From 4.528% in 2001, the percentage of the Brazilian population with access to the internet rose sharply to 67.471% in 2017, as per the World Bank. Similarly, the numbers for Argentina stood at 9.781% in 2001 and 74.295% in 2017. The increasing penetration of the internet in South America has been followed by rapid digital transformation and the internet of things (IoT) revolution. An increasing number of companies are migrating their data to computer servers, while internet-connected sensors are being used in the region for smoother traffic and more-efficient industrial operations.

Sadly, all this technological advancement has also introduced the region to the world of cybercrime, which is why PS Intelligence expects the South American cyber security market to display a 22.7% CAGR during the forecast period (2018–2023), to reach $22,184.1 million in 2023 from $6,582.7 million in 2017. As more data goes online, the avenues for hackers, identity thieves, and other types of cybercriminals widen. Similarly, the rising usage of IoT is giving rise to the menace of IoT botnets, which are networks of computers and connected devices infected with malicious software.

Due to such technological advancements, cybersecurity solutions are becoming popular in the region’s government, aerospace and defense, IT and telecom, banking, financial services, and insurance (BFSI), retail, healthcare, education, manufacturing, and hospitality sectors. Among these, aerospace and defense companies generate the highest demand for cybersecurity solutions and services owing to the rising investments in the field of cyber defense. Additionally, BFSI firms also require a robust cybersecurity infrastructure, as their servers hold massive amounts of consumers’ financial data, which is the first thing cybercriminals look for.

Brazil held the largest share in the South American cyber security market during the historical period (2013–2017), and it will maintain its dominance till 2023. In 2017, almost 50% of the cyberattacks in the region were targeted at Brazil, while during 2015–2016, attacks on the websites of Brazilian companies and government agencies skyrocketed by 270%! During the forecast period, the highest CAGR in the market is projected to be witnessed in Peru owing to the increasing number of internet users and adoption of advanced technology in its public sector.

Thus, as digital transformation in the region attracts cybercriminals, the demand for effective cybersecurity solutions and services will rise here.