAC, face resource constraints and budget limitations, as it negatively impacts the ability to invest in advanced security solutions. Balancing between the need to have strong protection and the available finances is hard.

The adoption of international cybersecurity standards, for instance, ISO270001, is taking place by more organizations in the APAC. Use of the blockchain technology is being viewed as a way to protect critical infrastructures. Devices that run on blockchain are applied to transaction security, data integrity, and access control because it is decentralized and unalterable. Last September of this year, the government of Japan channeled P1.5 trillion or $26 billion to infrastructure projects through an official development assistance with its aim of financing transport infrastructure programs.

The North-South Commuter Railway (NSCR) Project, the Metro Manila Subway Project (MMSP), LRT-1 Cavite Extension, LRT-2 East Extension, and MRT-3 Rehabilitation all of these are part of the transportation development programs being implemented, according to the Department of Transportation (DOtr). Best exemplified in this respect is that an organization like the Asia-Pacific Computer Emergency Response Team (APCERT) helps where their membership enables information sharing about threats being witnessed and best practices.

Market Drivers

• Investment in Resilient Smart Cities: APAC is heavily investing in developing resilient smart cities to cope with rapid urbanization and environmental challenges. These investments focus on integrating advanced technologies into urban infrastructure to enhance resilience against natural disasters and climate change impacts. As these smart city initiatives progress, there is a growing need for CIP solutions that protect these technologically advanced and interconnected urban environments from cyber and physical threats.
• Focus on Critical Resource Security: APAC countries, particularly those heavily reliant on resource-intensive industries, are focusing on securing critical resources such as water, energy, and rare minerals. Nations like China and India are prioritizing the protection of their critical resource infrastructures due to their strategic importance for national security and economic stability. This focus drives demand for specialized CIP measures to safeguard these vital resources.

Market Challenges

• Integration of Legacy and Modern Systems: APAC faces a challenge in integrating legacy systems with modern infrastructure and security technologies. Many countries have a mix of old and new infrastructure, which complicates the implementation of cohesive and up-to-date CIP measures. The difficulty in synchronizing these disparate systems can create vulnerabilities and hinder the effectiveness of security protocols.
• Varied Threat Landscape Across Countries: The APAC region experiences a highly varied threat landscape due to its diverse geopolitical and socio-economic environments. Different countries face unique security challenges based on their specific threats, ranging from cyber espionage in technologically advanced nations to physical security threats in politically unstable areas. This diversity complicates the development of standardized CIP strategies across the region.

Market Trends

• Adoption of Advanced Analytics for Predictive Security: There is a growing trend in APAC towards using advanced analytics and machine learning for predictive security in critical infrastructure. By analyzing large volumes of data, organizations are able to anticipate and mitigate potential security incidents before they occur. This proactive approach helps in enhancing the security posture of critical infrastructure by identifying vulnerabilities and potential threats in advance.
• Increased Focus on Supply Chain Security: APAC is seeing a heightened emphasis on securing supply chains, especially in light of global disruptions and trade tensions. Countries are implementing measures to protect critical supply chains from disruptions caused by geopolitical conflicts, natural disasters, or cyber attacks. This trend involves integrating CIP measures into supply chain management processes to ensure the continuity and security of essential goods and services.

The growth driver for the APAC region in physical security and safety for critical infrastructure protection is an urgent need to address the peculiar security issues within the region, trying times of rapid urbanization and industrialization.

The APAC region includes some of the world's fastest-growing economies, which has precipitated a resultant surge in infrastructure development and subsequently risen demand for robust security measures within the same. The region still remains prone to natural disasters, terrorism, geopolitical tensions, and other types of threats against which only comprehensive physical security solutions could secure the concerned regions. Meanwhile, with the rise of cyber threats and the connectedness of modern infrastructure, there is an increased need for integrated security approaches that tie both physical and cybersecurity measures together.

Governments within the APAC region are massively investing in protection of the critical infrastructure; therefore, initiatives such as the Belt and Road Initiative by China and the Smart Cities Mission by India drive demand for advanced security technologies. On the technological growth side, countries like Japan, South Korea, and even China have hugely supported the adoption of fresh innovative solutions in security, including AI-powered surveillance, biometric systems, and IoT-based security management platforms. Furthermore, the APAC market attracts hefty investments by domestic and international players alike, fostering growth and innovation in the physical security sector.

Besides, the huge population and the need to protect critical infrastructure in densely populated areas have driven home demands for effective and efficient security solutions. As such, the APAC region is fast getting established as a core market for physical security and safety, wherein growth will be propelled by the need to respond against developing threats, protect critical infrastructure, and support continued economic development.

Growth in the Energy & Power sector in the APAC region, the critical infrastructure protection market, is largely driven by the increasing vulnerability of energy systems to cyber threats and the subsequent need for advanced security measures to be implemented in order to protect such critical assets.

Energy is the backbone of all modern economies; without it, industry and life would grind to a halt. In a very short period of time, rapid digitization and integration of smart technologies into energy systems have improved efficiency and management such as through smart grids. This has been accompanied by the exposure of energy infrastructures to a wide array of cyber threats. High-profile incidents have underpinned with great force that cyber security sector-wise is critical and has strengthened calls for action at an accelerated rate in the wake of the Colonial Pipeline ransomware attack in the U.S. and persistent cyber threats against the Ukrainian energy grid.

In response, governments and organizations across APAC are already prioritizing investments in CIP solutions to mitigate these risks. The energy profile of the APAC region comprises a mix of traditional sources like coal and oil, but rapidly growing focus on renewable energy. This shift toward renewable sources of energy helps the goals related to sustainability but adds new layers of complexity and vulnerability that have to be catered for.

