Philippines Cybersecurity Market

The Philippine cybersecurity market is expected to grow by 13% to $387.10 million by 2028. A 2023 survey of 100 Philippine firms showed that at least one in 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.

Key vertical markets for cybersecurity include the Philippine government, the business process outsourcing (BPO) industry, the financial sector, healthcare, education, and telecommunications. Robust cybersecurity measures are increasingly critical as the country positions itself as a global data center hub. The pandemic has accelerated the use of digital payment and fintech platforms. Software sales in the Philippines are forecast to reach $1.26 billion by 2028.

As the Philippine government moves towards digital transformation, it has enacted laws and policies to recognize 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, mostly from the United States. U.S. Information technology companies are highly regarded worldwide for their innovation, quality products, and after-sale service, making them highly competitive in the Philippine’s cybersecurity IT subsector market.

New entrants are highly encouraged to find a local partner, agent, or distributor, especially when bidding on a government tender. Key partnering opportunities include areas of information and network security, IT auditing and consulting, digital forensics, threat intelligence, software development, and more. 

For more information and to connect with potential partners, please contact Easter Villanueva at Easter.Villanueva@trade.gov.