South Africa’s Cybersecurity Market Set to Hit R165 Billion Amid Rising AI and Cloud Security Demand

South Africa’s cybersecurity services market is projected to reach R165 billion over the next five years, according to new research by BMIT. The report highlights rapid digital transformation, the rise of hybrid work models, and growing cloud adoption as key drivers fueling the expansion of the country’s cybersecurity ecosystem.

The study examines the core factors shaping the local market, including the increasing sophistication of cyberattacks, heightened regulatory enforcement, and escalating investments in cloud and identity security. It estimates the current value of the South African cybersecurity services market based on BMIT’s IT services model, with revenues forecasted to grow steadily as enterprises boost spending on cyber resilience and risk management.

Artificial intelligence (AI), automation, and managed security services (MSS) are identified as major growth accelerators. The integration of AI into cybersecurity tools is enhancing threat detection, response times, and predictive analytics—helping businesses reduce the cost and frequency of breaches. Similarly, MSS providers are becoming vital partners for organizations seeking round-the-clock protection and compliance with frameworks such as POPIA and global data privacy standards.

However, the report also underscores several challenges holding back market growth, including a persistent skills shortage, budget constraints, and fragmented vendor ecosystems. These challenges are compounded by the high cost of cyber incidents in South Africa, which continues to rank among the top in the world for frequency and impact of data breaches.

Local market trends indicate increased investment in Zero Trust Network Access (ZTNA), Identity and Access Management (IAM), and cloud security architectures. Companies are also turning to cyber insurance and integrated cybersecurity mesh platforms to consolidate their security operations and reduce costs.

The research methodology combined quantitative and qualitative insights through interviews with South African IT leaders, supported by secondary data sources and forecasting models. It segments the market by technology area, vertical industry, and company size to provide a granular forecast of cybersecurity expenditure through 2030.

BMIT’s findings position South Africa as a maturing cybersecurity market—one that is evolving rapidly in response to a complex threat landscape, rising compliance demands, and the accelerating adoption of AI and cloud technologies across industries.