Philippines Cybersecurity Market
The Philippines is one of the largest markets for Business Process Outsourcing, meaning that much of the world’s data is held and processed in the country. There are growing concerns about the level of protection current cybersecurity solutions provide to protect this sensitive data in the Philippines.
The Philippine cybersecurity market is expected to grow by 13.11% to $387.10 million by 2028. A 2023 survey of 100 Philippine firms showed that at least one of four companies is exposed to cyber-attacks such as malware, phishing, and password-related breaches. Increased use of cloud-based platforms resulted in more significant risks from digital transactions and personal devices accessing corporate networks. The Philippine government itself has been a victim of malicious cyber-attacks that jeopardized the data privacy of millions of Filipinos.
The Philippine government, the business process outsourcing (BPO) industry, the financial sector, health, education, and telecommunications industries are key vertical markets for cybersecurity. Having robust cybersecurity measures is also becoming increasingly critical as the country positions itself as a data center hub. The pandemic has accelerated the use of digital payment and fintech platforms. The Philippines software revenue is forecast to reach $1.26 billion by 2028.
As the Philippine government moves towards digital transformation, laws and policies have been put in place in recognition of the importance of cybersecurity. Laws on data privacy and cybercrime prevention have been enforced since 2012, and three cybersecurity-related bills are being prioritized in Congress. In February 2024, President Marcos approved adopting the National Cybersecurity Plan 2024-2028, which outlines strategies and programs for protecting the State and its people in cyberspace, upskilling the cybersecurity workforce, and bolstering the cybersecurity policy framework.
The Philippine cybersecurity market is dominated by a few significant players that are mostly from the U.S. New entrants are highly encouraged to find a local partner, agent, or distributor, especially when bidding on a government tender.
For more information, please contact Easter Villanueva at Easter.Villanueva@trade.gov.