Cyber security big business in China
Cyber security market revenues in China totaled $4.9 billion (€3.7 billion) in 2012 and could potentially double over the next five years, ABI Research estimates.
“As the market for internet and mobile security products matures, especially on the consumer end, the demand for quality solutions and the focus on the end-user experience will become more important,” said Michela Menting, senior analyst.
ABI Research said that the Chinese market for cyber security is rapidly growing, highly lucrative, and potentially vast. The Chinese economic and political system has proved favorable to the growth of a dynamic IT security market and the state has invested heavily in technologies, people and processes, and actively supports the domestic private sector in cyber security solutions.
Government efforts to promote the market have provided an immense opportunity for the development of a highly specialized homegrown internet and IT security market, it added.
However, China embraces a protectionist economy that places a significant barrier to entry for foreign firms to the advantage of Chinese companies. Yet even these seemingly favorable conditions for the Chinese domestic industry have not been able to restrain a brutally competitive and distorted market.