Panama Cybersecurity

Panama’s going digital - fast! With 70% of people being online and with e-commerce taking off, Panama’s growing digitalization is creating numerous business opportunities, but also resulting in a growing number of cybersecurity vulnerabilities and concerns.  For example, ransomware attacks jumped by 30% in just one year! As a result, the government is pushing for better security in their “Panama Hub Digital 2025” plan. This means there’s a large need for strong cybersecurity solutions. Success in the market will center on partnerships, require attention to cost sensitivity, and address talent shortages, all while cybercrime continues to increase (Est. at 30% YoY.)

Products including managed security services, cloud security (which is growing by 25% every year), threat intelligence, and data protection technologies are in high demand. U.S. companies, known for their top-notch products and services and know-how, are in an ideal position to grab a piece of this market. Finding good local partners is a must to help get your foot in the door.

But there are challenges. Panama has a shortage of cybersecurity experts, and a lot of smaller businesses don’t fully understand the risks. There’s also competition from other companies in the area, and you will need to focus on quality, as many customers are price-driven in Panama. You also must follow the data protection laws (Law 81), which can be complex. Lastly, consider that the distribution and delivery of services and support in rural areas of the country can be tricky.

To succeed, you need to build trust by working with local partners and demonstrate your expertise. Keys to success include using tailored solutions, providing training programs, providing a high level of customer support, staying on top of changing rules, keeping up with new threats, finding skilled workers, dealing with budget limitations, and building strong relationships with both government and private customers.

The cybersecurity market is a mix of well-known international players like Cisco, Fortinet, and Palo Alto Networks. There are local companies that offer full systems, and newer managed security service providers are entering the market. Government agencies are also pushing for better cybersecurity, and the market is moving towards cloud security and managed services. 

If you are interested in the Technology Sector in Panama, contact your local U.S. Commercial Service office in the U.S. or Kenneth Delvalle, Commercial Specialist in Panama by email at Kenneth.Delvalle@trade.gov.