For example, interconnectivity in renewable energy systems gives rise to potential failure points that might be used by cyber attackers. Accordingly, it has been found that energy companies have increasingly adopted cutting-edge cybersecurity frameworks that integrate both physical and cyber security in protecting the operational technology environments.

Solutions dominates the APAC critical infrastructure protection market, driven primarily by stringent cyber-security laws and regulations in the region, coupled with rising investments in critical infrastructure projects.

The APAC critical infrastructure protection market is growing drastically due to governments tightening cybersecurity regulations across the region. This will then force companies to ensure that their technology systems are secure and compliant, hence making it binding to adopt or maintain robust critical infrastructure protection solutions. For instance, the Chinese government alone is likely to build a total of 450 airports by 2035 nearly double the current number and its transport infrastructure spending alone surged to $327.77 bln in Sep 2018, rising 1.4% from the previous year. These types of initiatives are expected to drive demand for critical infrastructure protection solutions in the region.

Global players, such as BAE Systems PLC, hold the top position in the APAC market. It offers national security clients and commercial customers alike powerful solutions for national security missions, coupled with advanced capabilities in cybersecurity and intelligence to safeguard information of critical importance. Other major players include Lockheed Martin, Northrop Grumman, and Honeywell International Inc. Such companies lead in developing cutting-edge protective measures in real-time threat detection systems, AI-driven monitoring, and converged security frameworks.

These innovations are absolutely essential for dealing with the surging complexity and diversity of critical infrastructure threats, including cyberattacks and natural catastrophes. The APAC critical infrastructure protection market has been segmented based on security technology, such as network security, physical security, secure communication, radars, and SCADA security; services, namely, risk management, integration, and managed services; vertical, which includes energy & power, transportation, and sensitive infrastructure; and by country, it includes China, Japan, India, Australia & New Zealand, ASEAN countries, and South Korea.

The massive infrastructure investments China is making, combined with strong governmental focus on cybersecurity and technological self-reliance, are turning it into a major player in the area of critical infrastructure protection.

China has been making huge investments in infrastructure expansion and modernization across all vital sectors, from energy to transportation, telecommunications, and urban development, since it is the second-largest economy in the world, with very ambitious development plans. This huge buildout of infrastructure came along with an automatically heightened concern for the protection of such vital assets from physical and cyber threats. The Chinese government has not only recognized the serious issues involved but has been instrumental in pushing critical infrastructure protection within the country. The 2017 promulgation of the Cybersecurity Law turned things around; it provided a wholesale framework for network security and data protection.

This law, together with a host of regulations that followed, has enforced stringent safety measures on the operators of critical information infrastructures and has fueled heavy investment in protection technologies. This has brought about an absolute need for self-reliance in technologies, and in particular, quickening domestic cybersecurity solutions development in light of international tensions and concerns over security within supply chains. With the drive for indigenous innovation on the increase, growth in Chinese cybersecurity firms corresponded to a complementary development of homegrown technologies designed for the protection of critical infrastructure.

Ambitious smart city programs and pervasive IoT technologies are opening new vulnerabilities within the urban infrastructure, which requires sophisticated protection measures. The leadership in the realm of 5G deployment has added further complexity to the security situation, requiring never-before-tried ways of safeguarding vastly connected and data-intensive systems. In particular, much attention was focused on protection in the energy sector of China, with its mix of traditional and renewable source combinations.

The gigantic investments that have been made in renewable energy and smart grid technologies have driven demand for specialized security solutions aimed at protecting these more complex and increasingly distributed systems. The BRI has been factored in, determinative of the course China's policy on critical infrastructure protection is to take. In so doing, China has been investing in infrastructure projects across many countries, bringing securing such assets to the forefront of its agenda by exporting Chinese security technologies and practices.

• In October 2023, GHD Digital announced the establishment of its Cyber key Infrastructure and Risk Centre of Excellence (COE), which is intended to defend enterprises, key systems and sensitive information from the escalating threat of cyberattacks.

Considered in this report

• Historic year: 2018
• Base year: 2023
• Estimated year: 2024
• Forecast year: 2029

Aspects covered in this report

• Critical Infrastructure Protection market Outlook with its value and forecast along with its segments
• Various drivers and challenges
• On-going trends and developments
• Top profiled companies
• Strategic recommendation

By Security Type

• Physical Security & Safety
• Cybersecurity

By Vertical

• Energy & Power
• BFSI
• IT & Telecommunications
• Government & Defence
• Transport & Logistics
• Oil & Gas
• Other Verticals

By Offering

• Solutions
• Service

The approach of the report:

This report consists of a combined approach of primary and secondary research. Initially, secondary research was used to get an understanding of the market and list the companies that are present in it. The secondary research consists of third-party sources such as press releases, annual reports of companies, and government-generated reports and databases.

After gathering the data from secondary sources, primary research was conducted by conducting telephone interviews with the leading players about how the market is functioning and then conducting trade calls with dealers and distributors of the market. Post this; we have started making primary calls to consumers by equally segmenting them in regional aspects, tier aspects, age group, and gender. Once we have primary data with us, we can start verifying the details obtained from secondary sources.

Intended audience

This report can be useful to industry consultants, manufacturers, suppliers, associations, and organizations related to the Critical Infrastructure Protection industry, government bodies, and other stakeholders to align their market-centric strategies. In addition to marketing and presentations, it will also increase competitive knowledge about the industry.


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